Review of Bank of Nova Scotia

OCT 10, 2024 - BNS has established itself as a leading bank in the Americas offering a broad range of services and products such as personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. The Bank employs 89,239 workers, has 2,279 branches and offices, and 8,584 automated-banking-machines (ABMs). BNS is the cheapest Canadian Bank and also pays the highest yield. We think further multiple expansion could occur as BNS executes on its strategy and continues to string together earnings beats. With a positive outlook we are maintain our rating of an A-.

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Q: These 9 stocks were approximately equally weighted in unregistered dividend account before NPI and BCE took a big dive. The overall yield of the account is around 4.8% which I have been happy with, but the loss of capital in the 2 mentioned is troubling.

Objective of the account is to generate retirement dividend income for the next 5 to 10 years.
Other accounts provide pretty decent diversification by sector / geography / growth etc.

Question 1. Should I take the loss on these two and redeploy into the other holdings?

Question 2. Any glaring omissions in this account which you think I should add in here?

Read Answer Asked by Jim on January 13, 2025

Bank of Nova Scotia (The) (BNS)

Q: BNS has been trending down since the new year and more so recently since their announcement of divestitures of more Latin American holdings to Colombian bank Davivienda for a 20 percent equity position in the bank. They are also booking impairments of 1.7 billion on this deal. All that being said, would you consider this recent drop a buying opportunity? Also, BNS did not raise its dividend in 2024. Do you see the bank raising its dividend in 2025 and going forward on regular basis like all other Canadian banks. Thanks.

Read Answer Asked by Anthony on January 10, 2025

Q: Hi 5i

Please as many questions as needed.

I am heavily invested in stocks and want to raise cash, putting more money into bonds. I have about 10% in Canadian oil and gas, 5% gold stocks, and about 13% in uranium stocks. I am going to hold my gold and uranium.

What allocation would you suggest for a retiree in terms of portfolio holdings of gas and oil?

I am concerned about the possible coming tarriffs and the effect on the Canadian ecomomy. Most of my holdings are Canadian. A lot of these are in dividend stocks. I have held them through the past few years but I do need to increase the allocation to conservative investments. I plan to reduce most by about 20% or consider outright sells. I currently prefer to reduce downside risk than worry about the upside.

Can you help me decide from the viewpoint of possible tarriffs and effect on the Canadian economy which are at risk the most. Could you class these as hold, reduce or sell. I will hold all my U.S. stocks which are about 15% of my portfolio and haven't listed those here.

Thank you for your very helpful advice.

Read Answer Asked by Tulio on January 10, 2025