One of the stocks I think long-term investors can’t go wrong with considering right now is Toronto-Dominion Bank (TSX:TD)(NYSE:TD). Both from a dividend and growth perspective, TD stock has been an outperformer for decades.

Those looking for solid long-term capital appreciation along with a yield of around 3.4% right now (which I see going higher over time) may want to dive into TD stock. This company’s consistent long-term returns and ability to benefit from rising interest rates are two solid reasons to consider this stock.

However, TD also provides another strong catalyst worth considering right now. Let’s dive in.

Hiring plans boosting outlook for TD stock

A company doesn’t hire thousands of employees if it doesn’t see a return on this investment. This core idea is one investors should keep in mind, when looking at TD’s recently released hiring plan.

TD Bank plans to hire over 2,000 tech workers in 2022. That’s over six times the number of additions in 2021. Strategically, TD is picking up the hiring pace, looking to battle competitive forces in the fintech world that are looking to eat TD’s lunch.

I have to say, I like this strategic move. Going on the offensive and ramping up one’s talent pool to be able to compete seems like a smart move. The company’s tech development has been good. However, other fintech companies have continued to offer attractive products that could derail TD’s plans to be a retail banking mega-giant.

This hiring plan is expected to increase TD’s headcount by more than 2%, so it’s material. However, many investors believe that the potential long-term gains from this move could outweigh the near-term costs. Indeed, the company’s tech portfolio will likely remain a hot item investors watch in the company’s upcoming earnings reports, particularly on this news.

Bottom line

For TD Bank, a company many view positively for its long-term cash flow growth, things are certainly looking up right now. Interest rates are set to rise, which should boost net interest margins. A company that continues to print cash should benefit in a big way from this macro environment.

However, the competitive landscape is something all investors should consider, with every investment. TD is far from the only bank out there. Further, there are high-growth fintech competitors offering better service with lower fees. These sorts of things are what keeps TD’s management team up at night.

The bottom line is, I like how TD is positioning itself right now. I think this investment makes sense. And I also think the market will appreciate this move over time. Accordingly, for those who needed just one more reason to buy TD stock, this could be it.

The post Another Reason to Buy TD Stock Right Now appeared first on The Motley Fool Canada.

More reading

• TD Bank vs. Suncor Energy: Which Cheap Stock Is Better?
• Why Cheap Stocks Are Beating Tech Stocks in 2022
• 3 Canadian Dividend Stocks for Lazy Investors
• My 3 Stock Picks for February 2022
• TFSA Passive Income: $81,500 to Earn While You Sleep

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.