Got $1,000? BNS Stock Can Turn it Into a Passive-Income Stream
Bank of Nova Scotia: A Dividend Aristocrat With a High Yield
Bank of Nova Scotia (TSX:BNS) is one of Canada's largest banks and has a long history of paying dividends to its shareholders. The bank has increased its dividend for 10 consecutive years and is now a Dividend Aristocrat. BNS stock currently yields 4.7%, which is well above the average yield of the TSX Composite Index.BNS Stock's Dividend Is Safe and Sustainable
BNS stock's dividend is well-covered by the bank's earnings. In 2022, BNS earned $11.5 billion and paid out $5.3 billion in dividends. This means that the bank's dividend payout ratio was just 46%. A payout ratio below 50% is generally considered to be safe and sustainable.In addition, BNS has a strong capital position. The bank's common equity tier 1 ratio was 11.3% at the end of 2022. This is well above the regulatory minimum of 8%. A strong capital position gives BNS the flexibility to continue paying dividends even during difficult economic times.
How to Turn $1,000 Into a Passive-Income Stream With BNS Stock
If you have $1,000 to invest, you can buy approximately 21 shares of BNS stock. At the current share price of $47.65, this would give you an annual dividend income of $99.35. This is a great way to generate a passive income stream that can supplement your other sources of income.Of course, there is always some risk involved when investing in stocks. However, BNS stock is a relatively low-risk investment. The bank has a long history of profitability and dividend payments. In addition, the bank's dividend is well-covered by earnings and the bank has a strong capital position.
