Bank of Nova Scotia (BNS) is currently undervalued by about 15%. A great company that has paid dividends since 1832.
BNS Dividend Stock Analysis
Would love to hear your thoughts on this company. I currently DRIP this stock.
Thanks, saw this and the RY article when the notification came up on my phone. I didn't realize BNS was increasing the share count. That's kind of disturbing, but I guess at the end of the day it's still about EPS.
Your fair value estimates for these banks are being published at different times. Have you done a snapshot of the whole group at one time for comparison?
Hmmm thanks for the input, earthtodan. Good point that they are all coming at different times. Maybe next time, I'll add a summary at the end so that you can compare with the competitors.
As it currently stands (today's stock prices), BNS is the most undervalued. I still havent done the analysis for the other two banks (BMO and CM)
RY fair value = CAD$82.78 (4% undervalued)
TD fair value = CAD$55.13 (0.6% undervalued)
BNS fair value = CAD$79.77 (14.21% undervalued)
Could someone who knows BNS well add some color to some conflicting reports I'm seeing regarding the dividend?
In March it looks like they raised their quarterly dividend from $0.66 to $0.68. This is what shows up on SA and also in the
Dividend Growth Forum spreadsheet
However when I look at my normal standby for
dividend history I get a completely different picture, with the most recent quarterly dividend listed at $0.5432 ... the dividend history is also pretty spotty, jumping around the mid-high $0.5X range for 2014
Is the nasdaq link taking into account FX or something, going from CAD -> US?
Is the current yield for BNS 0.68*4/55.32 = 4.9% or is it 0.5432*4/55.32 = 3.9%?
Dividends are declared and issued in Canadian dollars. So, the variance in the actual dividends paid out can be attributed to the forex.
I own the Canadian listed shares (BNS.TO) and the new dividend that I received were $0.68/share.
Yahoo Finance is showing $0.539 on the US-listed stock - not sure why theres a diff in div amount between Nasdaq and Yahoo. Google Finance simply seems to list the original currency amount even on the US-listed stock (which is misleading).
For your last question - your yield is 3.9% for the US-listed stock (for the Canadian-listed stock, its 4.1% --> 0.68*4/66.4).