Bank of Nova Scotia Dividend Stock Analysis 2015

Scotiabank

Bank of Nova Scotia (BNS) is one of the Canadian banks – the third largest of the Big Five. Scotiabank, as it is more commonly known, has the most international presence of the Canadian banks with exposure in 55 countries outside Canada. The Canadian banks are regarded as some of the safest financial institutions in the world. The companies have a long track record of being conservative and focused on long-term stability and prosperity.

BNS has existed as an institution since 1832 and paid dividends since the same year – an unbroken chain and no dividend cut. It makes for a great core position in any investor’s portfolio. There are plenty of headwinds facing the Canadian economy and the banks – including a recession, weak Canadian dollar, possibility of a housing bubble and potential crash, which has led to very attractive valuation levels for investors looking to initiate or add to their positions. This article takes a closer look at the stock and provides a full dividend stock analysis.

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Bank of Montreal Dividend Stock Analysis 2015

BMO

Bank of Montreal (BMO) is one of the Big Five Canadian banks and is the oldest Canadian bank. Although the market cap makes it the second smallest of the Big Five, BMO has a strong history that has stood the test of time since the early 19th century. The Canadian banks are regarded as some of the safest financial institutions in the world. The companies have a long track record of being conservative and focused on long-term stability and prosperity.

BMO has existed as an institution since 1817 and paid dividends since 1829, and makes for a great core position in any investor’s portfolio. There are plenty of headwinds facing the Canadian economy and the banks — including a recession, weak Canadian dollar, possibility of a housing bubble and potential crash, which has lead to very attractive valuation levels for investors looking to initiate or add to their positions. This article takes a closer look at the stock and provides a full dividend stock analysis.

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Outlook for August 2015

Outlook-Aug2015

We are well into the summer trading season. Q2 earnings are in full swing and the results on the surface seem better than expected, especially since most companies seem to be beating the expected dismal earnings estimates. But looking at the top-lines and its lower revenues all around in most of the large caps. Of course, there are exceptions with some companies reporting great numbers all round. The overall market still hovers close to the peak – with the Nasdaq lately reaching all time highs.

On the Fed front, Chairwoman Yellen has repeatedly indicated that one rate hike this year can be expected, although a growing number of economists question how the Fed can justify this while the global markets remains under pressure – and deflation is starting to rear its head again. In Canada, the Bank of Canada lowered the overnight interest rate again in July by 25 basis points following a 25 basis point cut in January 2015. The rate now stands at a low 0.50%. Most predictions expect this rate to be stagnant for the rest of the year.

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Chatter Around the World – 107

Chatter Around the World is a curated weekly update of articles related to economics, investing, dividends and personal finance. In these weekly updates, I also capture my blog updates and news related to my portfolio holdings.

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20-Year Annualized Returns

Image Source: JP Morgan Guide to the Markets 3Q 2015 (Chart #65)

Let’s dive into the links that caught my attention this week.

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Looking for Gold

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Earlier this week, I posted an article on gold as an alternative form of investment. Gold is one of the oldest and most popular forms of investments and has proven to be an excellent hedge against inflation. In that article, I discussed a few different vehicles that one can use to invest in gold. One of the methods is to invest by buying equity in gold mining  companies. This article looks at the beaten down sector, where some truly great value finds can be uncovered.

Why Gold?

Before we go into the details of which companies, lets first address what the role gold plays in this world. It has been touted by many as a useless barbaric metal that does not serve any purpose. I have to respectfully disagree with such comments as gold has proven to be the safe haven everyone runs to, when shit hits the proverbial fan. In a loose monetary policy environment where asset bubbles are inflated everywhere you look, we are stumbling on the verge of one catastrophe to the next. It is just a matter of time before we hit a new financial crisis.

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