The Bank of Nova Scotia (BNS) just declared $0.64 quarterly dividend. This is an increase of 3.8% from $0.62.
I own 27 shares, so this will increase my annual dividend income by $2.16 to a total of $4,971.34
What a great first two months of dividend increases it has been. With all these dividend increases and recent stocks buy, I am just $30 shy of the next dividend income level of $5,000 and that much closer to my forward dividend income goal of $6,000 by the end of this year.
Bank of Nova Scotia has been a fantastic investment for me. It is one of those where you buy it and forget about it. It has been paying me raising dividend since I bought them. This recent dividend increase by the company was in line with the past few years dividend increase. They have been raising it at a steady rate of 2.8%-3.9%. The best part is that they have been raising it every two quarters at that rate.
Therefore, I expect another dividend increase from this company sometime this year. CFRA expects an earning growth of 7% for the next three years which will help the company to continue this pattern of dividend increases every two quarters.
At the moment the company has a dividend payout ratio of 47% and a current dividend yield of 4.13%. The current dividend yield is actually slightly higher than its 5-year dividend average of 4.08%.
I find that this company, Bank of Nova Scotia, to be fair valued to slightly undervalued with a current PE of 12.48 and a forward PE of 10.45. Therefore, I give this stock a BUY recommendation.
This company is on my list of company to pick up more shares at the moment. However, I do have others that I am more interested at the moment, so please stay tuned and make sure to follow me for more information.
What do you think of the company and its recent dividend increase?
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