Friday, May 26, 2023

Dividend Increase - The Bank of Nova Scotia (BNS)

 



Wednesday, May 24th the Board of Directors of Scotiabank (BNS) announced a quarterly dividend increase of from C$1.03 to C$1.06 per share that’s payable July 27, 2023 to holders of record July 5, 2023. This represents a 2.91% increase over the last quarterly dividend.


With current price C$66.72 (yesterday's close), this raise brings their dividend yield to 6.35%.



Due to the pandemic, BNS paid the same dividend in 2020 and 2021, so Scotiabank is no longer a member of Canadian Dividend All Star. So dividend growth rates for 1, 3, 5 and 10 years are 12.8, 5.2, 5.9 and 6.4 (Canadian Dividend All-Star List)



Since I own 165 shares of BNS, at today's exchange rates, this will increase my portfolio's projected annual net dividend income by $10.85.


Scotiabank last increased its dividend in May 2022, so it seems that the pre-pandemic era is not back and the dividend will possibly increase once a year. If that is the case, I am a little disappointed with the size of this increase.


This is the 14th dividend increase I received from Scotiabank since initiating a position March 2014. During this period, the quarterly dividend has risen almost according to my expectations from $0.64 to $1.06, or 65.6%.


This increase raises my YOC to 7.05%.



Summary of 2023 Dividend Increases / Cuts



Click here to see my portfolio holdings.


You can follow the development of my dividends here.


Full Disclosure: Long BNS


Thanks for stopping by!


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