Long-Term Investment Value of High-Yield Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 15 hours ago
0mins
Source: Fool
- Robust Dividend Returns: Bank of Nova Scotia has paid dividends every year since 1833, with a current yield of approximately 4.6%, significantly higher than the S&P 500, showcasing its stability and appeal amid market fluctuations.
- Stable Real Estate Investment: Realty Income has increased its monthly dividend for 31 consecutive years, currently yielding 5.2%, and its investment-grade balance sheet with a 75% FFO payout ratio ensures safety during economic downturns, making it suitable for long-term holding.
- Resilient Performance in Energy Sector: Enterprise Products Partners boasts a 5.7% distribution yield, and despite geopolitical risks, its fee-based model and 1.7x cash flow coverage allow it to increase distributions for 27 consecutive years, demonstrating strong financial stability.
- Attractive Long-Term Investment: A $1,000 investment allows the purchase of 14 shares of Bank of Nova Scotia, 15 shares of Realty Income, or 26 units of Enterprise, highlighting the potential value of these high-yield stocks for long-term holders seeking stable income.
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Analyst Views on BNS
Wall Street analysts forecast BNS stock price to rise
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 70.190
Low
68.69
Averages
75.58
High
79.76
Current: 70.190
Low
68.69
Averages
75.58
High
79.76
About BNS
The Bank of Nova Scotia (the Bank) is a chartered Schedule I bank. The Bank is a global financial services provider offering a range of products and services, including personal, commercial, corporate and investment banking. Its segments include Canadian Banking, International Banking, Global Wealth Management, Global Banking and Markets, and Other. Canadian Banking segment provides a full suite of financial advice and banking solutions. Canadian Banking segment comprises retail banking and business banking. International Banking segment is a diverse franchise that provides financial advice and solutions to retail, corporate, and commercial clients. Its geographic presence spans over 15 countries including Mexico, Chile, and Peru. Global Wealth Management segment is comprised of wealth management and asset management businesses. Global Banking and Markets segment provides corporate clients with lending and transaction services, investment banking advice and access to capital markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Long-Term Investment Value of High-Yield Stocks
- Robust Dividend Returns: Bank of Nova Scotia has paid dividends every year since 1833, with a current yield of approximately 4.6%, significantly higher than the S&P 500, showcasing its stability and appeal amid market fluctuations.
- Stable Real Estate Investment: Realty Income has increased its monthly dividend for 31 consecutive years, currently yielding 5.2%, and its investment-grade balance sheet with a 75% FFO payout ratio ensures safety during economic downturns, making it suitable for long-term holding.
- Resilient Performance in Energy Sector: Enterprise Products Partners boasts a 5.7% distribution yield, and despite geopolitical risks, its fee-based model and 1.7x cash flow coverage allow it to increase distributions for 27 consecutive years, demonstrating strong financial stability.
- Attractive Long-Term Investment: A $1,000 investment allows the purchase of 14 shares of Bank of Nova Scotia, 15 shares of Realty Income, or 26 units of Enterprise, highlighting the potential value of these high-yield stocks for long-term holders seeking stable income.
See More
Long-Term Investment Value of High-Yield Stocks
- Rich Dividend History: Bank of Nova Scotia has paid dividends annually since 1833, with a current yield of approximately 4.6%, significantly higher than the S&P 500, indicating strong cash flow and long-term investment appeal despite not increasing dividends every year.
- Stable REIT Performance: Realty Income has raised its monthly dividend for 31 consecutive years, boasting a 5.2% yield, and its investment-grade balance sheet with a 75% funds from operations payout ratio ensures stability during economic fluctuations, making it ideal for conservative investors.
- Robust Energy Sector Performance: Enterprise Products Partners has increased its distribution for 27 years, with a current yield of 5.7%, supported by a toll-taking business model and a 1.7x cash flow coverage ratio, allowing it to maintain financial stability amid market volatility, suitable for long-term holding.
- Attractive Long-Term Investment: All three companies offer high yields and a reliable dividend payment history, making them worthy of long-term investment despite market fluctuations, appealing to investors looking to create generational wealth through conservative business models.
See More
Three High-Yield Stocks Worth Holding Long-Term
- Robust Dividend Returns: Bank of Nova Scotia has paid dividends every year since 1833, currently yielding around 4.6%, significantly higher than the S&P 500, demonstrating its stability and appeal in uncertain markets.
- Stable Real Estate Investment: Realty Income offers a 5.2% dividend yield and has increased its monthly dividend for 31 consecutive years, with a portfolio of over 15,500 properties, ensuring stable cash flow and long-term investment value amid economic fluctuations.
