BNS:CC - Scotiabank: 3 Reasons To Buy This 7% Yielding Anti-Bubble Blue Chip
2024-07-11 07:00:00 ET
Summary
- Bank of Nova Scotia offers ultra-yield, ultra-sleep-well-at-night bargains with a legendary history of income dependability.
- BNS has been paying uninterrupted dividends for 191 years, with no cuts in almost two centuries.
- Its A+ credit rating from Fitch, S&P, and Moody's means it's the 26th safest bank on earth. S&P rates its risk management 82% as "perfect" and in the top 80 companies on earth.
- BNS offers a very low risk 7% yield and management is guiding for 7%-plus long-term growth. That's potentially 14% to 15% long-term returns, and in the short-term 50% to 100% returns are possible in the next 2.5 to 5 years.
A remarkable rally in stocks continues, with the S&P posting its 35th record close of the year on Monday, July 8.
It's the best start to a presidential election year in history and the 12th-best year in stock market history.
Charlie Bilello
The S&P is becoming steadily more overvalued.
S&P Real-Time Valuation
| Week |
| 28 |
| % Of Year Done |
| 2024 Weighting |
| 2025 Weighting |
| 53.85% |
| 46.15% |
| 53.85% |
| Forward S&P EV/EBITDA (Cash-Adjusted Earnings) |
| 10-Year Rolling Average |
| Market Overvaluation |
| 14.73 |
| 13.74 |
| 7.19% |
| S&P Fair Value |
| Decline To Fair Value |
| Fair Value PE |
| 5,199.11 |
| 6.71% |
| 20.1 |