Is Bank of Nova Scotia stock a buy right now?
Bank of Nova Scotia (Scotiabank) stands as one of Canada’s leading financial institutions, offering a blend of stability and strategic evolution that attracts both domestic and global investors. As of late April 2025, BNS trades around CAD $68.49 on the TSX, with an active average daily volume of approximately 5.39 million shares—a testament to enduring market interest. The recent quarter saw management advance its strategy by divesting non-core Latin American operations, incurring a one-time impairment, but sharpening the bank’s regional focus and capital allocation. Supported by solid fee-based and noninterest income growth, along with strong performance in Global Banking and Markets, Scotiabank’s fundamentals remain resilient despite some earnings variability. Technical signals highlight a constructive short-term outlook, with several moving averages indicating bullish momentum and a near-neutral RSI. Sentiment among Canadian investors is cautiously optimistic, buoyed by hints of dividend growth and robust capital reserves. In the evolving North American banking landscape, Scotiabank’s commitment to strategic realignment and prudent risk management reinforces its role as a core sector holding. According to the consensus of more than 32 national and international banks, the target price sits at $89—reflecting broad confidence in the bank’s long-term prospects.
- Attractive 6.2% dividend yield, supporting steady long-term income.
- Strong capital position with CET1 ratio of 12.9%.
- Growing fee-based and noninterest revenue, up 15% year-over-year.
- Resilient earnings from Global Banking and Markets, up 33% annually.
- Strategic divestitures sharpen focus on core North American markets.
- Short-term earnings affected by increased credit provisions and one-time impairment charges.
- International banking earnings declined 7% year-over-year, requiring ongoing monitoring.
- What is Bank of Nova Scotia?
- How much is Bank of Nova Scotia stock?
- Our full analysis on Bank of Nova Scotia </b>stock
- How to buy Bank of Nova Scotia stock in Canada?
- Our 7 tips for buying Bank of Nova Scotia stock
- The latest news about Bank of Nova Scotia
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been closely monitoring the performance of Bank of Nova Scotia for more than three years. Every month, hundreds of thousands of Canadians rely on us to interpret market trends and help them identify top investment opportunities. Our analyses are intended for informational purposes only and should not be considered as investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Bank of Nova Scotia.
What is Bank of Nova Scotia?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canada | Headquartered in Toronto, BNS is one of Canada’s largest and oldest banks. |
| 💼 Market | TSX: BNS / NYSE: BNS | Dual listing offers liquidity and access for both Canadian and U.S. investors. |
| 🏛️ ISIN code | CA0641491075 | Unique international identifier eases cross-border trading and portfolio inclusion. |
| 👤 CEO | Scott Thomson | New CEO since 2023, driving strategic shifts with North American focus. |
| 🏢 Market cap | CAD $85.31 billion | Large cap status provides stability, but less rapid growth than smaller peers. |
| 📈 Revenue | CAD $37.63 billion (trailing twelve months) | Stable revenues highlight diversified operations, despite weakness in some business lines. |
| 💹 EBITDA | CAD $14.5 billion (estimate, trailing twelve months) | Strong operating cash flow, though rising loan provisions may pressure future margins. |
| 📊 P/E Ratio (Price/Earnings) | 11.65 (TSX) | Reasonable valuation versus peers, with room for rerating if profitability improves. |
How much is Bank of Nova Scotia stock?
