Got $5,000? 5 Financial Stocks to Buy and Hold Forever

Here are five of the best Canadian financial stocks you can buy today and hold for years to come.

Jitendra Parashar

Author Bio Jitendra Parashar is a financial journalist who has been writing for The Motley Fool Canada since June 2020. With more than 13 years of experience in financial journalism, equity research, and market analysis, he helps investors understand market developments and identify long-term investment opportunities. Before joining The Motley Fool Canada, Jitendra spent several years at Market Realist covering U.S. equities, major economic developments, and developments in the automotive and technology industries. He also worked in commodity and currency research at brokerage firms, gaining insight into how economic trends, central bank decisions, and geopolitical events influence financial markets. Jitendra writes for beginner investors, dividend seekers, and Canadians looking to build wealth over the long term. He also contributes to the daily TSX Today series, explaining key Canadian market developments and highlighting news investors should watch. Based in India, Jitendra follows Canadian and U.S. markets closely. Outside of work, he enjoys travelling in the Himalayas, street and nature photography, and exploring programming and artificial intelligence. Education MBA in Finance and International Business Bachelor's degree in Journalism Areas of Expertise Canadian and U.S. financial markets, long-term equity investing, dividend investing, macroeconomic and geopolitical trends, automotive stocks, emerging technologies, and artificial intelligence. Social Media Profiles LinkedIn Muck Rack Favorite Investment Quote “Simplicity is the master key to financial success.” — John C. Bogle

Published March 27, 2025 4:10 pm EDT

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.

happy woman throws cash — Source: Getty Images

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.