This Canadian Bank’s Dividend Makes it a Buy

With so much uncertainty around where stocks are headed in the coming months, investors looking for safe places to hide have filtered into sectors like financials.

Canadian banks have typically held up well in previous market crises, and thus have often found a place as a core income holding for many retirees and those with long term income needs. Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is no exception.

Scotiabank is a great place for investors looking for long-term dividend income, to go. The lender’s historical track record of dividend payouts (and dividend growth as well) over decades leaves nothing to be desired.

Scotiabank's current dividend yield is very attractive, and provides new investors, or those new to holding Scotiabank stock, with a great starting dividend yield. This is a great example of a stock that is paying investors to wait for a serious stock market rally and/or an economic recovery.

Considering 10-year government bonds are now paying out around 50 basis points, getting approximately 10 times the yield for a little more risk is a fantastic bet. Scotiabank is a stock that should react little in the case of major volatility moving forward, and I expect all large Canadian banks to maintain their dividend unless an absolute economic catastrophe takes hold.

This is a great long-term buy-and-hold opportunity for every investor, but especially those seeking income growth overtime.

Invest wisely, my friends.