On May 28, Bank of Montreal (TSX:BMO) (NYSE:BMO) announced that it would be increasing its dividend payment yet again. Its upcoming dividend, which will be payable on August 26, is a four-cent increase from what it was paying shareholders before. At $1.63, it’s a 3% increase compared to the previous quarter but also 5% higher than BMO’s dividend payment a year ago.
BMO is a top Canadian bank stock and increasing its dividend is par for the course. Five years ago, the company was paying a quarterly dividend of $1.06, which means BMO has raised its payout by around 54% since then. Today, investors collect $6.52 per share in dividends if they hold the stock for an entire year. It yields 4.4% and if you want to earn $1,000 in annual dividends (at least), then you’d need to invest around $22,730 into the stock.
This is a good, stable stock to invest in as BMO comes with not only dividend income but also a lot of long-term safety and can be a reliable place to put your money into. Since the start of the year, it has risen by more than 6% in value and its five-year returns total nearly 120%. And that’s without factoring in the dividend income you would have earned from the stock during that time frame.
Overall, whether you’re looking for a place to park your money or simply want a good dividend stock you don’t want to worry about for the long haul, BMO can be a great option for your portfolio.
