Let’s be honest — parenting is stressful. As much as we love our kids, we can’t help but worry about their future. That’s why, when it comes to investing, I want one less thing to stress over. I’m looking for rock-solid, long-term investments that can grow steadily over time — and eventually be passed down with confidence.
Canadian bank stocks are ideal for this. They’re not only some of the most stable companies in the country, but global financial heavyweights as well. And if I had to choose one to pass on to my kids, Bank of Montreal (TSX:BMO) would be at the top of my list.
Also Read: Canadian stocks to buy 2025
Why BMO?
Founded in 1817, BMO is Canada’s oldest bank, and it has the track record to prove it. The bank has paid uninterrupted dividends since 1829 — through wars, recessions, and every financial cycle imaginable. That’s nearly 200 years of consistent income generation — longer than Canada has even been a country.
Today, BMO remains a powerhouse. In its latest quarterly results, the bank delivered:
- Adjusted EPS growth of 22% year-over-year
- Net income of over $2.3 billion
- A strong CET1 ratio of 13.5%, providing solid capital reserves and flexibility
Positioned for the Future
BMO isn’t just coasting on its legacy. Unlike some of its peers that rely heavily on the Canadian market, BMO is more diversified — with significant operations in the United States. In fact, its U.S. personal and commercial banking segment delivered a 51% profit increase in the most recent quarter.
There’s more growth ahead, too. BMO plans to acquire Burgundy Asset Management, expanding its footprint in the high-net-worth and ultra-high-net-worth wealth management space. This segment generates strong fee-based income and is less sensitive to interest rate fluctuations than traditional lending — giving BMO another layer of resilience and diversification.
Between its lending, wealth management, insurance, and capital markets divisions, BMO has multiple growth engines that can perform across economic cycles.
Also Read: Long term investing in Canada
Reliable Income, Now and Later
At the time of writing, BMO offers a 3.7% dividend yield, with a payout ratio of just 56%. That’s comfortably within the range for Canadian banks and leaves room for future increases. The dividend has been steadily growing, backed by strong profits and capital discipline.
To illustrate, a $7,000 investment in BMO today would generate approximately $254 in annual income — and that number will only grow if dividends continue to rise and are reinvested.
The bank also recently approved a buyback program of up to 30 million shares, which boosts long-term compounding returns. Together, dividends and buybacks make BMO a compelling choice for wealth creation — and preservation.
Final Thoughts
Raising kids is filled with enough uncertainty. Your investments shouldn’t be one of them. BMO is the kind of stock you can buy, hold, and one day pass on with confidence. It offers the perfect blend of historical strength, future growth, and steady income.
For investors thinking long-term — even across generations — Bank of Montreal is a stock worth holding forever.
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