14 High Yield Dividend Stocks with Sustainable Payouts

10. Bank of Montreal (NYSE:BMO)

Dividend Yield as of January 29: 3.50%

On January 28, as previously reported, TD Securities analyst Mario Mendonca upgraded Bank of Montreal (NYSE:BMO) to Buy from Hold and raised his price target to C$209 from C$184. The move followed a change in the bank’s return on equity outlook. BMO shifted its guidance from 15% in the medium term to 15% exiting 2027, a change the firm views “very favourably,” Mendonca told investors. Based on that update, the firm now expects the bank’s ROE to increase by about 300 basis points over the next two years, outpacing peers by roughly 150 basis points, which led the analyst to raise estimates.

BMO’s earnings base is spread across Canadian banking, US banking, wealth management, and capital markets. That mix tends to provide balance, since a slowdown in one area rarely derails the entire business. The stock has reflected that stability, rising nearly 40% over the past year. Looking ahead to 2026, the focus is likely to be on credit quality, loan demand, and how changes in interest rates affect margins.

The bank delivered a strong finish to fiscal 2025. In the fourth quarter, adjusted profit climbed to $2.5 billion, or $3.28 per share, up from $1.5 billion, or $1.90 per share, a year earlier. For the full year, BMO reported adjusted net income of $9.3 billion and adjusted EPS of $12.16. Shares trade at around 16.4 times earnings and offer a forward dividend yield of about 3.5%. The main risk is familiar: after a sharp run higher, bank stocks can start to look expensive, and an economic slowdown can push loan losses higher.

Bank of Montreal (NYSE:BMO) is a North American bank that provides a wide range of personal and commercial banking, wealth management, global markets, and investment banking services.