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Stock: Bank of Nova Scotia (TSX: BNS)
Bank of Nova Scotia (TSX: BNS) is one of Canada’s Big Five banks, with major businesses in Canadian banking, international banking, wealth management, and capital markets. After a recent pullback from its 52-week high, BNS looks more like a classic income-and-value setup than a momentum trade.
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Quick Take: A global Canadian bank with a solid 4.6% forward yield, a reasonable 10.5 forward P/E, and improving earnings estimates. The stock is down about 9% from its 52-week high, which gives long-term dividend investors a more attractive entry point.
Major Developments (this week & near-term)
Market performance: Shares fell 6.7% over the last 5 days, underperforming both the banking group and the broader market based on your data.
Fresh earnings context: Scotiabank reported first-quarter 2026 results on February 24, 2026, with reported net income of $2.299 billion and diluted EPS of $1.73; adjusted diluted EPS was $2.05, up from $1.76 a year earlier.
Near-term catalyst: The next scheduled earnings report is May 27, 2026, and investors will likely watch credit quality, international banking execution, and capital markets momentum.
Income timing: The next ex-dividend date is April 7, 2026, which matters for dividend-focused buyers.
Key Metrics (as of Monday’s close)
Metric | Value |
|---|---|
Price | $96.40 |
Weekly Move (5-day) | -6.7% |
Market Cap | US$87.6B |
P/E (TTM) | 13.6 |
Forward P/E | 10.5 |
52-Week Range | $62.57 – $106.39 |
YTD Return | -3.7% |
Dividend Yield (fwd) | ~4.6% |
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Analyst Insights
Item | Detail |
|---|---|
Consensus Rating | BUY ⭐⭐⭐⭐ |
Average Target Price | $109.42 |
Upside Potential | +13.50% vs $96.40 |
Breakdown (12 analysts) | Strong Buy: 2 • Buy: 1 • Hold: 9 • Sell: 0 • Strong Sell: 0 |
Read: Analysts are not wildly aggressive here, but the tone is constructive. The stock screens as cheap on forward earnings, offers a respectable yield, and has seen upward EPS revisions for 2026 and 2027.
Recent / Notable Items
Q1 2026 earnings beat: Scotiabank’s adjusted EPS rose year over year, helped by stronger profitability and better operating momentum.
International banking remains important: External analysis highlighted continued improvement in international banking and wealth management, both key to Scotiabank’s longer-term repositioning.
Results remain the main story: Recent investor focus has stayed on earnings quality, revenue growth, and execution rather than splashy product launches or acquisitions.
Growth Indicators
Metric | BNS |
|---|---|
Sales Growth (Next Year) | +4.6% |
EPS Growth (Next Year) | +12.1% |
5-year EPS Growth Estimate | +6.7% |
Top-line growth is expected to stay moderate, but earnings growth looks healthier thanks to margin improvement and better operating leverage. For a mature bank, that is a respectable setup.
Profitability & Financials (quick read)
Margins: Operating margin 44.8%, net margin 23.7%.
Returns: ROE 9.6%, ROIC 10.4%.
Valuation: BNS carries a Value Score of 95, which stands out.
Dividend profile: Forward yield is about 4.6%, with a payout ratio of 64.4% based on your data.
This is not a high-growth bank, but it does offer a useful mix of income, valuation support, and earnings recovery potential.
Technical & Momentum
RSI: 33.4
Money Flow Index: 31
Price vs 52-week high: 90.6%
Beta (1-year): 0.37
The stock looks closer to oversold than overheated, which may appeal to contrarian dividend investors.
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What to Watch Next
May 27, 2026 earnings: loan growth, provisions, and international banking performance.
Dividend durability: whether earnings momentum keeps supporting payout growth.
Estimate revisions: analysts have already nudged numbers higher, and more upgrades would help sentiment.
Macro backdrop: Canadian credit trends and Latin American operating conditions remain important swing factors.
One-Look Summary
Aspect | Snapshot |
|---|---|
Thesis | Cheap Canadian bank with a solid yield and room for earnings improvement |
Catalysts | Next earnings report, estimate revisions, international banking execution |
Risks | Credit quality, macro weakness, and slower-than-expected international progress |
Who it’s for | Dividend and value investors who want bank exposure without paying peak multiples |
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Bottom Line
Bank of Nova Scotia (TSX: BNS) is not the flashiest Canadian bank, but that is exactly why it can work for patient investors. The stock is down about 9% from its high, the yield is attractive, and the forward valuation is undemanding. If you want a buy-and-hold Canadian dividend stock with some recovery upside, BNS still deserves a serious look.
The Wealth Awesome Team