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TORONTO - Bank of Montreal (TSX: BMO) (NYSE: BMO), a $72.83 billion financial institution, announced today that its Board of Directors has declared a quarterly dividend of $1.59 per share on its common shares for the second quarter of the fiscal year 2025, maintaining the same payout as the previous quarter. The bank, which has maintained dividend payments for 53 consecutive years and currently offers a 4.41% yield, continues its strong dividend tradition. Additionally, dividends for various series of Class B Preferred Shares were also declared, with amounts ranging from $0.190875 to $36.865 per share. InvestingPro analysis reveals BMO has raised its dividend for 3 consecutive years, with 8 more key insights available to subscribers.
Shareholders of the common shares can expect the dividend to be payable on May 27, 2025, to those on record as of April 29, 2025. Similarly, dividends on preferred shares are due on May 26, 2025, to shareholders recorded on April 29, 2025. These dividends have been designated as "eligible" for Canadian tax purposes, which may be beneficial for shareholders. The bank’s financial metrics show a P/E ratio of 15 and revenue growth of 7.21% in the last twelve months, indicating solid performance. For comprehensive analysis of BMO’s financial health and growth prospects, investors can access detailed Pro Research Reports on InvestingPro.
The Bank of Montreal also offers a Dividend Reinvestment and Share Purchase Plan for its common shareholders, allowing them to reinvest their cash dividends in additional common shares. Currently, shares purchased through this plan will be bought on the open market and will not be subject to any discount until further notice. With BMO trading near its 52-week high and showing an overall Financial Health score of FAIR according to InvestingPro’s comprehensive analysis, investors may want to carefully evaluate their investment strategy.
Interested registered shareholders must submit their Enrolment Forms to Computershare Trust Company of Canada by May 1, 2025, to participate in the Plan. Non-registered holders should consult their financial institution or broker well before this date to understand the participation process.
It is important to note that the Class B Preferred Shares Series 50 and 52 are not listed on any stock exchange, indicating that they are not publicly traded.
This dividend announcement is based on a press release statement from the Bank of Montreal. For more details on the Dividend Reinvestment Plan and enrollment information, shareholders can visit the Bank of Montreal’s website.
In other recent news, the Bank of Montreal (BMO) has been actively involved in several significant developments. BMO has joined the IBM (NYSE:IBM) Quantum (NASDAQ:QMCO) Network, marking a strategic move to integrate quantum computing into its operations, with goals to optimize investment portfolios and enhance risk management solutions. Additionally, BMO Capital Markets has settled with the Securities and Exchange Commission (SEC) by agreeing to pay over $40 million related to charges of inadequate supervision in the sale of misleading mortgage-backed bonds. This settlement includes a fund for distribution to affected investors.
The bank has also announced plans for a share repurchase program, intending to buy back up to 20 million common shares, pending regulatory approval. In terms of stock analysis, RBC Capital Markets has upgraded BMO’s stock rating from Sector Perform to Outperform, citing a positive outlook on the bank’s financial health and future performance. RBC Capital also raised the price target for BMO’s shares, reflecting expectations of robust earnings growth and improved valuation prospects.
Moreover, RBC Capital has adjusted its price target for BMO, maintaining a Sector Perform rating while anticipating a peak in the impaired Provision for Credit Losses ratio by the end of 2024. The bank is expected to see a rise in earnings per share leading into 2026, with a focus on share buybacks and improved financial performance. These recent developments highlight BMO’s strategic initiatives and financial adjustments aimed at strengthening its market position and addressing existing challenges.
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