When it comes to Canadian banks, stability and income often go hand in hand. But even among the Big Six, some names stand out for their consistency, especially when it comes to dividends. One bank, in particular, has earned a reputation for doing just that, year after year: Bank of Montreal (TSX:BMO).
So, how long has BMO been rewarding shareholders with dividend hikes? Try 24 straight years. That’s impressive in any market, but it’s even more notable considering the economic shocks of the past decade, from oil crashes and housing worries to the COVID-19 pandemic and the more recent wave of interest rate hikes. Through it all, BMO has kept paying investors more each year.
Let’s take a closer look at whether this streak is likely to continue and if BMO is worth buying today.
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Old is new again
First, some quick context. BMO is the oldest bank in Canada, founded in 1817. But it’s far from old-fashioned. The dividend stock has aggressively expanded its presence in the U.S., especially after its acquisition of Bank of the West in 2023. That $16.3 billion deal significantly increased BMO’s U.S. footprint, particularly in California and other high-growth markets. While it weighed on short-term earnings, it positioned BMO as a more diversified North American banking giant.
In its second quarter of 2025, BMO reported adjusted net income of $2.05 billion, compared to $2.03 billion the year before. That was a solid beat against estimates, helped by improving loan growth and a better-than-expected performance from its U.S. personal and commercial banking segment. Revenue came in at $8.78 billion, up from $7.97 billion the year before. These are not blockbuster numbers, but they point to steady progress after a few quarters of digestion post-acquisition.
And here’s the key part: BMO also raised its quarterly dividend again by 5%, to $1.63 per share. On an annualized basis, that works out to $6.52 and gives the stock a yield of around 4.2% based on recent prices. In today’s market, a yield that high from a major Canadian bank, with a clean balance sheet and long dividend history, isn’t easy to find.
Considerations
Now, there are risks. BMO, like all lenders, faces pressure from a softer housing market, higher credit provisions, and the possibility of a slowing economy. In Q2, it set aside $1.1 billion for credit losses, a major jump from $705 million. Its capital markets division also showed some weakness, as investment banking activity remains slow.
But those risks are already reflected in the share price. BMO stock has since moved past 2022 highs and still trades at 14.6 times earnings. That’s slightly higher than its long-term average and in the mid-range of the Big Six. Investors today aren’t just getting a reliable dividend, they’re getting a discount on a top-tier bank.
Plus, BMO’s diversification should help soften the blow if Canadian consumer debt becomes more of an issue. Its large U.S. presence gives it exposure to a broader economy, and its wealth management and capital markets divisions add other revenue streams. This is not a one-trick pony. The long-term case is pretty straightforward: BMO has been around for over two centuries, it has survived every kind of financial shock, and it is still handing shareholders more income every year. With 24 consecutive annual dividend hikes and a very sustainable payout ratio, there’s little reason to think that will stop anytime soon.
Bottom line
In uncertain markets, income matters more than ever. And BMO delivers. Whether you’re a retiree looking for steady cash flow or a younger investor aiming to reinvest those dividends for growth, BMO offers both safety and upside.
So, if you’re wondering where to park your money while markets remain rocky, BMO may just be the answer. After all, it’s not every day you find a blue-chip Canadian bank trading at a discount with a 4%-plus yield and a 24-year history of doing exactly what dividend investors love most: paying more, year after year.
