Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Canadian banking giant Bank of Nova Scotia (NYSE: BNS ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Scotiabank's business and see what CAPS investors are saying about the stock right now.
Scotiabank facts
| Headquarters (founded) |
Toronto (1832) |
| Market Cap |
$56.6 billion |
| Industry |
Diversified banks |
| Trailing-12-Month Revenue |
$15.5 billion |
| Management |
President/CEO Richard Waugh
Vice President/CFO Luc Vanneste
|
| Return on Equity (average, past 3 years) |
15.9% |
| Dividend Yield |
4.1% |
| Competitors |
Bank of Montreal (NYSE: BMO )
Canadian Imperial Bank of Commerce (NYSE: CM )
Royal Bank of Canada (NYSE: RY )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 577 members who have rated Scotiabank believe the stock will outperform the S&P 500 going forward. These bulls include robertshrestha and FoolishMikee.
Just last week, robertshrestha listed several of Scotiabank's positives: "Canadian banking space relatively safe and conservative, attractive global growth prospects, strong returns on capital, attractive dividend. What's not to like?"
Over the next five years, in fact, Scotiabank is expected to grow its bottom line at a solid rate of 12% annually. That's slightly faster than rivals BMO, CIBC, and Royal Bank, all of which are expected to grow at a 10% clip.
CAPS member FoolishMikee elaborates on the Scotiabank bull case:
[A] stable bank, that has strong fundamentals, and like other major Canadian banks, didn't require government injection of capital as even in 2008, they remained profitable, as leverage and capital ratios in Canada are much more 'safely' regulated. ...
However, this isn't just a stalwart with a good dividend payout. It operates in many more markets than meets the eye, in fact worldwide giving it room for growth in emerging markets. Operations range in North America, South America, Caribbean, Europe & Middle East, and Asia/Pacific. ... All and all, expansion is continuing so room for growth ahead.
What do you think about Scotiabank, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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