The price of Bank of Nova Scotia stock is rising this week. As of today, BNS is trading at CAD $68.49, with a slight intraday decrease of 0.06% but up 2.21% over the past week. The company’s current market capitalization stands at CAD $85.31 billion, with a robust 3-month average daily volume of approximately 5.39 million shares. Investors are seeing a P/E ratio of 11.65, an annual dividend yield of 6.19%, and a stock beta of 1.04. This blend of high dividend yield and moderate market volatility could appeal to both income seekers and those attentive to balanced risk in the Canadian banking sector.
| Metric | Value |
|---|---|
| Stock Price | CAD $68.49 |
| Intraday Change | -0.06% |
| 1-Week Change | +2.21% |
| Market Cap | CAD $85.31 billion |
| Average Volume (3M) | 5.39 million |
| P/E Ratio | 11.65 |
| Dividend Yield | 6.19% |
| Beta | 1.04 |
Our full analysis on Bank of Nova Scotia stock
Having reviewed Bank of Nova Scotia’s most recent financial statements, examined its share price evolution over the past three years, and synthesized a mix of financial, technical, and strategic insights through our proprietary analytics, Bank of Nova Scotia emerges as an intriguing contender among large Canadian financials. Drawing on a blend of core financial metrics, technical market structure, peer comparison, and algorithm-driven signals, we aim to clarify the dynamics shaping investor sentiment. So, why might Bank of Nova Scotia stock once again become a strategic entry point into the Canadian banking sector heading into 2025?
Recent Performance and Market Context
Bank of Nova Scotia (BNS) has delivered a resilient performance in the context of shifting global financial conditions and evolving investor sentiment. As of April 30, 2025, BNS trades at CAD $68.49 on the TSX and USD $49.70 on the NYSE, near the lower half of its 52-week range ($60.68–$80.14 CAD). After a strong year-end rally, the stock is up 8.44% year-over-year, despite a recent six-month pullback (-5.74%) reflecting sector-wide profit-taking and short-term uncertainty.
- Dividend reliability: An annualized yield of approximately 6.19% stands out as one of the most generous among Big Six Canadian banks, appealing amid a “lower for longer” rate environment.
- Strategic refocus: The divestiture of operations in Colombia, Costa Rica, and Panama signals a decisive shift towards North American core markets and operational streamlining. While the $1.36 billion impairment hit Q1 results, the move is structured for long-term accretive growth.
- Fee-based and noninterest income strength: The 15% year-over-year rise in noninterest revenue underscores diversified income streams, cushioning BNS from net interest margin pressures.
- Broader macro tailwinds: As the Bank of Canada and the Federal Reserve signal stabilization—and the prospect of rate cuts in late 2025—the sector’s credit cycle appears favorably positioned, with improving visibility on economic normalization.
Against its peer group, Bank of Nova Scotia’s recent capital markets rebound (+33% YoY in Global Banking and Markets) adds a competitive dimension, highlighting a growing revenue mix not solely reliant on domestic retail lending.
Technical Analysis
From a technical lens, BNS currently trades above its 5-, 20-, and 50-day moving averages—each triggering buy signals—reflecting an underlying bullish impulse in the short term. These averages (at $67.38, $66.07, and $67.90 respectively) reinforce the notion that initial support is robust.
Key technical observations:
- Support levels: Short-term support sits at CAD $67.40, $67.06, and $66.85—zones that have historically attracted dip buyers.
- Resistance levels: Immediate resistance clusters at $67.97, $68.29, and $68.86. Breaking decisively above these levels could catalyze a test of the psychologically important $70 mark in the near term.
- RSI (14): 57.62, suggesting momentum is positive without being overheated, hovering just beneath overbought.
- Stochastic Oscillator: Both %K (97.52) and %D (97.22) are in the overbought range, a sign that upward momentum may soon consolidate, but non-excessive volume implies an orderly move rather than a blow-off top.
- MACD (-0.16): A mildly negative reading, indicating short-term consolidation may precede a next leg up. However, the ADX of 29.14 signals a trend that, while moderate, is convincingly established.
Technical consensus points toward mixed signals but with a discernible short-term bullish tilt—especially relevant for tactical investors seeking to position ahead of imminent catalysts, such as the upcoming Q2 earnings release scheduled for May 27, 2025.
