Should I buy BMO stock in 2025?

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At HelloSafe, our expert has been monitoring BMO’s performance for over three years. Every month, hundreds of thousands of Canadians trust us to shed light on market trends and highlight the best investment opportunities. Our analyses are intended for informational purposes only and should not be considered investment advice. In line with our ethical charter, we have never received, and will never receive, any compensation from BMO.

What is BMO?

*Note: EBITDA is estimated based on available financial reports.

How much is BMO stock?

The price of BMO stock is rising this week. As of now, BMO is trading at $124.53, showing a positive change of +0.42% over the past 24 hours and +2.13% for the week. The company holds a market capitalization of $89.6 billion and has an average 3-month trading volume of 2.9 million shares. BMO’s current price-to-earnings (P/E) ratio stands at 12.7, with a robust dividend yield of 5.1%, and a stock beta of 0.93. These figures suggest a stable performance, making BMO an appealing option for Canadian investors seeking both growth and income potential.

Our full analysis on BMO stock

After reviewing Bank of Montreal’s (BMO) recent financial disclosures and three-year share performance trends, we have aggregated insights from core financial metrics, technical signals, market data, and competitive analysis models. The following holistic summary is designed to illuminate key strategic factors poised to shape BMO’s outlook in the coming months. Why could BMO stock emerge as a prudent entry point into the Canadian banking and financial services sector in 2025?

Recent Performance and Market Context

BMO stock (TSX: BMO, NYSE: BMO) has exhibited remarkable resilience amidst considerable market volatility. As of early June 2024, shares were trading near CAD $121, up almost 6% year-to-date and climbing back from late-2023 lows—outperforming the S&P/TSX Capped Financials Index for the last quarter. Over the past three years, BMO’s total return, including dividends, surpassed 24%, emphasizing its ability to navigate macroeconomic shifts and deliver long-term value to shareholders.

Several positive developments are fueling this rebound:

• Strong Q2 2024 Earnings: BMO reported adjusted net income of $2.03 billion (+8% y/y), reflecting robust growth in personal & commercial banking and U.S. operations.
• Dividend Growth and Stability: Quarterly dividends increased to $1.53 per share, enhancing investor confidence and underlining management’s commitment to capital returns.
• Sector Tailwinds: Canadian banks, including BMO, benefit from recovering net interest margins as the Bank of Canada begins its easing cycle. Loan growth is supported, while provisions are well regulated.
• Favourable Regulatory Environment: Regulatory stability, as evidenced by the Office of the Superintendent of Financial Institutions (OSFI), enables further expansion and disciplined capital management.

Amid a stabilizing interest rate climate and resilient Canadian/U.S. economies, BMO is well situated to harness incremental growth as investor sentiment rebounds in the financials sector.

Technical Analysis

Technical indicators suggest BMO stock may be entering a new phase of upside momentum:

• Relative Strength Index (RSI): In June 2024, BMO’s RSI is in the 50-60 range. This reflects a consolidation phase with potential for upward breakout.
• MACD: The MACD has crossed above its signal line—historically an early indicator of bullish momentum.
• Moving Averages: Shares are above the 50-day moving average ($119) and approaching the 200-day ($123). Surpassing $123 would be a technical confirmation of a trend reversal.
• Support/Resistance Levels: Key support at $115, resistance at $125. Closing above $125 could open a path toward the $135–$140 range.
• Volume Patterns: Increased accumulation on up days suggests growing institutional investor interest.

Altogether, the technical backdrop supports renewed interest and signals potential for a transition into an intermediate uptrend.

