Bank of Nova Scotia raises dividend 2.7%

Bank of Nova Scotia

On Feb. 28, 2017, as Bank of Nova Scotia announced their quarterly results they also added “our strong capital position allows us to grow and make investments in our businesses as well as return capital to our shareholders. This quarter we announced a 2 cent increase in the quarterly dividend to 76 cents per share – up 6% from a year ago.” (scotiabank.com)

While the dividend is up 6% from one year ago, they only increased the dividend by 2.7% this quarter. BNS is known to increase their dividend twice a year – both in the second and fourth quarter.

Dividend Income increased 0.16%

Considering the Dividend Beginner portfolio contains 50 shares of Bank of Nova Scotia, my annual income from BNS has increased by $4.00, from $148.00 to $152.00.

My 12-month forward dividend income has increased from $2,548.11 to $2,552.11, an increase of 0.16%. My income from BNS accounts for 5.96% of my annual dividend income. This top holding, core position is ripe for expanding if the price corrects in the near-term.

This would have required an investment of $103, at a yield of 3.9% (BNS’ dividend yield on the date of the raise) to generate $4.00 in dividend income. That’s the equivalent of getting up to 10 hours of your life back, at a Quebec minimum wage of $10.75.

Before Net Increase After
Annual Dividend $2,548.11 $4.00 $2,552.11
Monthly Dividend $212.34
$0.33
$212.68
Percentage Increase 0.16%

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