Is BNS Stock a Buy, Sell, or Hold for 2025?

Bank of Nova Scotia (TSX:BNS) is one of Canada’s big bank stocks, but should you buy, sell or hold BNS stock right now?

| More on:
Paper Canadian currency of various denominations

Source: Getty Images

Canada’s big banks are great long-term holdings. That’s because they offer reliable revenue, intriguing growth prospects and pay out generous dividends. But in the face of market volatility, should investors buy, sell or hold bank stocks in 2025?

Let’s try to answer that buy, sell or hold question by taking a closer look at one big bank stock: Bank of Nova Scotia (TSX:BNS).

Meet Scotiabank

Scotiabank isn’t the largest of Canada’s big banks, but it is the most international of the big banks. Over the past decade, Scotiabank has focused on growing its presence in international markets, particularly Latin America.

Those targeted high-growth markets (which overlapped nicely with the Pacific Alliance trade bloc) provided Scotiabank with significant growth. Specifically, in the first two years of the pandemic, the stock price shot up a whopping 106%.

That being said, once markets began to reopen and secondary waves of closures hit developing markets, they were slower to react. This led to a gap between the performance of Scotiabank and its peers over the following year.

Fast forwarding to this year, and Scotiabank has instituted some change. The bank is now going to be focusing on the U.S. and Mexican markets for its international growth portfolio. An example of this is Scotiabank’s acquisition of a stake in U.S.-based lender Keycorp over the summer in a deal worth US$2.8 billion.

That impressive growth potential will help answer the question of whether to buy, sell, or hold Scotiabank for some.

Here’s why investors really love Scotiabank

One of the main reasons why investors continue to flock to Scotiabank is for the dividend that the company offers. Scotiabank has been paying out handsome dividends to investors without fail since 1833.

That’s an insane amount of time that spans multiple wars, as well as every boom and bust period for nearly two centuries.

As of the time of writing, Scotiabank’s quarterly dividend carries a very appetizing yield of 5.65%. This makes the bank one of the highest-paying yields among its big bank peers, if not the entire market.

In terms of earnings potential, that yield means that a $40,000 investment in Scotiabank (as part of a larger, well-diversified portfolio) will earn an income of over $2,250.

Even better, that income does not include growth or the expected near-annual uptick to that dividend which Scotiabank has provided to investors going back for well over a decade.

In other words, Scotiabank is a great income stock to buy now and forget about for decades. That also affirmatively answers the buy, sell, or hold question for income investors, too.

Will you buy, sell, or hold Scotiabank stock?

Even a defensive stock like Scotiabank carries some risk. That’s why the importance of diversifying cannot be understated enough. Fortunately, Scotiabank offers investors both a defensive (and, more importantly, stable) domestic arm as well as a growth-focused international presence.

Throw in one of the best dividends on the market, and you have one of the best-long-term options for any portfolio.

In my opinion, a position in Scotiabank should be a core holding for any well-diversified portfolio. Buy it, hold it, and watch it grow in 2025 and beyond.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Demetris Afxentiou has positions in Bank Of Nova Scotia. The Motley Fool recommends Bank Of Nova Scotia. The Motley Fool has a disclosure policy.

More on Bank Stocks

Pile of Canadian dollar bills in various denominations
Stocks for Beginners

Is Royal Bank of Canada Stock a Buy for its 3.3% Dividend Yield?

Royal Bank stock has long been one of the best buys on the TSX, and that remains the case after…

Read more »

senior relaxes in hammock with e-book
Bank Stocks

Outlook for Bank of Nova Scotia Stock in 2025

Here’s what makes Bank of Nova Scotia (TSX:BNS) a really attractive stock for income-focused, long-term investors heading into 2025.

Read more »

Lights glow in a cityscape at night.
Bank Stocks

2 Canadian Bank Stocks to Buy at a Discount

These Canadian bank stocks might be attractive heading into next year.

Read more »

dividends can compound over time
Bank Stocks

1 Growth Stock Down 11% to Buy Right Now

EQB Inc (TSX:EQB) is a growth stock that took a beating recently. Here's why it might be a good dip…

Read more »

up arrow on wooden blocks
Bank Stocks

This Canadian Bank Stock Has Nearly Doubled in 14 Months

CIBC (TSX:CM) stock is really gaining in momentum lately. The stock looks like a great buy going into 2025!

Read more »

A worker uses a double monitor computer screen in an office.
Bank Stocks

Better Bank Stock: TD vs EQB Inc

Toronto-Dominion Bank (TSX:TD) is a giant in banking, but EQB Inc (TSX:EQB) is growing faster.

Read more »

data analyze research
Bank Stocks

TD Bank: Buy, Sell, or Hold in 2025?

TD stock is down about 12% in 2024. Is it now oversold?

Read more »

ETF stands for Exchange Traded Fund
Bank Stocks

A Canadian Bank ETF I’d Buy With $1,000 and Hold Forever

This unique Hamilton ETF gives you 1.25x leveraged exposure to Canada's Big Six bank stocks.

Read more »