see a rising dividend yearly especially if price has done nothing for years. What do you
think as a dividend investor.
We have comments posted on the quarter.
A rising dividend payment is nice, but we find a rising dividend payment to be the best when the stock price is also rising. A falling stock price and a continuously rising dividend payment typically either mean that something is fundamentally wrong at the company and perhaps it is paying more in dividends than its cash flow can support, the economic backdrop is challenging for the company, or it is at too high of a valuation. For BNS, the macro economic backdrop has been challenging, and it now trades at a good valuation, with stabilizing results, and if it does not increase its dividend payment, that simply means it keeps the cash and can use it elsewhere. If BNS instead uses the cash that would otherwise go towards a dividend for reinvestment into the business to boost its share price, at a 6.5% yield, we would be happy with that outcome.