BNS – New Buy

January 2018 - Passive Income

BNS – New Buy

Hi

This morning I decided to press the buy button and add to our dividend portfolio.It wasn’t a massive buy, but was a buy none the less.

Earlier this month I mentioned the 4 stocks I was watching in July. They all seem like a good value currently but I kept enjoying the news about one stock in particular. Slowly the stock seems to be creeping up, and I didn’t buy anything yet this month. It was time.

BNS - New Buy

Which Stock

Well based on the title I guess its no surprise that we added to our Bank of Nova Scotia position. Last month I started a holding in them after looking at the Canadian Banks and realizing how cheap they were. They actually dropped to a p/e ratio of under 11 but I was on the fence. As the p/e went back to 11.1 I decided to buy before their earnings this week.

South American Expansion

On July 6th Scotia Bank announced, following approvals by regulators in Canada and Chile, the closing of its acquisition of the 68.19% interest in BBVA Chile.

As part of its strategy to increase its presence in the Chilean market and in the Pacific Alliance countries, this transaction will double Scotia bank’s presence in Chile to approximately 14% market share in total loans, making it one of the largest private banks in the country

The next step is to rename the Bank, Scotia bank Chile. ( Source – RBC Direct Investing)

Thoughts

I absolutely love the diversification Scotia Bank is pursuing. Being one of the big 5 Canadian Bank’s and then busting out to these pacific alliance countries. Its a great move, especially considering the population down there! It also helps diversify my portfolio outside of Canada while sitting in our tfsa account.

The Purchase

Last month we started a position of 13 shares costing roughly a thousand bucks. This is generally my minimum trade as it costs $9.95 each time I buy or sell a stock. We doubled down on bns this month and added another 13 stocks. This will add an additional $42.64 to our forward dividend’s. Since I missed the ex dividend date this time we wont see the dividends from this purchase until October.

Ahhh well I feel Mr Market will soon catch on to how great these moves are and the stock will go up.




Conclusion

I always love adding to an existing position, especially one that is such a low percentage of our overall portfolio. The recent interest rate hike surely will add to their profit in the coming quarters, and the added diversification is always nice. At it’s current yield of 4.29%, that ain’t bad either!

What is your thoughts? Have you been watching bns? What you buying?

Keep stacking them Dividends!

Cheers

18 Responses

  1. Investing Pursuits says:

    I am buying BNS as well. $325 check sent to purchase directly from Transfer agent. Won’t know the price of shares until they actual show in my account. One thing for sure, yield above 4% ☺!!

    • Rob says:

      Hey Pursuit.

      Great buy congrats. Definitely a higher yielding top 5 Canadian bank currently.
      Why send a cheque that seems so old fashioned haha. Isn’t it all online?

      Cheers

      • It can actually be done online I believe through a debit for computershare. which is the transfer agent for BNS.

        Likely, same with AST Financial which is the transfer agent for ENB

        All my other stocks are through the brokerage include the BNS and ENB that are whole share amounts. Feels strange having 3 different ENB positions lol.

        • Rob says:

          hey Pursuit.

          yeah seems confusing. I like saving money but also like having all my investments in one place.

          lol to each’s own
          cheers

  2. Funny I see you post about buying them right now. They are up pretty far on my watch list now. Missed out on the price earlier in the month, but the yield is still over 4% and I am lacking in the financial sector. Would make a great addition if I can come up with some capital. Nice buy.

    • Rob says:

      hey Daze

      thanks man. Surprised financials are so low for you, with the rising interest rate financials will benefit the most.

      The us banks dont look so bad either!

      look forward to seeing what you choose next buy.

      cheers mate!

  3. Yes, you finally pulled the trigger! It’s a great long term buy, Rob. That’s for sure. I’ve been checking the Canadian big banks regularly this year as I really like to add another one to my stock portfolio. Their growth numbers are stable and relatively on the high side. The diversification of BNS could definitely be a game changer.

    Comgratulations with this nice pick! Good luck holding it forever ☺️

  4. I also bought BNS in my wife’s TFSA. I keep her account more defensive compared to mine. Banks will benefit from interest rate increase and BNS trades at good value now. Nice buy!!

  5. May says:

    I feel I have too many BNS already, so no plan to add any in near future. I am watching NA though, want to initiate a position. Also want to add more TD. But both NA and TD look quite expensive at this moment. I know I might should just pull the trigger as it’s long term. Still debating…….

    • Rob says:

      hey May

      hmmmm I dunno national bank has a relatively low pe ratio but is near its 52 week high.

      td is my favorite of all the canadian banks. long term id buy if you wanted it. That us exposure is great!

      cheers May

  6. Rob, Always good to have a little banking exposure in the dividend portfolio. Many happy returns. Tom
    Tom @ Dividends Diversify recently posted…How To Increase Your Dividend IncomeMy Profile

  7. PCI –

    Nice job! What was the yield at time of purchase, then? I need to make a move!!

    -Lanny

    • Rob says:

      hey Lanny.

      i think it was 4.29%. Solid for a Canadian Bank!

      lol no rush, gotta find that stock and price point you like.

      cheers!

  8. Cody Davis says:

    Is BNS still worth it?

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