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Bank of MontrealBMO +0.15%69 5-Year Yield-on-Cost % is 4.25 as of Aug. 03, 2026, which is 32% below its 10-year median of 6.29. GuruFocus rates BMO with a GF Score™ of 69/100 and a GF Value™ of $117.72 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,252 Banks companies, Bank of Montreal ranks better than 56.79% on this metric.
Bank of Montreal's yield on cost for the quarter that ended in Apr. 2026 was 4.25.
The historical rank and industry rank for Bank of Montreal's 5-Year Yield-on-Cost % or its related term are showing as below:
BMO'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 4.13 Med: 6.29 Max: 10.69
Current: 4.25
During the past 13 years, Bank of Montreal's highest Yield on Cost was 10.69. The lowest was 4.13. And the median was 6.29.
BMO's 5-Year Yield-on-Cost % is ranked better than 56.79% of 1252
companies
in the Banks industry
Industry Median: 3.825
vs BMO: 4.25
Bank of Montreal (NYSE:BMO) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Bank of Montreal 5-Year Yield-on-Cost % Related Terms
BMO vs JPM, BAC, WFC: 5-Year Yield-on-Cost % Comparison
For the Banks - Diversified subindustry, Bank of Montreal's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bank of Montreal 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Bank of Montreal's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Bank of Montreal's 5-Year Yield-on-Cost % falls into.
Bank of Montreal 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Bank of Montreal (BMO) has a 5-Year Yield-on-Cost % of 4.25 as of Aug. 03, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Bank of Montreal and its competitors. This is 32% below median its historical median of 6.29. Over the past decade, Bank of Montreal's 5-Year Yield-on-Cost % has ranged from 4.13 to 10.69. According to the industry distribution chart, Bank of Montreal ranks #541 out of 1252 companies in the Banks industry, placing it in the top 43.2%.
Is Bank of Montreal's 5-Year Yield-on-Cost % too high?
Bank of Montreal's current 5-Year Yield-on-Cost % of 4.25 is 32% below median its 10-year median of 6.29. Over the past 10 years, this metric has ranged from a low of 4.13 to a high of 10.69. The Banks industry median 5-Year Yield-on-Cost % is 3.83. Bank of Montreal's value of 4.25 is 11.1% above this industry median. Based on the distribution chart, Bank of Montreal ranks #541 out of 1252 companies in the Banks industry, which is above the industry midpoint. Overall, Bank of Montreal has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bank of Montreal's 5-Year Yield-on-Cost % compare to JPM and BAC?
According to the Banks industry distribution chart, Bank of Montreal ranks #541 out of 1252 companies for 5-Year Yield-on-Cost %. This puts Bank of Montreal in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.83. Bank of Montreal's value of 4.25 is 11.1% above this benchmark. Historically, Bank of Montreal's own 5-Year Yield-on-Cost % has ranged from 4.13 to 10.69 over the past decade. While the company's 10-year median is 6.29 vs. the industry median of 3.83, Bank of Montreal has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.83, based on 1,252 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bank of Montreal's current 5-Year Yield-on-Cost % of 4.25 is 11.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Bank of Montreal and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.83 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bank of Montreal's current 5-Year Yield-on-Cost % is 4.25, which is 32% below median its own 10-year median of 6.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank of Montreal stock overvalued right now?
Based on GuruFocus' analysis, Bank of Montreal (BMO) is currently considered Significantly Overvalued. The stock's GF Value™ is $117.72, compared to a current price of $179.72 — trading 52.7% above its estimated fair value. The current 5-Year Yield-on-Cost % is 4.25, which is 32% below median its 10-year median of 6.29 and 11.1% above the Banks industry median of 3.83. Bank of Montreal's overall GF Score™ is 69/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Bank of Montreal (BMO), the current 5-Year Yield-on-Cost % is 4.25 as of Aug. 03, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bank of Montreal (BMO) Overvalued in 2026?
Based on GuruFocus' analysis, Bank of Montreal stock appears to be overvalued.
The current stock price of $179.72 is trading 52.7% above its estimated GF Value™ of $117.72.
GuruFocus considers Bank of Montreal to be Significantly Overvalued.
Key valuation signals for BMO:
5-Year Yield-on-Cost %: 4.25 (32% below median its 10-year median of 6.29)
GF Value™: $117.72 vs. price of $179.72 (52.7% above fair value)
Industry Position: 11.1% above the Banks median (#541 of 1252)
No single metric tells the full story. See the BMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bank of Montreal is a diversified financial services provider based in North America with over CAD 1.47 trillion in assets by the end of fiscal 2025. BMO operates four business segments: Canadian personal and commercial banking, US personal and commercial banking, wealth management, and capital markets. About 60% of BMO's earnings are generated in Canada and 40% in the US.
69GF Score
Get the complete analysis for BMO
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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