Bank of Montreal Boosts Dividend as Q3 Earnings Beat Estimates (BMO)


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Canadian banking giant Bank of Montreal ( BMO ) on Tuesday posted better-than-expected fiscal third quarter earnings and hiked its quarterly dividend payout.

The Toronto-based company reported fiscal third quarter net income of C$970 million, or C$1.42 per share, compared with C$708 million, or C$1.09 per share, in the year-ago period. Excluding special items, adjusted profit was C$1.49 per share.

On average, Wall Street analysts expected a smaller profit of C$1.39 per share.

In a separate announcement, BMO raised its quarterly dividend payout by 2 Canadian cents to 72 Canadian cents per share. This move marked the first dividend raise for the company since 2007.

Bank of Montreal shares rose $1.79, or +3.1%, in premarket trading Tuesday.

The Bottom Line
Shares of Bank of Montreal ( BMO ) will now have a 4.95% dividend yield, based on last night's closing stock price of $58.21. The stock has technical support in the $54-$56 price area. If the shares can firm up, we see overhead resistance around the $61-$62 price levels.

Bank of Montreal ( BMO ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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