When aiming to earn $5,000 in annual dividends from Bank of Nova Scotia (TSX:BNS), knowing how many shares to buy helps build clarity and confidence. Scotiabank currently trades around $74.06 per share and pays a quarterly dividend of $1.10 for a total annual payout of $4.40 per share. That translates to a yield of just under 6% at writing. So, let’s get into the numbers.
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How to make that money
To reach $5,000 a year in dividends, divide your target by the dividend per share. In this case, $5,000 by $4.40 equals roughly 1,136 shares. At $74.06 per share, that would cost around $84,100. That sum may feel significant, but it delivers a predictable income stream of $5,000 for a 5.95% yield.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BNS | $74.06 | 1,136 | $4.40 | $4,998.40 | Quarterly | $84,132.16 |
Scotiabank’s latest earnings provide reassurance that this income is sustainable. In the second quarter (Q2) of 2025, it reported adjusted net income of $2.072 billion, which translates to diluted earnings per share of $1.52 . Those results were slightly softer than the $1.58 it earned per share (EPS) in Q2 2024, but the bank remains profitable, and its strategic plan includes boosting client relationships, improving capital ratios, and returning value to shareholders.
Importantly, Scotiabank increased its quarterly dividend in Q2 2025, raising it from $1.06 to $1.10 per share. That continued growth shows the bank is confident in its ability to support rising payouts despite economic uncertainty. At the same time, the bank announced a buyback of up to 20 million shares, which helps offset dilution and can lift earnings per share further.
More to come
Scotiabank remains well-capitalized, too. Its common equity tier-one (CET1) ratio stood at 13.2% in Q2, up 30 basis points from the previous quarter . That cushion is better than regulatory requirements and gives it room to continue paying dividends even in tougher economic conditions.
Strategically, the bank is streamlining its operations. It is refocusing its international presence by exiting its Latin American credit card business and investing in North America. It completed an initial acquisition of KeyCorp in the U.S., bringing a net income contribution of approximately $62 million in Q2. While its Canadian banking division faced earnings pressure, partly due to higher provisions tied to U.S. tariff uncertainty, its international and global banking divisions helped offset those challenges .
Still, there are risks. Its price-to-earnings (P/E) ratio sits around 15, which suggests a reasonable valuation but not a margin for error . Also, around 74% of its earnings go towards dividends, meaning payout sustainability depends on consistent earnings . But with cash flow and capital buffers intact, Scotiabank appears able to maintain its payout under most scenarios.
Bottom line
If you invested $84,100 to buy 1,136 shares in a Tax-Free Savings Account (TFSA), you’d receive $5,000 tax-free each year. That works out to a steady 5.95% return on your initial investment. Those dividend payments arrive quarterly, giving you reliable, passive income. You could reinvest those dividends or use them to support monthly expenses. And because you’re earning from the bank itself, not selling shares, you’re less exposed to stock price swings.
In choosing Scotiabank, you’re betting on a large, diversified financial institution with stable earnings, growing dividends, and a commitment to shareholder returns. It’s not a flashy move, but it has a proven track record. If your goal is steady income and you’re comfortable with concentrated bank exposure, Scotiabank can deliver.
