BMO is a play for its wealth management exposure and the potential for upside from an economic recovery. One of Canada’s Big Five bankers, BMO pays a rich 5% dividend yield. Investors expecting shares to get knocked down by election froth should keep some cash on hand and get ready to build a position on a selloff. Down 16% year over year, BMO is already a snip, though, and could bounce back in 2021.
Holding BMO and Pembina in a portfolio can add a bit of backbone to that long-range wealth creation plan. Either name could satisfy a recovery rally strategy. With the potential for sudden upside next year, a BMO-Pembina tag team could see a steep share price recovery. BMO could see 25% upside, while the midstreamer has a high target estimated at almost double the current share price.
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