BMO dividend: payout, coverage and yield
BMO's current annualized dividend is C$6.84 per share, and the base case raises it from C$7.08 to C$8.25. BMO's figures do not present a simple free-cash-flow coverage ratio: in fiscal 2025, dividends and buybacks consumed 97.0% of earnings available to common shareholders, leaving C$247 million on the stated calculation.
How much does BMO pay per share?
Dividends rise in the base case from C$7.08 per share to C$8.25. The starting reference is the current annualized dividend of C$6.84. This moderate increase fits BMO's history of annual dividend growth and its stated FY2028 payout target of 40% to 50%. The bear case holds the current rate first, then settles at C$6.50; the bull case reaches C$8.71 as stronger earnings and capital generation support faster increases.
| Year to Oct 2025 | Year to Oct 2024 | Year to Oct 2023 | Year to Oct 2022 | Year to Oct 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 11.44 | 9.51 | 5.76 | 19.99 | 11.58 |
| Dividend per share | 6.44 | 6.12 | 5.80 | 5.44 | 4.24 |
| Buybacks per share (calculated) | 4.70 | 0.00 | 0.00 | 0.00 | 0.00 |
Does BMO's dividend come from cash it makes?
Deposits and borrowing fund loans and securities, but shareholder capital absorbs losses. Over fiscal 2021–2025, BMO earned C$43,743 million for common shareholders, declared C$19,616 million in common dividends and bought back C$3,396 million of shares. It also sold C$6,777 million of new shares, mainly during the expansion years.
The balance changed sharply in fiscal 2025. Dividends and buybacks consumed 97.0% of earnings available to common shareholders, leaving C$247 million on the stated calculation. But retained earnings can include one-off items. BMO’s reversal of an old M&I legal provision added C$834 million after tax in fiscal 2024. It preserved real capital, but it cannot be repeated as ordinary business income.
| Year to Oct 2025 | Year to Oct 2024 | Year to Oct 2023 | Year to Oct 2022 | Year to Oct 2021 | |
|---|---|---|---|---|---|
| Dividends declared on common shares | 4,630 | 4,458 | 4,148 | 3,634 | 2,746 |
| Shares bought back | 3,396 | 0 | 0 | 0 | 0 |
| Kept to grow and to build capital (calculated) | 247 | 2,474 | -54 | 9,672 | 4,764 |
| Paid out with buybacks, share of net income available to common shareholders (calculated) | 97.0% | 64.3% | 101.3% | 27.3% | 36.6% |
What could change BMO's dividend?
The forecast would move toward the bear case if mortgage and consumer arrears push provisions higher during FY2027–FY2029, or if deposit competition compresses margins through FY2028. A missed U.S. return milestone would also slow buybacks and compress the multiple.
What is BMO's dividend yield today?
The dividend is useful only alongside capital strength. Deposits are money BMO owes customers, not spare cash: they fund loans and securities that must earn more than their funding costs, losses and operating expenses. BMO must retain enough capital to absorb shocks before distributing profit.
| Today (Oct 9, 2026) | |
|---|---|
| Share price | 230.69 |
| P/E, last 12 months (calculated) | 18.80x |
| Dividend yield (calculated) | 3.0% |