3 Canadian Bank Stocks for Decades of Dividends

Three big Canadian banks offer durable dividends and long-term growth potential, making them core candidates for generational wealth.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published October 31, 2025 4:30 pm EDT

| More on: BNSRYTD

Today, we’re going straight to the top, looking at the three Canadian bank stocks that stand out. Why? These bank stocks have been around for over 100 years, taking to heart the long-term investment opportunities that came within that century of growth, if not more. Today, let’s look at these three bank stocks and why they still offer decades of dividends.

Piggy bank on a flying rocket — Source: Getty Images

RY

Royal Bank of Canada (TSX:RY) is the definition of a long-term dividend stock. It’s not just Canada’s largest bank by market cap, it’s one of the most profitable and well-managed financial institutions in the world. The bank earns money from wealth management, capital markets, insurance, and commercial banking. This diversification helped RY weather past recessions and financial crises better than most peers.

Another reason RY shines as a long-term holding is its commitment to dividend growth. The bank has paid a dividend every single year since 1870. It typically raises that dividend twice annually, supported by strong earnings and a conservative payout ratio of around 45%. Right now, investors can lock in a yield near 3%. Over the past 20 years, Royal Bank’s dividend has grown by more than 9% annually on average, which means your income doubles roughly every eight years.

Owning RY isn’t about quick gains; it’s about steady, generational wealth building. Its dividend is safe, its business is durable, and its growth prospects remain solid in both Canada and abroad. For investors who want peace of mind and predictable income that grows with them, Royal Bank is one of the most dependable names on the TSX.

TD

Toronto-Dominion Bank (TSX:TD) is one of those rare stocks built to be owned for life. It’s not only one of Canada’s largest and most trusted banks but also one of North America’s strongest financial institutions. Its business model is built on stability, prudent management, and reliable dividend growth. TD makes most of its money from predictable sources such as personal banking, mortgages, and wealth management, rather than from volatile trading or investment banking, which adds to its strength.

TD’s dividend history is one of the best in Canada. It has paid uninterrupted dividends for over 165 years and has raised its payout almost every year in recent decades. The current yield sits around 3.7%, with a payout ratio of just 35%. Even through market downturns, TD’s consistent profitability and strong capital ratios mean it can keep rewarding shareholders while still reinvesting for the future.

What sets TD apart from other Canadian banks is its expanding U.S. presence. Over the past two decades, it’s built a significant footprint across the eastern United States, operating thousands of branches and serving millions of American customers. As the U.S. economy grows, TD benefits from a larger, more diversified earnings mix. While recent regulatory issues in the U.S. have temporarily dampened investor sentiment, those are short-term challenges in a long-term story.

BNS

Bank of Nova Scotia (TSX:BNS), better known as Scotiabank, is one of Canada’s oldest and most established financial institutions. With a history that stretches back more than 190 years and an unbroken record of paying dividends since 1832, BNS has proven it can survive every market storm and still reward shareholders along the way.

What makes Scotiabank so appealing as a long-term dividend stock is its diversified business model. Its presence in fast-growing Latin American markets gives it exposure to economies with rising middle classes and expanding banking systems. Yet another reason BNS is a stock to hold for decades is its discipline and stability. Despite its global exposure, Scotiabank runs a conservative balance sheet, maintains strong capital ratios, and manages risk carefully in each market it operates in.

Scotiabank’s dividend is one of the most attractive on the TSX, currently yielding around 4.8%. The bank’s payout ratio sits near 81%, which is higher than its peers. Over the past two decades, Scotiabank has grown its dividend by roughly 6% a year on average. That steady upward trajectory, combined with a starting yield this high, means investors can collect meaningful income today and watch it grow tax-free inside a Tax-Free Savings Account for years to come.

Bottom line

Together, these three bank stocks are set up for prime success. If you’re looking for long-term wealth, all three belong on your watchlist on the TSX today.