Bank of Nova Scotia T.BNS

From BNN This A.M.

[newcoin]

'SURPRISE' CEO SUCCESSION AT BANK OF NOVA SCOTIA

Brian Porter is retiring as the bank’s president and chief executive at the end of January. His successor is Scott Thomson, who has been serving as the head of Finning International, the Vancouver-based Caterpillar equipment dealer. Granted, he’s been on Scotia’s board of directors since 2016. But in early reaction this morning, Anish Chopra from Portfolio Management Corp. called the decision a “surprise” that runs counter to the industry convention of internal succession. We’ll have plenty more reaction today, and will review how Porter helped to reshape Scotia — and why the bank hasn’t been rewarded by investors.

 

[FiddyFiddyOddzz]

Has BNS ever cut their dividend ?  Will the new guy be looking to slash & burn when he takes over, starting perhaps with a reduction to the dividend payout ?

[Undeniable]

The bank has paid a dividend every year since 1833, and it only cut its dividend in the midst of World War II when asked by the government. Pauses to dividend growth like that seen in 2020 and 2021 are rare.

[Karl63]

Canadian Banks have rarely, if ever, cut the dividend.  However, I think a fear that the new CEO may cut the dividend is a valid concern.  The street is surprised that BNS would search outside of their own ranks, something Canadian Banks typically don't do.  So they've done something that is not typical . . . if that's the case then what would prevent them from doing

[newcoin]

A totally ridiculous thought. Someone trying to get everyone else to read their article. Shame.

[carlocarli]

BNS' dividend payout ratio (Yearly Dividend/Yearly Earnings) is 0.490. The current dividend is,therefore, perfectly sustainable. Depending on Q3 and Q4 earnings, there may even be room for a modest increase of the dividend before the payout ratio exceeds the conservative value of 0.5.