This level of dividend stability and predictability has made the dividend payouts of these lenders essentially sacrosanct, turning these equity investments into quasi-fixed income like securities.
With so many reliant on the stable and growing income provided by banks, the discussion often turns to which Canadian bank is the best choice for yield in this current market. My pick for income investors has to be the Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) for a few reasons.
Investor outflows from Scotiabank related to the company's underperformance in its international portfolio has increased the company's dividend yield to an attractive level relative to its peers on a risk/reward basis.