FDX bouncing back a bit but I decided I don't like them enough to play the short puts again.
In the Webinar, someone pointed out BNS and they are a lovely bank!
| Year End 31st Oct | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | TTM | 2019E | 2020E | CAGR / Avg | |
| C$m | 21,597 | 23,944 | 24,049 | 26,350 | 27,155 | 28,775 | 29,291 | 31,073 | 33,079 | +5.9% | |
| C$m | 8,347 | 9,300 | 9,066 | 9,398 | 10,276 | 11,106 | 10,805 | +5.9% | |||
| C$m | 6,379 | 7,071 | 7,014 | 7,117 | 8,005 | 8,548 | 8,405 | 8,963 | 9,512 | +6.0% | |
| C$ | 5.11 | 5.67 | 5.67 | 5.77 | 6.49 | 6.82 | 6.67 | +5.9% | |||
| C$ | 5.11 | 5.67 | 5.67 | 5.77 | 6.49 | 6.82 | 6.67 | 7.24 | 7.79 | +5.9% | |
| % | -1.2 | +10.8 | +0.03 | +1.7 | +12.5 | +5.1 | -1.7 | +6.16 | +7.72 | ||
| x | 10.8 | 11.0 | 10.2 | 9.45 | |||||||
| x | 1.75 | 1.79 | 1.32 | 0.81 | |||||||
| Profitability | |||||||||||
What's not to love? $67.25Bn at $54.85 and they are dropping $8.7Bn to the bottom line while paying a lovely $2.65 (5%) dividend! Apparently, on the Toronto Exchange, they have options out to 2021 so they could even be a good Butterfly play for Canadians but, in the US, options only go out until Sept but still worth it so, for the LTP let's:
- Buy 500 shares of BNS at $54.85 ($27,425)
- Sell 5 BNS Sept $55 calls for $2 ($1,000)
- Sell 5 BNS Sept $55 puts for $2.80 ($1,400)
That's net $25,025 ($50.05/share) and $52.525 if assigned 500 more below $55. Of course, it's just a 6-month sale so we should be able to drop the net another $5 into next March plus the $2.65 dividend brings us down to net $42.50 if all goes well in our first year.
As a long-term investment, if we can drop our net (including dividends captured) by even 10% a year - we're 10 years away from having a free stock.
