Bank of Nova Scotia

BNS-T

They have consistently grown their yield. It operates in an oligopoly. It has been right sizing some of their businesses. A rate decrease will hurt their earnings. Not the cheapest in the space. Yield 4.85%

It's a play on underbanked territories (Latin America and parts of Asia). Boasts a 6% compound growth rate, a 14% discount to its 10-year average; 9.7x earnings. Now is a good entry point for a laggard Canadian bank. (Analysts’ price target is $79.17)

(A Top Pick Jun 04/18, Up 0%) He would have expected a better return. It is good value here.

One of the cheaper names in the bank space in Canada. Their revenues come from outside Canada, including emerging markets where commodity prices at more at risk. This is reflected in their relative share price. In the long run this is a fine holding. It trades at 10 times earnings, near 5% dividend. Historically, this is an excellent time to buy Canadian banks.

Canadian Banks? Through 2020 be cautious. He only owns Scotiabank, with a smaller percent of business in Canada. The Canadian consumer is too stretched with debt and he worries about real estate values.

Canadian banks have minor seasonality: Oct-Dec and Jan-Apr. The last earnings were weak. Will this keep happening or was that a one-time weak report? Will the weaker housing market in Vancouver hurt the banks? Then again, Toronto housing is holding on. BNS's chart has a down trend since late-2017, which is not good. He doesn't see much upside with this group. It'll depend on May's report.

CIBC vs. BNS Canadian bank shareholders haven't made money lately including himself. The market has been worrying about bank prospects (i.e. mortgage defaults) constantly, and yes Q1 was weak, but he expects banks to show positive earnings. Also, they trade at 9-10x earnings and pay good dividends that'll grow. Of the two, he'd pick BNS.

(A Top Pick Oct 01/18, Down 6%) Likes it as an international play in Latin America where margins are double in Canada. It's well-run. They've made big acqusitions in wealth management which ate into earnings. He still likes it. It pays nearly a 5% dividend.

(A Top Pick Feb 13/18, Down 4%) Believes in it for its international exposure in Latin American and SE Asia and its increasing dividend yield. It's been oversold.

(A Top Pick Feb 21/18, Down 2%) All the Canadian banks have been down this period, but based on relative valuation, he'd pick BNS now. Pays a good dividend. Its relative valuation has slipped because it is exposed to Latin America. That said, this is a core holding of his and he owns a lot of it.

Often the worst bank one year does the best the next. BNS is 50% Canada and 50% foreign operations. (Analysts’ price target is $79.17)

He picked the worst Canadian bank year to date. It's underperformed. Their capital markets side was worse than expected. There've been questions about their Mexico operations with changes in that banking environment. They are a good dividend grower and will do another one likely in Q3. The growth of their mortage bank is slowing, though still positive; delinquencies haven't risen. Their core business is domestic retail and what matters is what they do with that cash flow. They're investing in technology which has hurt margins. (Analysts’ price target is $79.17)

They've gone through a rough patch, but he sees opportunities for them outside Canada than within, namely in Mexico and South America. He expects a better earnings report from them than the last. The dividend is also good.

You want to buy the disappointing bank. Has a good yield. They are not as much in Canada as the other banks. Yield = 4.75% (Analysts’ price target is $79.17)