Bank of Nova Scotia

Scotiabank (BNS) raises dividend by 2.8%

Dividend Raises

Scotiabank reported third quarter net income of $1,959 million compared to $1,847 million in the same period last year. Diluted earnings per share were $1.54, compared to $1.45 in the same period a year ago. (scotiabank.com)

In addition to reporting a 6.06% increase in net income Y/Y, BNS announced a quarterly dividend raise from $0.72 to $0.74, a 2.78% increase.

Dividend Income increased 0.18%

Considering the Dividend Beginner portfolio contains 50 shares of BNS, my annual income from BNS has increased by $4.00. My 12-month forward dividend income has increased from $2,205.34 to $2,209.34, an increase of 0.18%. My income from BNS accounts for 6.70% of my annual dividend income. I’m very comfortable with my exposure to BNS and would not be opposed to adding to my position, despite it being my largest bank investment.

While a $4.00 increase in annual dividend income seems quite low, think about how it would require an investment of $100.00, yielding 4.00% to generate $4.00 in dividend income. That’s the equivalent of getting one to ten hours of your life back, depending on your wage.

Before Net Increase After
Annual Dividend Income $2,205.34 $4.00 $2,209.34
Monthly Dividend Income $183.78 $0.33 $184.11
Percentage Increase 0.18%

Dividend Beginner

A 22 year old Canadian dividend growth investor striving for early financial independence; building as many passive income streams as early as possible.
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  • Always happy to read about a dividend raise from a stock I own. The large Canadian banks continue to perform well despite the many headwinds they continue to face. Oil is still low, the CAD is still weak and everyone is waiting for a real estate bubble to pop up north. We’ll see how things play out. Thanks for sharing.

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