TSE:BMO

Bank of Montreal (BMO.TO)

242.99
-0.99 (0.40%)
as of Sep 28, 2026, 2:45:08 pm Market Open.
1164 watching
0
SELL
Not a lot of clarity in the banking section. Not a lot of bright lights. Moving averages are starting to turn down. Relative strength has fallen below the midpoint line, which suggests it is getting weaker.
PARTIAL BUY
Stock probably doesn't have a whole lot further to fall from this point. Feels that the yield of 9.3% will be maintained. If you are buying for a long-term you could start establishing positions.
DON'T BUY
Doesn't like any financials. You don't know what these banks have on their books that could be tied to one of the US banks.
BUY
(Market Call Minute.) Would buy it but would write a call option against it.
DON'T BUY
He is not putting any fresh money into financials right now. Down the road it will probably be okay.
TOP PICK
Capital Trust II, Dec/17 @ 10.22%. Have rallied since issue but the yield is still pretty good at about 8%-9%.
COMMENT
This would be his 5th favourite of the five major banks. About a 10% higher payout ratio than the other banks.
PAST TOP PICK
(A Top Pick Feb 1/08. Down 39.8%.) Have been buying this recently. Close to 9% yield and is probably safe for the near future.
BUY
Just acquired American International Group’s (AIG-N) Canadian life insurance business. Small acquisition for them and should not impact their tier one capital that much. A lot of major banks are also tied into Nortel (NT-T) meaning further write-downs will have to be made. Almost 9% yield.
COMMENT
Just acquired American International Group’s (AIG-N) Canadian life insurance business for about $375 million (US). Not a steal, but reasonable. Fantastic acquisition for them as it allows them to get into the asset management arm.
COMMENT
Bonds vs. common stocks? You have less money at risk owning the bonds but you give up returns. While you can own a 6%-7% return, if you don't think the equity market is going to recover that you are better off in the bonds.
TOP PICK
Has the best yield of the banks. Could see another 25%-30% from here.
TOP PICK
Likes Canadian banks. This one has been more heavily impacted. Bank with a 10% capital and a 8.5%-9% yield and trading at 8X earnings, is a fairly attractive place to put your money.
BUY
Good time to buy if you are going to hold on a very, very long-term basis. Very nice secure dividend.
COMMENT
This would be his least favourite Canadian bank. It is cheap and they have fixed the capital side to be more than 10%. Yield is incredibly attractive but growth will be limited. (See Top Picks.)
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