BMO Financial Group Increases Common Share Dividend by 4 cents from the prior quarter, up 5 per cent from the prior year

Rhea-AI Summary

Bank of Montreal (TSX:BMO, NYSE:BMO) declared a quarterly common share dividend of $1.67 per share for Q1 fiscal 2026, an increase of $0.04 (2%) from the prior quarter and 5% year-over-year. The common dividend is payable on February 26, 2026 to shareholders of record on January 30, 2026. The Board also declared a $0.426 per share dividend on Class B Preferred Shares Series 44, payable February 25, 2026 to holders of record on January 30, 2026. Both dividends are designated eligible for Canadian tax purposes. Common shareholders may enroll in the Bank's Dividend Reinvestment and Share Purchase Plan, with enrolment by February 3, 2026 for registered holders.

Positive

• Common dividend increased by $0.04 (2%) quarter-over-quarter
• Common dividend up 5% year-over-year
• Common dividend payable February 26, 2026
• Dividends designated as eligible for Canadian tax purposes
• Dividend Reinvestment Plan available; shares bought on open market

Negative

• Quarter-over-quarter increase is modest at 2%
• Registered enrolment deadline for DRIP: February 3, 2026 (timing constraint)

News Market Reaction

-0.06%

1 alert

-0.06% News Effect

On the day this news was published, BMO declined 0.06%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Common dividend: $1.67 per share Quarterly increase: $0.04 (2%) Year-over-year increase: 5% +5 more

8 metrics

Common dividend $1.67 per share Q1 fiscal 2026 quarterly dividend on common shares

Quarterly increase $0.04 (2%) Increase from prior quarter common dividend

Year-over-year increase 5% Increase in common dividend vs prior year

Preferred dividend $0.426 per share Class B Preferred Shares Series 44 quarterly dividend

Common dividend payable date February 26, 2026 Payment date to common shareholders of record January 30, 2026

Preferred dividend payable date February 25, 2026 Payment date to Series 44 holders of record January 30, 2026

Record date January 30, 2026 Record date for both common and Series 44 preferred dividends

DRIP enrolment deadline February 3, 2026 Deadline for registered holders to enroll in the Plan

Market Reality Check

Price: $136.39 Vol: Volume 620,815 is below 2...

normal vol

$136.39 Last Close

Volume Volume 620,815 is below 20-day average of 711,957, suggesting a moderate reaction. normal

Technical Price $132.09 is above 200-day MA of $112.31 and within 0.55% of 52-week high.

Peers on Argus

BMO gained 2.43% while key peers like BNS, ING, BCS, BK and SMFG showed smaller ...

BMO gained 2.43% while key peers like BNS, ING, BCS, BK and SMFG showed smaller positive moves between 0.04% and 1.02%, indicating a more company-specific bid around the dividend news.

Historical Context

5 past events · Latest: Dec 04 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 04	Board appointment	Neutral	-0.1%	New director with audit and governance background joined the board.
Dec 04	Dividend increase	Positive	-0.1%	Quarterly common dividend raised to $1.67 per share for Q1 2026.
Dec 04	Earnings results	Positive	-0.1%	Fiscal 2025 net income and EPS grew strongly year over year.
Dec 02	Product launch	Positive	+1.3%	Launch of payment APIs to support embedded finance in North America.
Nov 14	ETN fee change	Negative	-1.5%	Financing spread on leveraged gold miners ETNs increased, reducing returns.

Pattern Detected

Core financial and dividend updates have sometimes seen slight negative or muted next-day moves, while product and fee changes have produced more directional reactions.

Recent Company History

Over recent months, BMO combined balance-sheet strength, capital returns, and product innovation. Fiscal 2025 results showed higher net income and EPS, alongside dividend increases and share repurchases. Dividend declarations in prior quarters maintained or modestly raised the common payout, with positive but varied price reactions. Product initiatives, such as Payment APIs, drew a stronger positive response, while changes to leveraged ETN financing terms saw a negative move. Today’s $1.67 dividend increase continues the capital-return trend tied to solid earnings.

Market Pulse Summary

This announcement increased BMO’s quarterly common dividend to $1.67 per share, up $0.04 (2%) from l...

Analysis

This announcement increased BMO’s quarterly common dividend to $1.67 per share, up $0.04 (2%) from last quarter and 5% year over year, alongside a $0.426 dividend on Series 44 preferred shares. It continues a multi-quarter pattern of stable or rising payouts. Investors may track how future earnings, capital levels, and share repurchases interact with this higher dividend, as well as participation in the Dividend Reinvestment and Share Purchase Plan after the February 3, 2026 enrollment deadline.

Key Terms

preferred shares, dividend reinvestment, transfer agent, eligible dividends

4 terms

preferred shares financial

"The Board of Directors also declared dividends of:$0.426 per share on paid-up Class B Preferred Shares Series 44."

