Big Bank Split Corp. Dividend Yield Hits 9.77% on $14.74 Market Price

Big Bank Split Corp., TSX:BNK, is an attractive option for income investors due to its 9.77% dividend yield, calculated from a $0.12 monthly distribution and the prevailing market price of $14.74 per Class A share.

The fund's underlying portfolio consists of an approximately equally weighted mix of Canada's Big Six banks: Bank of Montreal, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Bank of Nova Scotia, and Toronto-Dominion Bank. The fund also uses covered-call strategies to enhance income and potentially reduce volatility.

The distribution has remained consistent throughout 2026, with a $0.12 monthly payout that is non-cumulative. This means investors should not treat the payment as having contractual protection like preferred shares.

Big Bank Split Corp.'s economic engine is the performance and income generation of its underlying bank portfolio. The fund's dividend-growth advantage comes from the long histories of paying and increasing dividends by the Big Six banks, with recent developments remaining constructive.