【who is behind heaven or not.net】Does Bank of Montreal (TSE:BMO) Have A Place In Your Portfolio?
Bank of Montreal (
TSE:BMO
) has pleased shareholders over the past 10 years,who is behind heaven or not.net by paying out dividends. The company currently pays out a dividend yield of 4.5% to shareholders, making it a relatively attractive dividend stock. Should it have a place in your portfolio? Let’s take a look at Bank of Montreal in more detail.
View our latest analysis for Bank of Montreal
5 checks you should do on a dividend stock
When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:
Is its annual yield among the top 25% of dividend-paying companies?
Has its dividend been stable over the past (i.e. no missed payments or significant payout cuts)?
Has dividend per share amount increased over the past?
Is is able to pay the current rate of dividends from its earnings?
Based on future earnings growth, will it be able to continue to payout dividend at the current rate?
TSX:BMO Historical Dividend Yield January 2nd 19
How does Bank of Montreal fare?
The company currently pays out 46% of its earnings as a dividend, according to its trailing twelve-month data, meaning the dividend is sufficiently covered by earnings. In the near future, analysts are predicting a payout ratio of 43% which, assuming the share price stays the same, leads to a dividend yield of around 4.8%. Moreover, EPS should increase to CA$9.47.
When assessing the forecast sustainability of a dividend
it is also worth considering the cash flow of the business
. A company with strong cash flow, relative to earnings, can sometimes sustain a high pay out ratio.
If there’s one type of stock you want to be reliable, it’s dividend stocks and their stable income-generating ability. BMO has increased its DPS from CA$2.8 to CA$4 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. This is an impressive feat, which makes BMO a true dividend rockstar.
Compared to its peers, Bank of Montreal generates a yield of 4.5%, which is high for Banks stocks but still below the market’s top dividend payers.
Next Steps:
Taking into account the dividend metrics, Bank of Montreal ticks most of the boxes as a strong dividend investment, putting it in my list of top dividend payers. Given that this is purely a dividend analysis, I recommend taking sufficient time to understand its core business and determine whether the company and its investment properties suit your overall goals. There are three fundamental aspects you should further examine:
Future Outlook
: What are well-informed industry analysts predicting for BMO’s future growth? Take a look at our
free research report of analyst consensus
for BMO’s outlook.
Valuation
: What is BMO worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The
intrinsic value infographic in our free research report
helps visualize whether BMO is currently mispriced by the market.
Other Dividend Rockstars
: Are there better dividend payers with stronger fundamentals out there? Check out our
free list of these great stocks here
.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at
.
View comments
-
Camber Energy, Inc. and Viking Energy Group, Inc. Amend Definitive Merger Agreement Relating to Their Planned Combination and Provide Update on Status of MergerEnterprise Products: 2Q Earnings SnapshotIs Primoris Services Corporation (NASDAQ:PRIM) Expensive For A Reason? A Look At The Intrinsic ValueNY Lawmakers Move Closer to Approving Criminal Justice Reform LegislationSouth African drugmaker Aspen sees no immediate impact of India's decision to curb drug exports'Wreck-It Ralph': The 'Grand Theft Auto'-style game that was cutFed's Powell - 'Muted' inflation gives room for wages to riseSingapore fourth quarter GDP growth cools as trade woes darken outlookCDK Global: Q1 Earnings InsightsIs Matador Resources Company’s (NYSE:MTDR) Balance Sheet Strong Enough To Weather A Storm?
下一篇:Deutsche (DB) Ratings Affirmed by Moody's, Outlook Upgraded
- ·Unknown gunmen kill three in daylight in Afghan capital Kabul
- ·Indian manufacturing growth slows in December despite price cuts: PMI
- ·BRIEF-Zhengzhou Yutong Bus Says It Sold 5,265 Buses In Jan, Up 23.2 Percent Y/Y
- ·Watch the first two minutes of 'The Walking Dead' midseason premiere
- ·Ocean Shipping Services Continue To Deteriorate
- ·Mariah Carey Seeking Actress With Range To Play Her In Series Inspired By Memoir
- ·Do You Like nVent Electric plc (NYSE:NVT) At This P/E Ratio?
- ·Investor Network: Endurance International Group Holdings, Inc. to Host Earnings Call
- ·Is KB Financial Group, Inc. (KB) A Good Stock To Buy?
- ·How Serco Group plc (LON:SRP) Can Impact Your Portfolio Volatility
- ·Does Cosmo Pharmaceuticals N.V.’s (VTX:COPN) CEO Salary Compare Well With Others?
- ·Dubai 2019 budget halts spending growth as revenue rise slows
- ·Unibail-Rodamco-Westfield (“URW”) announces tender offer results
- ·Greek factory activity grows again in April - PMI
- ·Trump considering Herman Cain for Fed board seat, official says
- ·BRIEF-Hua Medicine Initiates First Combination Study Of Dorzagliatin With A Dpp-4 Inhibitor In United States
- ·Coronavirus Could Hold Up Annual Ocean Shipping Contracts
- ·British manufacturing barely grows in May as EU referendum approaches - PMI
- ·BRIEF-Hua Medicine Initiates First Combination Study Of Dorzagliatin With A Dpp-4 Inhibitor In United States
- ·Cardano’s ADA Technical Analysis – Support Levels in Play – 01/01/19
- ·Halozyme Therapeutics, Inc. Just Recorded A 24% EPS Beat: Here's What Analysts Are Forecasting Next
- ·Do Insiders Own Lots Of Shares In Speciality Restaurants Limited (NSE:SPECIALITY)?
- ·Colony Bankcorp, Inc. (NASDAQ:CBAN) Insiders Increased Their Holdings
- ·UPDATE 1-Toshiba likely to miss quarterly earnings deadline for 3rd time-sources
- ·Warren calls out Sanders for supporters' ‘really ugly’ online attacks
- ·Finding the Right Cloud Service in the Age of the GDPR
- ·Dundee Corporation Declares Quarterly First Preference Shares, Series 2 Dividend
- ·Columbia University Economics Professor Quits Twitter After Huawei Article Backlash
- ·Trump Watch: Behind the Scenes on Trump's Latest 9th Circuit Picks | A Look at the Busy Week Ahead
- ·Oil & Gas - Pipeline MLP Outlook: Near-Term Prospects Bleak
- ·Market Sentiment Improves As Investors Pin Hopes on G7 Action
- ·Go-Jek raises $1 bilion in round led by Google, Tencent, JD
- ·Omarosa Laughs Through 20-Minute Colbert Interview, Doesn’t ‘Regret Trying To Be a Voice of Reason’ (Video)
- ·BRIEF-iDreamsky Technology Holdings Says Shenzhen iDreamsky Entertainment Entered Investment Agreement
- ·ROSEN, INVESTOR COUNSEL, Reminds Beyond Meat, Inc. Investors of Important Deadline in Securities Class Action; Encourages Investors with Losses In Excess of $500K to Contact Firm - BYND
- ·Cathay Pacific makes good on first-class ticket blunder