BNS - Scotiabank: Collect A 6.7% Yield While This Turnaround Takes Form

2024-05-02 09:01:28 ET

Summary

• Bank of Nova Scotia offers an attractive dividend and trades at a cheap price-to-earnings multiple based on 2025's expected earnings.
• The new CEO's ambitious turnaround plan focuses on operations in Canada, the United States, and Mexico, and aims to improve productivity and grow capital light businesses.
• Scotiabank's underperformance in the last decade is attributed to poor sentiment surrounding Latin American markets and the depreciation of currencies against the Canadian Dollar.

Bank of Nova Scotia ( BNS:CA )( BNS ) offers an attractive dividend, trades at a cheap price-to-earnings multiple based on 2025's expected earnings, and has additional upside if the new CEO can execute an ambitious turnaround plan.

(All numbers in Canadian Dollars unless otherwise noted)

Introduction

Bank of Nova Scotia (or as it's commonly referred to, Scotiabank) is a member of Canada's so-called "big six" banking oligarchy which, collectively, controls approximately 93% of banking assets in the country ....

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