Topic: How To Invest

What is Pat’s commentary for the week of August 4, 2021

Article Excerpt

We continue to have a high opinion of recommend all of Canada’s top banks, but Bank of Nova Scotia remains one of our top favourites for new buying. That’s mainly because it has the greatest international exposure of the five—it now gets roughly 40% of its revenue from international operations (especially the four countries it calls “the Pacific Alliance”—Mexico, Peru, Chile and Colombia). That international exposure gives investors a safer way to tap into the strong growth potential in developing economies when the COVID-19 pandemic eases. Bank of Nova Scotia is also expanding its wealth management operations. That unit will become increasingly important to the bank’s earnings as more baby boomers retire and millennials enter their prime earning years. As well, the bank continues to upgrade its digital banking systems. The resulting cost savings will give Bank of Nova Scotia more room to increase its dividend when Canadian regulators let the Big Five and other financial institutions restart share buybacks and dividend…

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