This article was coproduced with Dividend Sensei.

At iREIT on Alpha and Dividend Kings, we continue to screen for value, and one sector that is appealing to us these days is the banking sector.

A few days ago we decided to write on Texas-based Cullen/Frost Bankers (CFR) in which we explained that the bank has “the highest yield in the last 20 years despite Treasury bonds trading near all-time lows. From a risk-adjusted perspective, Cullen/Frost is providing investors the best spread over government bonds in at least 25 years.

Cullen/Frost is now yielding 4.1% with a P/E of 14.1x (normal is 16x).

Today we’re focusing on another deeply-discounted bank with a long track record of reliability and predictability.

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As we write this, the market is recovering off its recent pullback. And while many companies are recovering quickly, plenty of great deals remain available.

In that light, we’re highlighting The Bank of Nova Scotia (BNS). It’s a 6.4%-yielding blue-chip with a strong economic recovery expected in 2021 and beyond.

That’s why Dividend Kings just bought into it for a fifth time in our Phoenix Portfolio – and we plan to buy it one final time next week. That will still put us ahead of three major catalysts that should propel it and its stock to impressive levels.

The bank already is a one-stop-shop for companies, governments, institutions, and high-net-worth individuals – from traditional banking services to global market underwriting (equity and bonds) to asset management.

We’re talking about:

  • $1.2 trillion in assets
  • $768 billion in low-cost deposits
  • 95,000 global employees
  • 2,905 branches
  • 8,793 ATMs.

Scotiabank has proven impressive in the past already, as evidenced by its total returns since 1996, featured below.

(Source: Portfolio Visualizer)

Over the last 24 years, it has delivered 12.5% compound annual growth rate

SEOUL (Reuters) – Samsung Electronics Co Ltd’s third-quarter profit likely jumped 58% to its highest in two years, beating analyst estimates as U.S. restrictions on China’s Huawei boosted the South Korean tech giant’s phone and chip sales.

U.S. action against Huawei Technologies Co Ltd has dampened demand for its phones outside of China, giving a leg up to Samsung, analysts said, while the Chinese firm also hurried to order more chips from Samsung after Washington moved to choke its access to commercially available chips from mid-September.

Samsung said on Thursday operating profit was likely 12.3 trillion won ($10.6 billion) for the three months ended September, well above a Refinitiv SmartEstimate of 10.5 trillion won. It would be the strongest result since 17.57 trillion won in the third quarter of 2018.

Revenue likely rose 6% from the same period a year earlier to 66 trillion won, the company said.

Samsung released only limited data in Thursday’s regulatory filing ahead of the release of detailed earnings figures later this month.

“It seems Huawei’s impact on Samsung’s chip business was bigger than the market expected, and there was a big surprise in the smartphone and home appliance businesses,” said CW Chung, head of research at Nomura in Korea.

MOBILE PROFIT BOOST

Samsung was expected to post its biggest smartphone profit in at least four years, analysts said, as it gained market share from Chinese rivals and the coronavirus pandemic helped cut marketing costs.

Washington, which says Huawei is a vehicle for Chinese state espionage, has tightened restrictions on the firm, hurting demand for Huawei phones in Europe and other countries and boosting Samsung’s sales at a time when markets outside China are recovering from COVID-19 lockdowns, analysts said.

FILE PHOTO: The logo of Samsung Electronics is seen on

Flip A Coin: Heads – Full Recovery, Tails – Markets Crash

(Photo Credit)

The stock market feels like a coin toss these days. The presidential election is just over one month away. Donald Trump is recovering from COVID-19. The U.S. is politically and ideologically polarized, and the economy is a stretched balloon that can give way at any moment. Even if you buy in to the recovery hype, now might not be the ideal time to be going “all-in” to the stock market. But as long-term, buy and hold, dividend growth investors, we must remember that time in the market reigns supreme. September and October are historically the two worst-performing months for the stock market, but there are always opportunities for prudent investors. As always, we’re focused on religiously saving and disciplined investing every single month.

