If you’re in the market for an investment that can get you rich, choose one of Canada’s illustrious banks. Bank of Montreal (TSX:BMO)(NYSE:BMO) is a favourite blue-chip stock of income seekers and wealth builders.
Some investors dodge the stock because the bank’s primary focus is on the Canadian market. Now that BMO’s international business is vastly improving, interest is suddenly growing. This stock could be your springboard to richness.
A solid foundation for growth
BMO’s $52.9 billion market capitalization places it as Canada’s fourth-largest bank. But even so, it ranks third as the best-performing bank at the halfway mark of this year. This coming August 27, BMO will present its fiscal quarter ending July 2019. Market analysts are expecting the bank to continue with its winning streak.
The bank’s key financial metrics over the last 12 months says it all. BMO’s growth is accelerating as a result of the diversification of the bank’s operating groups.
In 2018, adjusted net income grew by 9% to $6 billion compared with the previous year. Total net revenue rose by 5%, which resulted in a 14.6% adjusted return on equity. BMO’s capital year-end position provided the flexibility to make better decisions around business growth this year.
BMO’s portfolio of businesses is its vital strength. The business mix enables the bank to deliver consistent and sustainable growth regardless of market conditions. You can see BMO has erected a solid foundation for growth.
Focus on expansion and technology
BMO is no longer the laggard in commercial banking in the U.S. and North America. The 10-fold growth in U.S. earnings since 2010 reflects BMO’s cross border capabilities. In 2018, there was a 25% increase in the U.S. business segment.
Management is aiming higher, hoping to capture the leading position in the region. But apart from the expansion into new markets, BMO is already scaling its technology investment. The bank is leveraging its transformative technology architecture, data, and digital capabilities to deliver business value and the ultimate customer experience.
Dividend history
Believe it or not, the banking giant is also Canada’s first dividend payer. That is why BMO ranks as among the most considerable income investments you can find on the TSX. Whether you’re securing your financial future or filling up your retirement war chest, BMO can help you achieve your investment goals.
You can ask a devoted investor who invested $10,000 in BMO two decades ago. The stock delivered a total return of 678.55%, or an average annual total return of 10.8%. As a prospective investor, your return could be higher in 20 years given the dividend yield of 4.38% and the opportunity to reinvest dividends
Push the boundaries to richness
BMO is pushing the boundaries to become a force for positive change. The bank’s platform of diversified businesses and digital innovation has elicited excitement in customers.
But the bank’s impressive accomplishments and robust earnings growth have a profound impact on the lives of investors. You have the opportunity to achieve your purpose, ambition, and realize top-tier shareholder return. You could be genuinely rich 20 or fewer years from now.
