Bank of Nova Scotia (BNS-T)

He owns 4 Canadian banks which are enjoying a tailwind from interest rates which will continue to decline. BNS wants to sell their Latin American assets and might re-deploy to the US. He's watching this and their new CEO. He's not drawn in by their big dividend.

The previous CEO left and the new one is solid which should be good for a turn-around. He doesn't see a dividend cut so it is a good hold for income.

Has sold shares, and invested elsewhere. Seeing better opportunities in other names. Bank of Montreal/CIBC is better option for investors. 

Softness in Central and South America markets caused shares to trade down, a buying opportunity. Focusing on higher-return projects. Thesis is still reversion to the mean, already up 15% from October 2023 lows. Impressive 6.5% yield.

Couple of weeks out from Canadian banks' earning season. Has come down a bit, breaking $63 of support. Descending triangle -- lower highs above a fixed support level, and that's now been broken. It's facing distributions: more motivated sellers than buyers.

You own this purely for income, and you need a part of your portfolio for income--for retirement. It's a great income stock, though share price growth is not high. He prefers TD first, and BNS next. We're a low point in sentiment for banks, interest rates will declines, the bank net interest margins will lift and profits will expand. Sit tight and let it play out. BNS has a strong domestic and emerging market bank operation. Also, the valuation is low now.

He owns no banks, mainly because they're not founder-run, founder-owned. Doesn't mean they can't be managed well, but for him that's a hard "no". ROICs have been in low-mid double digits, not bad, but hard for a company to grow at a greater rate than its ROIC.

Working way through new identity. Would wait to invest. Is a "show me" story at this time. Better names in the Canadian banking sector. Would rather invest in National Bank. 

Would not recommend selling - but does not own shares either. Believes higher quality names available in Canadian banking sector. New CEO has helped company, but will require major changes. Recent expansion in South America did not work out (returns did not make up for credit risk). Business has oligopoly in Canada with steady dividend. Good for investors to hold. 

We're in a credit cycle. His opinion is that economy will not be prosperous, GDP not rising. BNS will still make money, but earnings potentially won't accelerate as fast as they could. Dividend yields are similar.

He owns both and likes both these children. Have to ask yourself what kind of risk do you want in your portfolio? Do you want something more stable like a power utility, which will potentially be more or less impacted by the movement of interest rates? Or do you want something with international exposure to higher-growth markets like Latin America, but that has credit risk embedded in its business and will take some hits from economic slowdown?

Bank stocks haven't performed particularly well, and nothing major has changed in the banking sector. Not a high growth name. Own to clip the dividend and get 3-4% on top. Yield's around 6%, which gives you double-digit returns. 

Not the best stock out there, but fine for the passive investor who wants dividend income. Could get in around $62-63, ride back up to $70-80 over the next couple of years.

Nice 6.5% dividend yield. Traded down due to softness in Central and South American markets, presenting a buying opportunity. Reversion-to-the-mean investment story. Already up 15% from October 2023, not including dividend. If got back to $95, would be a 46% return plus divvie. Buy now for quality, attractive multiple, high yield, and a margin of safety.

It hasn't done much for 10 years. The dividend pays 6.5%. but there's no price appreciation. You need a bank with a strong Canadian franchise with some US exposure. TD ticks these boxes, not BNS.

TD and BNS are the main ones in client portfolios. Both are more on the value side. Looking to the next 3-5 years, both have reasonable earnings growth and potential for multiple expansion.

He bought it for the 6% dividend which BNS will increase. He knows the new CEO very well and is fully confident in him.