Here’s how our September panned out:

Dividend Income: 2020 (Blue) vs. 2019 (Red)

In September 2020, we pocketed $1,273.93 of dividend income. Compared YoY to September 2019, which saw $1,188.98 in dividends, that’s still a 7.15% increase YoY, even after liquidating $120k of assets from this account. June 2020 saw $1,952.04 of income. This is where the effects of my large July selloff and dividend cuts from some of my larger holdings become very noticeable. Our dividend income decreased a whopping -34.74% QoQ. We are laser-focused on rebuilding our holdings to get back into plus territory here.

Dividend Income Received: September 2020

Ticker/Stock Name Income
Aflac (AFL) $1.40
Ares Capital (ARCC) $123.98
Broadcom (AVGO) $13.58
BP plc (BP) $50.65
Brookfield Property REIT (BPYU) $130.92
Dominion Energy (D) $9.87
Easterly Government Properties (DEA) $26.76
Enbridge (ENB) $108.52
Corning (GLW) $1.10
International Paper (IP) $5.13
Johnson & Johnson (JNJ) $8.05
Keycorp (KEY) $55.50
Gladstone Land (LAND) $1.12
LyondellBasell (LYB) $87.15
McDonald’s (MCD) $6.25

Adds earnings impact, background

TOKYO, Sept 29 (Reuters)Toshiba Corp 6502.T on Tuesday said it will exit the money-losing system LSI chip business as the Japanese conglomerate aims to boost the group’s profit margins.

The chip business includes image recognition processors supplied to Toyota Motor Corp 7203.T, although Toshiba said it would continue sales and support operations for existing customers.

Toshiba plans to relocate or offer early retirement options to 770 employees at its system LSI business, a step that will cost the Japanese company 11.8 billion yen ($111.77 million) but has already been factored in its earnings outlook. However, its power management chip business will be retained.

The company said in a statement it decided to withdraw and “establish a solid business structure not easily affected by market fluctuations; one that is sustainable even during the continuing U.S.-China trade conflict.”

Toshiba sold its prized flash memory business, now Kioxia Holdings Corp 6600.T, to a consortium led by Bain Capital for $18 billion yen in 2018 as it scrambled to plug a financial hole caused by the failure of its U.S. nuclear power unit.

Kioxia on Monday shelved plans for what would have been Japan’s largest initial public offering (IPO) this year, as U.S-China tensions cloud the global chip market.

(Reporting by Makiko Yamazaki; Editing by Kim Coghill and Sherry Jacob-Phillips)

(([email protected]; +81-3-4563-2805;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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TOKYO (Reuters) – Toshiba Corp on Tuesday said it will exit the money-losing system LSI chip business as the Japanese conglomerate aims to boost the group’s profit margins.

The chip business includes image recognition processors supplied to Toyota Motor Corp, although Toshiba said it would continue sales and support operations for existing customers.

Toshiba plans to relocate or offer early retirement options to 770 employees at its system LSI business, a step that will cost the Japanese company 11.8 billion yen ($111.77 million) but has already been factored in its earnings outlook. However, its power management chip business will be retained.

The company said in a statement it decided to withdraw and “establish a solid business structure not easily affected by market fluctuations; one that is sustainable even during the continuing U.S.-China trade conflict.”

Toshiba sold its prized flash memory business, now Kioxia Holdings Corp, to a consortium led by Bain Capital for $18 billion yen in 2018 as it scrambled to plug a financial hole caused by the failure of its U.S. nuclear power unit.

Kioxia on Monday shelved plans for what would have been Japan’s largest initial public offering (IPO) this year, as U.S-China tensions cloud the global chip market.

(Reporting by Makiko Yamazaki; Editing by Kim Coghill and Sherry Jacob-Phillips)

Copyright 2020 Thomson Reuters.

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