The exterior of a Scotiabank location in the Dominican Republic. Jorge Rodriguez - Jars McLucien/iStock Editorial via Getty Images The beauty of buying qualitative and high-yielding dividend stocks at discounts is that an investor can get paid to wait. Regardless of what a market may think about a stock, the dividends get paid. There's one notable exception, however. That is if the business model is capital-heavy like a real estate investment trust or a utility. If the payout ratio leaves a business with to ...

Financial Data and Key Metrics Changes - The bank reported adjusted earnings of $2.2 billion or $1.63 per share for Q3 2024, reflecting quarter-over-quarter EPS growth and solid top-line revenue growth driven by higher net interest income and noninterest revenue [6][22] - Return on equity was 11.3%, and return on tangible common equity was 13.7% [22] - Revenues increased by 5% year-over-year, with net interest income growing by 6% and noninterest income by 4% [22][23] - The provision for credit losses was approximately $1.1 billion, with a PCL ratio of 55 basis points, up 1 basis point quarter-over-quarter [23][35] Business Line Data and Key Metrics Changes - Canadian Banking reported earnings of $1.1 billion, up 6% year-over-year, with a 1% increase in average loans and acceptances quarter-over-quarter [25][26] - Global Wealth Management earnings were $415 million, up 11% year-over-year, driven by higher brokerage revenues and net interest income [28] - Global Banking and Markets generated earnings of $418 million, down 4% year-over-year, impacted by lower fixed income revenues [29] - International Banking delivered earnings of $674 million, up 6% year-over-year, with net interest income increasing by 7% [31] Market Data and Key Metrics Changes - Customer deposits in International Banking grew 4% year-over-year, while loans were managed 2% lower, resulting in a loan-to-deposit ratio decrease to 126% [14][31] - In Canadian Banking, year-over-year deposits grew 8%, including a 5% increase in personal deposits [26] - The bank's CET1 ratio was 13.3%, an increase of 10 basis points quarter-over-quarter and 60 basis points year-over-year [24] Company Strategy and Development Direction - The bank is focused on developing primary client relationships, with P&C deposit growth across Canadian and international retail businesses up 7% year-over-year [3][4] - The investment in KeyCorp represents a strategic move to reallocate capital from developing to developed markets, enhancing growth opportunities in the U.S. [17][19] - The bank aims to enhance productivity and efficiency through cost discipline and process improvements, with a focus on maintaining a strong balance sheet [5][20] Management's Comments on Operating Environment and Future Outlook - The management expects modest economic improvement in Canada due to monetary easing, with policy rates likely trending lower into mid-next year [15][16] - The bank anticipates benefits from rate cuts to materialize in Q4 2024 and accelerate through 2025 [40][41] - Management remains confident in the resilience of the Canadian consumer and the stability of credit quality across portfolios [36][68] Other Important Information - The bank's productivity ratio improved by 210 basis points in international banking and 130 basis points in Canadian banking year-to-date [6] - The bank's wholesale funding requirement has been reduced by $33 billion over the past year, leading to a 250 basis point reduction in the wholesale funding ratio [7] Q&A Session Summary Question: Net interest margin outlook with expected rate cuts - Management indicated that every 25 basis points of rate cuts could benefit net interest income by approximately $100 million annually, with full benefits expected to materialize in fiscal 2025 [39][40] Question: Update on deposit franchise improvement - The bank has added over $28 billion in deposits in the last year, with day-to-day banking balances growing, indicating successful execution of deposit strategies [43][47] Question: International segment margin and loan loss ratio outlook - Management expressed optimism about the stability of the international banking portfolio, with expectations for continued performance in line with current levels [52][53] Question: Balance sheet growth expectations for international banking in 2025 - The bank anticipates a flattish balance sheet in 2025 due to a focus on client de-selection and targeted penetration efforts [56][57] Question: Potential for performing allowance releases - Management acknowledged the possibility of performing allowance releases if macroeconomic conditions improve, given the resilience observed in the Canadian consumer [58][59]

Key Takeaways The Bank of Nova Scotia on Tuesday reported third-quarter profit below what analysts expected, with elevated costs offsetting improved revenue. Revenue rose nearly 4% year-over-year, but profit dropped roughly 13% due to the higher costs and provisions for credit losses. Scotiabank CEO Scott Thomson noted the bank's recent investment in KeyCorp as a potential growth opportunity that can improve the company's overall profitability. The Bank of Nova Scotia (BNS) on Tuesday reported higher third- ...

