Topic: How To Invest

Dividend Advisor Hotline – Friday, December 2, 2016

Article Excerpt

BANK OF NOVA SCOTIA, $74.37, Toronto symbol BNS, is Canada’s third largest bank by assets and has the most international exposure. Its International Banking segment provides a wide range of financial services mainly in the Caribbean, Latin America, and Asia. The company last raised its quarterly dividend by 2.8%, with the October 2016 payment. Investors receive $0.74 a share for an annual yield of 4.0%. In the fourth quarter ended October 31, 2016, Bank of Nova Scotia earned $1.9 billion, or $1.58 a share. That’s a 8.4% jump from the $1.8 billion, or $1.46 a share, it earned a year earlier. The most-recent results beat the consensus estimate of $1.51. The stronger earnings are thanks to higher demand for new loans due to low interest rates. The bank’s recent restructuring plan—including job cuts—and its expanded online and mobile banking operations added to the higher earnings. In the quarter, earnings from the Canadian banking operations (49% of the total) rose 14.0%. In addition to…