Stability and growth. They are the best options out there when looking for long-term income for Canadian investors. Yet when it comes to those top options, there’s not much better than investing in a Big Six bank and a top-notch utility. That’s why today we’re going to look at Bank of Montreal (TSX:BMO) and Fortis (TSX:FTS), two Canadian stocks offering Canadian investors everything they need for a long-term portfolio.
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BMO
BMO stands out as one of the most reliable and balanced Canadian bank stocks, offering investors both long-term stability and steady growth potential. As Canada’s oldest bank, BMO has built a reputation for disciplined risk management, conservative lending practices, and a proven ability to navigate economic cycles. BMO’s recent third-quarter 2025 earnings highlighted its underlying strength, reporting net income of $2.3 billion, up 25% year over year, driven by solid growth in personal and commercial banking and an improvement in its U.S. operations.
That improvement comes following the integration of Bank of the West. Adjusted earnings per share came in at $8.89, up from $7.78 the year before. Revenue reached almost $9 billion, supported by stronger net interest income as BMO benefited from higher lending margins and loan growth on both sides of the border. The Canadian stock now provides both diversification and growth potential. As the U.S. economy remains resilient and the Federal Reserve signals a gradual easing cycle, BMO is poised to benefit from improved credit conditions and a pickup in lending and capital market activity.
Valuation-wise, BMO looks attractive compared to its peers. The stock trades at roughly 13.5 times forward earnings, slightly below the sector average. Plus, investors gain a top dividend, yielding 3.8% supported by a solid 55% payout ratio. All together, investors get everything they could want: a solid history, strong valuations, and a bright future of growth.
FTS
Fortis is one of the most dependable and well-managed companies out there, the kind of Canadian stock investors can buy, hold, and almost forget about. Fortis generates about 99% of its earnings from predictable, rate-regulated businesses like electricity and natural gas distribution. That strength was shown in its recent second-quarter earnings. Fortis reported earnings of $384 million or $0.76 per share. Furthermore, management reaffirmed its $25 billion five-year capital plan (2025–2029), which will increase its regulated rate base to over $50 billion by 2029, an annual growth rate of about 6%.
Fortis’ stability is anchored in its diversified footprint. The Canadian stock operates 10 utilities serving over 3.5 million customers, stretching from British Columbia and Alberta to Arizona, New York, and the Caribbean. This geographic diversity helps smooth out regional economic risks and regulatory changes. Its largest U.S. subsidiary, ITC Holdings, is a transmission giant that continues to benefit from North America’s grid modernization and renewable energy transition. As governments and corporations push for cleaner power and greater grid reliability, Fortis is well placed to earn regulated returns on massive infrastructure upgrades.
Where Fortis truly shines is in its dividend track record. The company has increased its dividend for 51 consecutive years, making it one of the few Canadian companies in the “Dividend Knights” class that have raised payouts for half a century. The current dividend yield is around 3.5%, with management guiding for annual increases of about 4% to 6% through 2029. Fortis’ payout ratio sits comfortably around 71% of earnings. For income-focused investors, this makes Fortis a cornerstone holding: dependable, inflation-protected income that grows year after year without taking on excessive risk. All while trading at a fair 19 times future earnings.
Bottom line
Fortis and BMO are two of the safest places you can go when it comes to solid long-term investments. BMO offers growth, value, income, and history. Fortis, meanwhile, offers much of the same. Yet both are in two of the safest areas you could want: banking and utilities. So if you’re seeking stability, these two Canadian stocks belong on your watchlist.
