BNS Stock Recent News

Scotiabank (TSX:BNS) announced it will acquire a 14.9% stake in US financial services firm KeyCorp (NYSE:KEY) in a deal valued at approximately $2.8 billion. The Canadian bank will purchase 163 million of KeyCorp (NYSE:KEY)'s shares at a fixed price of $17.17 per share.

KeyCorp.'s stock KEY, +0.48% jumped 4.6% early Monday, after the regional bank said it has reached an agreement with Canadian lender The Bank of Nova Scotia BNS, +0.94% BNS, +0.87% under which the latter will invest about $2.8 billion, equal to a 14.9% stake, for $17.17 a share. The stock closed Friday at $14.61.

TORONTO , Aug. 12, 2024 /PRNewswire/ - Scotiabank announced today that it has entered into an agreement to acquire an approximate 14.9% pro-forma ownership stake in KeyCorp through an issuance of common shares at a price of $17.17 per share, representing an 11% premium to the volume weighted average price for the last 20 trading days. The total cash consideration is approximately US$2.8 billion (the "Investment").

Opportunistic capital raise on attractive terms Accelerates capital and earnings improvement; capital raise estimated to result in pro forma CET1 of 12.4% Further strengthens Key's capacity for growth  CLEVELAND , Aug. 12, 2024 /PRNewswire/ -- KeyCorp (NYSE: KEY) today announced it has reached an agreement under which The Bank of Nova Scotia ("Scotiabank") (TSX: BNS) (NYSE: BNS) will make a strategic minority investment in KeyCorp of approximately $2.8 billion, representing approximately 14.9% pro forma common stock ownership, for a fixed price of $17.17 per share. "Scotiabank approached us with a unique opportunity to raise capital on attractive terms.

In July, we (my wife and I) received a dividend income total of $2,836.82. 2023 was up 24%. 7 months down in 2024 and the S&P 500 is still up almost 13%, despite the recent sell-offs. We have a high likelihood of a rate cut in September, but too much speculation is happening beyond that date. Time is ticking on that FOMC meeting.

Bank of Nova Scotia has paid a dividend every year since 1833, and it yields 6.6%. Agree Realty has increased its dividend for roughly a decade, and its yield is 4.5%.

With the S&P 500 index near all-time highs, the risk of a downturn in stocks seems elevated to me. Bank of Nova Scotia has a differentiated business model that isn't focused on the U.S. market.

Bank of Nova Scotia offers ultra-yield, ultra-sleep-well-at-night bargains with a legendary history of income dependability. BNS has been paying uninterrupted dividends for 191 years, with no cuts in almost two centuries. Its A+ credit rating from Fitch, S&P, and Moody's means it's the 26th safest bank on earth. S&P rates its risk management 82% as "perfect" and in the top 80 companies on earth.

Passive income can help supplement Social Security in retirement. Agree Realty is a net lease REIT with plenty of growth ahead of it.

Scotiabank appears to be an interesting option for safe, outsized, and steadily growing income. The Canadian bank beat the analyst consensus for revenue and adjusted EPS in its fiscal Q2. BNS' Common Equity Tier 1 capital ratio meaningfully improved during the quarter.