TFSA Update

If you have been following the Loonie Bin for a while, you might have noticed I am a huge advocate for Tax Free Saving Accounts. I know some people save for trips or perhaps a new car with their TFSA, but I use my account to make my money work for me. After some extensive research on a new stock for my TFSA, I've made a decision to add a financial stock to the mix.

Hello, Scotia Bank (BNS)!

 
I've had my eye on this stock since I started investing and decided to finally pull the trigger when it dipped last month. After researching the top 5 Canadian banks in December, It just added to my confidence to own shares in this company.

By adding 100 shares of BNS to my TFSA, I will be receiving an additional $208 tax free into my account.
Thanks to previous contributions that I invested in ENB and BCE, my tax free income will be:

            ENB: $452

            BCE: $214.50 (New dividend takes effect in April)

            BNS: $208                  

                     $874.50       

At this rate, I won't have to worry about Harper raising the age to claim Old Age Security! Ok, well it's a start in the right direction to say the least. If I were to keep my money in a plain old TFSA, I'd probably be making $250 on the same amount of money and that would be it. I'm gunning for dividend growth from all three companies this year and then I can watch even more money come through, all tax free!

How do you use your TFSA?

The Big 5: Scotiabank

The Bank of Nova Scotia was established in Halifax N.S in 1832. Scotiabank has deemed itself "Canada's International Bank" and with good reason. They have branches in more than 50 countries throughout the world and was the first Canadian bank to establish a branch outside the United States and United Kingdom. By expanding its international operations when the other Big 5 were trying to merge with each other, Scotiabank has catapulted itself to being the third largest bank in Canada by market capitalization.

 Here is a quick rundown of Scotiabank as of Dec 4, 2011:

Symbol on TSX-      BNS
Current Close-         $48.99
52 week High-         $61.28
52 week Low-         $48.02
EPS-                        $4.55
Anual Dividend         $2.08
Current Yield            4.24%


Scotiabank has continued to pay its dividend every year since its inception in 1833. With a dividend payout ratio of 46%, I'm sure Scotiabank will be able to continue the tradition for many years to come. Here's a look at Scotia's dividends since 2000. Keep in mind they had a stock split in 2004 and the dividend was adjusted accordingly.