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Want a Top Dividend Stock? BMO Is Now Yielding 5.3%

If you’re looking for a top dividend stock to own right now, Bank of Montreal (TSX:BMO) (NYSE:BMO) is one investment you don’t want to be overlooking.

One of Canada's leading financial institutions, BMO is typically a safe and stable stock to hold in your portfolio.

The company has earnings coming up and it should be another strong performance for the top bank. Over the trailing 12 months, BMO has reported revenue of more than $31 billion, netting a profit of just under $7 billion, for a net margin of more than 22%. But despite the solid performance, investors haven’t been all that bullish on BMO this year.

BMO’s stock finished last week at a price of just over $110, which is not far from its 52-week low of $102.67. Investors have been bearish on bank stocks this year due to rising interest rates and year to date, shares of BMO are down close to 10%.

The good news for dividend investors is that means the yield is on the rise. If you buy shares of BMO today, you can be locking in a yield of 5.3%. Dividends are never a guarantee but they are normally rock solid when it comes to Canada’s top bank stocks.

Plus, there’s lots of good value here as the stock trades at less than 11 times earnings and it’s almost near its book value, with a price-to-book multiple of 1.1.

If you’re looking for an investment that you can hang on to for the long haul and not worry about, BMO is an excellent option. Plus, you’re likely to generate some solid dividend income along the way.