Stockchase Insights Bank of Nova Scotia BNS-T BUY May 28, 2025

Using profits from TD to buy this one. Pretty confident in its turnaround potential. New CEO created doubt because he wasn't a banker, but he's great and doing a wonderful job. Highest yield at 6%, increased recently.

Prefers Canadian banks for their dividends. For instance, BNS is undervalued and pays a high dividend and trades at a low PE. There's room for the PE to expand. People buy foreign banks for the dividend, but you have to pay a withholding tax.

Please see the previous response to Royal Bank for general banking comments. BNS is more internationally focused than the other banks and has a Latin America focus which is increasing from a an economic standpoint. It has a good yield and will do well long term along with other banks.

Least reliable among its peers. Struggling with business model. Architect of its woes was previous management. Now a show-me story. Dividend growth and total return don't match banks he already owns.

Breakouts are good, and they typically last for a while. Based on the recent quick move, you can expect a pullback. 

Looking at the 5-year chart, could meet some resistance at the $95 high of early 2022. But there isn't a big wall. Look back from late 2022 to mid-2024, there was a wall of around $70. One point in history is going to cause some resistance, but it's not as bad as multiple tests that can cause significant resistance.

Really likes new management. Changes are finally being reflected in the price. Most diversified of the Big 6. Now has foothold in US market via KEY to promote further growth. International appeal. Capital ratio went up, which is great. More growth and appreciation ahead. Nice dividend yield.

Investment in KEY is just that, an investment, not control. That's not a positive. Look elsewhere. Prefers TD or RY. 

Prefers this one and remaining peers today to RY, just on valuation. Though RY is the best bank in Canada, this name trades at a far better multiple.

Scores 6/10 in fundamentals. TD is up 50% this year vs. BNS 22%. BNS also lags over 20 years, with RY and NA being the best performers. She owns Royal instead. BNS is the leading Canadian bank. Maybe BNS will catch up to peers. They continue to have a footprint in Latin America, continue to invest in technology, and their Q2 showed steady loan growth and stable credit quality. Continue to hold if you own.

Highest yield of the Big 6, but more uncertainty surrounding selling down international assets and buying into the US. Didn't like many of the bank earnings last quarter because PCLs were released back into earnings once worst-case tariff scenario didn't come to pass. This was premature and too optimistic. Fears our economy might get worse before it gets better.

If you have it in your portfolio, keep it. But she's holding off on buying right now.