2 Dividend Giants That Look Attractive After Recent Pullbacks

BMO and Thomson Reuters offer two different styles of dividend quality: higher-yield banking income versus lower-yield, recurring-revenue growth.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published June 26, 8:15 pm EDT

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Key Points

BMO’s dividend looks supported by strong recent earnings and a long history of paying and raising payouts.
Thomson Reuters is a steadier compounder, with recurring subscription revenue and AI-driven workflow tools supporting growth.
BMO’s key risk is credit losses in a weaker economy, while TRI’s is valuation if growth expectations cool.

10 stocks we like better than Bank Of Montreal

Some dividend stocks deserve a second look when the market gives investors even a small opening. That’s the case with Bank of Montreal (TSX:BMO) and Thomson Reuters (TSX:TRI). These aren’t speculative turnaround stories. They’re large, established Canadian companies with long operating histories, durable businesses, and dividends backed by real cash flow.

Neither stock looks like a screaming bargain. But after recent weakness in parts of the market, both look attractive for investors who want income, quality, and long-term growth.

BMO

BMO gives investors the more traditional dividend story. It’s one of Canada’s Big Six banks, with operations across personal banking, commercial banking, wealth management, capital markets, and U.S. banking. The bank has paid dividends for generations, making it one of the more reliable income names on the TSX.

The recent numbers were strong. In the second quarter of fiscal 2026, BMO reported adjusted earnings per share of $3.67, up 40% from last year. Reported net income rose to $2.6 billion, and adjusted net income reached $2.7 billion. The bank also raised its quarterly dividend to $1.71 per share, or $6.84 annually. That dividend increase is the key number. It shows management still feels confident enough to send more cash to shareholders, even as investors worry about credit losses, interest rates, housing, and the economy.

BMO also benefits from scale. It serves millions of customers across Canada and the United States. It has a major commercial banking platform, a strong capital markets business, and a growing U.S. presence. Those pieces can support earnings over time, even if one part of the business slows.

The risk is credit. Banks do well when borrowers stay healthy and loan losses remain controlled. If unemployment rises or businesses struggle, provisions can climb. BMO also faces integration, competition, and U.S. banking risks. Still, the dividend looks well supported for long-term investors who can handle bank-stock volatility.

TRI

Thomson Reuters offers a very different kind of dividend giant. The global information and technology company serves legal, tax, accounting, corporate, and news customers. Its products help professionals make decisions, manage compliance, research complex issues, and work faster.

That business model looks especially interesting as artificial intelligence (AI) changes professional services. Thomson Reuters owns trusted content, deep data sets, workflow tools, and software used by customers who need accuracy. That gives it a strong position as companies look for AI tools they can actually rely on.

The first quarter showed solid momentum. Revenue rose 10%, while organic revenue grew 8%. Recurring revenue also grew 10% and made up 77% of total revenue. That recurring revenue base is a major reason TRI deserves a premium. Customers tend to renew because the tools sit inside daily workflows.

The dividend is smaller than BMO’s, but it has growth appeal sitting at $2.62 annually. The yield won’t satisfy investors chasing maximum income, yet the payout comes from a business with high margins, recurring sales, and strong exposure to legal and tax technology.

The risk is valuation. TRI often trades at a rich price because investors like the quality of the business. If AI competition heats up, growth slows, or expectations get too high, the stock could pull back. Currency can also affect Canadian investors because the dividend is paid in U.S. dollars. Still, Thomson Reuters has one thing many companies want but few truly have: trusted professional content tied to essential work. That can be powerful over decades.

Bottom line

BMO and Thomson Reuters won’t appeal to the same type of investor. BMO offers higher income and banking exposure. Thomson Reuters offers lower yield but stronger technology and recurring-revenue growth. Yet together, they show two ways to buy dividend quality on the TSX. Even when starting with an investment of $7,000 in each.