Neither stock looks like a screaming bargain. But after recent weakness in parts of the market, both look attractive for investors who want income, quality, and long-term growth.
BMO
BMO gives investors the more traditional dividend story. It’s one of Canada’s Big Six banks, with operations across personal banking, commercial banking, wealth management, capital markets, and U.S. banking. The bank has paid dividends for generations, making it one of the more reliable income names on the TSX.
The recent numbers were strong. In the second quarter of fiscal 2026, BMO reported adjusted earnings per share of $3.67, up 40% from last year. Reported net income rose to $2.6 billion, and adjusted net income reached $2.7 billion. The bank also raised its quarterly dividend to $1.71 per share, or $6.84 annually. That dividend increase is the key number. It shows management still feels confident enough to send more cash to shareholders, even as investors worry about credit losses, interest rates, housing, and the economy.
BMO also benefits from scale. It serves millions of customers across Canada and the United States. It has a major commercial banking platform, a strong capital markets business, and a growing U.S. presence. Those pieces can support earnings over time, even if one part of the business slows.
The risk is credit. Banks do well when borrowers stay healthy and loan losses remain controlled. If unemployment rises or businesses struggle, provisions can climb. BMO also faces integration, competition, and U.S. banking risks. Still, the dividend looks well supported for long-term investors who can handle bank-stock volatility.
TRI
The first quarter showed solid momentum. Revenue rose 10%, while organic revenue grew 8%. Recurring revenue also grew 10% and made up 77% of total revenue. That recurring revenue base is a major reason TRI deserves a premium. Customers tend to renew because the tools sit inside daily workflows.
The dividend is smaller than BMO’s, but it has growth appeal sitting at $2.62 annually. The yield won’t satisfy investors chasing maximum income, yet the payout comes from a business with high margins, recurring sales, and strong exposure to legal and tax technology.
Bottom line
For long-term investors, both dividend giants deserve a close look after any pullback.