Q: Hi 5i Team,
You have in the past been very positive of BNS. I have held it for dividends (dollar cost averaging) and long term growth. It is also "Canadian". It has fallen in price since late last year, especially compared with TD. I would be interested in your opinion going forward and if you would be OK with adding to my position (new $$$). 3 to 5 year horizon.
You have in the past been very positive of BNS. I have held it for dividends (dollar cost averaging) and long term growth. It is also "Canadian". It has fallen in price since late last year, especially compared with TD. I would be interested in your opinion going forward and if you would be OK with adding to my position (new $$$). 3 to 5 year horizon.
5i Research Answer:
BNS has been disappointing, but it has a (relatively) new CEO and it is attractively priced, with a secure dividend that should be increased this year (2nd half, according to the company). There is some economic risk here as there is with all banks, but we think this is largely reflected in the valuation. It should become a more focused, higher-growth company over the next few years. Sentiment is low and it would not take much positive news to have an amplified positive impact to the stock. We would be OK adding some for a 3+ year position.