Canada’s big bank stocks are often referred to as some of the best long-term options on the market. There are plenty of reasons for that view, but among those big banks is what is known as Canada’s most international bank.
That bank is Bank of Nova Scotia (TSX: BNS), and here’s why Canada’s most international bank belongs in your portfolio.
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Why invest in big banks?
The big banks are superb long-term investments. They offer a reliable domestic segment that generates a stable revenue stream. The banks also offer growth potential, particularly from international markets.
Tying it all together, the banks offer some of the most competitive dividends on the market with years of annual increases.
In the case of Scotiabank, the bank has plenty to offer. That reliable domestic segment contributed $913 million in net income during the first fiscal quarter of 2025. That figure was even reflective of higher credit loss provisions.
Unlike its peers, Scotiabank has historically prioritized international markets outside of the U.S. to fuel its growth. That’s partly where the “Canada’s most international bank” label was born.
Until recently, that growth has been focused on Latin America. Latin American markets such as Mexico, Colombia, Chile and Peru provided Scotiabank with massive growth, but that growth came with higher risk.
The bank has now focused on selective markets in North America to fuel its growth while opting to exit some higher-risk markets. Given the market volatility we’ve seen this year and the ongoing fears of a global recession, Scotiabank’s decision may prove to be critical.
Part of that refocusing includes Scotiabank’s US$2.8 billion deal to acquire a stake in U.S.-based KeyCorp. That deal is likely to fuel further interest in the U.S. market and provide a bump to earnings over the longer term.
Who wants a juicy income?
One of the main reasons investors flock to Canada’s big bank stocks is the dividends they offer. In the case of Canada’s most international bank, Scotiabank continues to impress.
As of the time of writing, Scotiabank offers a juicy 5.91% yield, making it one of the better-paying dividends on the market. For prospective investors with $30,000 to invest in Canada’s most international bank, that works out to an income of just over $1,770.
Even better, investors not ready to draw on that income can choose to reinvest it, allowing that potential income to grow further.
Adding to that appeal is the fact that Scotiabank has paid out that dividend without fail for nearly two centuries. The bank has also prioritized annual bumps to that dividend, making it an ideal option for any investor.
Invest in Canada’s most international bank
No stock, even the most defensive, is not without some risk. In the case of Scotiabank, the bank offers investors a stable domestic segment and a growth-focused international segment.
Throw in a juicy growing dividend, and you have an excellent long-term pick for any well-diversified portfolio.
