Scotia Canadian Dividend A, Fund, performance (2024)

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The Morningstar Star Rating for Stocks is assigned based on an analyst's estimate of a stocks fair value. It is projection/opinion and not a statement of fact. Morningstar assigns star ratings based on an analyst’s estimate of a stock's fair value. Four components drive the Star Rating: (1) our assessment of the firm’s economic moat, (2) our estimate of the stock’s fair value, (3) our uncertainty around that fair value estimate and (4) the current market price. This process culminates in a single-point star rating that is updated daily. A 5-star represents a belief that the stock is a good value at its current price; a 1-star stock isn't. If our base-case assumptions are true the market price will converge on our fair value estimate over time, generally within three years. Investments in securities are subject to market and other risks. Past performance of a security may or may not be sustained in future and is no indication of future performance. For detail information about the Morningstar Star Rating for Stocks, please visit here

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The article you've shared seems to be related to Morningstar, a renowned financial services company that provides investment research and analysis. Morningstar is well-known for its comprehensive approach to assessing various investment products, including stocks and funds. Let's break down the key concepts mentioned in the article:

  1. Morningstar Star Rating for Stocks:

    • This rating is assigned based on an analyst's estimate of a stock's fair value.
    • The four components driving the Star Rating are the assessment of the firm's economic moat, the estimate of the stock's fair value, the uncertainty around the fair value estimate, and the current market price.
    • The Star Rating is a projection/opinion and is updated daily. A 5-star rating indicates a belief that the stock is a good value at its current price, while a 1-star stock is not.
  2. Quantitative Fair Value Estimate:

    • Morningstar provides a Quantitative Fair Value Estimate, representing the company's estimate of the per-share dollar amount that a company's equity is worth today.
    • This estimate is based on a statistical model derived from the Fair Value Estimate assigned by Morningstar's equity analysts, including a financial forecast of the company.
    • Like the Star Rating, the Quantitative Fair Value Estimate is a projection/opinion and is calculated daily.
  3. Morningstar Medalist Rating:

    • This rating is the summary expression of Morningstar's forward-looking analysis of investment strategies offered via specific vehicles.
    • The rating scale includes Gold, Silver, Bronze, Neutral, and Negative.
    • Investments are evaluated based on three key pillars: People, Parent, and Process. These, along with a fee assessment, form the basis for Morningstar's conviction in the product's investment merits.
    • Pillars are rated as Low, Below Average, Average, Above Average, and High.
    • Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and active or passive status.

It's essential to note that these ratings and estimates are projections and opinions based on analysis. As with any investment, there are inherent risks, and past performance is not always indicative of future results. Investors should carefully consider all available information and conduct their own research or consult with financial professionals before making investment decisions.

Scotia Canadian Dividend A, Fund, performance (2024)
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