BMO and Metro

When I was reviewing Bank of Montreal (BMO) and Metro, I was surprised that Metro had produced more in dividends over 30 years than BMO because BMO has a higher dividend yield. I found that interesting. It is probably because Metro grew faster over the last 30 years.

For BMO I have shown what would happen over 30 years if you bought around $1,000 of stock. Dividends would amount of $5,450.55. BMO has a higher dividend of 2% to 4% and sometimes higher than 4%.

If you had invested in this company in December 1993, for $1,008.31 you would have bought 73 shares at $13.81 per share. In December 2023, after 30 years you would have received $5,450.55 in dividends. The stock would be worth $9,571.03. Your total return would have been $15,021.58. This is a total return would be a total return of 12.85% per year with 7.79% from capital gain and 5.06% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$13.81	$1,008.31	73	30	$5,450.55	$9,571.03	$15,021.58

The current dividend yield is moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 4.67%. The 5, 10 and historical dividend yields are also moderate at 4.14%, 4.12% and 4.46%. The dividend growth is currently moderate (8% to 14% ranges) at 9% per year over the past 5 years. The most recent dividend increase occurred in 2023 and it was for 2.7%. However, this bank generally raises dividend several times in each year. Last dividends were raised 3 times.

For Metro I have shown what would happen over 30 years if you bought around $1,000 of stock. Dividends would amount to $10,533.00. Metro has a low dividend of less than 2% and often lower than 1%.

If you had invested in this company in December 1993, for $1,000.16 you would have bought 1064 shares at $0.94 per share. In December 2023, after 30 years you would have received $10,533.00 in dividends. The stock would be worth $72,979.76. Your total return would have been $83,512.76. This is a total return would be a total return of 17.50% per year with 15.37% from capital gain and 2.13% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$0.94	$1,000.16	1,064	30	$10,533.00	$72,979.76	$83,512.76

The current dividend yield is low with dividend growth moderate. The dividend yield is low (below 2%) at just 1.80%. The 5, 10 and historical dividend yields are also low at 1.60%, 1.60% and 1.47%. The dividend increases are moderate (8% to 14% ranges) at 11% per year over the past 5 years. The last dividend increase was for 10% and was made in 2023.

On my other blog I wrote yesterday about Quebecor Inc (TSX- QBR.B, OTC- QBCRF) ... learn more. Next, I will write about Canadian National Railway (TSX-CNR, NYSE-CNI) ... learn more on Wednesday, January 31, 2024 around 5 pm.

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