A lot of folk are bad mouthing the Canadian big banks at the moment. Why? Mortgage loans. And, in the case of the TD Bank, there is an active lawsuit hanging over it in the States. The result, the stock prices of the big six are falling.
That said: the solvency of the banks is not in question. It may soon be a time to buy. For some, that time might even be right now. The Bank of Nova Scotia is yielding 6.5% today and the dividend is safe. For long term investors who like, or even need, dividend income, this is a very good buy and hold candidate.
Me, I have enough BNS to tide me over. At $65.28, my interest is peaked but I am not buying. If BNS should drop a little more than two more dollars, it will be selling at its lowest price in a year. Below $63, it would be hard to argue that BNS is not a buy.
If a retiree could put $10,000 into BNS at $62.99, it should yield almost $675 annually indefinitely with steady increases to the dividend payout quite likely if the past is any indication.
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