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Cuts to interest rates are driving income investors back to dividend stocks as rates offered on Guaranteed Investment Certificates (GICs) continue to fall. Top dividend stocks aren’t as cheap as they were late last year, but investors can still find deals.
Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS) trades near $67 per share at the time of writing compared to $93 at one point in early 2022.
Investors sent the stock as low as $55 in October last year on concerns that soaring interest rates would trigger a recession and drive up loan losses. The rebound that occurred through March 2024 came as markets started to anticipate rate cuts and a soft landing for the economy.
The Bank of Canada has already started to reduce rates, and the economy is holding its own despite the pressures being put on household budgets. Rate hikes and subsequent cuts take time to work their way through the system, so more…
