Bank of Nova Scotia (BNS) announced a dividend increase of 2.86%. The quarterly dividend increases from C$0.70 to C$0.72 per share and payable on Apr 27, 2016, to shareholders of record at the close of business on Apr 5, 2016.
Bank of Nova Scotia is a Dividend Challenger and this is the 6th consecutive dividend increase from the company. The annual dividend amount increases from C$2.80 to C$2.88. Yield going forward is 5.26%.
From the earnings release statement:
“We delivered strong earnings to start 2016 with solid top line growth in both our Canadian Banking and our International Banking businesses,” said Brian Porter, President and CEO at Scotiabank. “The Bank’s diversified business model has delivered growth despite continued volatility in the markets and some moderation in select areas of our operations.”
“Canadian Banking’s focus on growing and deepening customer relationships continued to drive higher year-over-year earnings. These efforts resulted in strong volume growth in targeted areas across both retail and commercial loans and deposits, which improved our business mix and resulted in a 19 basis point increase in the net interest margin this quarter.”
“International Banking’s strong performance continued in the first quarter of 2016, with good year-over-year growth. The Pacific Alliance countries of Mexico, Peru, Chile and Colombia continued to deliver robust loan, deposit and fee growth – and we continue to see great potential in these markets.”
“The Bank’s Common Equity Tier 1 capital ratio remains strong at 10.1%. We increased our quarterly dividend 2 cents to 72 cents per share – 6% higher than a year ago.”
“We remain focused on building an even better Bank. With a strong team in place, we are executing against a strategy that will drive value for shareholders.”
Our portfolio consists of 45 shares of BNS, which increases our annual dividends from C$126.00 to C$129.60, an increase of C$3.6.