BMO Introduces a Two Per Cent Discount for Shares Issued Under its Dividend Reinvestment Plan
Bank of Montreal (TSX: BMO) has introduced a 2% discount on common shares issued from treasury under its Shareholder Dividend Reinvestment and Share Purchase Plan.
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Rhea-AI Summary
Bank of Montreal (TSX: BMO) has introduced a 2% discount on common shares issued from treasury under its Shareholder Dividend Reinvestment and Share Purchase Plan. This discount applies to the Q1 2022 Dividend, payable on February 28, 2022, to shareholders of record by February 1, 2022. Existing members of the Plan will automatically receive the discount on reinvested dividends. For new participants, enrolment forms must be submitted by February 3, 2022. More information is available on BMO's investor relations website.
Positive
- Introduced 2% discount on shares under the dividend reinvestment plan
- Encourages shareholder engagement through reinvestment
Negative
- Potential dilution of shares for existing shareholders due to discounted offerings
Details
News Market Reaction – BMO
The recorded move for BMO in the trading session of this news was +2.16%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
TORONTO, Jan. 10, 2022 /PRNewswire/ - Bank of Montreal (TSX: BMO) (NYSE: BMO) today announced that it is offering a two per cent discount on its common shares issued from treasury under the dividend reinvestment feature of its Shareholder Dividend Reinvestment and Share Purchase Plan (the "Plan"). Under the Plan, shareholders may elect to have dividends on common shares reinvested in additional common shares of the Bank.
Commencing with the common share dividend declared for the first quarter of fiscal 2022 ("Q1 2022 Dividend"), and subsequently until further notice, common shares under the Plan will be issued by the Bank from treasury with a two percent discount, calculated in accordance with the terms of the Plan. As previously announced on December 3, 2021, the Q1 2022 Dividend is payable on February 28, 2022 to shareholders of record on February 1, 2022. The discount will not apply to common shares purchased under the "Optional Cash Payment" feature of the Plan.
For existing members of the Plan, the discount will automatically be applied to the reinvestment of the Q1 2022 Dividend. For registered shareholders who wish to participate in the Plan, Enrolment Forms must be received by the Bank's transfer agent, Computershare Trust Company of Canada (Tel: 1-800-340-5021 from Canada and US; 514-982-7800 from all other countries), by the close of business on February 3, 2022. Beneficial or non-registered holders must contact their financial institution or broker well in advance of the above date for instructions on how to participate.
More information about the Plan and how to enroll can be found at:
About BMO Financial Group
Serving customers for 200 years and counting, BMO is a highly diversified financial services provider - the 8th largest bank, by assets, in North America. With total assets of
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SOURCE BMO Financial Group
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