This Top-Yielding Dividend Stock Just Raised Its Payouts By 25%

Top bank stock Bank of Montreal (TSX:BMO)(NYSE:BMO) released its latest quarterly results last week. The company's net income for the period ending Oct. 31 totaled $2.16 billion, up 36% year over year. And for the full year, its net income of $7.75 billion grew by 52%.

As it released the results, BMO also announced that it would be hiking its dividend by an incredible 25%. Shareholders will now be receiving $1.33 every quarter for each share of the stock that they own. On an annual basis, that's $5.32 per share, putting the stock's yield now at 3.9%. If you invested around $26,000 into the stock, you could expect to generate $1,000 per year just in dividend income.

And there could be more room for the business to continue to grow its operations, and, in turn, the dividend. CEO Darryl White says that for next year, the company is, "making targeted investments in technology and talent to drive enhanced customer experiences and deliver market-leading advice to help them make real financial progress."

With interest rates likely on the rise and the economy potentially doing better next year, 2022 could be another strong year for BMO and Canada's other banks. BMO's stock has been the top-performing big-five bank this year, with its shares up 43% year to date. Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is a distant second with 33% gains thus far.

However, even if that pattern doesn't hold up next year, this is still an excellent place for risk-averse investors to hold their money, especially as the stock market looks increasingly fragile.