Preferred shares are a type of investment that gives investors priority over common shareholders when it comes to receiving dividends and getting their money back if a company is sold or liquidated. Think of them as a safer, more predictable way to earn income from a company's profits, similar to a fixed-return investment, but without voting rights. This makes preferred shares appealing to those seeking stable income with a higher claim on assets than regular stockholders.

dividend reinvestment financial

"Common shareholders may elect to have their cash dividends reinvested in common shares of the Bank in accordance with the Bank's Shareholder Dividend Reinvestment and Share Purchase Plan"

Dividend reinvestment is when the money earned from a company's profit sharing, called dividends, is automatically used to buy more shares of that company instead of being received as cash. This process helps investors grow their holdings over time without extra effort, much like using earned interest to buy more of a savings account. It encourages long-term investment growth by continuously increasing the amount of shares owned.

transfer agent financial

"Enrolment Forms must be received by the Bank's transfer agent, Computershare Trust Company of Canada, by the close of business on February 3, 2026."

A transfer agent is a financial service that keeps the official record of who owns a company's shares, handles the buying and selling of those shares on paper or electronically, and issues or cancels stock certificates. Think of it as the company’s records keeper and mailroom combined—investors rely on it to make sure dividends, shareholder mailings, ownership changes, and proxy voting are processed accurately and securely, which protects ownership rights and helps prevent errors or fraud.

eligible dividends financial

"The above-mentioned dividends on the common and preferred shares are designated as "eligible" dividends for the purposes of the Income Tax Act (Canada)"

Eligible dividends are a type of corporate payout that carries a stronger tax benefit for individual shareholders because they come from profits that were taxed at higher corporate rates. Think of them like a higher-value coupon: investors receive cash and, when filing taxes, get a bigger credit that reduces the amount of tax owed on that income. That matters to investors because the after-tax amount they actually keep can be noticeably higher than for other kinds of dividends, affecting yield comparisons and portfolio income planning.

AI-generated analysis. Not financial advice.

TORONTO, Dec. 4, 2025 /PRNewswire/ - Bank of Montreal (TSX:BMO) (NYSE:BMO) today announced that its Board of Directors declared a quarterly dividend of $1.67 per share on paid-up common shares of Bank of Montreal for the first quarter of fiscal year 2026, a 4 cent, or 2 percent, increase from the prior quarter, up 5 percent from the prior year.

The Board of Directors also declared dividends of:

• $0.426 per share on paid-up Class B Preferred Shares Series 44.

The dividend on the common shares is payable on February 26, 2026, to shareholders of record on January 30, 2026.  The dividend on Class B Preferred Shares Series 44 is payable on February 25, 2026, to shareholders of record on January 30, 2026.    

The above-mentioned dividends on the common and preferred shares are designated as "eligible" dividends for the purposes of the Income Tax Act (Canada) and any similar provincial and territorial legislation.

Common shareholders may elect to have their cash dividends reinvested in common shares of the Bank in accordance with the Bank's Shareholder Dividend Reinvestment and Share Purchase Plan (the "Plan").  Such additional common shares will be purchased on the open market without a discount until further notice.

For registered shareholders who wish to participate in the Plan, Enrolment Forms must be received by the Bank's transfer agent, Computershare Trust Company of Canada, by the close of business on February 3, 2026. Beneficial or non-registered holders must contact their financial institution or broker well in advance of the above date for instructions on how to participate.

More information about the Plan and how to enroll can be found at:
http://www.bmo.com/home/about/banking/investor-relations/shareholder-information/dividend-reinvestment-plan

Internet: www.bmo.com      X: @BMOmedia

View original content:https://www.prnewswire.com/news-releases/bmo-financial-group-increases-common-share-dividend-by-4-cents-from-the-prior-quarter-up-5-per-cent-from-the-prior-year-302632942.html

SOURCE BMO Financial Group

FAQ

How much is BMO's common share dividend declared on December 4, 2025 (BMO)?

BMO declared a common share dividend of $1.67 per share for Q1 fiscal 2026.

When will BMO's common dividend be paid and who is the record date (BMO)?

The common dividend is payable February 26, 2026 to shareholders of record on January 30, 2026.

What change did BMO announce to its common dividend compared with the prior quarter (BMO)?

The Board increased the common dividend by $0.04, a 2% rise versus the prior quarter.

Is BMO's dividend eligible for Canadian tax purposes (BMO)?

Yes. The common and Class B Preferred Series 44 dividends are designated eligible dividends for Canadian tax purposes.

How can BMO common shareholders reinvest dividends under the DRIP and what is the enrolment deadline (BMO)?

Common shareholders may join the Dividend Reinvestment and Share Purchase Plan; registered enrolment must be received by February 3, 2026.

What dividend was declared for BMO Class B Preferred Shares Series 44 and when is it payable (BMO)?

A dividend of $0.426 per share was declared for Class B Preferred Series 44, payable February 25, 2026 to holders of record on January 30, 2026.