- Resilient Performance in Energy: Enterprise Products Partners boasts a 5.7% distribution yield and has increased its annual distributions for 27 years, relying on a toll-based model for its North American energy infrastructure, showcasing resilience in volatile markets.
- Safety in Long-Term Holding: These three companies not only provide high yields but also represent ideal long-term investments due to their conservative business models and reliable dividend payment histories, making them suitable for maintaining investment safety during economic storms.
See More
Scotiabank Approved to Repurchase 15 Million Shares
- Buyback Program Initiation: Scotiabank has received approval from the Toronto Stock Exchange and the Office of the Superintendent of Financial Institutions to repurchase up to 15 million common shares, representing approximately 1.2% of its outstanding shares as of March 24, aimed at enhancing shareholder value and providing capital flexibility.
- Termination of Existing Program: The bank plans to terminate its existing buyback program on April 6 after completing the repurchase of 20 million shares for a total of $1.81 billion, demonstrating its focus on effective capital management.
- New Program Timeline: The new buyback program is set to begin on April 7 and will run until April 6, 2027, unless completed earlier, indicating the company's ongoing commitment to shareholder returns in the long term.
- Market Reaction: In pre-market trading on the New York Stock Exchange, Scotiabank's stock price fell by 0.57% to $69.79, reflecting the market's initial response to the buyback announcement.
See More
Scotiabank Receives Approval for 15M Share Buyback
- Buyback Plan Approval: Scotiabank has received regulatory approval for a new normal course issuer bid to repurchase up to 15 million shares, representing about 1.2% of its outstanding shares, aimed at enhancing capital management flexibility.
- Buyback Timeline: The buyback program is set to commence on April 7, 2026, and will run through April 6, 2027, unless completed earlier, demonstrating the bank's confidence in future market conditions.
- Previous Buyback Success: In its prior buyback, Scotiabank repurchased 20 million shares at an average price of approximately C$90.47, deploying about C$1.81 billion, successfully enhancing shareholder value and reducing dilution effects.
- Capital Management Strategy: The new buyback plan not only provides the bank with flexibility in managing its capital but also effectively offsets dilution from options exercises, further enhancing shareholder returns and reflecting its keen insight into market dynamics.
See More
Space Economy Set to Triple, Investors Take Notice
- Space Economy Growth Potential: According to a McKinsey report from April 2024, the space economy is projected to grow from $630 billion in 2023 to $1.8 trillion by 2035, indicating significant investment opportunities that have captured investor attention.
- AST SpaceMobile Stock Volatility: AST SpaceMobile's shares surged 3,070% over the past two years, yet analysts predict a potential 56% decline by 2026, reflecting high uncertainty regarding its future performance in the market.
- Intuitive Machines' Government Contracts: Intuitive Machines secured a Near Space Network contract with NASA potentially worth up to $4.82 billion, yet the company faces a 50% risk of stock price decline, highlighting its fragile profitability.
- Increased Competitive Pressure: Both AST SpaceMobile and Intuitive Machines operate in highly competitive sectors, particularly as AST must launch new satellites timely and cost-effectively to maintain its premium valuation, where any misstep could lead to significant stock price drops.
See More
Long-Term Investment Value of High-Yield Stocks
- Robust Dividend Returns: Bank of Nova Scotia has paid dividends every year since 1833, with a current yield of approximately 4.6%, significantly higher than the S&P 500, showcasing its stability and appeal amid market fluctuations.
- Stable Real Estate Investment: Realty Income has increased its monthly dividend for 31 consecutive years, currently yielding 5.2%, and its investment-grade balance sheet with a 75% FFO payout ratio ensures safety during economic downturns, making it suitable for long-term holding.
- Resilient Performance in Energy Sector: Enterprise Products Partners boasts a 5.7% distribution yield, and despite geopolitical risks, its fee-based model and 1.7x cash flow coverage allow it to increase distributions for 27 consecutive years, demonstrating strong financial stability.
- Attractive Long-Term Investment: A $1,000 investment allows the purchase of 14 shares of Bank of Nova Scotia, 15 shares of Realty Income, or 26 units of Enterprise, highlighting the potential value of these high-yield stocks for long-term holders seeking stable income.
See More
Long-Term Investment Value of High-Yield Stocks
- Rich Dividend History: Bank of Nova Scotia has paid dividends annually since 1833, with a current yield of approximately 4.6%, significantly higher than the S&P 500, indicating strong cash flow and long-term investment appeal despite not increasing dividends every year.
