Bank of Montreal Looking Good

The Bank of Montreal is down $1.59 right now to $119.69. Its dividend is at 5.18%. Its price could drop more. It has sold for much less in the past year.It dropped to a low of $102.67. I own enough BMO but if it got down to $102.67 again, I'd be buying.

If I did not own so much BMO today, I believe I would be adding to my holdings. The last BMO I added was in the $117 range. I have not regretted the purchase. Analysts see the stock going to $130.59 in the coming year.

For a retiree this is a no-brainer. The Bank of Montreal has the longest run of any Canadian bank of never missing a dividend. The run is approaching two centuries. If one is buying BMO for the dividend, for the 5.18%, your dividend is pretty safe, but, of course, there are no 100% guarantees. A $20,000 investment would return a little more than a thousand dollars annually if the stock was purchased today and it is not hard to see a possible gain of $1800 in the coming year.

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The Bank of Montreal closed last Friday a full three dollars lower than the price posted above. BMO is now yielding 5.3%. Nice. I am watching this stock closely. There will come a time when it will be hard not to add a hundred shares to my holdings.