In this article, we will take a look at the 5 Bank Stocks with Highest Dividends. For deeper discussion and analysis, have a look at the 13 Bank Stocks with Highest Dividends.
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5. Bank of Montreal (NYSE:BMO)
Dividend Yield as of April 7: 3.56%
On March 24, Reuters reported that Bank of Montreal (NYSE:BMO) plans to introduce tokenized cash capabilities in partnership with CME Group and Google Cloud. The move is aimed at meeting growing demand for real-time payments as global markets shift toward around-the-clock trading.
Tokenized cash allows near-instant settlement. It reduces delays, frees up capital more quickly, and supports smoother, continuous activity in financial markets. The initiative will enable clients to convert US dollars into a tokenized instrument that can be used in margined products. These include derivatives where traders post collateral to cover potential losses, traded on the CME Group exchange. BMO said the effort is designed to support clients who now need 24/7 infrastructure to meet margin calls and manage trading and settlement as markets move toward constant operation.
The bank expects to launch its tokenized cash offering in the second half of 2026, subject to regulatory approval. It will serve as an institutional settlement tool for regulated financial firms in capital markets and commercial banking. BMO also said it is rolling out tokenized deposits. This will allow clients to use funds held at the bank in digital form for payments, treasury movements, and programmable cash applications.
Bank of Montreal operates as a North American bank, offering personal and commercial banking, wealth management, global markets, and investment banking services. It serves around 13 million customers across North America, along with select international markets.
4. U.S. Bancorp (NYSE:USB)
Dividend Yield as of April 7: 3.90%
On April 7, BofA lowered its price objective on U.S. Bancorp (NYSE:USB) to $61 from $62. It reiterated a Buy rating on the shares. The update came as part of the firm’s regional bank coverage, as it reduced price targets by about 3% on average, pointing to lower valuation multiples, higher uncertainty around earnings per share, and a rising cost of equity.
On the same day, UBS lowered its price target on USB to $58 from $60 and maintained a Neutral rating. The update came as part of its Q1 preview for large-cap banks and consumer finance companies. The firm said that even after cutting its expected rate cuts for 2026 from two to one, its estimates for 2026 and 2027 remain largely unchanged. UBS also noted that the selloff in the sector so far this year “could unearth some opportunities, especially given strong momentum” in areas such as direct lending, capital markets, and deregulation.
U.S. Bancorp (NYSE:USB) operates as a financial services holding company with several business segments, including Wealth, Corporate, Commercial and Institutional Banking, Consumer and Business Banking, Payment Services, and Treasury and Corporate Support. The company provides a full range of financial services, including lending and deposit products, cash management, capital markets capabilities, and trust and investment management services.
3. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Dividend Yield as of April 7: 3.92%
On April 7, BofA lowered its price recommendation on Huntington Bancshares Incorporated (NASDAQ:HBAN) to $18 from $20. It reiterated a Buy rating on the shares. The firm trimmed price targets across its regional bank coverage by about 3% on average, reflecting lower valuation multiples, rising uncertainty around earnings per share, and a higher cost of equity.
On the same day, JPMorgan lowered its price objective on Huntington Bancshares to $19 from $21 and maintained an Overweight rating. The change came as part of a broader Q1 preview for large-cap banks. The analyst said Q1 results “should be good,” supported by strong market revenue. At the same time, investment banking activity has slowed in recent weeks, as volatility linked to the war has weighed on dealmaking.JPMorgan also expects large bank stocks to “remain choppy” in the near term.
Huntington Bancshares Incorporated (NASDAQ:HBAN) operates as a regional bank holding company through its subsidiary, Huntington National Bank. It serves consumers, small and mid-sized businesses, corporations, and municipalities, offering a range of banking, payments, wealth management, and risk management services.
2. KeyCorp (NYSE:KEY)
Dividend Yield as of April 7: 4.01%
On April 6, Evercore ISI lowered its price recommendation on KeyCorp (NYSE:KEY) to $24 from $26. It reiterated an Outperform rating on the shares. The update came as part of the firm’s Q1 preview for banks and specialty finance companies.
On March 31, Morgan Stanley analyst Manan Gosalia also lowered his price target on KeyCorp to $24 from $26, while maintaining an Equal Weight rating. He noted that the median bank stock in the firm’s coverage has declined about 5% over the past 30 days. The move reflects concerns around the impact of the Middle East conflict on economic growth and inflation, along with market worries tied to private credit. As a result, the firm reduced price targets across the group by roughly 9% on average, applying lower valuation multiples to reflect a higher-risk environment.
During the Q4 2025 earnings call, CFO Clark Khayat said the company expects revenue to grow by about 7%. This outlook is supported by net interest income growth of 8% to 10% and noninterest income growth of 3% to 4%. He added that after factoring in recent business decisions that are not expected to affect overall earnings, noninterest income growth would likely come in closer to 5% to 6%. The company also expects expenses to rise by 3% to 4% in 2026. That pace is roughly half the expected revenue growth, implying positive operating leverage of about 300 to 400 basis points.
KeyCorp (NYSE:KEY) operates as a bank-based financial services company through its subsidiary, KeyBank National Association. It provides a range of retail and commercial banking services.
1. Bank OZK (NASDAQ:OZK)
Dividend Yield as of April 7: 4.04%
On March 31, Morgan Stanley analyst Manan Gosalia lowered the firm’s price recommendation on Bank OZK (NASDAQ:OZK) to $54 from $61. It maintained an Equal Weight rating on the shares. He noted that the median bank stock in the firm’s coverage has declined about 5% over the past 30 days. The move reflects concerns around the potential impact of the ongoing Middle East conflict on economic growth and inflation, along with market worries tied to private credit. As a result, the firm is reducing price targets across the group by about 9% on average, applying lower valuation multiples to reflect a higher-risk environment.
On April 1, Bank OZK said its Board of Directors declared a quarterly cash dividend of $0.47 per share on its common stock. This marks an increase of $0.01, or 2.17%, from the prior quarter. The dividend will be paid on April 20, 2026, to shareholders of record as of April 13, 2026. The bank has now raised its quarterly dividend for sixty-three consecutive quarters.
This consistent track record has led to its inclusion in the S&P High Yield Dividend Aristocrats since January 2018. The index includes companies within the S&P Composite 1500 that have increased their dividends every year for at least 20 years, while meeting certain size and liquidity requirements.
Bank OZK (NASDAQ:OZK) operates as a regional bank, offering a range of financial services. It runs more than 260 offices across nine states, including Arkansas, Georgia, Florida, North Carolina, Texas, Tennessee, New York, California, and Mississippi.
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