During bear markets some investors try to analyze their portfolio holdings to determine which stocks to hold for the long-term and which stocks to trim down or sell even if they are at a loss. Large cap companies that pay solid dividends and have consistent long-term performance are the favorites for such investors.
Bank of Nova Scotia (BNS) is one company that may make for a solid long-term holding in a well-diversified portfolio. The following are some reasons why you may want to hold BNS for the long-term (many years):
- Has paid dividend every year since 1832.
- Increased dividends in recent years (2005, 2006, 2007 and 2008).
- Consistent dividend increases among major Canadian companies.
- International presence in countries like Mexico, Peru, Chile, Jamaica, etc.
- One of the top five large Canadian banks.
- High Payout Ratio (>33%).
- Well diversified in three business areas: Domestic Banking, International Banking and Capital Markets.
- Makes higher profits from revenues than most of its peers.
- Constituent of the main Canadian Market Index (S&P/TSX Composite Index).
Disclosure: Long BNS