I’m looking for companies that are fairly valued, have a decent dividend yield (3% to 6%) and have a fairly long history of paying dividends consistently for 10 years or more. However, there could be some cases for exceptionally good company or a strategic buy for a very long term.
1) Bank of Nova Scotia (BNS)
Canadian companies in particular financial ones have been on my radar since some time. They have been fairly conservative in their lending practices and at great valuations now, in my opinion. I thought of biggies: BNS, TD and RY as primary candidates and finally latched on BNS due to little better valuation and yield. The impact and fear of sliding oil prices on banks is clearly visible on the prices of bank stocks, however, it offers a nice starting price right out of the gate.
BNS has a P/E ratio of just 8.50, a nice dividend yield of 5.61% and trading at $36.00, dropping from its 52-week high of $56.26.
I added 10 positions in BNS on 1/13 at $37.00. It’ll add $20.20 of passive dividend income on an annual basis. BNS gets the honor of my first buy of 2016 🙂 a tumultuous year so far, to say the least.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.
What do you think about this buy?