Fundamental Analysis

Fundamental trends at BMO are defined by earnings momentum, strong profitability, and strategic U.S. expansion:

• Revenue and Profitability: Q2 2024 revenue reached $7.9 billion (+5% y/y), with a stable net income margin around 26%. Return on equity (ROE) stands at 13.2%, among the highest in the sector.
• Valuation: Trading at 10.3x forward earnings and 1.2x price-to-book, BMO is attractively priced versus peer averages, boasting a 4.9% dividend yield.
• Growth Drivers: Integration of Bank of the West, acquired in 2023, is expanding BMO’s U.S. presence. The U.S. segment now contributes 36%+ of net income, diversifying earnings away from Canadian retail banking.
• Structural Strengths:
• Innovation: BMO leads in digital banking transformation, having invested over $1B in fintech and AI-powered servicing.
• Market Share: Maintains a top-four position in Canadian and U.S. Midwest lending.
• Brand: With a 200+ year legacy, BMO’s brand strength drives customer loyalty and cross-selling.

With steady organic growth, disciplined acquisitions, and an emphasis on efficiency, BMO’s fundamental case remains robust.

Volume and Liquidity

Healthy trading volumes and liquidity support ongoing confidence in BMO shares:

• Trading Volumes: BMO averages over 2.5 million shares traded daily (TSX & NYSE), providing efficient execution and minimizing volatility risk.
• Float: With a public float over 700 million shares, liquidity supports price discovery and enables institutional activity with minimal price impact.
• Bid-Ask Spreads: Tight spreads showcase demand and the efficiency of major North American exchanges.

Volume dynamics reinforce the validity of recent price action and indicate that upward movements are broadly underpinned by strong investor participation.

Catalysts and Positive Outlook

A mix of market-wide and BMO-specific catalysts position the stock for continued upside:

• Bank of the West Integration: Ongoing realization of U.S. operational and revenue synergies, targeting $860 million in pre-tax synergies by 2025.
• Digital Transformation: Rapid launch of AI-driven lending and onboarding tools, already increasing customer acquisition and reducing costs.
• ESG Initiatives: BMO is committing $300 billion in sustainable lending by 2027, and was named Global Finance’s "Best Bank for Sustainable Finance in North America" for 2024.
• Divestitures and Capital Optimization: Active asset management—including selective asset sales—improves capital ratios and supports buybacks.
• Favourable Economic Setting: Expected interest rate cuts in Canada and the U.S. could stimulate lending, especially in real estate and commercial banking.
• Regulatory Environment: A stable stance from OSFI is supportive of further capital deployment and digital innovation.

Each of these supports potential for both earnings growth and valuation expansion through late 2024 and into 2025.

Investment Strategies

Aligned fundamentals, a positive technical picture, and macro catalysts drive a range of entry strategies for investors considering BMO:

• Short-Term: The technical breakout above $120, supported at $115, offers a potential low-risk entry for momentum-focused traders. Immediate drivers include loan growth acceleration and quarterly earnings updates.
• Medium-Term: Upcoming milestones in Bank of the West integration and synergy realization hint at rising earnings capacity over the next 6–12 months.
• Long-Term: BMO remains undervalued considering its U.S. scale, digital advances, and dividend growth prospects. Its operational discipline and recovery leverage in North America make it appealing as a long-term hold.
• Strategic Positioning: Accumulating shares during periods of consolidation or on dips toward the $115 support zone can optimize risk-adjusted returns—especially prior to major catalysts such as fiscal results or fintech announcements.

These entry points cater to both active traders and long-term investors seeking reliable income and capital growth.

Is It the Right Time to Buy BMO?

BMO’s mix of strong earnings, attractive valuations, dividend power, and innovative progress helps distinguish it within the Canadian and North American banking sectors. Technical signals—backed by liquidity and a supportive macro environment—suggest the stock could be primed for renewed appreciation. With consistent U.S. integration, leadership in sustainable finance, and digital advancements, BMO stands as a compelling portfolio candidate for the mid-2020s.

For investors seeking exposure to a blue-chip bank with expanding North American reach, resilient fundamentals, and catalysts on the horizon, BMO’s current profile may represent an excellent opportunity. As operational momentum builds in 2024-2025, the outlook remains constructive—well placed to reward those positioning ahead of the curve.

Ultimately, BMO’s unique combination of scale, growth, and stability makes it a compelling choice for Canadian and international investors seeking both income and appreciation in a transforming financial services landscape.

How to buy BMO stock in Canada?

