The Scotia Bank (BNS) has been on a lot of buy lists for some time now. With the stock price threatening to hit a new low for the year, BNS is looking awfully good. Its dividend of $4.24 is yielding approximately 6.65%. Nice.
This may surprise you but I don't like to chase dividend yield. Too rich a dividend can be a warning. I have enough BNS in my retirement portfolio to satisfy my needs. I do not feel forced to buy more but as the price drops it becomes worth consideration.
I like to buy and hold and because of this I have missed a number of good sell moments. Now, I am changing my approach somewhat. When prices are quite depressed, buy. Hold while the price recovers and then sell some but not all the investment. Keep the core holding but reinvest the funds from the recent sale in another solid, dependable, dividend paying stock. In this way, one can build a more diversified portfolio delivering a solid dividend income.
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