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:
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:
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.