Bank of Nova Scotia (BNS) (BNS.TO) announced a 2.94% increase in its cash dividend. The quarterly cash dividend will increase from $0.68 to $0.70 per share and payable on Oct 28, 2015 to shareholders on record as of Oct 6, 2015 and ex-div date of Oct 2, 2015. This is the second dividend increase in 2015 and the dividend is up 6.06% from a year ago.
Forward yield based on current stock price is 4.67%.
According to the press release:
“We delivered solid third quarter results for shareholders, with strong earnings in our personal and commercial businesses in Canadian and International Banking,” said Brian Porter, President and CEO. “Our focus on customers across our diversified businesses contributed to our growth despite some challenging economic conditions.“
“Canadian Banking had a strong quarter with underlying performance up 15%. All of its key business segments – retail and small business banking, commercial banking and wealth management – delivered very good growth. We continue to make investments to enhance customer experience and drive sustainable earnings growth.“
“International Banking continued to show good growth momentum with earnings up 11%. Strong asset growth over the last year, primarily in the Pacific Alliance countries, complemented higher earnings in our other regions.“
“A strong capital position of 10.4% common equity, along with earnings growth, allows us to continue making investments in our businesses to further organic growth, make selective acquisitions, and pay our shareholders via dividends. We announced a dividend increase of 2 cents, bringing our quarterly payment to 70 cents per share.“
The annual dividend rate goes up from $2.72 to $2.80. My portfolio consists of 45 shares of BNS giving me a raise from $122.40 to $126.00 annually, an increase of $3.60.