Bank of Nova Scotia (TSX:BNS), affectionally called Scotiabank by its users and investors, is a top Canadian bank stock many investors consider for its long-term total returns. That makes sense, looking at the chart below and the fact that this top dividend stock is now trading near its all-time high.

The company's long-term performance has been stellar, and despite a dip last year around the regional banking crisis in the U.S. (which bled over into other international markets), Scotiabank has performed quite well. The company's core business is its Canadian retail and wealth management business, though the company does have a strong presence in international banking and global markets/wealth management.

Here's why I think this is a top Canadian bank worth considering right now, and where Scotiabank stock could be headed over the medium term.

Strong performance likely to continue

As mentioned, one of Scotiabank's strengths is its diversified business model. While the lender's Canadian business is certainly most important to its bottom line, the company is also a strong player in Latin America. That's where I see the company's growth likely to really accelerate from, particularly if it can continue growing in its core markets and expand into new markets.

In recent quarters, investors have certainly seen signs that this growth is likely to continue. The company's Q2 results showcased 5.5% revenue growth, with strong net income coming in above $2 billion for the quarter. Perhaps more impressive was the company's return on equity, which came in at 11.2% for the quarter and is among the best of its peer group.

Where is this stock headed from here?

Making precise predictions about where any stock is headed is a game I'm not necessarily interested in playing, particularly because I don't have any more information than the market, and it's possible that a range of macro outcomes (which are outside of Scotiabank's control) could impact the stock to a much more significant degree than the bank's underlying operations.

But assuming that things continue as they have in recent years, I wouldn't be surprised to see Scotiabank's stock price increase at a double-digit rate. Indeed, a move of 26% over the past year in BNS stock has been remarkable, and that's the sort of return investors have cheered. However, I'm not confident such returns will be possible over the next three to five years, with a more likely outcome being a 10% total return (inclusive of dividends), if I had to handicap this stock right now.

The company's multiple remains reasonable, and Scotiabank has plenty of room to outgrow its peers. If that is the case, perhaps there's an even more bullish argument that can be made for this stock. But 10% annual returns certainly aren't bad, and that's what I think investors should be aiming for with this particular company over the medium term.