Bank of Montreal (TSX: BMO) (NYSE: BMO) announced on Aug. 25, 2026, its intention to repurchase up to 25 million common shares for cancellation. The move aims to provide additional flexibility in managing the bank’s capital position.

Bid Structure and Timeline

The proposed normal course issuer bid is subject to approval from the Office of the Superintendent of Financial Institutions Canada (OSFI) and the Toronto Stock Exchange (TSX). If approved, the bid would commence on or around September 8, 2026, and conclude on September 7, 2027.

Purchases will primarily occur through TSX facilities but may also include transactions on other designated exchanges, alternative Canadian trading systems, or via private agreements permitted by securities regulatory authorities. This includes automatic purchase plans and block purchases under exemption orders.

Share Count and Market Impact

As of July 31, 2026, BMO had 697,146,398 common shares issued and outstanding. The public float stood at 696,863,163 shares. The proposed repurchase of 25 million shares represents approximately 3.6% of this public float.

Pricing and Execution

Except for purchases made under exemption orders—which are generally executed at a discount to the prevailing market price—the bank will pay the market price for shares at the time of acquisition. The timing and volume of purchases remain at management’s discretion, contingent on market conditions and regulatory approvals.

This bid replaces the current normal course issuer bid, which commenced on September 5, 2025, and continues until September 4, 2026.

Bank of Montreal (TSX: BMO) (NYSE: BMO) declared a quarterly dividend of $1.71 per paid-up common share for the fourth quarter of fiscal year 2026. The payout remains unchanged from the prior quarter.

The Board of Directors also declared dividends on preferred shares:

• $0.426 per share on Class B Preferred Shares Series 44
• $36.865 per share on Class B Preferred Shares Series 50
• $35.285 per share on Class B Preferred Shares Series 52

Payment Schedule and Eligibility

Common shareholders must be on record by October 30, 2026, to receive the dividend payable on November 26, 2026. Class B Preferred Series 44 holders are eligible if recorded by October 30, with payment due November 25, 2026. Series 50 and 52 preferred dividends are also payable on November 26, 2026.

All declared dividends are designated as "eligible" under the Income Tax Act (Canada) and similar provincial legislation.

Shareholder Reinvestment Plan

Common shareholders may reinvest cash dividends into additional common shares via the Bank's Shareholder Dividend Reinvestment and Share Purchase Plan. New shares will be purchased on the open market without a discount.

Registered shareholders must submit enrolment forms to Computershare Trust Company of Canada by November 3, 2026. Beneficial holders should contact their brokers for instructions.

What the Numbers Show

The maintenance of the $1.71 per share common dividend signals stability in capital return policy for Q4 FY26, while the significant disparity between Series 50 ($36.865) and Series 52 ($35.285) preferred payouts reflects distinct issuance terms for these unlisted instruments.