With an average increase of 12.89% every year, BNS is a strong addition to any dividend growth portfolio. If an investor bought shares on Jan 2, 1996 the cost per share was $30.25 and the yield was a mere 1.05% . If that same investor held on to those shares over the years, the return on that initial investment would now be 6.87%.
Personally I would not have bought in with such a low yield, but it does show you that there is a potential for growing returns over the years that keeps your investment ahead of inflation. You'll be happy with your increasing dividends when a loaf of bread costs $20.00 in the near future, trust me!
CIBC is the next big bank in line to declare its dividend and hopefully they follow TD and BNS with an dividend increase; only time will tell.
Have a good week!
4 comments:
I'd love to see the CM divi increase!!!
On Dec 31, 1993 BNS closed at $30.63 and paid an annual of dividend $1.12 implying a dividend yield of 3.7%.
So I don't think your numbers take stock splits into account.
Addicted I have BMO and RY. I thought Royal might have increased their dividend but no such luck...not yet anyway. I bought a bit more TA today on the dip can't beat the dividend!
Steve:
I had trouble finding information that far back for BNS so I used what the globe and mail told me. Regardless, The graph does show dividend growth and that BNS is a stock to grow old with.
Dannyboy: As long as TA can keep up with that dividend, it's a good time to buy. I'll be watching it closely.
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