Bank of Nova Scotia

On my other blog I am today writing about Mission Statements continue...

I do not own this stock of Bank of Nova Scotia (TSX-BNS, NYSE-BNS). This is one of the big banks of Canada. All our big banks are dividend growth companies.

For this bank, the dividends were only held steady for 2009 and 2010. They also have a habit of increasing the dividends twice a year. The most recent dividend increase was for 3.1% and this occurred last year. The total increase in dividends for 2014 was 7.1%.

For this bank the dividend yield is good and the dividend increases are currently moderate. The current dividend yield is 4.29% based on a stock price of $61.56. The dividend increases are moderate at 5.5% and 8.8% per year over the past 5 and 10 years.

The Dividend Payout Ratios are also fine on this bank with a 5 year median DPR for EPS at 45% and the 2014 DPR for EPS also at 45%. If the current dividend is increased at the rate of 5.5% per year over the next 5 and 10 years, then you could earn 7.3% and 9.6% yield on stock bought today. Past dividend increases were better with a median 11.2% and 23.2% yield on stock purchased 5 and or 10 years previous.

The outstanding shares have increased at the rate of 3.5% and 1.9% per year over the past 5 and 10 years. If I were a shareholder, I would think that per share values, like Revenue per Share and Earnings per Share were more important the Revenue and Earnings. For example, the Revenue has increased by 13.2% and 9.2% per year over the past 5 and 10 years. However, Revenue per Share has only increased by 9.4% and 7.2% over the same periods.

With this bank, the Return on Equity has not been below 10% over the past 20 years. However, it has been lower in the past, for example in 1994 it was 9.4% and 7.9% in 1989. The data I have on this bank goes back to 1988.

If I had bought this bank in 1995 as I did the Royal Bank, my total return would be 18.75% per year with 12.20% from capital gains and 6.55% from dividends. It has not done was well over the past 5 and 10 years. The share price did not really change between 2013 and 2014 and the share price is down 7.2% year to date. The 5 and 10 years total return today on this sock is at 5.51% and 6.83% with 1.52% and 2.93% from capital gains and 4.00% and 3.91% from dividends.

The Debt Ratio is better on this bank at 1.07 than the same ratio for Bank of Montreal (TSX-BMO) and Royal Bank (TSX-RY) which are both at 1.06.

Sound bite for Twitter and StockTwits is: Bank Dividend Growth Stock. See my spreadsheet at bns.htm.

This is the first of two parts. The second part will be posted on Thursday, January 15, 2015 and will be available here. The first part talks about the stock and the second part talks about the stock price.

The Bank of Nova Scotia is a bank. They offer personal and corporate banking and wealth management services in Canada and US, which includes looking after banking, financing, investing, credit card and insurance needs. They offer mortgages and mutual funds and they offer full service and on-line brokerage services. It is an international bank having banking in Canada and some 40 other countries around the world in the geographic regions of the Caribbean and Central America, Mexico, Latin America and Asia. Its web site is here Scotia Bank.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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