Friday, December 4, 2015

2 Top Dividend Stocks to Hold in 2016 | The Motley Fool Canada

2 Top Dividend Stocks to Hold in 2016 | The Motley Fool Canada: "Bank of Montreal offers investors a diversified revenue stream that comes from different segments and markets. The company’s Canadian personal and commercial banking operations remain strong, but the secret weapon lies in the United States.

Bank of Montreal operates more than 600 branches in the U.S. Midwest, where an economic rebound is driving strong loan growth in the commercial and industrial sector. The bank also just added GE Capital’s transportation finance business to its portfolio, and that should boost revenue next year.

Adjusted net income from the U.S. division jumped 22% in the fourth quarter.

Some analysts are concerned that exposure to energy companies could begin to hurt the Canadian banks. About 2% of Bank of Montreal’s total loan book is attributed to oil and gas companies, so the exposure is minimal and losses are manageable if the situation continues to deteriorate in the sector.

Bank of Montreal just raised its quarterly dividend to $0.84 per share. The distribution offers investors a safe yield of 4.2%."



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