How in blazes can the yield be 24% when the real yields are in the 7%-8% range? Is this one of those hybrids where they split the share bewteen dividend and capital appreciation?bing said:
BMO dividend 10.41%
- Thread starter danmand
- Start date
Ok got it! Thanks. So, they include the call option premium in the yield. But they lose the upside if the call option ever gets called.danmand said:
Does anybody know how the stock prices compare to book value? Are the banks selling below book value?
At some point, these stocks have to hit bottom. They can't go down forever. Let's hope the bottom is not zero.
BMO Dividend
The big issue with BMO is that they are paying out about 72% of their earnings in dividends. Banks target the 50% to 60% range. This is not sustainable in the long run, BMO is betting that earnings will improve so they don't have to cut the dividend, the street is saying that won't happen.
I predict no dividend cut but I do think the stock will go lower.
The big issue with BMO is that they are paying out about 72% of their earnings in dividends. Banks target the 50% to 60% range. This is not sustainable in the long run, BMO is betting that earnings will improve so they don't have to cut the dividend, the street is saying that won't happen.
I predict no dividend cut but I do think the stock will go lower.
All the financials (well, most anyway) are under pressure because of stuff happening globally. B of M is considered slightly higher risk than some of the other Canadian chartereds therefore yield is higher (price is lower). All about perceived risk I think...not a whole lot to do with dividends per se.
Dividends would only be cut as a very last resort...and no reason so far to think that this will be necessary.
But make your own call on that...my opinion is worth exactly what I have charged.
Dividends would only be cut as a very last resort...and no reason so far to think that this will be necessary.
But make your own call on that...my opinion is worth exactly what I have charged.
Japan 1989 was the biggest or one of the top 5 biggest bubbles in the history of mankind. The Nikkei was trading at a P/E of 5,000 to 1 and 500 times book value. Also, the value of an acre of land in Tokyo was higher than all of California. Japan is in deep goo because:Andy Stitzer said:
1) No natural resources.
2) The Japanese are good at replicating but not good at innovating.
3) Japan is depopulating very quickly. Your grandchildren might have a lot of difficulty finding a genuine Japanese.
For a successful turnaround story, look at BRAZIL.
Does anybody know what the current payout ratio is?
BMO Financial Group is the longest-running dividend-paying company in Canada. BMO’s policy is to pay out 45% to 55% of its earnings in dividends to shareholders over time.
http://www2.bmo.com/content/0,1151,divId-3_langId-1_navCode-3146,00.html
BMO Financial Group is the longest-running dividend-paying company in Canada. BMO’s policy is to pay out 45% to 55% of its earnings in dividends to shareholders over time.
http://www2.bmo.com/content/0,1151,divId-3_langId-1_navCode-3146,00.html
62% my friend
But they will still not cut. The risk here is just more capital loses.Malibook said:
Dividend is now 11.08%
We are not at the bottom yet. I plan on calling this one and will back it up with $$$$. Stay tuned.
We are not at the bottom yet. I plan on calling this one and will back it up with $$$$. Stay tuned.
