If you’re dreaming of turning your portfolio into a steady stream of cash, dividend stocks are a great place to start. And if you’re looking for reliable income in Canada, Bank of Nova Scotia (TSX:BNS) is a classic pick. It’s one of the Big Five banks, known not only for its global footprint but also for its rich dividend history. The best part? You don’t need to be a millionaire to start building your passive income stream. You just need a goal, and in this case, the goal is to earn $2,000 every year from dividends.
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Why Scotiabank
Scotiabank has been paying dividends for over 190 years and is considered one of the most dependable dividend stocks in the country. Whether you’re saving for retirement, paying your bills with dividends, or simply want to grow your wealth with a bit of cash flow, BNS can be a solid anchor in a portfolio.
As of writing, Scotiabank stock trades for about $69 and offers a quarterly dividend of $1.06 per share. That comes out to $4.24 per share annually, which works out to a yield of roughly 6.2%. That’s well above what you’d earn from most savings accounts or guaranteed investment certificates (GIC) these days, and it’s cash you can count on, provided you’re holding onto the shares.
So how much stock do you need to make that $2,000 in annual dividend income? That’s where the chart below comes in. Instead of walking you through all the math, here’s a simple breakdown of what your investment might look like if you used Scotiabank to hit that $2,000 target.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BNS | $69 | 472 | $4.24 | $2,001.28 | Quarterly | $32,568 |
Considerations
Now, before you dive in, there are a few things to keep in mind. First, while Scotiabank is known for its consistent dividends, it’s still a stock. That means the share price can go up and down. The second thing to know is that Scotiabank tends to raise its dividend over time. It hasn’t raised it every single year, but the trend has been upward for decades. So if you’re holding the dividend stock for multiple years, there’s a chance that your $2,000 annual income could increase with no extra effort from you. That’s the beauty of compounding dividends: you earn more just by sticking around.
In its most recent earnings, Scotiabank reported net income of $2.2 billion for the first quarter of 2025. The Canadian banking segment showed stability, while its international business, which includes a strong presence in Latin America, continues to rebound. The dividend payout ratio sits comfortably at 87%, which tells us there’s room for the dividend to be maintained even during tougher periods. That’s reassuring if you’re counting on that cash every quarter.
Now, $32,565 is a decent chunk of change. But think of it this way: you’re putting that money to work in one of Canada’s largest financial institutions. It’s a dividend stock with operations in more than 30 countries, a track record of weathering financial storms, and a management team focused on delivering shareholder returns. That kind of stability is hard to come by.
Bottom line
Of course, you don’t have to start with the full amount. You could begin by buying a handful of shares and building your position over time. As your holdings grow, so will your dividends. The important thing is to start. Scotiabank gives you the rare combination of income, stability, and long-term growth potential. It’s the kind of stock that rewards patience.
So whether you’re looking to cover a few bills, boost your retirement income, or just collect cheques while you sleep, Scotiabank stock could help get you there. With consistent dividends and a solid yield, it makes turning your $32,500 into $2,000 a year sound like a pretty smart deal.
