Not all of the Big Six banks are in the same position right now. Each one is dealing with a slightly different mix of challenges, from rising loan losses and slower lending to U.S. regulatory risks and global expansion costs. The trick isn’t just to find the cheapest stock. No, instead it’s to find the one best positioned for earnings resilience, dividend strength, and long-term growth as the economy adjusts to a new rate environment.
What to watch
Start with the interest rate landscape. The Bank of Canada has gradually cut back rates, now at 2.25% at writing. That shift will likely ease pressure on borrowing costs but could also compress net interest margins. So, the best bank stock to buy right now will be one that can keep earnings strong even as margins narrow. That goes for now, but also consider the future. Consider long-term strategy and growth potential from bank stocks that benefit not just in Canada, but beyond.
Valuation is another major factor this month. Some banks trade at noticeable discounts to their historical averages, reflecting market skepticism about their international exposure or loan risk. That can create an opportunity if you believe management’s strategy will pay off. Value seekers might find these bank stocks the best “bang for the buck” options in November, though they come with more volatility.
Dividends should also be front and centre. Canadian banks are world leaders in dividend consistency, and yields across the sector remain attractive, many sitting between 3% and 6%. But investors should look beyond the headline yield to the payout ratio and dividend-growth history. If your goal is long-term income compounding inside a portfolio, you want a bank stock that not only pays well today but will still be raising its dividend 10 years from now.
Scotiabank
Bank of Nova Scotia (TSX:BNS) might just be the best Canadian bank stock for your buck this November, all things considered. Shares are around highs it hasn’t seen since 2022, yet it’s offering a dividend yield hovering near 4.75%, one of the richest payouts in the sector. For investors who think long term, that combination of deep value and high income could make BNS a standout pick as markets rotate from fear to opportunity.
The market’s caution around Scotiabank largely stems from its international exposure, particularly in Latin America. The bank operates in Mexico, Chile, Peru, and Colombia, markets that can be volatile but also offer stronger growth prospects than Canada’s mature banking environment. Under its new CEO, Scott Thomson, Scotiabank has been streamlining operations, cutting underperforming units, and refocusing its international strategy on the most profitable and stable regions. What’s more, the macro backdrop could finally start tilting in Scotiabank’s favour. Its international diversification, once viewed as a liability, could become a strength again as global growth resumes.
From a value standpoint, Scotiabank’s stock is undeniably cheap. It trades at around 11.5 times forward earnings, yet its core Canadian operations remain highly profitable, with solid capital ratios and disciplined lending practices. The bank has also paid dividends for nearly two centuries and has a proven record of maintaining and growing that payout through recessions, rate cycles, and global crises. With a payout ratio around 80%, its dividend remains well covered. In fact, here’s what a $7,000 investment could bring in at writing.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BNS | $93.00 | 75 | $4.40 | $330.00 | Quarterly | $6,975.00 |
Bottom line
In short, Scotiabank isn’t just a high-yield play; it’s a solid, undervalued franchise with long-term global potential. Investors buying today are getting a well-capitalized, dividend-paying bank at a bargain price with multiple ways to win. In a market where many bank stocks already reflect their strengths, BNS stands out for the value it hasn’t yet priced in, making it the best bank stock for your buck this November.
