Canadian stability with a twist
The Bank of Nova Scotia (USA) (NYSE:BNS), also known as “Scotiabank,” is one of Canada’s “Big Five” banks. Canadian banks held their own during the recession years of 2008 and 2009, and won investor interest for being associated with the relatively stable Canadian economy. Scotiabank presents an intriguing investment opportunity due to its status as a steady Canadian bank, with diversified international revenues as a potential growth ingredient. Last year, the company booked revenues of $19.9 billion. Almost two-thirds of that revenue derived from banking business, split very evenly between Canadian banking ($6.3 billion) and International banking ($6.5 billion). The company’s international banking is primarily focused on the fast-growing economies of Latin America, including Columbia, Peru, and Chile, with a growing base in Asia.
Similar to Unilever N.V. (ADR) (NYSE:UN), your risk in BNS is its investment in developing economies, but as I’ve already noted, this is mitigated by the balance with its solid Canadian banking business. BNS trades at a relatively attractive trailing twelve month P/E ratio of 10.7, and again, like Unilever, it incidentally throws off an enticing dividend yield of 4%.
A final thought
Reaching your best years doesn’t necessarily mean that every last stock you own should be conservative and boring. Whether you are beginning to think about changes to your investment style in your 50s or are enjoying the renaissance of your 80s and beyond, it’s never too late to understand what each stock in your brokerage account will potentially contribute to your current goals and the possible pitfalls that each presents.
The article Seniors, Take Some Risk! 4 Stocks You Can Buy Today originally appeared on Fool.com.
Fool contributor Asit Sharma has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble, Bank of Nova Scotia (USA), and Unilever and owns shares of General Electric.
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