Fundamental Analysis
Bank of Nova Scotia’s underlying fundamentals substantiate the technical positive bias. A closer look reveals:
- Resilient earnings patrol: While headline net income for Q1 2025 (CAD $993 million) reflected strategic restructuring charges, adjusted net income (CAD $2.36 billion) and adjusted EPS (CAD $1.76) both exceeded expectations and improved year-over-year, highlighting the bank’s core earnings power.
- Attractive valuation: The current P/E ratio of 11.65 (TSX) situates BNS at a valuation discount relative to the sector median and key Canadian peers, presenting a value case. The annualized dividend yield of 6.19% meaningfully bolsters total-return potential; management hints at resuming modest dividend hikes next quarter point to robust future cash flows.
- Solid capital base: A Common Equity Tier 1 (CET1) ratio of 12.9% gives BNS significant latitude for capital deployment while preserving downside protection in less certain macroeconomic environments.
- Dynamic segment mix: While both Canadian and International Banking saw year-over-year declines in earnings, Global Wealth Management outperformed and Global Banking and Markets delivered exceptional results (+33% YoY). The resulting diversity increases BNS's resilience to economic cycles and regional market movements.
- Productivity improvements: Operating leverage turned positive at 2.8%, and the productivity ratio improved 160 basis points sequentially to 54.5%, both indicating disciplined expense management and improved unit economics.
In total, BNS’s fundamentals justify renewed attention, positioning it as both a value and yield proposition with longer-term upside as strategic transformation unlocks new profitability levers.
Volume and Liquidity
- Robust daily volume: Averaging 5.39 million shares on the TSX and 2.01 million on the NYSE, BNS's trading liquidity underscores strong institutional and retail interest. This sustained turnover is a classic indicator of market confidence in the name.
- Active float: Bank of Nova Scotia’s sizable public float enables dynamic revaluation and makes it accessible for a wide array of portfolio strategies (income-focused, growth-oriented, tactical positioning).
- Tight spreads and market depth: These factors benefit all investor classes, from large institutions to individual RRSP/TFSA holders.
High and consistent volume at current technical levels often serves as a precursor to pronounced future moves, especially with multiple near-term catalysts in play.
Catalysts and Positive Outlook
A number of concrete upward catalysts distinguish BNS at present:
- Strategic transformation: The refocusing of international operations toward profitable North American markets (Canada and the U.S.) reduces complexity, boosts transparency, and steers the business toward segments likely to benefit earlier from a North American economic revival.
- Wealth management growth: With assets under administration surpassing $730 billion, this segment’s resilience and strong net inflows serve as a natural hedge against more volatile lending markets.
- Capital markets expansion: Recent performance (+33% YoY in Global Banking and Markets) illustrates competitive strength and underlines the bank’s potential to capture further market share as capital markets normalize post-2024 volatility.
- Dividend policy discipline and momentum: The anticipated return to dividend growth signals management’s confidence in the capital build and earnings trajectory—a subtle but important bullish signal for yield-oriented investors.
- Upcoming earnings (May 27, 2025): Q2 results represent a material near-term catalyst. Early indicators suggest a potentially positive surprise, given established credit loss reserves, improving fee revenue, and gradual normalization in consumer lending.
- ESG and innovation: Ongoing, well-publicized steps in sustainable finance and digital banking (including competitive mobile platforms and digital onboarding) align the brand with evolving consumer expectations and regulatory trends—adding a growth angle that is increasingly valued by institutional investors.
In the broader context, sector trends such as easing monetary policy and normalization of consumer sentiment in Canada could further amplify BNS’s multi-segment leverage.
Investment Strategies
Bank of Nova Scotia’s current price and outlook present attractive entry points for a variety of investor timeframes:
Short-term Positioning:
- Momentum traders may find opportunities near identified support zones (CAD $67.40–$68.00), capitalizing on the technical bounce as BNS comes off oversold levels, especially heading into the Q2 earnings event.
- Catalyst-driven entry ahead of the May 27 earnings, especially if sector sentiment continues to shift positively, could unlock swift upside.
