TORONTO, ONTARIO--(Marketwire - Nov. 6, 2012) - To mark Financial Literacy Month, BMO Financial Group is releasing a series of financial tips throughout November. As part of 'Making Money Make Sense' and BMO SmartSteps, the tips are designed to help individuals and families save and manage their day-to-day finances more effectively.

BMO's Tip of the Day: Take advantage of the benefits of preferred shares.

"Preferred shares can often be a solid investment choice, yet they remain a mystery to many," said Serge Pépin, Vice President, Investment Strategy, BMO Asset Management. "Preferred shares are investment products that are a hybrid of equities and bonds and for investors seeking income, they offer guaranteed fixed dividends with stable share prices and predictable distributions. An ideal investment choice in today's low interest rate environment."

Mr. Pepin notes that investors with preferred shares have priority over investors who hold common stock in the same company, dividends are paid out to preferred shareholders first. Although preferred shareholders do not have voting rights, they have an advantage over common shareholders in the event a company has to liquidate, as they will receive dividends first.

Preferred shares can be held inside or outside a registered plan (such as a Registered Retirement Savings Plan). If held outside, investors can take advantage of the dividend income tax credit.

"CFEE commends BMO's ongoing efforts to support Financial Literacy in Canada and promote ways in which Canadians can increase their competence and confidence when managing their personal finances on a day-to-day basis," said Gary Rabbior, President, Canadian Foundation for Economic Education (CFEE).

BMO Financial Literacy Month Tips

November 1: Maximizing TFSA investments annually over 20 years can save nearly $30,000 in taxes

November 2: Utilize Rewards to Squeeze the Most Value Out of Every Dollar You Spend this Holiday Season

November 3: Choose an Investment Advisor Who Is Right For You and Will Help You Meet Your Financial Goals

November 4: Use Your RRSP to Help Make the Down Payment on Your First Home

November 5: Space Out Payments to Avoid Cash-Flow Problems

For more on financial literacy, Canadians can visit the Government of Canada's [ Financial Literacy Month ] website, as well as BMO's [ Financial Literacy ] online resource.

About BMO Financial Group

Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $542 billion as at July 31, 2012, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions.

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