While you’re shopping for gifts for family and friends, don’t forget to shop for quality dividend stocks that are on sale as well. These dividend stocks could be the ultimate gift for yourself, your children, and or grandchildren because the best dividend stocks paid dividends for decades and are likely to pay more dividends for decades to come!
Canadian Banks On Sale
Just on Monday, we saw Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) yielding 5%. This is one solid Canadian bank that has paid dividends since 1832. In fact, it has even increased dividends for 43 out of the last 45 years. (I think shareholders would forgive that it froze dividends instead of cutting them in 2009 and 2010 due to being cautious about the financial crisis.)
Even now, after Bank of Nova Scotia rebounded about 2.6% to the $57 level, it’s still a good buy for long-term investment. It yields 4.9%, and its fair value one year from now is around $73, based on its long-term historical multiple. This implies the bank’s shares are about 20% off.
Another bank that’s on sale is National Bank of Canada (TSX:NA). Similar to the Bank of Nova Scotia, National Bank of Canada pulled back to levels that yielded a high yield of 5.4%.
By Wednesday, it has rallied about 2% to $41. It still yields 5.3%, which is a good deal for the sixth largest bank of Canada. Its fair value one year from now is around $51. This implies the bank’s shares are also about 20% off. Read More