In the financials sector, there happen to be a lot of great options today with excellent dividend yields at reasonable payout ratios with excellent balance sheets. In the Canadian financials sector, Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) certainly fits the bill.
This is a company that is currently trading at a discount relative to its long-term average comparative stock price compared to its peers. The company’s stock price has rebounded nicely from the levels seen following the onset of the pandemic, trading around 10% below its 52-week high of late.
That said, this stock still has a dividend of 5.2% at the time of writing, a juicy dividend relative to its peers, and one that is roughly 10x long-term bond rates today.
With high-quality blue-chip equities like Scotiabank trading at such a yield relative to fixed-income options today, investors really do have to ponder the value of equities vs. fixed-income asset classes in this current environment. For those looking for long-term dividend income, stocks like Scotiabank are among the best and safest options for any investor. Canadian investors can also get access to the dividend tax credit with this investment, furthering the value such an investment provides.
I’d highly encourage income-oriented investors to consider stocks with revenue stability, clean balance sheets, and excellent management teams such as Scotiabank. This stock has almost everything a dividend investor could want, and deserves to be on one’s top picks list today.
Invest wisely, my friends.