Medium-term Approach:
- Dividend capture strategies are increasingly appealing, with above-market yield and management’s forthcoming dividend hike guidance.
- Valuation normalization: With the current P/E at a notable discount and sector tailwinds building, the stock may re-rate toward consensus target levels of CAD $76.60 (~12% potential upside), offering capital appreciation in addition to income.
Long-term Allocation:
- Total-return orientation: Investors focused on growing income streams (i.e., for RRSP, TFSA, pension, or endowment accounts) may position BNS as a foundational holding, supported by durable capital base, international diversification (even after recent exits), and new growth vectors in digital/wealth management.
- Portfolio diversification: The blend of financial stability, stable dividends, and selective North American growth reinforces BNS’s potential to anchor a diversified Canadian or global equity portfolio.
Strategically, positioning at current technical lows—coinciding with improving earnings outlook and ahead of the dividend inflection—may offer a compelling combination of risk/reward for investors seeking asymmetric upside with downside protection.
Is It the Right Time to Buy Bank of Nova Scotia?
In summary, Bank of Nova Scotia brings together a rare blend of attractive value, robust income generation, and early-cycle strategic repositioning. The stock’s compelling dividend yield, discounted valuation, disciplined capital management, and increasingly streamlined business model set the stage for renewed investor enthusiasm into late 2025 and beyond. With technical signals increasingly favoring a bullish short-term setup and a series of fundamental and strategic catalysts on the horizon—most notably the Q2 earnings release—the stock seems to represent an excellent opportunity for investors seeking both stability and growth in the Canadian financials sector.
As macro headwinds subside and the bank’s North American focus drives profitability, Bank of Nova Scotia may be entering a new bullish phase—making this moment particularly attractive for those contemplating an entry or an incremental position. For investors focused on quality, yield, and potential for price appreciation, Bank of Nova Scotia justifies serious consideration as a core holding in any well-balanced Canadian or North American equity portfolio.
In the current context, Bank of Nova Scotia’s foundation, prospective catalysts, and technical structure suggest its shares are well-positioned for a positive re-rating—an opportunity that stands out in today’s dynamic capital markets environment.
How to buy Bank of Nova Scotia stock in Canada?
Buying Bank of Nova Scotia (Scotiabank) stock online is both simple and secure when you use a regulated Canadian broker. Thanks to modern platforms, investors can purchase BNS shares with just a few clicks and manage their investments easily from home. There are two main ways to invest: spot buying (owning the shares directly) or trading through contracts for difference (CFDs), which let you speculate on price movements with or without leverage. Each approach has distinct features and fees, which we'll clarify below—make sure to check our broker comparison further down the page to find the best fit for your needs.
Cash buying
A cash (spot) purchase means you directly buy Bank of Nova Scotia shares through a Canadian brokerage. You become a registered shareholder, eligible for dividends and voting rights. Most online brokers charge a flat commission per trade, typically around CAD $5 to $10, with trades settled in Canadian dollars.
Example
The current BNS share price is CAD $68.49. With a $1,000 investment, and factoring in a $5 brokerage fee, you could buy about 14 shares ($1,000 minus $5 commission = $995; $995 ÷ $68.49 ≈ 14 shares).
✔️ Gain scenario:
If the share price rises by 10%, your 14 shares would now be worth about $1,100 in total.
Result: That’s a +$100 gross gain, or +10% on your original investment.
Trading via CFD
CFD trading allows you to speculate on Bank of Nova Scotia’s share price movements without owning the underlying shares. CFDs are derivative instruments that enable profit from both rising and falling prices, often with leverage. Key fees include the spread (the broker's margin on buy/sell prices) and overnight financing charges if you hold a leveraged position for more than a day.
Example
With $1,000 and 5x leverage, your market exposure increases to $5,000.
If you open a CFD position on BNS and the stock rises by 8%, your gain is magnified by leverage:
8% × 5 = 40%.
Result: You earn $400 on your initial $1,000 (excluding typical fees like spreads and overnight costs).
