Bank of Montreal
BMO.TO (TSX)
The Bank of Montreal (BMO) stands out as a highly attractive investment for 2026, boasting a remarkable 63% surge in profits and a significant reduction in credit loss provisions. Offering a solid dividend yield of 3.48%, BMO has delivered a 29.33% return over the past year and an impressive 93.10% over the last five years. Analysts suggest the stock is currently undervalued by 27.3%, making it a worthy addition to any watchlist for investors seeking growth from financially healthy companies with consistent payouts.
Pros:
- Highlighted as the most attractive Canadian bank stock for 2026
- Significant drop in provisions for credit losses
Cons:
- Market perception of being undervalued
- Potential risks in the financial sector
The Bank of Montreal (BMO.TO) presents a compelling opportunity for investors seeking both growth and income, evidenced by its strong historical returns and solid dividend yield. This investment may be particularly suitable for those interested in a financially robust institution that has demonstrated resilience and profitability, while still offering potential upside given its current undervaluation.