Stock prices continue to crash this week and the more that they do, the better blue-chip dividend stocks look. Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is a big-five bank stock in Canada and while there may be some tough times ahead for the country and for the markets, over the long term it can prove to be a great buy.
Currently, the stock pays investors a dividend of $0.90 every quarter. As of Friday’s closing price of just over $59, that would provide investors with a yield of 6.1%.
It’s an astronomical payout for a top bank stock. Unless the economy goes into a significant recession, the payouts will likely remain intact and even grow as well. Scotiabank and other financial stocks have struggled in recent years and now could be an attractive time to buy them.
Investors may want to wait a bit longer to see if an even better deal can be secured. However, it’s a stock that investors should at least put on their watch lists. The company has strong fundamentals, pays a dividend, isn’t an expensive buy, and it could make for a strong pillar in any portfolio.
In the near term, there’s still a lot of negativity surrounding the markets but once things improve, stocks like Scotiabank will take off and the opportunity to buy at these prices could be long gone. For investors looking to secure a good dividend stock for their tax-free savings account, now could be the time to buy.
And Scotiabank is among the better buys out there right now.