1 Magnificent High-Yield Bank Stock Stock Down 25% to Buy and Hold Forever

Company Overview - Bank of Nova Scotia, also known as Scotiabank, has seen its stock decline approximately 25% from its 2022 peak due to its minimal presence in the U.S. market [1] - The bank has a strong dividend yield of nearly 5.4%, significantly higher than the S&P 500's yield of about 1.2% and the average bank's yield of 2.1% [2] - Scotiabank has a long history of paying dividends since 1833 and maintains an investment-grade-rated balance sheet [3] Regulatory Environment - Canadian banking regulations are more stringent than those in the U.S., resulting in a few large banks, including Scotiabank, that enjoy protected market positions and conservative operating models [4] Growth Strategy - Scotiabank has historically focused on expanding into Latin America rather than the U.S., which has led to lagging performance compared to its Canadian peers in earnings growth and return on equity [5][7] - The bank is now shifting its strategy to reduce exposure to less desirable markets and increase its presence in the U.S. market, including a recent acquisition of a roughly 15% stake in KeyCorp [6][8] Market Performance - Following the announcement of the KeyCorp investment in August 2024, Scotiabank's shares have risen over 20%, although they still have not fully recovered from previous losses [9] - The current high dividend yield presents a low-risk turnaround opportunity for investors, making Scotiabank an attractive long-term hold [9][10]