In a world where job security and financial stability are at the forefront of people’s minds, a recent CVwizard study found that two-thirds of Gen Z and Millennials plan to switch jobs in 2025. But the top reason isn’t just better pay, it’s job security. It’s a sign that people are thinking long term, not just about opportunity, but about staying power. That mindset translates well into investing. If you want to buy a dividend stock that will pay you for life, you want stability, scale, and income. One bank that checks all the boxes? Bank of Nova Scotia (TSX:BNS). It’s down around 7% from its 52-week high, and that drop could be the entry point long-term investors have been waiting for.
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About BNS
Scotiabank is Canada’s third-largest lender by assets, serving over 25 million customers globally. Its reach spans Canadian banking, wealth management, capital markets, and international operations throughout Latin America and the Caribbean. This international exposure is a big differentiator, especially as global growth begins to diverge from Canadian trends.
The second-quarter 2025 earnings confirm that BNS is delivering steady results in a tough environment. Net income for the quarter was $1.48 billion, a meaningful rebound from $660 million in the first quarter (Q1). Diluted earnings per share (EPS) came in at $1.48, also up from $0.66. Revenue for the quarter held steady at $7.9 billion. It’s not a blockbuster result, but it shows the dividend stock is operating with strength, even with high interest rates and cautious lending across the sector.
Getting paid
What really stands out is its dividend. At today’s share price of about $74, BNS offers a dividend yield close to 5.84%. The bank has paid a dividend every year since the 1800s, and that history matters. Even when profits fell sharply in 2020, it maintained its payout. It now pays $4.40 per year. With a conservative payout ratio and over $13 billion in capital reserves, the dividend looks rock-solid. If you’re thinking about building lifelong income, that kind of predictability is gold.
That said, it’s not all smooth sailing. Scotiabank has some unique headwinds. Its Latin American exposure is a long-term strength, but in the short run, those markets face inflation, currency volatility, and uneven policy decisions. That makes it harder to forecast earnings. Meanwhile, the Canadian real estate market remains stretched, and higher interest rates are starting to bite. Loan losses are creeping up across the sector, including at BNS.
Considerations
But the bank is adjusting. Its common equity tier-one (CET1) ratio now sits at 13.2%, well above regulatory minimums. That capital buffer gives it the ability to absorb losses and still invest in growth. Scotiabank is also continuing to cut costs, streamline operations, and focus on higher-return business areas like wealth management. The aim is to reduce reliance on interest rate margins and boost more predictable, fee-based revenue.
So, why consider BNS now, while it’s still down? Because banking is cyclical. Earnings go through ups and downs, but the model remains consistent. Deposits come in, loans go out, and income is generated along the way. The key is to buy when others are cautious, and hold while the cash keeps flowing in.
Bottom line
For younger investors in particular, the idea of building a portfolio that mirrors their goals of growth and security makes BNS a compelling fit. Just like they’re seeking job roles that offer safety and future development, investors should consider companies that offer income now and potential upside later.
Scotiabank isn’t exciting, but that’s exactly the point. It’s built to last. It’s trusted by millions. And it’s paying investors well to be patient. Buying BNS today while it’s still down could set you up for years of income without ever having to sell. For anyone looking to build wealth slowly and safely, this magnificent Canadian bank deserves a spot in your portfolio.
