The Bank of Nova Scotia (BNS) raised its dividend today by almost 5% to $0.47 / share. BNS has been raising its dividend twice annually for many years. The last raise for the Q3 2007 dividend was by almost 7%. Only raising by 5% this time around seems to be indicating an expectation by the bank for slower earnings growth in 2008.
Overall BNS has raised their dividend...:
+14% to 2006
+16% to 2007
...and I'm going to take the liberty to assume +10% to 2008 given this latest raise and a conservative estimate of a 4% raise for Q3 of 2008.
From their Investor Relations Dept:
Scotia's dividend policy is to relate dividends to the trend earnings, while ensuring that capital levels are sufficient for both growth and depositor protection. The Bank's dividend payout is currently in the range of 35 to 45% of net income.