BNS – New Buy

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.

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

Rob

Hey I’m Rob, creator of Passive Canadian Income.

In 2011 me and my wife had almost $60,000 in debt and a negative $7,000 Net Worth. Through hard work and financial education we paid all that off. Now we are focusing on increasing our Passive Income Streams to make the money work for us. Feel Free to Follow along the Journey by clicking the Social Media links below or subscribing to get notified of new posts on the sidebar.