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Dividend Philosophy
Scotiabank's practice has been 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.
This practice, coupled with the Bank's strong earnings growth, has led to dividend increases in 36 of the last 38 years - one of the most consistent records for dividend growth among major Canadian corporations.
The following is a record of increases in the quarterly dividend per common share for the fiscal period 2006 to 2009:
Fiscal 2008 - 1st quarter - increased from 45 cents to 47 cents. 3rd quarter - increased from 47 cents to 49 cents.
Fiscal 2007 - 1st quarter - increased from 39 cents to 42 cents. 3rd quarter - increased from 42 cents to 45 cents.
Fiscal 2006 - 1st quarter - increased from 34 cents to 36 cents. 3rd quarter - increased from 36 to 39 cents.
The Bank has paid dividends to common shareholders every year since its foundation in 1832.
Quarterly Dividends (as declared) per Common Share (2006 to present)
| Q1 |
0.36
|
0.42
|
0.47
|
0.49 |
| Q2 |
0.36
|
0.42
|
0.47 |
0.49
|
| Q3 |
0.39
|
0.45
|
0.49 |
0.49
|
| Q4 |
0.39
|
0.45
|
0.49 |
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Common Share Dividend History and Stock Splits
Record and Payment Dates for Dividends (Common and Preferred)
Subject to approval by the Board of Directors, the payment date for common and all preferred shares is usually the third last business day of each fiscal quarter. Bank fiscal quarters end with the months of January, April, July and October.
The record date is the first Tuesday of the month in which dividends are paid.
For fiscal 2009, payment and record dates are as follows:
| January |
6
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28
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| April |
7
|
28
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| July |
7
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29
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| October |
6
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28
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Dividend Taxation
The federal Income Tax Act, and most provincial income tax legislation, provides lower levels of taxation for Canadian individuals who receive eligible dividends. All of the dividends paid by the Bank of Nova Scotia, and any of its subsidiaries, in 2006 are eligible dividends and all dividends paid hereafter will be eligible dividends unless indicated otherwise.
Direct Deposit
Registered shareholders may have dividends conveniently deposited directly into accounts held at financial institutions which are members of the Canadian Payments Association.
To arrange for direct deposit service, write, phone or fax the Transfer Agent:
Computershare Trust Company of Canada
100 University Ave., 9th floor
Toronto, Ontario, Canada
M5J 2Y1
Tel: 1-877-982-8767
Fax: 1-888-453-0330
E-mail: service@computershare.com
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