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Group 1: Bank of Nova Scotia - Bank of Nova Scotia has paid a dividend every year since 1833, currently offering a high dividend yield of 6.5%, significantly above the bank average of around 2.5% [2][4] - The bank is currently lagging behind peers in key metrics such as earnings-per-share growth and return on equity, but management is addressing these issues by shifting focus to stronger markets [3][4] - The bank's growth efforts in South America have not met expectations, but its strong foundational position in the Canadian banking sector, supported by strict regulations, mitigates risks [5][6] Group 2: Realty Income - Realty Income is the largest net lease REIT with a market cap of $50 billion, providing it with significant advantages in handling large transactions and accessing capital markets [6][7] - The REIT has a consistent dividend yield of 5.2%, with payouts increased annually for nearly three decades, making it appealing for income-focused investors [8] - Realty Income's scale and investment-grade rating allow it to maintain a low cost of capital, enabling profitable deals that smaller competitors may not be able to pursue [7][8] Group 3: Investment Appeal - Both Bank of Nova Scotia and Realty Income present attractive investment opportunities, with the former positioned to navigate its turnaround while rewarding investors, and the latter offering a reliable yield and strong market position [9]

Wall Street expects a year-over-year decline in earnings on higher revenues when Bank of Nova Scotia (BNS) reports results for the quarter ended July 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 27, 2024, might help the stock move higher if these key numbers are better tha ...

Jerome Maurice Written by Nick Ackerman For some background on this monthly publication, here is my view on dividend growth stocks: Dividend growth stocks aren't always the most exciting investments out there. They often aren't grabbing the headlines, and they aren't the stocks running up hundreds of percentages in a year. In fact, they are often some of the least exciting stocks. And that is precisely their strongest selling point. With such a vast world of dividend growth stocks available out there, it is ...

Deagreez This is a hectic week for economic data and essential eamings. · Wholesale inflation · Wholesaic · Inflation · Walmart (WMT) earnings - state of the consumer · Retail sales · Weekly jobless claims With volatility collapsing after last week's historic carry trade freak out on Monday, the market is poised for either major tailwinds or headwinds. CBOE VIX INDEX +4.05 20.65 10 Days VIX 65.66 40.74 15.81 30 31 2 5 6 Aug 2024 1 8 9 12 Jul 2024 Bloomberg Consider Nvidia (NVDA), which makes up 5% of the S& ...

I like to sleep well at night no matter what is going on the market, and this unique Canadian banking giant lets me do just that. If there's one thing on Wall Street that I know I can count on, it's that bull markets are going to be followed by bear market crashes. It's just the natural cycle of things, which is why I start to get a little nervous when the S&P 500 is trading near all-time highs, like it is today. Since I don't know what's going to happen in the future, I try to find ways to offset the risk ...

Core Viewpoint - Scotiabank (BNS) has demonstrated strong financial performance in its fiscal second quarter, outperforming analyst expectations and maintaining a solid growth outlook despite some challenges in the market [1][16]. Financial Performance - BNS reported a revenue increase of 4.9% year-over-year to $6.1 billion in the fiscal second quarter, exceeding the analyst consensus by $30 million [2][16]. - The Canadian banking segment saw a 7% revenue rise, driven by a 12% growth in net interest income, although there was a 1% decrease in loans [2]. - The International Banking segment's revenue grew by 9%, with net interest income increasing by 14% [2]. - The Global Wealth Management segment also posted a 9% revenue growth, attributed to higher brokerage revenue and mutual fund fees [2]. - The Global Banking and Markets segment experienced a 2% revenue decline, but net income increased by 7% due to improved productivity [2]. Earnings and Valuation - BNS' adjusted EPS decreased by 7.2% year-over-year to $1.16, which was still $0.02 above the analyst consensus [2]. - The current P/E ratio for BNS is 9.6, below its 20-year average of 11.8, indicating a potentially attractive valuation [3]. - A fair value estimate of $52 per share suggests a 13% discount to the current share price of $45, with potential for 46% cumulative total returns by October 2026 [3]. Dividend Information - BNS offers a forward dividend yield of 6.7%, significantly higher than the financial sector's 3.7% yield, earning an A grade for forward dividend yield [6]. - The company has a long history of dividend payments since 1833, reflecting its resilience as a dividend payer [6]. - The expected payout ratio for FY 2024 is 65.8%, which is above the preferred 50% ratio, but growth in adjusted EPS is anticipated to allow for smaller raises while restoring the payout ratio [6]. Client Growth and Market Position - BNS added 95,000 net new primary clients in the first half of the fiscal year, with the lowest client attrition rate in three years [2]. - Over 45% of retail clients hold at least three products from BNS, indicating strong customer relationships [2]. - The company is well-positioned in the market, with improving financial health and a commitment to quality products and services [7].