How does a yield of 5.5% sound? Or maybe you prefer 6%? Both are available from strong companies right now. If you are an income investor looking at the S&P 500's miserly 1.3% dividend yield and feeling glum, don't despair. You can find attractive higher-yielding stocks if you look hard enough. The list today includes W.P. Carey (WPC -1.39%) and its 5.5% yield and Bank of Nova Scotia (BNS 1.86%) and its 6% yield. Although both come with some warts, they are still the kinds of stocks that you can buy and hol ...

The Bank of Nova Scotia (NYSE:BNS) Barclays 22nd Annual Global Financial Services Conference September 9, 2024 2:00 PM ET Company Participants Aris Bogdaneris - Group Head of Canadian Banking Conference Call Participants Unidentified Analyst Good afternoon. Welcome back. We're just at the 2:00 time. This afternoon, to start off, we have Aris Bogdaneris, He's the Group Head of Canadian Banking at Scotiabank. So thanks, Aris. Welcome. Aris Bogdaneris Good day. Question-and-Answer Session Q - Unidentified Anal ...

With a 6% dividend yield and a 150-year-plus history of paying dividends, this high-yield bank is looking to change the game it's playing. The average bank has a dividend yield of around 2.5%, using the SPDR S&P Bank ETF (NYSEMKT: KBE) as an industry proxy. What if you could own a bank with a yield of 6.1%? What if it was conservatively run, had a strong core business, and was a reliable dividend payer? You would probably jump at the chance to own a high-yield bank like that. No problem -- you can buy Bank ...

Core Insights - The article discusses the current state of the U.S. banking sector, highlighting the impact of elevated interest rates on loan loss provisions and the potential for future earnings boosts as interest rates decline [3][4][11] - It emphasizes the undervaluation of regional banks and presents specific investment opportunities in financial sector funds and Canadian banks, particularly Scotiabank [5][9][11] Banking Sector Overview - U.S. banks have increased loan loss provisions to cover potential defaults, which reduces reported earnings but does not involve actual cash outflow [3] - A decrease in interest rates is expected to alleviate credit default pressures, allowing banks to release reserves and enhance earnings [4][11] Regional Banks - Regional banks are currently trading at significant discounts compared to historical averages, despite a modest recovery [5] - The article suggests focusing on quality investments within the regional banking sector to build income [5] Investment Opportunities - **Pick 1: BTO** - John Hancock Financial Opportunities Fund (BTO) offers a yield of 7.8% and focuses on financial services firms, with 95% of its portfolio in this sector [6][8] - **Pick 2: Scotiabank (BNS)** - Scotiabank has a yield of 6.3% and is positioned as a major player in the Canadian banking oligopoly, with a strong credit rating and a long history of dividend payments [9][11] - Scotiabank's recent acquisition of a 14.9% equity interest in KeyCorp for $2.8 billion enhances its competitive position in North America [9] Financial Performance - Scotiabank reported a 4% year-over-year revenue growth to $8.3 billion in Q2, with significant increases in deposits and net interest margin across various segments [9] - The bank's Common Equity Tier 1 (CET1) capital ratio improved to 13.3%, indicating strong capital health [9] Conclusion - The banking sector is viewed as undervalued with potential for dividend increases and share buybacks as interest rates decline [11] - Both BTO and Scotiabank are highlighted as attractive options for income investors, with BTO's active management and Scotiabank's strategic expansion into the U.S. market providing compelling investment opportunities [11]

Bank of Nova Scotia (NYSE:BNS) Scotiabank 25th Annual Global Banking and Markets Financials Summit September 4, 2024 9:00 AM ET Company Participants Scott Thomson - President and Chief Executive Officer Conference Call Participants Meny Grauman - Managing Director, Canadian Financial Services Research Analyst Unidentified Company Representative [Call Started Abruptly] And the odds that policy makers can engineer a soft landing. The resiliency of the Canadian economy continues to impress and there are reason ...

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]