#Canada #Toronto #Bank of Montreal #BMO Financial Group #Common Share Dividend

BMO Financial Group Announces Dividend Increase for 2025

On May 28, 2025, BMO Financial Group, also known as the Bank of Montreal (TSX:BMO, NYSE:BMO), revealed an encouraging update for its shareholders. The Board of Directors declared a quarterly dividend of CAD 1.63 per share on paid-up common shares. This announcement reflects a 4 cent increase from the previous quarter, marking a 3% rise, and a notable 5% increase year-over-year. This decision underscores BMO’s ongoing commitment to enhancing shareholder returns amidst evolving economic conditions.

In addition to the increase in the common share dividend, the Board also announced dividends for its series of preferred shares. The dividends for these shares are set at:

• - CAD 0.190875 per share on Class B Preferred Shares Series 33, and
• - CAD 0.426 per share on Class B Preferred Shares Series 44.

These dividends show BMO's strategy to provide value across different shareholder classes, reflecting its financial stability and growth potential.

The declaration of the common share dividend is significant because it is scheduled to be payable on August 26, 2025, to all shareholders of record on July 30, 2025. Moreover, the dividends on preferred shares will be disbursed a day earlier on August 25, 2025, to shareholders who have also recorded their positions by July 30.

Notably, the common and preferred share dividends have been designated as "eligible" dividends for the purposes outlined in the Income Tax Act (Canada) along with similar provincial and territorial legislation. This classification can provide tax advantages for shareholders, making the investment more appealing.

BMO also offers its common shareholders the option to reinvest their cash dividends back into purchasing common shares of the Bank through its Shareholder Dividend Reinvestment and Share Purchase Plan. This initiative allows shareholders to increase their stake in the Bank gradually without having to purchase additional shares in the open market. To take advantage of this opportunity, enrolled shareholders must ensure that their Enrolment Forms are submitted to Computershare Trust Company of Canada by the end of business on August 1, 2025. Non-registered shareholders will have to coordinate with their financial institutions for participation.

For those looking for more information about the dividend reinvestment plan, BMO encourages visiting their dedicated webpage at BMO Dividend Reinvestment Plan. This is an essential resource for shareholders to understand the benefits and features of reinvesting their dividends.

In summarizing BMO Financial Group’s recent announcements, the increase in the common share dividend is a strategic move that signals both the Bank's current health and future aspirations. As the financial sector continues to navigate through uncertainties, BMO’s approach in prioritizing shareholder returns is commendable, setting a positive tone for the upcoming fiscal year.

With a consistent track record of rewarding its shareholders and a robust operational foundation, BMO Financial Group seems well-positioned to continue its growth trajectory. The announcement of these dividends reflects their resilience and commitment to shareholder value, making BMO a prominent player in the financial landscape for years to come.