When it comes to the stock market, the rule of thumb for many investors is to buy stocks at low prices and sell them at higher prices. This is not the only rule to build and sustain your wealth as an investor, however.
If you’re looking to become a more affluent investor, accumulating wealth is not an overnight thing.
In the same vein, get-rich-quick schemes are too risky for the sensible investor. One of the basic investment rules you should follow is to understand everything about a company’s competitive edge in the market.
If you can better comprehend why a company makes itself an excellent choice to consider, you stand a better chance of accumulating more wealth.
You need to focus on finding a company with a consistent operating history that presents favourable long-term prospects for success.
Owning shares of a company is like owning part of the business itself. An institution with a winning track record of dividends, the ability to offer a great incentive to its shareholders, and a drive to continue growing is a prime candidate.
To this end, I feel that the Bank of Montreal (TSX:BMO)(NYSE:BMO) stands as an ideal company to consider. Let us take a look at why.
Incredible dividend streak
A company with a long history of paying dividends to its customers is a company you can trust. The Bank of Montreal has an unbelievable 190-year streak of paying dividends to its customers without fail.
The global economy has suffered through many tough periods in the past 200 years. BMO has managed to release dividends to shareholders regardless of how stringent the situation.
Great incentive to shareholders
The most significant incentive any business can give to its shareholders is exhibiting loyalty. A dividend streak extending the better part of two centuries is the best possible sign of loyalty to investors.
As far as the history of the banking sector is concerned, BMO’s focus on providing client loyalty has never deterred. With the changing needs of its customers, the bank continues to lead the way for innovation in the banking sector.
A constant drive to grow
We live in an age where technological advancement, data, and artificial intelligence are demanding the need for a digital transformation in every walk of life.
When it comes to Canada’s banking sector, BMO is leading the way. As one of the leading financial institutions in the country, BMO is enhancing its existing platforms to offer more convenience to customers.
With increased customer satisfaction, loyalty, and convenience, the bank is setting itself up for further growth. The Bank of Montreal is also expanding its operations beyond the country’s borders into the United States.
A new suite of small-business banking products, the commercial banking sector in the U.S., and a diverse client base have allowed the company to grow the number of its clients by 30% over the past 12 months.
The Bank of Montreal has a market capitalization of $64.12 billion at the time of this writing, while its shares are trading at $100.32 apiece. Also, the company is offering investors a juicy dividend yield of 4.11% with an impeccable payout history.
For all of the aforementioned reasons, I’m sold on the stock. You should consider taking a better look at the stock because it can prove to be highly profitable in the long run.
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Fool contributor Adam Othman has no position in any of the stocks mentioned.
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