Analysis – The Bank of Nova Scotia Increases Dividend by 4%

BNS

The Bank of Nova Scotia announced a regular quarterly dividend of $0.525, a 4 percent increase from the prior rate of $0.504 per share. The dividend will be paid at the new higher rate on April 27, 2016, to shareholders of record at close of business on April 5, 2016. The Bank of Nova Scotia is a member of the Top 100 dividend growth candidates.

Date Quarterly Dividend
4/5/2016 0.525
12/31/2015 0.504
10/2/2015 0.528
7/6/2015 0.542
7/2/2015 0.585
4/2/2015 0.539
1/2/2015 0.568
10/3/2014 0.592
6/27/2014 0.599
3/28/2014 0.58
1/3/2014 0.581
9/27/2013 0.601
6/28/2013 0.573
3/28/2013 0.584
12/28/2012 0.574
9/28/2012 0.58
6/29/2012 0.536
3/30/2012 0.55
12/29/2011 0.512
9/30/2011 0.504
6/30/2011 0.534
4/1/2011 0.537
12/31/2010 0.49
10/1/2010 0.475
7/1/2010 0.467
4/1/2010 0.482

Analysis of Valuation of The Bank of Nova Scotia (Symbol BNS).

Bank of Nova Scotia is trading at the bottom of its average price/book value (P/BV) range.  Bank of Nova Scotia is trading above its average historical dividend yield. 

Price 3/4/16 % Yield 5 Year Div. Growth Rate  BV 2016 P/BV Ratio 10 yr P/BV  Low 10 yr P/BV  High 5 yr max Yield % 5 yr lowest Yield %
$44.66 4.76% 4.5% 44.05 0.96 0.96 3.00 5.78% 3.11%

Bank of Nova Scotia Dividend Yield Chart (Click to enlarge)

BNS

Explanation:  Dividend growth financial stocks may be valued upon historical relative price/book value and current yield analysis. Dividend financial stocks trading at a low historical price/book value (P/BV) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/BV ratio stocks.  Max P/BV price target is based upon company reaching its highest historical P/BV ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years. Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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