Bank of Nova Scotia Dividend Stock Analysis 2017

Bank of Nova Scotia (BNS) is the third largest of the Canadian banks by market cap. The company provides a diversified array of financial services operating via four segments: Canadian Banking, International Banking, Global Banking and Markets, and Other. Scotiabank, as it is commonly known, is the most international of the Canadian banks with an extensive operation outside Canada. BNS was founded in 1832 and is headquartered in Halifax, Canada.

A Closer Look

Bank of Nova Scotia’s peers include Royal Bank of Canada (RY), Toronto-Dominion Bank (TD), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CM)

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. Most of these institutions have existed and paid dividends for more than 150 years and make for great core positions in any investor’s portfolio.

Bank of Nova Scotia is touted as the most international of the Canadian banks and is well diversified across various geographies. Over the last few years, the bank has decided to pull back from some Latin American markets, but has increased its exposure to other countries such as Mexico, as it sees better opportunity.

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Bank of Nova Scotia Dividend Increase

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.

Bank of Nova Scotia (BNS) Dividend Increase


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%.

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