Bank of Montreal (TSX:BMO)(NYSE:BMO) is a top Canadian dividend stock. And recently, the big bank announced yet an increase to its quarterly dividend. At $1.59 per share, the new payout represents a 3% bump up from the dividend it was paying previously, which was $1.55.
With the increase, the stock is now yielding 4.5%, making it an extremely attractive option for income investors to buy and hold. To collect $1,000 in dividends from the stock, you would need to invest approximately $22,200 into BMO given its fairly high payout. By comparison, the S&P 500’s average yield is around just 1.2% — you would need to invest nearly four times as much to collect the same amount in dividends; investors can get a lot more bang for their buck with BMO than with many other dividend stocks.
The increase comes as BMO recently reported strong earnings. For the fourth quarter of fiscal 2024, which ended on Oct. 31, the bank reported net income of $2.3 billion, up significantly from $1.7 billion in the same period last year.
Year to date, shares of BMO are up over 7%. And over the past five years, the stock has risen by 40%. Overall, this is a good, stable stock to buy and hold for the long term, especially when you factor in its high-yielding payout. Whether you want a safe stock to buy heading into 2025 or just want some reliable dividend income, BMO is a stock which can be a great option for your portfolio today.
