Bank of Nova Scotia Dividend Stock Analysis

[Roadmap2Retire]

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.

[earthtodan]

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?

[Roadmap2Retire]

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)

[Roadmap2Retire]

BNS to cut 1,500 jobs and close about 120 branches - job cuts are worldwide. Branch closing mostly in high-growth regions like Chile and Columbia.

http://www.cbc.ca/news/business/scotiaba...-1.2822896

[rapidacid]

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%?

[Roadmap2Retire]

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).

[rapidacid]

Makes sense, thank you.

[Roadmap2Retire]

BNS gets a A+ credit rating from Morningstar

http://www.dakotafinancialnews.com/bank-...ns/145024/