- Stable REIT Performance: Realty Income has raised its monthly dividend for 31 consecutive years, boasting a 5.2% yield, and its investment-grade balance sheet with a 75% funds from operations payout ratio ensures stability during economic fluctuations, making it ideal for conservative investors.
- Robust Energy Sector Performance: Enterprise Products Partners has increased its distribution for 27 years, with a current yield of 5.7%, supported by a toll-taking business model and a 1.7x cash flow coverage ratio, allowing it to maintain financial stability amid market volatility, suitable for long-term holding.
- Attractive Long-Term Investment: All three companies offer high yields and a reliable dividend payment history, making them worthy of long-term investment despite market fluctuations, appealing to investors looking to create generational wealth through conservative business models.
See More
Three High-Yield Stocks Worth Holding Long-Term
- Robust Dividend Returns: Bank of Nova Scotia has paid dividends every year since 1833, currently yielding around 4.6%, significantly higher than the S&P 500, demonstrating its stability and appeal in uncertain markets.
- Stable Real Estate Investment: Realty Income offers a 5.2% dividend yield and has increased its monthly dividend for 31 consecutive years, with a portfolio of over 15,500 properties, ensuring stable cash flow and long-term investment value amid economic fluctuations.
- Resilient Performance in Energy: Enterprise Products Partners boasts a 5.7% distribution yield and has increased its annual distributions for 27 years, relying on a toll-based model for its North American energy infrastructure, showcasing resilience in volatile markets.
- Safety in Long-Term Holding: These three companies not only provide high yields but also represent ideal long-term investments due to their conservative business models and reliable dividend payment histories, making them suitable for maintaining investment safety during economic storms.
See More
Scotiabank Approved to Repurchase 15 Million Shares
- Buyback Program Initiation: Scotiabank has received approval from the Toronto Stock Exchange and the Office of the Superintendent of Financial Institutions to repurchase up to 15 million common shares, representing approximately 1.2% of its outstanding shares as of March 24, aimed at enhancing shareholder value and providing capital flexibility.
- Termination of Existing Program: The bank plans to terminate its existing buyback program on April 6 after completing the repurchase of 20 million shares for a total of $1.81 billion, demonstrating its focus on effective capital management.
- New Program Timeline: The new buyback program is set to begin on April 7 and will run until April 6, 2027, unless completed earlier, indicating the company's ongoing commitment to shareholder returns in the long term.
- Market Reaction: In pre-market trading on the New York Stock Exchange, Scotiabank's stock price fell by 0.57% to $69.79, reflecting the market's initial response to the buyback announcement.
See More
Scotiabank Receives Approval for 15M Share Buyback
- Buyback Plan Approval: Scotiabank has received regulatory approval for a new normal course issuer bid to repurchase up to 15 million shares, representing about 1.2% of its outstanding shares, aimed at enhancing capital management flexibility.
- Buyback Timeline: The buyback program is set to commence on April 7, 2026, and will run through April 6, 2027, unless completed earlier, demonstrating the bank's confidence in future market conditions.
- Previous Buyback Success: In its prior buyback, Scotiabank repurchased 20 million shares at an average price of approximately C$90.47, deploying about C$1.81 billion, successfully enhancing shareholder value and reducing dilution effects.
- Capital Management Strategy: The new buyback plan not only provides the bank with flexibility in managing its capital but also effectively offsets dilution from options exercises, further enhancing shareholder returns and reflecting its keen insight into market dynamics.
See More
Space Economy Set to Triple, Investors Take Notice
- Space Economy Growth Potential: According to a McKinsey report from April 2024, the space economy is projected to grow from $630 billion in 2023 to $1.8 trillion by 2035, indicating significant investment opportunities that have captured investor attention.
- AST SpaceMobile Stock Volatility: AST SpaceMobile's shares surged 3,070% over the past two years, yet analysts predict a potential 56% decline by 2026, reflecting high uncertainty regarding its future performance in the market.
- Intuitive Machines' Government Contracts: Intuitive Machines secured a Near Space Network contract with NASA potentially worth up to $4.82 billion, yet the company faces a 50% risk of stock price decline, highlighting its fragile profitability.
- Increased Competitive Pressure: Both AST SpaceMobile and Intuitive Machines operate in highly competitive sectors, particularly as AST must launch new satellites timely and cost-effectively to maintain its premium valuation, where any misstep could lead to significant stock price drops.
See More
