BMO shares: price, dividends and performance

James Rodriguez James Rodriguez  updated on 2022-06-15

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Bank of Montreal stock is one of the most interesting options available on the current Canadian stock market. In effect, BMO stock can be considred as short, medium, and long-term investment because it is both a return and growth stock.

How much can you make with BMO stock?

Get up-to-date and precise information on BMO stock with its current price, dividend yield, analysis and our opinion.

This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.

Want to buy shares in BMO: Our key take-aways

  • Stock Exchange: Toronto Stock Exchange
  • Stock market index: S&P/TSX
  • Dividend 2021: $3.401
  • Dividend forcast for 2022: $5.45
  • Performance over 1 year: +41.88%.

Should I buy BMO stock?

BMO stock has shown good profitability in recent years. With a dividend yield of over 4% and rising, and a performance of over 41% in just one year, BMO stock is both a yield stock and a growth stock.
Essentially, Bank of Montreal shares offer a high dividend yield and the potential for long-term capital appreciation. They can therefore be considered an interesting investment prospect.

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How can I buy shares in BMO ?  

To buy BMO on the stock market:

  1. Find an online broker offering stock investments.
  2. Open your trading account by filling out a simple form.
  3. Deposit funds into your account.
  4. Search for the stock
  5. Place a buy order to add BMO to your stock portfolio.

To invest in BMO, you can go through a traditional investment firm, an online brokerage or speak with a financial advisor.

How much are BMO shares?

See price chart below to follow BMO stock price in real time.

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Why BMO shares could go up:

Currently, there are many elements pointing to a rise in BMOs share price:

  • An increasing dividend: in December 2021, the Bank of Montreal announced that they would increase their dividend by 25% for the quarter to $1.33 per share.
  • A share buyback program: BMO has also announced a buyback program of up to 22.5 million shares or 3.5% of the outstanding shares.
  • Results that exceed expectations: BMO reported a profit of $2.2 billion for the fourth quarter of 2021, a significant increase from the preceeding year ($1.6 billion).
  • Optimistic forcasts: BMO has stated that its expenses are expected to remain the same despite infation thanks to improved efficiency.
  • A stable and well known company : BMO was recently ranked among the world's strongest companies by Bloomberg and named the best investment bank in Canada by Global Finance magazine.
  • Strong diversification: The significant diversification of BMO's financial services offerings is also expected to lead to further growth.
  • A high capacity for international expansion: the group continues to invest in promising economies, particularly in the Middle East, China and India.
  • A positive consesus: in summary, the consensus of analysts regarding the evolution of BMO's share price and its dividend is overwhelmingly positive.

Why BMO shares could go down:

Of course, BMO stock also presents some risks and may be impacted by a few negative factors, including:

  • A weak presence in Canada: compared to its competitors, BMO has a small number of branches in Canada.
  • A decline in demand: the bank is currently suffering from a slowdown in consumer loan growth.
  • Expected slightly higher revenues: While Bank of Montreal's results have positively surprised investors in 2021, its revenue growth is expected to be much more moderate in 2022 and 2023 based on current analysis.

Can I buy BMO stock online?

Yes! You can buy BMO shares online. For many buys this is the best way to do it. Here's why:

  • The commissions are lower
  • You can choose your own investments
  • You benefit from analysis and decision support tools
  • You can invest in stocks directly or through derivatives like ETFs.

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How can I sell my BMO shares? 

In Canada, the short sale of BMO shares is not possible with a standard stock market investment vehicle. However, you can speculate on the decline in price of this stock by using derivatives or options.

What investment vehicles in Canada can hold BMO stock? 

BMO shares can be placed in several different savings vehicles including" 

  • RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
  • TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
  • Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
  • Cash accounts: This account allows you to trade stocks on North American markets only. 

You can also invest in BMO stock without buying these shares individually in cash with the following solutions:

  • The BMO SelectTrust portfolio: a professionally managed, all-in-one growth equity portfolio offered directly by the Bank of Montreal with customized fund performance.
  • ETFs and Preferred Share ETFs which include BMO stocks: exchange-traded funds that represent baskets of securities and are traded on a market like stocks.

BMO share price history over 10 years:

Time periodGrowthHighLow
1 week-0.55%138.20135.53
1 month+2.62%141.37130.13
3 months+6.98%141.37125.69
6 months+7.16%141.37121.80
1 year+41.88%141.3794.90
3 years+52.07%141.3755.76
5 years+40.32%141.3755.76
10 years+138.76%141.3753.15
BMO 10-year performance

BMO dividends and payment dates

The last dividend paid was for the fourth quarter of 2021 and its amount was $1.0396.
For the full year of 2021, BMO's total dividend was $3,401.

The BMO Group compensates its shareholders with a quarterly dividend, four times a year.
The group has already announced a dividend of $1.33 for the first quarter of 2022.

Dividend: 2021Payout 1Payout 2Payout 3Payout 4
Ex-dividend date29/01/202130/04/202130/07/202129/10/2021
Date:26/02/202126/05/202126/08/202126/11/2021
Dividend per stock$0.83 per stock$0.8623 per stock$1.06 per stock$1.06 per stock
BMO 2021 Dividends: dates and amounts
Dividend: payout 2022Payout 1Payout 2Payout 3Payout 4
Ex-dividend date01/02/2022PendingPendingPending
Date:28/02/2022PendingPendingPending
Dividend per stock$1.0396 per stockPendingPendingPending
BMO 2022 Dividends: dates and amounts

What is the dividend yield for BMO over the last 10 years?

