A 6.4% Yielding Blue Chip Retirees Can Trust

Posted On October 13, 2020 3:14 am
By: Dividend Sensei

As we write this, the market is recovering off its recent pullback. And while many companies are recovering quickly, plenty of great deals remain available.

In that light, we’re highlighting The Bank of Nova Scotia (BNS). It’s a 6.4%-yielding blue-chip with a strong economic recovery expected in 2021 and beyond.

That’s why Dividend Kings just bought into it for a fifth time in our Phoenix Portfolio – and we plan to buy it one final time next week. That will still put us ahead of three major catalysts that should propel it and its stock to impressive levels.

The bank already is a one-stop-shop for companies, governments, institutions, and high-net-worth individuals – from traditional banking services to global market underwriting (equity and bonds) to asset management.

We’re talking about:

$1.2 trillion in assets
$768 billion in low-cost deposits
95,000 global employees
2,905 branches
8,793 ATMs.

Scotiabank has proven impressive in the past already, as evidenced by its total returns since 1996, featured below.

(Source: Portfolio Visualizer)

Over the last 24 years, it has delivered a 12.5% compound annual growth rate return. Its average 10-year and 15-year returns over the past quarter-century have also been 12.5%.

And that’s precisely what analysts expect for it going forward too.

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About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.