Bank of Montreal 2014 Annual Report Download - page 20

MD&A
Value Measures
Total Shareholder Return
The average annual total shareholder return (TSR) is a key measure of
shareholder value, and is confirmation that our strategic priorities drive
value creation for our shareholders. Our one-year TSR of 17.1% and our
five-year average annual TSR of 15.5% were strong, and both out-
performed the comparable Canadian indices. Our three-year average
annual TSR of 16.7% was also strong, outperforming the overall market
return in Canada, despite being lower than the S&P/TSX Financial Serv-
ices Index.
The table below summarizes dividends paid on BMO common
shares over the past five years and the movements in BMO’s share
price. An investment of $1,000 in BMO common shares made at the
beginning of fiscal 2010 would have been worth $2,055 at October 31,
2014, assuming reinvestment of dividends, for a total return of 105.5%.
On December 2, 2014, BMO announced that the Board of Directors
had declared a quarterly dividend payable to common shareholders of
$0.80 per common share, an increase of $0.02 per share or 3% from the
prior quarter and up $0.04 per share or 5% from a year ago. The divi-
dend is payable February 26, 2015 to shareholders of record on
February 2, 2015. We have increased our quarterly dividend declared
three times over the past two years from $0.72 per common share for
the first quarter of 2013. Dividends paid over a ten-year period have
increased at an average annual compound rate of 7.3%.
Five-Year Average Annual
Total Shareholder Return (%)
All returns represent total returns.
BMO
common
shares
S&P/TSX
Financial
Services
Index
S&P/TSX
Composite
Index
S&P 500
Index
BMO’s five-year TSR
outperformed the comparable
Canadian indices.
16.7
9.1
13.5 15.5
All returns represent total returns.
BMO
common
shares
S&P/TSX
Financial
Services
Index
S&P/TSX
Composite
Index
S&P 500
Index
BMO’s three-year average annual
return was strong and
outperformed the overall market
return in Canada.
19.8
9.3
17.6 16.7
Three-Year Average Annual
Total Shareholder Return (%)
One-Year Total
Shareholder Return (%)
All returns represent total returns.
BMO
common
shares
S&P/TSX
Financial
Services
Index
S&P/TSX
Composite
Index
S&P 500
Index
BMO’s one-year TSR was strong
and above the comparable
Canadian indices.
17.3
12.6
16.9 17.1
The average annual total
shareholder return (TSR)
represents the average
annual total return earned
on an investment in BMO
common shares made at the
beginning of a fixed period.
The return includes the
change in share price and
assumes that dividends
received were reinvested in
additional common shares.
Total Shareholder Return
For the year ended October 31 2014 2013 2012 2011 2010
3-year
CAGR (1)
5-year
CAGR (1)
Closing market price per common share ($) 81.73 72.62 59.02 58.89 60.23 11.5 10.3
Dividends paid ($ per share) 3.04 2.92 2.80 2.80 2.80 2.8 1.7
Dividend yield (%) 3.8 4.0 4.8 4.8 4.6 nm nm
Increase (decrease) in share price (%) 12.5 23.0 0.2 (2.2) 20.3 nm nm
Total annual shareholder return (%) (2) 17.1 28.8 5.2 2.4 26.4 16.7 15.5
(1) Compound annual growth rate (CAGR) expressed as a percentage.
(2) Total annual shareholder return assumes reinvestment of quarterly dividends and therefore does not equal the sum of dividend and share price returns in the table.
nm – not meaningful
BMO Financial Group 197th Annual Report 2014 31