BMO - Bank of Montreal

Some stock "professionals" may say that investing in banks now a days can be a quick way to lose your hard earned cash. I highly suggest investing in solid banks which have continued to pay a healthy dividend even throughout the Great Recession of 2008. Drum roll please... Look no further than Bank of Montreal. Stock ticker BMO, pays $0.71 dividend per share, which is a current dividend yield of 5.24%. Even on December 26th, 2008 BMO paid their $0.70 dividend. Their dividend payout was not decreased even though the financial sector was on life support.

BMO provides a range of credit and non-credit products and services directly and indirectly through Canadian and non-Canadian subsidiaries, offices and branches. As of October 31, 2010, BMO maintained 1,230 bank branches in Canada and the United States, and operated internationally in financial markets and trading areas through its offices in eight other countries, including the United States. Due to BMO's excellent cash management skills they have been able to make acquisitions, unlike most banks.

Recent acquisitions:

• December 31, 2009: Acquired the Diners Club North American franchise from Citigroup.
• April 23, 2010: Acquired certain assets and liabilities of AMCORE Bank N.A.
• April 2011: Acquired Lloyd George Management.

Of all the major Canadian banks, BMO has the lowest P/E and consistently the highest dividend yield. Since BMO is Canadian they were not involved with the United States no sub-prime mortgages. BMO is an excellent low risk investment. In particular as of today, in this shaky economy, Canadian banks are among the safest. BMO is a $OLID Canadian bank with a 182 year dividend payment track record!

This is strictly hypothetical, but very close to reality... Invest $200.00 into BMO on a monthly basis for the next 30 years and they will pay you around $932.00 per quarter for the rest of your life. This figure was calculated by using the current stock price of $54.06 and $0.70 quarterly dividend, as of October 3rd, 2011. And this is excluding reinvesting your dividends! Imagine if you reinvested your dividends for 30 straight years. It is possible to achieve financial freedom during the best years of your life if you invest in dividend paying monsters like BMO.

Click here to visit BMO's website, and here to visit their Investor Relations page. Also, please watch the video posted below to learn more about this great Canadian goldmine!

Stock Picks for the week of 10/2/11 to 10/8/11

Listed below are my top dividend stock investments for the Common Man for the week of October 2nd, 2011 to October 8th, 2011. Any one of these stocks always make an excellent addition to your Roth IRA stock portfolio. They are reliable dividend payers and I am a huge fan of each company. It is fairly simple to invest your dollars into any one or all of these stocks. I will check back in next Sunday to determine how well or poor my picks performed. Have a great remainder of the weekend! Continue to invest as much as you can each week to ensure that you have a solid dividend income stream of wealth!

SYY - Sysco $25.90
Distributes food and related products to restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers.
CAG - ConAgra $24.22
North America's packaged food company serving grocery retailers, as well as restaurants and other foodservice establishments.
BMO - Bank of Montreal $55.85
Offers a range of credit and non-credit products and services directly and through Canadian and non-Canadian subsidiaries, offices and branches.
ABT - Abbott Labs $51.14
Diversified line of health care products. Segments include Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Vascular Products.
BMY - Bristol-Myers Squibb $31.38
Discovers, develops, licenses, makes, and sells pharmaceuticals, with particular success in cardiovascular treatments.
DUK - Duke Energy $19.99
An energy company with an integrated network of energy assets. The company manages a portfolio of natural gas and electric supply, delivery and trading businesses.
HTS - Hatteras Financial Corp $25.16
A strong REIT in a strong sector and it pays high yield.
MMM - 3M $71.79
Operates in areas that include health care, industrial, and transportation. Products include Post-it Notes and Scotch tape.
IBM - IBM Corp $174.87
Reliable company, just beat out Microsoft for higher market cap. Globally integrated innovation company, serving the needs of enterprises and institutions worldwide.
UTX - United Technologies $70.36
UT owns Carrier heating and air conditioning, Otis elevators, Pratt & Whitney aircraft engines, Sikorsky helicopters, and many more!

Note: Stock prices as of 10/2/11

KMB - Kimberly Clark Corp

No offense, but here is a real boring company to invest in. Kimberly Clark Corp, stock ticker KMB is a classic example of a boring but profitable and reliable brand-name stock.  KMB have brands that the world relies on. Feel free to buy generic toilet paper at your own risk. I'm sticking with KMB's brands.  Huggies, Little Swimmers, Pull-ups, Kleenex, Cottonelle, Scott paper towels.. the list is endless!

KMB is a company focused on building its personal care, consumer tissue and health care brands. They are principally engaged in the manufacturing and marketing of a range of products worldwide. There are four segments of KMB: Personal Care; Consumer Tissue; K-C Professional & Other, and Health Care. Personal care segment manufactures and markets disposable diapers, training and youth pants, swim pants, baby wipes, feminine and incontinence care products, and related products. Consumer tissue segment manufactures and markets facial and bathroom tissue, paper towels, napkins and related products for household use.

KMB is as stable as they come. We always will need toilet paper and diapers. As stated previously, KMB provides a variety of products that everyone needs - good times or bad. The tissue paper market has been growing steadily for years, regardless of recessions. KMB has proven consistent earnings and high yield at $0.70 per share, currently at a 3.94% dividend yield (as of 9/30/11 close).

Click here to visit KMB's company website, as well as here to visit their Invest Relations website. KMB is yet another consistent dividend payer and should be intertwined within your Roth IRA stock portfolio. Check out these videos below and pick up some KMB shares this Monday! Hold for life! Reinvest those dividends!

Update: Stock Picks for the week of 9/25 to 10/1/11

As you can see below, each of my stock picks decreased in value, except HNZ. During this past week HNZ, CAT, BDN and DIS performed nicely even though the market provided lackluster returns. Click here to read an article explaining how United States stocks logged the worst quarter since the 2008 credit crisis.

I am still very bullish on the stock market as a whole. Even though the majority of these stock values went down in price, their dividend yields increased. That is why I believe dividend paying stocks have a silver lining. One must be confident when investing in stocks because it literally can feel like a rollercoaster ride at times, but if you invest in long-term, dividend paying, consistently profitable companies then your portfolio will outperform the market year after year. Each company will protect against down weeks and even economic collapses, which ever the case may be!

Investing in high yielding dividend paying stocks can solidify a stable retirement income stream. Hold on to your dividend paying stocks for the long term and reap the benefits! Feel free to watch the video below. It will boost your confidence. Until next time, happy investing!

Stock Ticker Quote @ 9/25/11 Quote @ 10/1/11 Net Gain/Loss
SWK 50.53  49.10  -1.43
HD 33.72  32.87  -0.85
BDN 8.03  8.01  -0.02
CSX 19.25  18.67  -0.58
HNZ 49.74   50.48  +0.74
CAT 73.86 73.84 -0.02
YUM 51.66  49.39  -2.27
DIS 29.83  30.16   -0.33

Grand Total -4.76