Markets

Cash Dividend On The Way From Bank of Nova Scotia Halifax's Non-cumulative 5-Year Rate Reset Preferred Shares Series 20

On 10/2/15, Bank of Nova Scotia Halifax's Non-cumulative 5-Year Rate Reset Preferred Shares Series 20 (TSX: BNS-PRQ.TO ) will trade ex-dividend, for its quarterly dividend of $0.2256, payable on 10/28/15. As a percentage of BNS.PRQ's recent share price of $24.25, this dividend works out to approximately 0.93%, so look for shares of BNS.PRQ to trade 0.93% lower - all else being equal - when BNS.PRQ shares open for trading on 10/2/15. On an annualized basis, the current yield is approximately 3.74%.

As of last close, BNS.PRQ was trading at a 3.60% discount to its liquidation preference amount. It should be noted that the preferred shares are convertible . Investors should keep in mind that the shares are not cumulative , meaning that in the event of a missed payment, the company does not have to pay the balance of missed dividends to preferred shareholders before resuming a common dividend. The chart below shows the one year performance of BNS.PRQ shares, versus BNS:

Performance Comparison Chart

Below is a dividend history chart for BNS.PRQ, showing historical dividends prior to the most recent $0.2256 on Bank of Nova Scotia Halifax's Non-cumulative 5-Year Rate Reset Preferred Shares Series 20:

BNS.PRQ+Dividend+History+Chart

According to the ETF Finder at ETF Channel, Bank of Nova Scotia Halifax (TSX: BNS.TO ) makes up 4.50% of the SPDR MSCI Canada Quality Mix ETF ( QCAN ) which is trading relatively unchanged on the day Wednesday.

In Wednesday trading, Bank of Nova Scotia Halifax's Non-cumulative 5-Year Rate Reset Preferred Shares Series 20 (TSX: BNS-PRQ.TO ) is currently up about 0.6% on the day, while the common shares (TSX: BNS.TO ) are trading flat.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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