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Bullboard - Stock Discussion Forum Bank of Nova Scotia T.BNS

Alternate Symbol(s):  BNS

The Bank of Nova Scotia (the Bank) is a Canadian chartered bank. The Bank's segments include Canadian Banking, International Banking, Global Wealth Management, Global Banking and Markets, and Other. The Canadian Banking segment provides a full suite of financial advice and banking solutions. The International Banking segment is a diverse franchise offering financial advice and solutions to... see more

TSX:BNS - Post Discussion

Bank of Nova Scotia > BNS down significantly from their 2022 highs...
View:
Post by zack50 on Oct 26, 2022 5:53pm

BNS down significantly from their 2022 highs...

"BNS stock is down from $95 earlier this year to $65. The steep plunge is the result of growing investor fears about the impact of a potential recession on both the Canadian and international operations.

Bank of Nova Scotia is unique among its peers with a big international business located in Latin America. The bank has spent billions of dollars over the past decade to buy assets in Mexico, Peru, Chile, and Columbia. The four countries form the core of the Pacific Alliance trade bloc that allows the free movement of labour, capital, and goods among the member countries. Combined, they are home to more than 230 million people. Bank penetration is low compared to more developed economies, so there are large growth opportunities for Bank of Nova Scotia as the middle class expands.

In addition, the presence in all four markets gives it an advantage for helping commercial clients who need a variety of cash-management services.

Investors are concerned about that a severe global recession will hit the Pacific Alliance economies hard and hammer the bank’s foreign earnings.

Bank of Nova Scotia raised its dividend by 11% late last year and increased the payout by another 3% when the bank delivered the fiscal second-quarter (Q2) 2022 results. The current payout provides a 6.3% dividend yield.

Bank of Nova Scotia trades for 7.8 times trailing 12-month earnings right now. This appears undervalued, considering the strong earnings so far this year and solid capital position. Bank of Nova Scotia generated $8.01 billion in net income for the first nine months of fiscal 2022 compared to $7.4 billion in the same period last year. The bank finished fiscal Q3 2022 with a common equity tier-one (CET1) ratio of 11.4%."

* BNS appears to be oversold. Near-term volatility is expected, but the dividend appears safe and we should see decent total returns over the long run. 
For those focused on passive income, the yield is fairly high and there is likely good upside potential for the share price when the market recovers. I'm sure we'll get back to $95 before too long.

Comment by Scotchlight1001 on Oct 29, 2022 11:52am
Agree. Transitioning back from oil to banks. May be a little early but that's okay.
Comment by Quintessential1 on Nov 05, 2022 6:27pm
What you might have made in oil you will probably make up for in banks.  It is really hard to seel the top of one sector and buy the bottom of another simultaneously.  It all depends on which sector you would rather be in and banks are pretty safe.
Comment by Scotchlight1001 on Nov 06, 2022 10:12am
Agree again. Note that the Czech Republic is levying a Windfall Tax on oil and gas. What country will be next? Also think BNS is undergoing tax loss selling right now and will bounce back to over $70 soon. Like the 6% yield. I cannot remember what the bank stock yields were during the 2008 meltdown, but can remember that the dividends were never cut.
Comment by YupnDump on Nov 05, 2022 7:17pm
what a dud in comparison to other major Cdn banks, dividend yield means dodle li squat from its high.
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