Bank Of Nova Scotia (NYSE:BNS) — The Bank of Nova Scotia (Scotiabank) is the third-largest bank with headquarters in Canada. It has global assets of C$896 billion and has paid dividends since 1834, possessing a record as one of the longest unbroken dividend payers in the world.
The bank is on an October-ending fiscal year, and the stock is listed on the NYSE. Despite low energy prices and a slightly higher Canadian dollar, Standard & Poor’s estimates fiscal year 2017 earnings of $4.89 and FY 2018 earnings of $5.08.
In late November, the bank reported a 9% improvement in its FQ4 earnings, helped by strong domestic and international operations, good growth of income and a 4.65% increase in interest-earning assets. It is S&P’s opinion that BNS stock should benefit from an improving Canadian economy, thus they have a four-star “buy” on the stock.
The recent agreement by OPEC to cap crude oil output, as well as a recent agreement to extend major crude oil pipelines, should help the economy and the bank. BNS pays a dividend of $2.23 ($U.S.) providing a yield of over 3.3%.
Technically BNS recently broke from a bullish, high-volume “V” formation. The break followed a three-month consolidation after a bottom in January at $36 (not shown). High volume accompanied the break for the last five sessions and as each session reached a new high, it penetrated deeper into long-term resistance with a high at $68 made in August 2014.
Momentum on this stock is very high, supported by a positive MACD and an internal buy signal at the bottom of the “V” from my CBR system. This stock is rated A- for quality and is thus appropriate for both traders and investors. However, it is more suited for long-term investors.