Bank of Montreal
Canadian banks have long been viewed as pretty steady, In fact, Canadian banks didn’t suffer nearly as much as those in the U.S. during the financial crises as pointed out by Dividend Growth Investor.
Despite their sound businesses, however, the Canadian government placed a two-year hold on banks’ dividend increases in late 2007. All of Canada’s major banks hiked their dividends shortly after the moratorium … except for Bank of Montreal (BMO).
BMO’s 70-cent quarterly payout held from October 2007 through In fact, its 70 cents per share per quarter dividend held from October 2007 until its first increase in October 2012 — a miserly boost of 2 cents per share, or 2.9%. BMO has followed that up by another bump this year … alas, at just 2.8%.
BMO is the highest yielder of these three at 4.5%, but it’s not telegraphing much on the dividend increase front, and some were disappointed that Bank of Montreal didn’t throw out a hike this week. Mix in awfully flat performance since 2010, and it’s hard to get too jazzed about this widely held dividend stock.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he is long VZ and MSFT.