YearDividend amountVariancePerformancedividend distribution rate
20122830 -1.39%4.8347
20132880 +1.77%4.4746
20142786 -3.26%4490277
20152560 -8.11%9.7883
20162557 -0.12%9.53105
20172733 +6.88%8.43100
20182211 -19.1%7.7386
20191526 -30.98%7.4879
20203152 +106.55%4480954
20213401+7.9%4465549
BMO divident history

The yield on BMO shares is obtained by dividing the annual dividend by the annual average price.

A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.

Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year

The 10-year average return = Sum of annual returns ÷ 10

What analysts are saying about BMO stock:

A critical analysis of BMO stock:

The fundamental analysis of BMO shares indicates that the company has a very positive ESG score. The fundamentals are as follows:

  • BMO shows attractive profitability with margins among the highest in the industry.
  • The dividend expected by BMO shareholders for 2022 is high.
  • The PER (Price Earning Ratio)(1) of this stock is 10.81 for the current fiscal year and 10.41 for the fiscal year 2023, which means that its valuation levels are particularly low.
  • Analyst expectations about BMO's revenues and profitability estimates for the next few years have been revised upward several times in the last 12 months.
  • Similarly, BMO's price target has been raised to $154.48 in the last 4 months and analyst sentiment has improved during this period.
  • Analysts working on this issue have positively revised their opinion on this company over the last 12 months, all with similar opinions, allowing us to say that this stock is stable.
  • The BMO Group offers excellent visibility on its future activities.
  • However, the outlook for revenue growth remains weak for the coming years according to S&P analysis.
  • Finally, the potential for earnings per share (EPS)(2) growth remains relatively limited for the coming years according to current estimates.

A technical analysis of BMO stock:

The technical analysis of BMO shares on a monthly basis is also largely positive with a strong buy signal. The current technical and chart data is as follows:

  • The RSI is moving above 70, which sends a strong buy signal.
  • The MA5, MA10, MA20, MA50, MA100, and MA200 simple and exponential moving averages are all sending a buy signal.
  • The MACD is currently at 10.26, which is also sending a buy signal.
  • Finally, the next technical supports are located at 130.24 and 127.45 and the next resistances are located at 138.41 and 143.79.

Who is BMO?

BMO or Bank of Montreal, also known as The Bank, is a financial services company based in Canada.
Among the products and services offered by this banking institution we find:

  • Personal and commercial banking products and services in Canada accounting for 27.2% of sales.
  • Wealth management services representing 21.8% of sales and serving several client demographics ranging from the general public to high net worth clients as well as institutional clients to whom it offers products and services including insurance.
  • Capital markets services representing 18.9% of sales and offering products and services to corporate, institutional and government clients through investment banking and global markets.
  • U.S. personal and commercial banking products and services accounting for 17% of sales.
  • The BMO Banking Group currently employs 43,863 people. Approximately 49.4% of its revenues are generated in Canada, with 28.6% coming from the United States and 6.1% from the rest of the world.

Who are BMO’s competitors?

The BMO Banking Group is one of Canada's largest banks in terms of assets but it also has a strong presence in the U.S. market. Its main current competitors in these two markets are:

  • TD Bank: The Toronto-Dominion Bank, which belongs to the TD Bank Group, is one of the largest banking groups in Canada.
  • Royal Bank of Canada: This bank, known as RBC or Royal Bank of Canada, operates, along with its subsidiaries, under the RBC Financial Group brand. It is the largest chartered bank* in Canada in terms of assets and market capitalization.
  • The Bank of Nova Scotia: This bank operates under different names: Banque Scotia in French and Scotiabank in English. It is also a chartered bank and one of the largest financial companies in North America with a strong international presence.
  • JPMorgan Chase & Co: The American financial holding company is currently the largest bank in the United States and is one of the leaders in its sector in the world. It offers its products and services in some 60 countries.
  • Bank of America: this bank is also one of the largest in the US market, both in terms of deposits and in terms of stock market capitalization. Its shares are listed on the NYSE and are included in the Dow Jones stock index.
  • Citigroup Inc: this is another American financial company born from the merger in 1998 of Citicorp and Travelers Group. Operating in more than 100 countries around the world, the bank employs 219,000 people and is included in the Dow Jones Industrial Average.

*Chartered bank: a Canadian financial institution formed under the Bank Act and reporting to the Department of Finance Canada.

Who are BMO’s partners?

Whether it's to boost its market presence or to increase profitability, Bank of Montreal regularly enters into strategic partnerships with other companies. Recent partners include:

  • SEI: SEI and BMO have an asset management relationship that was expanded in 2019 for the Asian market.
  • ACGP: The Canadian Professional Golfers Association also has an ongoing partnership with BMO and specifically BMO Mosaik MasterCard which allows them to offer certain exclusive benefits to cardholders.
  • RouteOne Canada: the company has partnered with BMO Financial Services to integrate with its online credit application system for vehicle financing.
  • CDL: the group also signed a partnership with Creative Destruction Lab or CDL-Montreal, aimed at helping emerging companies link science projects with high-growth business development.
  • Sobeys: Previously, BMO partnered with Sobeys by offering the Sobeys MasterCard under the name BMO Club Sobeys MasterCard.