A short e-mail today, as we have a new Bull List addition, along with the release of our holiday/new year schedule.
Of note, we have more Bull List picks coming next week, we’re just putting the final touches on the reports as we speak.
We’ve added the Bank of Montreal to the Bull List
Our overall thesis with the Canadian banks, particularly the Big 6, has historically been quite simple. We identify the cheapest bank, and we buy that bank. If we were to go this route right now, you’d very likely find Bank of Nova Scotia or Canadian Imperial Bank of Commerce on the Bull List.
But, this won’t be the case. Although BNS and CM are cheaper, there is a clear separation happening due to operational struggles by the two. It seems the banks have separated themselves into two packs the last half-decade, with CM and BNS being the significant laggards. So out of the strong performers, we are left with BMO.
The Bank of Montreal is expected to have one of the fastest EPS growth rates in Fiscal 2023, second to only the other Bull List bank stock Toronto Dominion. The difference here primarily lies in valuation, of which we dive into more in our full report.
The Bank of Montreal is in one of the stronger positions among Canadian banks to navigate a potential period of slower earnings in 2023 due to a recession. Not only does it have the best in class CET1 ratio, but it also has one of the lowest payout ratios of the Big 6, which should bode well for future dividend growth.
I (Dan) hold an equal weight position in Bull List stocks Bank of Montreal and Toronto Dominion, as well as Foundational Stock Royal Bank. This has been my strategy ever since I moved on from Bank of Nova Scotia in early 2020, and it has worked well.
You can read our full report on Bank of Montreal here
Holiday and New Year schedule
With the holidays approaching, we figure we’d let members know what to expect heading into late December and most importantly in January.
January is expected to be the most jam-packed time at Premium in terms of new research and releases, with our 2023 Foundational Stock releases, model portfolio updates, and quite possibly the most anticipated release, our brand new income model portfolios.
Here is the upcoming newsletter schedule at Premium up until the end of January:
Sunday December 18th: Normal newsletter
Sunday December 25th: No Newsletter, Christmas Day
Wednesday December 28th: Year in review newsletter
Sunday January 1st: No Newsletter, New Years Day
Sunday January 8th: 2023 Canadian Foundational Stocks release
Sunday January 15th: 2023 US Foundational Stocks release
Sunday January 22nd: Our 3 income model portfolios released
Sunday January 29th: Our growth model portfolio updates
