3 Canadian Stocks You Can Confidently Buy Now and Hold Forever

Want some of the best stocks to buy now and hold forever? Here’s a trio that are too hard to ignore right now which belong in every portfolio.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

How often do you change investments? Market volatility, opportunity, or even fear itself can be a powerful motivator for some to sell some investments and buy others. But there are some stocks that investors can buy now and hold forever.

These buy-now-and-hold-forever stocks provide investors with superb appeal for both growth and income-seekers. Here’s a look at a trio of options to consider and why they belong in your portfolio.

Option 1 – Fortis

Fortis (TSX:FTS) has a reputation for being one of the most defensive options on the market. As one of the largest utility stocks in North America, there’s some truth to that statement.

Utilities like Fortis generate a recurring and reliable revenue stream that is backed by long-term regulated contracts. In short, as long as Fortis continues to provide service, it generates a stable revenue stream, which allows it to invest in growth and pay out a dividend.

That dividend currently pays out a quarterly dividend with a respectable yield of 4%. But what makes this a buy now and hold forever option?

That designation is thanks to Fortis’ status as one of only two Dividend Kings in Canada. Specifically, Fortis has provided investors with generous annual upticks for an incredible 50 consecutive years without fail.

There’s nothing that screams buy now and hold forever more than a half-century of annual upticks.

Created with Highcharts 11.4.3Fortis PriceZoom1M3M6MYTD1Y5Y10YALL14 Apr 202011 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '25202120212022202220232023202420242025202540455055606570www.fool.ca

Option 2- Bank of Montreal

Another great stock to buy now and hold forever is Bank of Montreal (TSX:BMO). BMO is the oldest of Canada’s big bank stocks. Incredibly, BMO has paid out dividends to investors for nearly two centuries without fail.

That’s an amazing amount of time, spanning every conceivable market fluctuation. Today the quarterly dividend on offer works out to a juicy 5.5%, making it a great option to buy now and hold forever.

Prospective investors should also note that BMO isn’t just an income stock. The company has also invested heavily over the years into growth initiatives. One such investment was the acquisition of California-based Bank of the West.

That deal, which concluded last year, added hundreds of new branch locations and millions of customers into BMO’s growing U.S. operation.

Thanks to that deal, BMO’s U.S. presence now spans across a whopping 32 state markets, making it one of the largest banks in that lucrative market.

Prospective investors should keep in mind that BMO’s U.S. presence is in addition to its stable and mature segment at home in Canada.

Collectively, both the domestic and international arms make BMO a great option for any portfolio.

Created with Highcharts 11.4.3Bank Of Montreal PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Option 3 – Telus

Canada’s big telecoms represent yet another lucrative segment to buy now and hold forever, and Telus (TSX:T) is the telecom to consider right now.

Telus operates the typical array of subscription-based services to expect from a large telecom – specifically, wireline, TV, internet and wireless units. And it’s those latter two segments that are fueling growth and represent an opportunity for investors right now.

In the years since the pandemic started, the need for a fast and consistent internet connection has grown immensely. The necessity of a mobile connection has also grown exponentially.

Both of these continue to lend a hand to Telus, providing a bump during earnings season. In fact, in the most recent quarter, Telus set records for both segments in terms of new customer connections.

Specifically, the mobile segment saw net additions of 101,000, and the company saw 33,000 net new internet connections in the quarter.

Turning to dividends, Telus really shines. The company offers a juicy quarterly dividend with an insane 6.9% yield.

Even better, Telus has provided annual or better increases to that dividend going back an incredible 19 years without fail.

That fact alone makes Telus one of the buy now and hold forever options to own today.

Created with Highcharts 11.4.3TELUS PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Final thoughts – will you buy now and hold forever?

All three of the stocks mentioned above boast some defensive appeal in addition to a juicy income with annual increases.

In my opinion, that combination makes them great options to form part of any well-diversified portfolio.

Should you invest $1,000 in Bank of Montreal right now?

Before you buy stock in Bank of Montreal, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Bank of Montreal wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Demetris Afxentiou has positions in Fortis. The Motley Fool recommends Fortis and TELUS. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

dividend growth for passive income
Dividend Stocks

Why I’d Invest in Canadian Value Stocks for Both Stability and Growth

Three Canadian value stocks are buying opportunities for investors looking for stability and growth.

Read more »

investment research
Dividend Stocks

Got $15,000? 3 Blue-Chip Stocks Every Canadian Should Consider

Here's why investing in blue-chip TSX stocks such as CNQ and CNR should derive outsized gains in 2025 and beyond.

Read more »

protect, safe, trust
Dividend Stocks

Where I’d Allocate $20,000 in 2 Safer High-Yield Dividend Stocks for Retirement Needs

Here are two safer, high-yield dividend stocks I'm looking at for my retirement needs.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

3 Reasons I’m Considering Enbridge Stock for a $5,000 Investment This April

I'm considering Enbridge stock to provide some defensive appeal and a juicy dividend to my long-term portfolio.

Read more »

monthly desk calendar
Dividend Stocks

A 9.2% Dividend Stock Paying Cash Every Single Month

With one of the highest dividends out there, this dividend stock deserves attention in your portfolio.

Read more »

Happy golf player walks the course
Dividend Stocks

Build a Powerful Passive Income Portfolio With Just $20,000

If you are worried that the bear market could reduce your savings, these stocks can build a powerful passive income…

Read more »

Hand Protecting Senior Couple
Dividend Stocks

How I’d Use My $7,000 TFSA Contribution to Start Retirement Planning

These TSX stocks have solid fundamentals and are well-positioned to deliver significant tax-free total returns over time.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

How to Turn Your TFSA Into a Gold Mine Starting With Only $10,000

It doesn't have to be complicated or scary. You can turn any portfolio into a major gold mine.

Read more »