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Email this7:12 am
June 29, 2013
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Very interesting -Just received from my advisor that BMO, in spite of a "tough year" and missed targets resulted in a net profit of $4.68 Billion. It says that BMO has a large amount of operations in the US so that has helped to bolstering from low loonie value - as well only 2% of its ops related to the oil and gas industry. BMO has paid regular and increasing dividends since 1829.
I do not own BMO shares specifically but I do believe having some Cdn bank shares - diversification- in one's portfolio is a good strategy - certainly low risk.
8:51 am
December 23, 2011
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For the last 2 years I have been redeeming the AirMiles $100 voucher to buy a BMO 1 year GIC. After the year I move to Acclerate or Hubert. I deal with a BMO financial manager (advisor). She tries to gain my business but to be honest I think I know more than she does as it appears to me she does not know what the competition offers and she is brain washed by offering BMO only products. I could be wrong but that is the way I see it....and my wife rarely makes those brash comments as I do.....but she feels that way too and would not feel comfortable dealing with her.
So as far as buying into banks......your choice and maybe a good time to buy. I have had XDV for years as per below. Has banks in it. It tanked out in 2007 and 2008 and in our recent dismal market has lost 20%. Although it does pay out approx 4-5% dividends some time or another you will have to sell. And if you are, say 71 and are forced to withdraw from RRIF stocks, mutual funds or ETFs and not receive what you paid per share or more then you will erode the % of the dividend received. Thus due to my age once I see a rebound.....sell...sell...sell.
So of you are young and can ride the ups and downs while gaining 4-5% go for it. But sell when the time is right.
9:04 am
October 27, 2013
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If you manage your RRIF with an asset allocation containing some fixed income, one can avoid selling equities in the years when they are down. Bro and I managed my mother's account this way until she was in her '90s. XDV is a perfectly good example of generating a pretty solid income stream to mitigate the amount of capital sales needed to meet RRIF withdrawals.
10:02 am
December 23, 2011
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Yes I agree with your comment about asset allocation. I have XDV with an adviser but have taken away most of the fixed income as I did better elsewhere. I withdraw from RRSP via my RRIF account to max out on our TFSA accounts so I have to be careful how much fixed income I withdraw from that adviser account. The other fixed income that I have will begin to flow next year and won't have to withdraw from my adviser and hopefully the ETF and Mutual Fund will return to an acceptable value and will sell off.
I have 6 years before I will have any major concerns.
3:23 pm
December 23, 2011
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AltaRed
I was only making 2 points.
1. A BMO advisor does not always provide credible investment information as what they know or offer is narrow (restrictive or not worldly or comprehensive).
2. Bank stocks may be low risk but are susceptible to the ups and downs of the market much the same as all other stocks. So in my mind they are not like a rock solid blue chip stock.
Also you have made me reconsider my XDV only in my TFSA account as I planned to sell all stocks in both my TFSA and RRSP accounts.
5:16 am
June 29, 2013
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kanaka said
AltaRed
I was only making 2 points.
1. A BMO advisor does not always provide credible investment information as what they know or offer is narrow (restrictive or not worldly or comprehensive).
2. Bank stocks may be low risk but are susceptible to the ups and downs of the market much the same as all other stocks. So in my mind they are not like a rock solid blue chip stock.Also you have made me reconsider my XDV only in my TFSA account as I planned to sell all stocks in both my TFSA and RRSP accounts.
Kanaka - What stocks do you consider as you say above "rock solid blue chip"?
8:49 am
December 23, 2011
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I have no idea what that would be. 
11:31 am
January 18, 2016
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I was waiting to see how long it would take someone to jump all over that one LOL!
1:04 pm
December 3, 2014
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When is comes to the big banks,I would rather own one then have my money in one.
Seems the share holders get treated better than the customers.
12:31 pm
January 3, 2013
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frizun said
When is comes to the big banks,I would rather own one then have my money in one.
Seems the share holders get treated better than the customers.
Exactly. That's why I have shares of XFN.
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