You don’t need to chase trends to grow your money. Some of the most rewarding investments come from companies that simply perform year after year. In Canada, the financial sector is full of these quiet compounders with solid fundamentals. Even a $5,000 investment in the right financial stocks today could grow into much more in the years ahead.
Here are five all-weather financial stocks you can buy now and hold with confidence for the long term.
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Bank of Montreal stock
If you’re looking for a blue-chip bank that can grow your money in the long run, Bank of Montreal (TSX: BMO) is worth a look. It serves over 13 million customers with banking, wealth, and capital markets services. After rallying by 14% over the last six months, BMO stock trades at $139.35 per share with a $101.2 billion market cap and an attractive 4.6% dividend yield.
In the latest quarter, BMO’s adjusted earnings rose to $2.3 billion as revenue climbed 21% year over year, driven by strength across all business segments. With consistent dividend hikes, share buybacks, and strong fundamentals, BMO is built for steady, long-term growth.
Royal Bank stock
As Canada’s largest bank, Royal Bank of Canada (TSX: RY) could also be a smart choice for investors looking for a solid bank to anchor their long-term portfolios. It offers services in personal banking, wealth management, capital markets, and insurance. RY stock is currently trading at $166.09 with a market cap of $234.7 billion and offers a 3.6% annualized dividend yield.
In the January 2025 quarter, Royal Bank’s adjusted net profit jumped 29% YoY (year over year) to $5.3 billion, with growth across all business segments. With strong capital strength and continued investment in tech and talent, RY stock is built for the long haul.
Scotiabank stock
Another solid long-term pick in Canadian finance is Bank of Nova Scotia (TSX: BNS), or Scotiabank. It offers a mix of stability and income that investors can count on. After witnessing 10% gains over the last eight months, BNS stock currently trades at $69.61 with a $86.7 billion market cap and a strong 6.1% dividend yield.
In the latest quarter, Scotiabank’s adjusted earnings rose to $2.36 billion as revenue jumped 11% YoY. This growth came from wealth management and capital markets segments, even as its credit provisions climbed. Nevertheless, its focus on streamlining operations and expanding in North American operations adds to its long-term appeal, making it an attractive bank stock to buy and hold.
Manulife Financial stock
If you look beyond Canadian bank stocks in the financial sector, Manulife Financial (TSX: MFC) looks attractive as a steady performer with global reach. This global insurance and wealth management giant has a strong presence in Canada, Asia, and the United States. After surging 35% in the last year, MFC stock trades at $44.45 with a market cap of $76.5 billion and offers a solid 4% dividend yield.
In 2024, Manulife posted record core earnings of $7.2 billion, up 8%, driven by strong growth in Asia and wealth management. Moreover, its continued focus on digital upgrades, artificial intelligence tools, and expanding distribution channels is laying the groundwork for continued success in the long run.
Great-West Lifeco stock
Rounding out this list of dependable financial stocks is Great-West Lifeco (TSX: GWO), a steady player in the insurance and wealth management space. It’s a global insurance and wealth management company with operations in Canada, the U.S., and Europe.
After climbing over 25% in the last year, GWO stock now trades at $53.66 with a $50 billion market cap and a solid 4.5% dividend yield.
In the December 2024 quarter, Great-West’s base earnings rose 15% YoY to record $1.1 billion with strong fee income. With rising assets and plans to buy back shares, this steady performer has the potential to continue soaring in the long run.
