BMO Chart Followup

Here is a chart of Bank of Montreal (BMO) for the period that I wrote about in my last blog entry.

I bought my first share, as I mentioned, in January, 2008. Since then the price took a bit of a dive but has stabilized nicely.

If I were actively trading this one I would probably be sitting aside, but seeing as it is a DRIP there is no selling. Also, DRIP investment uses far less charting, in fact almost none, other than to do some tracking. Even then most people don't follow the prices of the stocks in any way other than to determine how much to send in for the OCP.

In the case of BMO, it was a no-brainer first choice. Right from their own investor dividend page:

"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."


This is one of the primary indicators to buy into a DRIP, longevity in dividend payments and stability in the fact that they have been around for a long time. Another factor is a history of increasing dividend amounts over time and a discount to buy shares with the re-invested dividends, 2% in BMO's case and they allow for up to 5% in the prospectus..


I'll get into my other holdings later.

Jeff.