Topic: How To Invest

Dividend Advisor Hotline – Friday, December 22, 2023

Article Excerpt

BANK OF NOVA SCOTIA, $63.32, Toronto symbol BNS, remains a buy. Bank of Nova Scotia last raised your quarterly dividend with the July 2023 payment. Investors now receive $1.06 a share, up 2.9% from $1.03. The new annual rate of $4.24 yields a high 6.7%. In the past few years, Bank of Nova Scotia has narrowed its international focus to four countries in Latin America—Mexico, Peru, Colombia and Chile. Those four markets—which the bank refers to as “the Pacific Alliance”—have favourable long-term demographics. The international division now accounts for 25% of the bank’s earnings. However, earnings from these countries have suffered recently due to economic challenges and political instability. As a result, the bank now plans to earmark 90% of its capital to its main markets of Canada, the U.S. and Mexico. That’s up from 70% in the most recent fiscal year, which ended October 31, 2023. It may also sell its operations in Central America and Colombia if returns don’t improve. Bank of Nova…