Hey guys! I purchased a new stock today. About a year ago, I mentioned about my plans to invest more money in Canadian banks. Since then I bought Laurentian Bank, TD, RBC, and CIBC. So now it’s the turn to buy the Bank of Montreal (BMO.TO). Since I live in Montreal, I got to have some shares of BMO.
Just kidding. Just because I live in Montreal, doesn’t mean I need to own BMO. My decision was based on compelling valuation. At the moment, I believe that BMO is the best buy among its peers. BMO trades at 10.25 price-to-earnings ratio, pays 4.25% dividend yield and the payout ratio is in low 40’s. The Bank of Montreal has paid the dividend for 190 consecutive years! They usually raise the dividend twice a year and I believe they will continue to raise that dividend going forward.
I had enough money to buy 11 shares of BMO at $96.79 per share. Not too low, but not to high either. The one-year price range for BMO is between $86 and $106. So at $96, I’m right in the middle of the range. Eleven shares is a small lot, therefore I may continue to add BMO shares on weakness until I hit a full position. I would like to own around 50 shares.
At the moment, BMO pays a quarterly dividend of $1.03 per share. This purchase will add $11.33 per quarter or $45.32 per year.
Let me know what you think about this purchase and about BMO in general. Do you own BMO?
Just kidding. Just because I live in Montreal, doesn’t mean I need to own BMO. My decision was based on compelling valuation. At the moment, I believe that BMO is the best buy among its peers. BMO trades at 10.25 price-to-earnings ratio, pays 4.25% dividend yield and the payout ratio is in low 40’s. The Bank of Montreal has paid the dividend for 190 consecutive years! They usually raise the dividend twice a year and I believe they will continue to raise that dividend going forward.
I had enough money to buy 11 shares of BMO at $96.79 per share. Not too low, but not to high either. The one-year price range for BMO is between $86 and $106. So at $96, I’m right in the middle of the range. Eleven shares is a small lot, therefore I may continue to add BMO shares on weakness until I hit a full position. I would like to own around 50 shares.
At the moment, BMO pays a quarterly dividend of $1.03 per share. This purchase will add $11.33 per quarter or $45.32 per year.
Let me know what you think about this purchase and about BMO in general. Do you own BMO?
Like the buy. I own three Canadian stocks for some time, TD, BNS and RY with BMO and CM as potential buys one day. Solid Canadian banking play. Nice!
ReplyDeleteThanks, mate! Can't go wrong with Canadian Banks. They are solid businesses.
DeleteNice German
ReplyDeleteswore I commented on this before. I own bmo as well, got to love their dividend history.
keep stacking those divs man
cheers
Yeah, the dividend history is very impressive! 190 years! Can't go wrong with that!
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