1 Dividend Stock I’ll Be Checking in On Closely in 2026

Dividend growth investors might wish to make a list of names they’d be willing to buy and a desired price at which one might be willing to pull the trigger. Undoubtedly, just because valuations aren’t decent enough to convince you to back up the truck does not mean you shouldn’t keep tabs on a number of names going into the new year.

If you’ve been invested for at least five years, you probably know how quickly a stock market correction (or even a bear market like during the COVID crash) can hit, but, perhaps more importantly, you’ll have what it takes to spend more time reacting (think being a net buyer of stocks on the way down) and less time panicking or trying to figure out what just happened.

When you’re in a state of shock, as many investors were during the 2020 stock market plunge, it can be difficult to justify buying or even preventing yourself from selling some of your favourite stocks at a loss. In any case, in this piece, we’ll concentrate on some of the passive income plays that might be worth buying if we were to start off the new year with a swift correction. Given the Santa rally is nowhere in sight (at least not yet), turbulence might continue into January and perhaps the start of February.

For new, growth-oriented investors, such volatility is more of an opportunity, especially as we move into a climate that could be more conducive to individual stock selection and portfolio management, and less about passive indexing, which has been a quick and cost-effective strategy for many for such a long time now. In any case, let’s get into the dividend stock I’ll be adding to my watchlist.

TD Bank: Fresh off an incredible 2025. Can 2026 be just as good?

TD Bank (TSX:TD) has been a massive surprise for many in 2025, especially if you went into the year writing the big bank off for its troubles (think the money-laundering overhang), which now seems far behind the big bank. With shares of TD now up in the ballpark of 70% in the past year, the big question for investors is what comes next.

Though I expect the pace of gains to slow, perhaps drastically, I still find TD to be one of the best deals in the Canadian banking scene at 11.2 times trailing price-to-earnings (P/E). In essence, there’s no reason why TD stock can’t follow up on an exceptional year with a good one, especially as industry tailwinds stay robust.

While I’m hesitant to pound the table at all-time highs of around $130 per share, I do find the 3.3% dividend yield to be bountiful and worth collecting as TD enters a new phase of growth while management invests opportunistically.

Sure, TD Bank might not be a single-digit P/E bargain after a rebound year for the record books, but I still think the solid management can power the bank to gains that are at least as good as the TSX Index’s.

Personally, I think TD is a long-term hold for its unique advantages and potential for more value creation and dividend growth in the years to come. Eventually, a correction will hit, but until then, I’m not against nibbling, even at these unprecedented heights, which I’m sure few saw coming just a year ago.

The post 1 Dividend Stock I’ll Be Checking in On Closely in 2026 appeared first on The Motley Fool Canada.

Should you invest $1,000 in The Toronto-Dominion Bank right now?

Before you buy stock in The Toronto-Dominion Bank, consider this:

The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 15 best stocks for investors to buy now… and The Toronto-Dominion Bank wasn’t one of them. The 15 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,105.89!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 95%* – a market-crushing outperformance compared to 72%* for the S&P/TSX Composite Index. Don’t miss out on our top 15 list, available when you join Stock Advisor Canada.

See the 15 Stocks #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of November 17th, 2025

More reading

• This Dividend Stock is Set to Beat the TSX Again and Again
• TD vs. Royal Bank: Which Stock Offers Investors More for 2026?
• New Year, New Portfolio: 2 Canadian Stocks to Own to Diversify Well in 2026
• Here’s What’s Driving the TSX’s Top-Performing Stocks
• 3 Must-Own Blue-Chip Dividend Stocks for Canadians

Fool contributor Joey Frenette has positions in Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.