When building a long-term portfolio in Canada, few names offer the same combination of strength, consistency, and income as the Bank of Montreal (TSX:BMO). Known on the TSX as BMO, this banking powerhouse has stood the test of time, weathering everything from financial crises to pandemics. That kind of stability is exactly what many investors look for when deciding where to park their cash in uncertain markets.
First, the dividend
Dividends are a big part of that equation. As of writing, BMO stock yields approximately 4.4%, with a quarterly dividend of $1.59 per share. The yield is attractive on its own, especially in a low-growth environment. But what makes it exceptional is the history behind it. BMO has paid dividends every single year since 1829. That’s 196 years of uninterrupted payments. In fact, BMO holds the record for the longest-running dividend streak of any Canadian company. When you think about the wars, recessions, and political turmoil during that time, that record becomes even more impressive.
Of course, past performance doesn’t guarantee future results. But BMO’s current numbers suggest it’s still on solid footing. In its first-quarter 2025 earnings, BMO posted adjusted net income of $2.3 billion and earnings per share of $3.04. That was up from $2.27 per share in the same quarter last year. The results beat analyst expectations and showed that despite ongoing concerns about the economy and interest rates, BMO continues to find ways to grow.
More growth to come
One reason for that performance is its diversified business model. BMO isn’t just a bank for Canadian consumers. It also has a strong presence in commercial banking, capital markets, and wealth management. And its expansion into the United States has added another layer of growth. The 2023 acquisition of Bank of the West gave BMO access to 1.8 million customers across 19 U.S. states, providing a much broader footprint. That cross-border reach means more diversified revenue and less reliance on the Canadian housing market, which continues to face pressure.
Another reason investors keep coming back to BMO is its disciplined capital management. The bank maintains a strong balance sheet, with a Common Equity Tier 1 (CET1) ratio of 12.4% as of the first quarter. That’s well above regulatory minimums and gives BMO plenty of flexibility to return cash to shareholders or invest in further growth. It’s that kind of financial prudence that allows the bank to keep raising dividends, even when the economic outlook turns cloudy.
Staying strong
So, why might BMO be one of the best stocks to own right now? First, it provides a growing income stream that’s tax-efficient if held in a Tax-Free Savings Account (TFSA). Second, the bank has international exposure through its U.S. operations. Third, it’s proven it can grow earnings while rewarding shareholders over nearly two centuries. It’s hard to find a company with that kind of track record.
Even in a world dominated by tech stocks and fast-moving trends, BMO proves that old-fashioned consistency still has a place in a modern portfolio. If you’re investing for the long haul, say, retirement, your kids’ education, or just building generational wealth, BMO deserves serious consideration. You’re not going to see wild swings or doubling returns overnight, but you will get solid, steady growth and regular cash flow.
Bottom line
That’s exactly the kind of stock that can form the core of a resilient investment strategy. Whether you’re just starting out or have been investing for decades, BMO is the kind of name you can buy, hold, and sleep well at night owning. And for those who believe in the power of compounding, reinvesting those dividends over time could help turn a modest portfolio into something truly substantial. For Canadians looking for stability and strength, this bank continues to deliver.
