Pembina Pipeline & Bank Of Nova Scotia: 2 Largecap Dividend Paying Stocks

Summary

  • Pembina Pipeline Corp (TSX: PPL) holds a dividend yield of 8.9 per cent.
  • Pembina stock has rebounded over 70 per cent since the pandemic-led crash on March 19.
  • Bank of Nova Scotia paid a quarterly dividend of C$ 0.9 in the last five consecutive quarters.

 

Before exploring Pembina Pipeline Corporation (TSX: PPL) and Bank of Nova Scotia (TSX: BNS), we would like to simplify the term ‘Dividend’ for new investors. The part of the company’s profit, which is paid to its stockholders, is referred as dividend. Companies give dividends in several forms such as stocks, cash payments, etc. The company’s Board of Directors decides on dividend payment followed by the shareholders’ approval.

Let us now look at two largecap stocks with dividend yields over six per cent:

 

Pembina Pipeline Corporation (TSX: PPL)

Current Stock Price: C$ 28.26

 

Pembina Pipeline Corp holds a dividend yield of 8.9 per cent. The energy stock announced cash dividend of US$0.1584 per share for October, which is payable on November 13, 2020.

As per details on the TMX Group, Pembina’s three-year dividend growth is 6.50 per cent. In September, it paid shareholders a cash dividend of US$0.1607 per share for the month of September.

Pembina Pipeline operates is a regional pipeline network which is expanded over 9000 kilometers. Its network includes heavy oil, hydrocarbon, and oil sands pipelines.

Let us look at the stock performance and the financial health of the company.

 

Pembina Stock Performance

Pembina Pipeline’s stock has rebounded over 70 per cent since the pandemic-led crash on March 19. However, the year-to-date (YTD) stock performance is down by 41.5 per cent. This energy stock is almost 15 per cent down in the last six months.

The energy pipeline stock ranks among TMX Money’s top energy companies with the largest price gains in the last 30 days on the Toronto Stock Exchange (TSX) and TSX Venture (TSXV). The dividend stock’s 10-day average trading volume is 2 million and is among the most active stocks trending across the TSX and TSXV in the last 10 days.

Its current market capitalization is C$ 15.5 billion. The energy stock’s price-to-earnings (P/E) ratio is 16.20. The stock provides a return on equity (RoE) of 6.37 per cent and return on assets of 3.02 per cent. The profit-to-book (P/B ratio) is 0.921, and its current earnings per share (EPS) is 1.76, according to TMX data.

Pembina Financial Highlights

In the second quarter of 2020, the energy firm posted net revenue of C$ 776 million, an increase of 2.3 per cent compared with C$ 758 million in the same quarter of the last fiscal year. Its dividend per common share was C$ 0.63, up by 6.7 per cent compared with C$ 0.59 in Q2 FY19. The company’s adjusted EBITDA was C$ 789 million, nearly 3.13 per cent up from C$ 765 million in Q2 of the last fiscal year.

 

Bank Of Nova Scotia (TSX: BNS)

Current Stock Price: C$ 56.66

 

Top Canadian lender Bank of Nova Scotia holds 6.354 per cent dividend yield currently. It recently declared that its shareholders will get a cash dividend of nearly C$ 0.9 per share on October 28, 2020.

The bank’s three-year average dividend growth is 5.54 per cent and its five-year dividend growth is 5.89.

Bank Of Nova Scotia (TSX:BNS) Paid Quarterly Dividend Of C$0.9 In The Last Five Consecutive Quarters.

 

To delve into this top dividend paying bluechip stock, we will look at its stock performance and the financial health of the lender.

 

BNS Stock Performance

BNS’ stock has rebounded over 21 per cent since the pandemic-led low on March 24. However, the stock is down by 22.75 per cent year-to-date.

This largecap stock has plunged 15 per cent in the last six months. However, in the last three months, the stock has marginally recovered by almost 3 per cent.

The lender has been placed among TMX Money’s top financial services stocks with the largest price gains in the last 30 days across the TSX and the TSXV. This banking stock has a 10-day average share trading volume of 4.8 million and is highly ranked among the TSX and TSXV companies with the high trade volumes in the last 10 days.

BNS’ current market capitalization is C$ 68.64 billion. The bank stock’s price-to-earnings (P/E) ratio is 9.9. BNS offers a return on equity (RoE) of 10.6 per cent and return on assets of 0.6 per cent. The profit-to-book (P/B ratio) is 1.092, and its current earnings per share (EPS) is 5.75, as per TMX data.

 

BNS Financial Highlights

In the third quarter of FY20, BNS posted a net income of C$ 1.3 billion, a slump of nearly 73.6 per cent compared with C$ 4.95 billion in Q3 of the last fiscal year. Its diluted earnings per share was C$ 1.04, a decline of over 73 per cent compared with C$ 3.88 in Q3 FY19. BNS reported total revenue of C$ 7,734 million, a 67.5 per cent fall from C$ 23831 in Q3 of the last fiscal year.

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