Investment Q&A

Q: BMO deal to buy Bank of the West, it's a large deal don't you think that BMO will need to go to the secondary market and issue shares, and shouldn't they do this now?

Q: Hi 5i
Regarding your answer to my previous question regarding BMO deal to buy Bank of the West, it was not clear if you would be buyers of BMO at the current price or better to wait. Share price continues its slide this morning.

If better to wait, then at what price would you be interested.

Thx
Jim

Q: What do you think of the acquisition of bank of the west ? Will the market eventually give BMO a premium valuation similar to TD that also has a large US presence?

Q: Hi Team,

I only own bank of Nova Scotia and look to add more weight on financial sector. Can you please make top two of your picks in the list of names?

Thank you,

Q: Good Day 5i, Thanks for all the great insights. I enjoying reading them daily.
My portfolio is not well-diversified. I am 39% invested in BMO. Luckily, I have done well over the last 20 years and get about 4.8 % in dividend yield. Everyday I think about trimming but I have not got the heart to do so.

I would like to trim and diversify into other stocks (CAD/US) or ETFs that have potential to grow faster or counter balance a downturn in financial. I do not mind a lower yield.

Which stocks/ETFs would you recommend today if I could trim 10-15% off my investment in BMO.

Thank you and await your highly respected opinion.

Q: Hi 5i,
BMO had a nice run up in share price last couple of days and today has fallen and I was wondering if this could be negative reaction to this latest news:
"Canada's Bank of Montreal has expressed interest in buying French bank BNP Paribas SA's U.S. banking unit,"

Is this considered positive or negative and why?
Would this influence your decision to add or start new position?

Thx
Jim

Q: Hi 5i,
Are the banks expected to increase dividends again in 2022 ? What scenario would be required to support or not support this expectation?
If so is there an expected percentage number being floated for BMO?
Is there a stock split coming?

Thx
Jim

Q: I recently sold my full positions in both of these banks and realized significant capital gains to use as income in my RRIF. Most big banks stocks have climbed since increasing their dividends so I'm not sure which one or two to buy next. I have done well over the years by buying the laggards, collecting dividends and waiting for conditions to improve. Which relatively poor performers would you suggest I consider next and why?

Q: I need to clean up and rebalance my RIFF approx value $150,000.00
What would be your top 20 picks for an income portfolio I am 82 yrs young

Q: Hello,

Could you recommend 5 of your favourite stocks (US or CDN) that provide a healthy mix of dividend yield and growth outlook?

This would be for a Smith Maneuvre with interest rate at 2.95%. Ideal scenario would be to get yield to be at 3% with some growth outlook on a 5 year time horizon.

Thanks very much.

Q: Hi team
My question is about the results of bmo in the last quarter. They show earnings of $ 3.41, how much of that is a reversal of provisions on bad debt?, If they target 40-50 % of earnings to the dividend, the increase would be rather large, depending how much they put towards buybacks, something that I never liked.

Thanks

Q: are these companies able to split their stocks now ?...are they trading at a price where historically a split is declared...many thanks

Q: How would you rate the following Canadian
banks for investing new money at the moment?

TD, BNS, RY, BMO, NA

Thank you so much,
Rita

Q: What 4 dividend stocks or ETFs would you suggest for a long term hold to see the power of compounding

Q: Bmo dropped $4.20(including $1.06 Div,Oct 29 being XD day).See no news, maybe due to month end balancing. Is this an opportunity to buy as think it was oversold. Txs for u usual great services & views

Q: Good day 5i Team, What's up with OSFI? The Canadian banks have been quite conservative during the pandemic but OSFI won't release them to give investors the dividend increase? They were heralded as the world's safest banks during the Great Financial Crisis, but somehow they will be last to increase dividends this time?. Even the banks in the EU and UK are released from holding additional funds. Do you have any good conspiracy theories? Keep up the great work and appreciate all you do for the little guys.

Q: With all the speculation about major dividend increases once restrictions are lifted, would investment in banks be a good short term strategy (hoping for a boost upon announcements), or has the expectation already been cooked into current prices? Any guesses as to who will announce the largest increase?

Q: I wd appreciate your ranking of the Canadian banks.
thank you

Q: Retired, dividend-income investor who normally holds for the long term. I own a half position in Manulife and am down roughly 7%, including dividends. My long term plan was to sell MFC and rebuy a second Canadian Bank (I already have a full position in Royal Bank).

I have compared the various metrics (P/BV, P/CF, P/S, ROE, technicals, analysts estimates, etc.) for the above mentioned banks as well as against MFC.

Looking at the banks in isolation and already with a full position in RY, I've narrowed it down to either BNS (International exposure and current laggard due to Covid) or TD (more US exposure and 1 year laggard). Of the banks that I do not own, please rank them in order of the best total return over a sufficient period of time for Covid to have subsided (1-2 more years for improved vaccination coverage?). Do you agree with my rationale?

If you include MFC into the bank comparisons, where would you place MFC in the rankings? I have read to buy the banks when their P/E is < 11.0 and buy the insurance companies when their P/BV < 1.0. This would lead me to buy TD (P/E of 9.7) or keep MFC (P/BV of 1.0).

So...keep MFC versus take the loss in MFC and then buy BNS or TD? Your thoughts?

MFC is held in a taxable account and I have no problem taking a loss.

Thanks for your help....Steve

Q: I know that ranking banks often is like picking shades of the same colour. At this point in time do you feel there is any "clear" division amongst any of the banks for investing purposes? Can you give your order of preference and the magnitude of the gap between each choice.
Thanks,
Terry