Buying BMO stock online is now both straightforward and secure for Canadian investors. Thanks to regulated online brokers, you can access Bank of Montreal (BMO) shares in just a few clicks, with full transparency and safety. The two main methods available are direct (spot) buying of shares and trading BMO via contracts for difference (CFDs). Each approach has its own benefits and suits different investment goals. Below, we explain both methods in detail and provide practical examples. If you want to compare broker fees and conditions, you’ll find a dedicated comparison tool further down the page.

Spot buying

A cash or spot purchase means directly buying BMO shares on the stock market and becoming an actual shareholder. This method is popular for those looking to hold stocks over the medium or long term and benefit from dividends. Most online brokers in Canada charge a fixed commission per order—often around $5 to $10 in CAD.

Practical Example

Example:
If the BMO share price is $120 CAD, and you invest $1,000, you can buy about 8 shares, accounting for a typical brokerage fee of around $5.
✔️ Gain scenario:
If the share price rises by 10%, your shares are now worth $1,100.
Result: +$100 gross gain, or +10% on your investment.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on BMO’s price movements without owning the actual shares. CFDs allow you to use leverage—meaning you can take a larger position with a smaller amount of capital. Typical fees include the spread (the small difference between buying and selling prices) and overnight financing charges if you hold positions for more than a day.

Practical Example

Example:
You open a CFD position on BMO shares, using 5x leverage with a $1,000 deposit. This gives you market exposure of $5,000.
✔️ Gain scenario:
If the stock rises by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on a $1,000 stake (excluding fees).

Final advice

Before investing in BMO stock, it’s essential to compare online brokers on fees, available tools, and regulatory protections. Whether you choose spot buying or CFD trading will depend on your investment objectives: holding for dividend growth or seeking short-term, leveraged opportunities. For a side-by-side look at each broker’s features, don’t forget to use the comparator located further down this page.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

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with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

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with our partner IFC Markets

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Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

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with our partner Avatrade

Our 7 tips for buying BMO stock

The latest news about BMO

BMO reported stronger-than-expected Q2 fiscal 2024 earnings, driven by resilient Canadian personal and commercial banking performance. On May 29, BMO (Bank of Montreal) announced its second-quarter results, surpassing analyst consensus on adjusted earnings per share, which came in at $2.59 versus estimates closer to $2.37. The bank’s Canadian personal and commercial banking division produced robust loan growth, and net interest margins remained stable amid a challenging interest rate environment. Management highlighted disciplined expense control and a diversified revenue base, which contributed to the strong quarterly outcome.

BMO’s capital position improved, with the Common Equity Tier 1 (CET1) ratio rising to 12.5%. The bank’s CET1 ratio, a critical regulatory benchmark, increased from 12.1% in the previous quarter, reflecting prudent risk management and strong internal capital generation even as the bank continued to invest in digital capabilities. This financial strength positions BMO well to weather future volatility, maintain regulatory compliance in Canada, and pursue growth opportunities.

BMO announced a dividend increase of 4%, reflecting management’s confidence in sustained earnings power. The quarterly dividend was raised from $1.51 to $1.57 per share, effective with the August 2024 payout. This marks the second consecutive dividend hike within a year, underscoring the bank’s ability to generate consistent shareholder returns and affirming its commitment to rewarding long-term investors.

BMO’s U.S. segment performance showed improvement, particularly in commercial banking and wealth management. Despite a slowdown in capital markets revenue, the U.S. operations posted higher adjusted earnings versus the same period last year, aided by loan growth, disciplined credit management, and integration efforts following the Bank of the West transaction. Management indicated that cross-border synergies and scaled operations are starting to deliver expected efficiencies and revenue gains.

BMO continues to demonstrate commitment to Canadian communities through expanded ESG and Indigenous initiatives. In the past week, the bank announced new partnerships supporting Indigenous entrepreneurship and released updates regarding ongoing investments in sustainable finance, which resonate with Canadian clients and align with federal financial regulations and social responsibility trends. These efforts, combined with strong financial results, enhance the bank’s reputation and stakeholder trust across Canada.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.