07:05 AM EDT, 10/22/2024 (MT Newswires) -- Some investors have long been pointing to the value in Canadian dividend stocks, especially relative to an

asset class such as real estate, which had captivated hearts

and minds, said Bank of Montreal (BMO).

According to the bank, the advantages are many: higher yield, better tax treatment, stronger payout growth, little payment risk if selected properly, minimal transaction cost and instant/partial liquidity.

The lack of leverage is probably the biggest drawback, but that's still an extensive list of benefits -- and leverage can work both ways, added BMO.

Toronto's TSX is now pushing record highs, led in part

by a gang of dividend-paying sectors that had previously

been depressed by the tightening cycle, pointed out the bank. This is clearly one area where quick Bank of Canada easing is helping.

Meantime, investor-heavy segments of the real estate market such as small Toronto condos are swamped with supply and still seeing prices fall, added BMO.