Good fit for Scotiabank

Article Excerpt

BANK OF NOVA SCOTIA $54.22 (Toronto symbol BNS: Shares outstanding: 1.0 billion; Market cap: $56.4 billion; SI Rating: Above Average; Dividend yield: 3.6%; www.scotiabank.com) is buying the 82% of DundeeWealth Inc. (Toronto symbol DW) that it does not already own. DundeeWealth manages investments and operates a brokerage business. The company also owns the Dynamic family of mutual funds, and provides financial-planning and investment advice. The $2.3-billion, cash-and-stock deal will double the size of Bank of Nova Scotia’s mutual-fund business, and make it the fifth-largest mutual-fund company in Canada. It also gives the bank a number of new growth opportunities, including access to DundeeWealth’s high-quality clientele. As well, the bank may sell Dynamic funds through its branches in Asia and Latin America. Bank of Nova Scotia is a buy. buy…

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