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For those who’re dreaming of turning your portfolio into a gentle stream of money, dividend shares are an ideal place to begin. And in case you’re in search of dependable earnings in Canada, Financial institution of Nova Scotia (TSX:BNS) is a basic decide. It’s one of many Huge 5 banks, recognized not just for its world footprint but in addition for its wealthy dividend historical past. One of the best half? You don’t have to be a millionaire to begin constructing your passive earnings stream. You simply want a purpose, and on this case, the purpose is to earn $2,000 yearly from dividends.

Why Scotiabank

Scotiabank has been paying dividends for over 190 years and is taken into account probably the most reliable dividend shares within the nation. Whether or not you’re saving for retirement, paying your payments with dividends, or just need to develop your wealth with a bit of money circulate, BNS could be a stable anchor in a portfolio.

As of writing, Scotiabank inventory trades for about $69 and affords a quarterly dividend of $1.06 per share. That comes out to $4.24 per share yearly, which works out to a yield of roughly 6.2%. That’s effectively above what you’d earn from most financial savings accounts or assured funding certificates (GIC) today, and it’s money you may rely on, supplied you’re holding onto the shares.

So how a lot inventory do you might want to make that $2,000 in annual dividend earnings? That’s the place the chart under is available in. As a substitute of strolling you thru all the maths, right here’s a easy breakdown of what your funding may seem like in case you used Scotiabank to hit that $2,000 goal.

Issues

Now, earlier than you dive in, there are some things to remember. First, whereas Scotiabank is understood for its constant dividends, it’s nonetheless a inventory. Which means the share value can go up and down. The second factor to know is that Scotiabank tends to lift its dividend over time. It hasn’t raised it each single 12 months, however the pattern has been upward for many years. So in case you’re holding the dividend inventory for a number of years, there’s an opportunity that your $2,000 annual earnings may enhance with no additional effort from you. That’s the great thing about compounding dividends: you earn extra simply by sticking round.

In its most up-to-date earnings, Scotiabank reported web earnings of $2.2 billion for the primary quarter of 2025. The Canadian banking phase confirmed stability, whereas its worldwide enterprise, which features a robust presence in Latin America, continues to rebound. The dividend payout ratio sits comfortably at 87%, which tells us there’s room for the dividend to be maintained even throughout more durable durations. That’s reassuring in case you’re relying on that money each quarter.

Now, $32,565 is a good chunk of change. However consider it this fashion: you’re placing that cash to work in considered one of Canada’s largest monetary establishments. It’s a dividend inventory with operations in additional than 30 international locations, a observe report of weathering monetary storms, and a administration staff centered on delivering shareholder returns. That type of stability is tough to return by.

Backside line

In fact, you don’t have to begin with the total quantity. You may start by shopping for a handful of shares and constructing your place over time. As your holdings develop, so will your dividends. The necessary factor is to begin. Scotiabank offers you the uncommon mixture of earnings, stability, and long-term progress potential. It’s the type of inventory that rewards endurance.

So whether or not you’re seeking to cowl just a few payments, enhance your retirement earnings, or simply gather cheques whilst you sleep, Scotiabank inventory may assist get you there. With constant dividends and a stable yield, it makes turning your $32,500 into $2,000 a 12 months sound like a fairly good deal.