Wednesday, 23 December 2015

New Purchase - Scotiabank

On December 23, 2015, I purchased shares of Scotia Bank.

Number of shares purchased
200
Price per share
$56.70
Commission
$9.95
Total cost per share
$56.75
Total cost
$11,349.95
Annual dividend per share
$2.80
Initial dividend yield
4.93%
Increase in forward 12-month dividends
$560.00

The book value is $41 CAD, the PE is 9.90, using EPS from the last three years I get a Graham price of almost $70 CAD and the 10 year CAPE is 14.

My 12-month forward dividend income stands at $10,283 per year.

7 comments:

  1. Thanks for sharing your recent buy. No secret I like the large Canadian banks. In 2016 I'll be able to invest in my ROTH once again which is where I hold my Canadian banks. I'm long TD, BNS and RY. Nice to see others buying into this beaten down sector.

    ReplyDelete
    Replies
    1. Those are three very good choices. I like JPM and WFC but their dividend yield is too low. The main risk i see for Canadian banks is their exposure to oil and mortgages (you'll find plenty of info on this topic via a google search) which i guess is why they are currently attractively priced.

      I like TD because it generates over 20% of its revenue from the US and BNS has the least exposure to Canadian mortgages.

      Delete
  2. Marvsstr... New to the dividind..game.. I need the yrly..income..via way future

    ReplyDelete
  3. Nice job buying Scotia Bank at a great price. This stock should see some recovery in 2016 once the energy sector stabilizes.

    ReplyDelete
    Replies
    1. That may very well be the case but in order to hedge against this pessimistic market, I'm thinking of selling a covered call on these shares. If housing in Canada takes a hit, I think that all banks in Canada will be selling at a discount to today's prices and create another good entry point.

      Delete
  4. This comment has been removed by a blog administrator.

    ReplyDelete