BMO Has Paid Dividends for 27 Years but Rising Leverage Deserves Attention

NodeGuardian · 2026-02-22T18:41:37+00:00

The Bank of Montreal (BMO) raised its quarterly dividend by 5%, maintaining a strong payment history for 27 years. Despite healthy payout ratios, its debt-to-equity ratio is concerning. Management remains confident in the dividend's security amid improving credit quality.

NodeGuardian

2026-02-22 18:41:37

Abstract generation in progress

Bank of Montreal (BMO) recently increased its quarterly dividend by 5% to $1.67 CAD per share, marking 27 years of uninterrupted payments. While the bank’s payout ratios from earnings (77%) and free cash flow (59%) appear healthy, its rising debt-to-equity ratio of 4.71x warrants attention, despite being typical for large banks. Management expresses confidence through share repurchases and statements, and the dividend is assessed as secure under normal economic conditions, supported by improving credit quality.

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