10 Best Bank Stocks With High Dividends

1. The Bank of Nova Scotia (NYSE:BNS)

Dividend Yield as of December 6: 5.38%

Number of Hedge Fund Holders: 18

The Bank of Nova Scotia (NYSE:BNS) offers a wide variety of banking and financial services in Canada, the US, and internationally. It operates through Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets segments. About 44% of the bank’s clients with term deposits are now primary clients as of Q4 2024, which is a 4.4% increase this year. On top of that, 85% of clients renewing their term deposits stuck with The Bank of Nova Scotia (NYSE:BNS), either directly renewing or moving to new investments and products. The stock is up nearly 26% year-to-date as of December 6.

In its Q4 2024 earnings call, The Bank of Nova Scotia (NYSE:BNS) reported that overall revenue in 2024 went up 6% compared to the previous year, while expenses increased by 4%, giving the bank a 2.3% positive operating leverage. Fee and commission revenue also saw a 5% rise. The Canadian Banking segment had a solid performance, with earnings growing 7% to $4.3 billion, driven by deposit growth and improved margins, though there were higher expenses and PCLs. BNS also had a return on equity of 20.8%.

On December 3, The Bank of Nova Scotia (NYSE:BNS) declared a C$1.06 per share quarterly dividend. Shareholders who are on record by January 7, 2025, will receive the payout on January 29, 2025. It is one of the best bank stocks, with a steady dividend history and an attractive yield for investors.

Insider Monkey’s third-quarter database shows that 18 hedge funds were bullish on The Bank of Nova Scotia (NYSE:BNS), an increase from 14 funds in the previous quarter.

Overall, The Bank of Nova Scotia (NYSE:BNS) ranks first on our list of the best bank stocks. While we acknowledge the potential of BNS to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BNS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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