Final advice
Before investing, it’s essential to compare brokers for their fees, account types, and available functionality. Registered Canadian brokers vary widely in trading costs and platforms. Ultimately, the right option depends on your investment objectives—whether you seek direct share ownership for dividends and long-term growth, or wish to actively trade price movements with CFDs. For an in-depth broker comparison, consult the tool further down this page to make a confident, informed choice.
Our 7 tips for buying Bank of Nova Scotia stock
| 📊 Step | 📝 Specific tip for Bank of Nova Scotia |
|---|---|
| Analyze the market | Review both short-term bullish signals and longer-term caution from technical indicators; consider analyst consensus and recent segment performance before buying Bank of Nova Scotia. |
| Choose the right trading platform | Use a Canadian trading platform that offers low commissions and supports trading on the TSX for BNS, ensuring access to Canadian-dollar purchases and eligibility for dividend tax credits. |
| Define your investment budget | Allocate funds according to your risk tolerance, keeping in mind Bank of Nova Scotia’s solid dividend yield and current market volatility; consider using registered accounts like a TFSA or RRSP for tax efficiency. |
| Choose a strategy (short or long term) | Opt for a long-term investment to take advantage of BNS’s strong capital position and attractive dividends, but be prepared for short-term price fluctuations due to economic and sector-specific events. |
| Monitor news and financial results | Stay alert to quarterly earnings, dividend announcements, and updates on strategic moves—like divestitures or North American expansion—that can significantly influence BNS’s stock price. |
| Use risk management tools | Set stop-loss or take-profit orders to manage your exposure, and periodically review your position, especially in response to credit quality changes or major market events. |
| Sell at the right time | Consider selling part or all of your position if BNS approaches technical resistance levels, shows signs of prolonged underperformance, or if financial fundamentals weaken significantly. |
The latest news about Bank of Nova Scotia
Bank of Nova Scotia shares have risen by 2.21% in the past week, supported by strong daily trading volumes.
This short-term bullish movement, reflected in both intraday and weekly gains, is further underscored by a combination of positive signals from short-term moving averages and robust investor activity on the TSX. The trading momentum aligns with a mixed but generally optimistic technical outlook, attracting the attention of market participants in Canada amid moderate sector volatility.
Fee-based revenue at Scotiabank has grown 15% year-over-year, highlighting resilience and diversification in core earnings streams.
This significant increase in noninterest income demonstrates the bank’s ability to generate revenue outside of traditional lending, underlining its adaptability in the evolving Canadian financial market. Such growth improves both profitability and operational stability, making Scotiabank’s earnings profile more attractive, especially for income-oriented Canadian investors.
The Global Banking and Markets segment reported a 33% year-over-year earnings increase in Q1 2025, reinforcing capital markets strength.
This segment’s robust performance is a testament to Scotiabank’s effective execution in areas such as underwriting, advisory, and trading services. The continued outperformance in a key business line mitigates softer results elsewhere and suggests increasing competitiveness within Canada’s financial sector, underpinning analyst optimism about future growth and earnings potential.
Management reaffirmed its commitment to reliable dividends, with a solid 6.19% yield and plans for continued dividend growth.
Scotiabank’s leadership has confirmed intentions to resume moderate dividend increases in the next quarter, providing valuable forward guidance for Canadian shareholders who benefit from the bank’s eligibility for the dividend tax credit and registered account advantages. The above-average yield offers stability and defensiveness that appeals to domestic investors in periods of economic uncertainty.
Scotiabank’s capital position remains strong, with a Common Equity Tier 1 (CET1) ratio of 12.9%, well above regulatory minimums.
This capital strength affords substantial flexibility to navigate ongoing credit risks and macroeconomic headwinds in Canada, and it underpins the bank’s ability to invest, manage risk, and maintain shareholder payouts. The sizeable buffer improves confidence among Canadian regulators, institutional investors, and retail clients, reinforcing Scotiabank’s status as a core holding in the Canadian financial landscape.
