4-Star Stocks Poised to Pop: Bank of Montreal

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Canadian financial services giant Bank of Montreal (NYS: BMO) has earned a respected four-star ranking.

With that in mind, let's take a closer look at BMO's business and see what CAPS investors are saying about the stock right now.

BMO facts

  
Headquarters (Founded)Toronto, Canada (1817)
Market Cap$36 billion
IndustryDiversified banks
Trailing-12-Month Revenue$12.35 billion
Management

CEO William Downe

CFO Thomas Flynn

Return on Equity (Average, Past 3 Years)12.1%
Dividend Yield4.7%
Competitors

Bank of Nova Scotia (NYS: BNS)

Royal Bank of Canada (NYS: RY)

Toronto-Dominion Bank (NYS: TD)

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 91% of the 345 members who have rated BMO believe the stock will outperform the S&P 500 going forward. These bulls include BUbulldog and designerMoney.

This past summer, BUbulldog tapped BMO as a bankable bargain opportunity: "It's the most attractively priced Canadian bank at the moment -- and hey, it's Canadian and we all know what that means (no sub-prime mortgages like the US, no MBS, etc.)."

In fact, BMO currently sports a juicy dividend yield of 4.7%. That's slightly higher than that of main competitors Scotiabank (3.7%), Royal Bank of Canada (4.3%), and Toronto-Dominion (3.4%).

CAPS member designerMoney expands on the income opportunity: "Bank of Montreal with its consistent dividend and potential growth opportunities is my favorite banking stock, and also my bank. With its US business continuing to grow at a modest rate, along with providing an almost 5% dividend BMO will continue to outperform.

What do you think about BMO, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackBMO?Add it to your watchlist.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Scotiabank. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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