Dividend investing doesn’t have to leave you wondering if the income will really last. The key is choosing a company that has already proven it can keep paying through good times and tough times. That’s where Canadian bank stocks often shine as they’ve built reputations for strong balance sheets, consistent growth, and reliable dividend checks.
Among them, Bank of Montréal (TSX:BMO) has once again shown why long-term investors trust it. With a growing dividend and a track record of rewarding shareholders, it continues to prove why it deserves a place in income-focused portfolios. In this article, I’ll walk through BMO’s latest results, recent growth trends, and why it could be a dividend stock for life.
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Why BMO could be a top dividend stock for life
Founded more than 200 years ago, Bank of Montréal serves millions of customers in Canada, the U.S., and other global markets. Currently, BMO shares trade at about $156.13 each, giving it a market cap of $112 billion. Investors holding the stock also enjoy an annualized dividend yield of roughly 4.2%, paid quarterly.
Over the last 12 months, this top Canadian bank stock has climbed more than 33%, with a five-year gain of over 100%. Those returns clearly show that dividend income isn’t the only thing on the table, as investors have also been rewarded with strong capital appreciation.
A closer look at its latest financial results
In the second quarter of its fiscal year 2025 (ended in April), BMO reported adjusted net income of $2.05 billion, slightly higher than a year earlier. Its adjusted quarterly earnings came in at $2.62 per share, also up from $2.59 per share a year ago. At the same time, the bank’s quarterly revenue rose 9% YoY (year over year) to $8.7 billion with the help of higher net interest income and stronger wealth and trading revenue.
Of course, the quarter wasn’t without challenges as BMO set aside $1.05 billion for credit losses, up from $705 million last year, reflecting a cautious approach to a weaker economic backdrop. Still, its common equity tier-one ratio (which mainly shows a bank’s core capital strength) of 13.5% reflects that BMO remains well capitalized and in a position of strength.
Key positive factors to consider
Last quarter, BMO’s Canadian personal and commercial banking segment posted higher revenue from stronger net interest income, although provisions for credit losses held back bottom-line growth. In the U.S. market, loan demand has been muted, but the bank’s strategy to optimize its balance sheet and reduce higher-cost deposits is continuing to support its margin expansion.
Meanwhile, the bank’s wealth management segment saw a strong 13% YoY increase in net income, backed by rising markets and strong asset inflows. Similarly, its capital markets also benefited from robust trading revenue, particularly in commodities, even though higher expenses and credit provisions weighed on results.
It is built for long-term income and stability
When you combine reliable dividend increases, a strong balance sheet, and consistent growth across multiple business lines, you get a stock that can support income investors for the long term.
Besides its reliable payouts, BMO is also actively investing in digital platforms, expanding customer relationships, and building deeper ties in its U.S. markets. That mix of stability and forward-looking growth makes Bank of Montréal a stock that could keep paying you for life, while also letting your portfolio grow in value.