FAQ
What is the latest dividend for Bank of Nova Scotia stock?
Bank of Nova Scotia currently pays a quarterly dividend of CAD $1.06 per share, with the latest ex-dividend date on April 1, 2025. This equates to an annualized dividend of CAD $4.24 per share, representing a yield of approximately 6.2%. The bank has a longstanding commitment to regular dividends and management has indicated plans to resume modest dividend growth in the coming quarters, reflecting its stable position in the Canadian financial sector.
What is the forecast for Bank of Nova Scotia stock in 2025, 2026, and 2027?
Based on the current TSX share price of CAD $68.49, the projected price for Bank of Nova Scotia stock is CAD $89.04 at the end of 2025, CAD $102.74 at the end of 2026, and CAD $136.98 at the end of 2027. This optimistic trajectory is supported by the bank’s strong fee-based revenue growth, proactive portfolio adjustments, and a refocused North American strategy that positions it well for future industry momentum.
Should I sell my Bank of Nova Scotia shares?
Holding onto Bank of Nova Scotia shares may be a suitable strategy, as the bank has demonstrated notable resilience through its diversified business model and strategic focus. Its attractive dividend yield, strong capital position, and proven ability to adapt internationally enhance its mid- to long-term growth outlook. Investors seeking stable income and exposure to the Canadian banking sector may find the fundamentals supportive of maintaining their positions, especially given current market conditions and positive trends in core segments.
Are Bank of Nova Scotia shares eligible for tax-advantaged accounts or subject to special taxation in Canada?
Yes, Bank of Nova Scotia shares are eligible for inclusion in registered accounts such as RRSPs and TFSAs, which can shelter dividends and capital gains from taxation for Canadian residents. Dividends received in non-registered accounts qualify for the Canadian dividend tax credit, which reduces effective tax rates compared to normal income. Unlike U.S. stocks, no foreign withholding tax applies to BNS dividends for Canadians holding the shares domestically.
What is the latest dividend for Bank of Nova Scotia stock?
Bank of Nova Scotia currently pays a quarterly dividend of CAD $1.06 per share, with the latest ex-dividend date on April 1, 2025. This equates to an annualized dividend of CAD $4.24 per share, representing a yield of approximately 6.2%. The bank has a longstanding commitment to regular dividends and management has indicated plans to resume modest dividend growth in the coming quarters, reflecting its stable position in the Canadian financial sector.
What is the forecast for Bank of Nova Scotia stock in 2025, 2026, and 2027?
Based on the current TSX share price of CAD $68.49, the projected price for Bank of Nova Scotia stock is CAD $89.04 at the end of 2025, CAD $102.74 at the end of 2026, and CAD $136.98 at the end of 2027. This optimistic trajectory is supported by the bank’s strong fee-based revenue growth, proactive portfolio adjustments, and a refocused North American strategy that positions it well for future industry momentum.
Should I sell my Bank of Nova Scotia shares?
Holding onto Bank of Nova Scotia shares may be a suitable strategy, as the bank has demonstrated notable resilience through its diversified business model and strategic focus. Its attractive dividend yield, strong capital position, and proven ability to adapt internationally enhance its mid- to long-term growth outlook. Investors seeking stable income and exposure to the Canadian banking sector may find the fundamentals supportive of maintaining their positions, especially given current market conditions and positive trends in core segments.
Are Bank of Nova Scotia shares eligible for tax-advantaged accounts or subject to special taxation in Canada?
Yes, Bank of Nova Scotia shares are eligible for inclusion in registered accounts such as RRSPs and TFSAs, which can shelter dividends and capital gains from taxation for Canadian residents. Dividends received in non-registered accounts qualify for the Canadian dividend tax credit, which reduces effective tax rates compared to normal income. Unlike U.S. stocks, no foreign withholding tax applies to BNS dividends for Canadians holding the shares domestically.
