BMO & RBC (RY): 2 TSX dividend stocks that can boost your passive income

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BMO & RBC (RY): 2 TSX dividend stocks that can boost your passive income

BMO & RBC (RY): 2 TSX dividend stocks that can boost your passive income
Image source: © 2022 Kalkine Media®   

Highlights

  • Balancing the risk and reward factors is an essential part of the investment process. These usually differ from one investor to another based on their investment goals and financial health.
  • New and risk-averse stock market investors can benefit from having a regular dividend income cycle, which they can achieve by investing in quality dividend stocks.  
  • A Canadian bank mentioned here hiked its quarterly dividend, in December 2021, by 25 per cent to C$ 1.33 apiece, scheduled for February 28.

Balancing the risk and reward factors is an essential part of the investment process. These usually differ from one investor to another based on their investment goals and financial health.

New and risk-averse stock market investors can benefit from having a regular dividend income cycle, which they can achieve by investing in quality dividend stocks.  

Let us discuss two dividend stocks from the TSX that can, in the right scenario, boost your passive income in the coming years.

1.    Bank of Montreal (TSX: BMO)

The Bank of Montreal, in December last year, hiked its quarterly dividend by 25 per cent to C$ 1.33 apiece, which is scheduled for payment on February 28.

The Toronto-based bank, which has a market capitalization of over C$ 96 billion, reported a net income of C$ 2.15 billion in the fourth quarter of fiscal 2021, posting an increase of 36 per cent year-over-year (YoY).

Stocks of Bank of Montreal gained by almost 54 per cent in the last 12 months.

BMO stock closed at a price of C$ 147.46 apiece on Wednesday, with 3.6 million shares exchanging hands.

Also read: ATS Automation's (ATA) Q3 profit soars 23%. An industrial stock to buy? 

2.    Royal Bank of Canada (TSX: RY)

The Royal Bank of Canada’s net income grew by 40 per cent YoY to C$ 3.9 billion in Q4 FY2021.

The C$ 209-billion market cap bank also increased its quarterly dividend payout by 11 per cent YoY to C$ 1.20 per share, payable on February 24.

The Royal Bank of Canada saw its scrip soar by almost 39 per cent in the last one year.

The bank stock closed at a value of C$ 146.76 apiece on Wednesday. 

Royal Bank of Canada (TSX: RY) and Bank of Montreal (TSX: BMO): 2 TSX dividend stocks that can boost your passive income

 Image source: © 2022 Kalkine Media®   

Bottomline

Dividend aristocrat stocks like the Bank of Montreal and Royal Bank of Canada can, in the right market scenario, help their investors earn a stable and growing dividend income stream.

Also, the interest rate hike scheduled for March this year, which has left many investors worried, is likely to impact bank stocks positively.

Nonetheless, it is always best to keep your eyes and ears open for any market-oriented news that could affect such businesses.

Also read: Resolute (RFP) & Western Forests (WFP): 2 lumber stocks to buy

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