Bank of Nova Scotia (BNS) Dividend Increase

Bank of Nova Scotia (BNS, BNS.TO) announced a 3.12% increase in its cash dividend. The quarterly cash dividend will increase from $0.64 to $0.66 per share and payable on Oct 29, 2014 to shareholders on record as of Oct 7, 2014. This is the second dividend increase in 2014 and the dividend increase YTD is 6.45%.In the release of the third quarter results today, the bank reported the following figures (compared to Q3 2013).
  • Net income of $2,351 million, up 35% from $1,747 million
  • Earnings per share (diluted) of $1.85 compared to $1.36, up 36%
  • Earnings include $555 million or 45 cents per share related to the sale of a majority of the bank’s investment in CI Financial Corp. (“the notable gain”)
  • ROE of 20.6%, compared to 17.2%
  • Productivity ratio of 47.8%, versus 51.6%
  • Quarterly dividend of 66 cents per common share

The annual dividend rate goes up from $2.56 to $2.64. I have an ongoing DRIP plan with BNS.TO and based on yesterday’s closing price, the current yield is 3.56% and my YOC is 4.05%.

10 thoughts on “Bank of Nova Scotia (BNS) Dividend Increase

    • Oops. Thanks for spotting the mistake. Ive corrected the numbers now.

      It sure is music to my ears 🙂 Too bad they missed earnings by $0.01 and the stock is down. If it werent for my DRIP account, I would buy more today.

      Best wishes

  1. Happy to hear about the BNS dividend bump. August has been a Canadian month for me as I added three new positions. TD, BNS and RY. Happy to be on board the Canadian dividend train.

    • You picked great ones. I would love to own the other two banks as well. For now, I just own BNS. The loonie dropped a bit recently as well – so hopefully the bump will help you out in evening the drop in converted income.


  2. R2R,

    Really loving these semi-annual raises from BNS and TD. They’ve been fairly solid investments for me thus far and I’m happy. Of course, it’s hard to not be happy when you’re being told you’re going to get more money! 🙂

    Best wishes.

  3. Yay. As the most international bank out of the big 5 I’m happy to see BNS is still growing its business and staying competitive within Canada 🙂 I think my YOC is also around 4%. I’m long both BNS and TD 😀 Investing in well capitalized banks is a no brainer because they are the only companies in the country that have the license to literally create money (credit.)

    • Hey Liquid, THAT is the most important point that a lot of people miss – that the banks can create money through credit. And more importantly, by design we have created a system where they have to keep growing without end in sight.

      Enjoy the div increase 🙂

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