Comments on: BMO Update and Lots More

By: FourPillars

FourPillars — Thu, 30 Aug 2007 00:31:53 +0000

FB – thanks for the insider trading tip

I’ll keep an eye on National Bank as well.

Mike

By: TheFinancialBlogger

TheFinancialBlogger — Wed, 29 Aug 2007 21:53:46 +0000

At $65,40, BMO is definitely a good stock to buy. However, they are not the only bank offering over 4% in dividend. National Bank (4,3%) is also a good pick. I don’t know if BMO will be able to keep this rhythm, they are distributing more in dividend than any other banks as well.

By: FourPillars

FourPillars — Wed, 29 Aug 2007 18:30:28 +0000

Lol – I’m not sure I want to see that Mr. Cheap.

Mike

By: moneygardener

moneygardener — Wed, 29 Aug 2007 18:11:30 +0000

good idea Balki

By: FourPillars

FourPillars — Wed, 29 Aug 2007 13:36:23 +0000

MG – I did think it was a bit odd to raise the dividend by 2 cents considering they already raised it this year and they had some big losses from the trading. 21% increase is pretty huge.

Mike

By: moneygardener

moneygardener — Wed, 29 Aug 2007 13:05:02 +0000

An interesting thing that I’ve notice with BMO compared with Canada’s other big banks with repsect to dividends is that BMO seems to raise it’s dividend in no apparent pattern. They don’t raise once a year (every 4 payments), and they dont’ raise twice a year (every 2 payments). This has allowed them to recently be quite the aggressive dividend grower.

For example in 2006 they paid $2.26

So far in 2007 they’ve paid $0.65 + $0.68 + $0.70 + $0.70 (expected assuming no raise) = $2.73

This represents a year over year raise of at least 21% assuming they do not raise their last payment of 2007. It’s an interesting way to go about it. Holding BMO, it must be interesting to not know what will happen and be surprised with several small increases that add up to a large annual raise.