Recent Buy – Bank of Nova Scotia

Scotiabank

I re-initiated my position in Bank of Nova Scotia (BNS.TO). After cancelling my DRIP plan with BNS earlier this month, I moved my funds over to a tax-sheltered account and bought the shares. Going forward, I will not be paying any dividend withholding taxes or capital gain taxes on my BNS holding. The stock is still approx 15% undervalued at current levels.

Read my full dividend stock analysis here.

22 thoughts on “Recent Buy – Bank of Nova Scotia

  1. Bank of Nova Scotia is a beautiful buy! I bought BNS at quite a high price and it hasn’t recovered ever since. I’ll be looking to buy more shares in the near future as well.

    • This is a bit of a reset button for me…as my cost basis was much lower with the DRIP program. Anyway, I think the long term benefits outweigh the short term stumble of taking a tax hit.

      Thanks for stopping by.
      R2R

    • Agent,
      Of all the banks out there, BNS is currently trading at quite a discount. Being the most geographically diversified Canadian bank also helps making it an easy decision to pick up.

      Let me know if you have any feedback after reading the analysis.
      cheers
      R2R

      • Very good analysis on SA. I didn’t realize they had so much exposure internationally. The more I read, it seems like it will be my first venture into the financial sector. 15% undervaluation and the dividend growth make it an excellent buy. Thanks for the analysis, as it is among the top on my watchlist.

  2. One of the things I like about BNS is that it has plans to expand out of Canada. However, out of all the major banks in Canada, BNS is of the least conservative.

    • Jeff,
      BNS is already the most international of the banks with operations in over 55 countries. They have huge operations in Mexico and Peru – and a large chunk of their income is derived from these countries. I have discussed some of the details in the stock analysis article linked in the post.

      Best wishes
      R2R

    • Thanks Seraph,
      I hate paying the taxman. Growing my investment tax free wins hands down anyday. BNS is a fantastic company and I will continue building my position as the years go by. Hard to beat that 180 years of unbroken chain of dividends.

      R2R

  3. Nice purchase R2R. You can’t ever go wrong ading a Canadian bnak to your portfolio. I like the tax planning as well. Smart move to place the company in a tax-free account.

    Bert, One of the Dividend Diplomats

  4. Nice write-up on BNS. I already have a small position of BNS in my portfolio as well and am looking to add more sometime in the next few months, either them or RY. Love the long term, steady dividend growth.

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