Bank of Montreal (BMO) Trade Alert And Strategy – July 3 2014

Bank of Montreal stock trades under the same symbol, BMO on both New York and the Toronto Stock Exchange. I only trade it in Toronto to keep the trade in Canadian dollars and because the options are priced in smaller increments making it far easier to trade and to rescue or repair trades. Bank of Montreal stock is one of those company that I feel I can probably trade at just about any price. The stocks is in a very strong uptrend and has been for sometime. Many investors believe it has been in an uptrend since the collapse of stocks in the bear market of 2008 to 2009. It certainly is a favorite stock and one I have enjoyed double-digit annual returns for decades in. It is also the type of stock that lets me sleep well at nights.

No matter what happens with the stock I know my trades will end profitably. There are not a lot of stocks I can count on like I can with Bank Of Montreal Stock.

Bank Of Montreal 5 Year Chart

The five-year chart below shows how simple the returns have been with the Home On The Range Strategy. This stock has been perfect for 5 years! The quarterly dividend during the credit crisis was never cut from .70 cents which was an exceptional dividend especially when the stock plunged to below $25.00 in early 2009 along with most other banks. At $25.00 the dividend alone was 11%. I loaded up on the stock and have it tucked away for my children and grand children. I have no plans to sell it.

Once the crisis appeared to have eased Bank of Montreal increased their dividend in the fall of 2012 to .72 cents and now have it back on schedule. With a quarterly dividend of .76 cents the stock is paying out $3.04 annually. Even at $79.15 where it is trading this morning, this is still 3.8%. Add in income from selling puts and covered calls and you have the making of 15% to 20% returns annually.

BMO Stock – 5 year chart with Dividends

Before discussing today’s trades and my outlook for next week for more trades, let’s review the stock technically to get some idea as to where the stock may be headed.

Bank Of Montreal Trade Alert and Strategy

I have done 6 trades today in BMO Stock as I set up the stock for the next set of trades. This trade alert and strategy discussion is a bit longer than usual being just shy of 1000 words but it lays out a technical understanding of the stock and the trades being done.

FullyInformed Canada Members can can read the Bank of Montreal Stock (BMO) trade alert and strategy outline directly through this link or Canada Members can sign in to the full members site here. Non-members can join here.

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.