2 TSX Giants to Buy for Decades of Growth and Dividends

Investors looking for a balance between stability and compounding growth may want to consider these two TSX dividend giants built to last for generations.

Key Points
  • Bank of Montreal provides stable returns and a 3.8% dividend yield, supported by strong earnings and strategic AI investments.
  • Manulife Financial, with a 100% rise in three years, offers a 3.7% yield, boasting robust growth in Asia and wealth management, and innovative digital strategies.
  • Both large-cap stocks are excellent TSX picks for long-term growth and dividends, backed by financial strength and strategic global expansion.

To get strong returns on your investments, you don’t always need to chase risky high-flying stocks or wait around for the next market hype. Sometimes, the best path forward is sticking with the proven businesses that have navigated recessions, expanded across borders, and still manage to reward their loyal investors through good times and bad.

Whether you’re planning for retirement or simply looking for stable long-term returns, holding these large-cap stocks can bring the balance of attractive dividends and future upside. In this article, I’ll highlight two such TSX-listed dividend stocks you can buy today and feel good about holding for years.

some REITs give investors exposure to commercial real estate

Source: Getty Images

Bank of Montreal stock

First up is a banking heavyweight, Bank of Montreal (TSX: BMO), that offers a great blend of strong fundamentals with decades of dependable dividends. Better known as BMO, it’s one of Canada’s oldest banks and continues to be a top choice for long-term investors. The bank operates in personal and commercial banking, wealth management, and capital markets segments.

Following a more than 30% rally in the last year, BMO stock currently trades at $171.21 per share with a market cap of $122.5 billion, and it pays a quarterly dividend with an annualized yield of 3.8%.

In the third quarter of its fiscal 2025 (three months ended in July), BMO delivered another solid performance, reporting a 25% YoY (year-over-year) jump in its net income to $2.3 billion. This strong result was supported by revenue growth across its U.S. and Canadian operations, tighter expense control, and lower credit losses.

During the quarter, its provision for credit losses also improved to $797 million from $906 million a year ago, showing better credit performance. BMO also declared a quarterly dividend of $1.63 per share, maintaining its streak of rewarding shareholders with consistent payouts.

Looking ahead, BMO’s acquisition of Burgundy Asset Management is expected to strengthen its wealth management platform further — especially among high-net-worth clients. Coupled with its growing digital and artificial intelligence (AI) investments, these moves could help BMO maintain sustainable growth and an attractive dividend yield — a combination that long-term investors love to see.

Manulife Financial stock

Next is Manulife Financial (TSX: MFC), a global insurance and asset management powerhouse that continues to evolve with the times. Based in Toronto, it’s a top international insurer and investment firm that operates across Canada, Asia, and the U.S.

Interestingly, MFC stock has jumped more than 100% over the last three years. As a result, it currently trades at $47.66 per share, giving it a market cap of about $80.7 billion and a dividend yield of 3.7%.

For the third quarter of 2025 (ended in September), Manulife posted a 10% YoY increase in its core earnings to $2 billion on a constant exchange rate basis. The company’s core return on equity also improved to 18.1% during the quarter, showing strong profitability.

Breaking it down by region, Asia’s core earnings surged 29% YoY with the help of higher sales and a favourable insurance experience. Meanwhile, its global wealth and asset management segment earnings rose 9%, supported by higher performance fees and cost discipline.

Beyond numbers, Manulife is pushing digital transformation through AI-powered solutions like its AI Assistant in Hong Kong and new digital tools in Canada and the U.S., making it more customer-focused. These initiatives, combined with its strong capital position and growing international footprint, make Manulife a solid pick for investors seeking consistent dividends and long-term growth.

Fool contributor Jitendra Parashar has positions in Bank of Montreal. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Bank Stocks

Group of people in a line at an ATM waiting to make a cash withdrawal
Stocks for Beginners

Canadian Bank Stocks in Late 2026: Which Ones I’d Buy and Which I’d Skip

Canadian bank stocks offer different buying cases in late 2026. Compare Scotiabank, TD and Royal Bank on income, earnings and…

Read more »

customer uses bank ATM
Dividend Stocks

TFSA Withdrawal Rules Every Canadian Investor Should Know

Beware that re‑contributing withdrawn funds in the same calendar year can lead to a penalty from potential excess contribution.

Read more »

data analyze research
Stocks for Beginners

Maxing Out Your TFSA Isn’t the Final Step: Here’s What Is

A full TFSA still needs a plan: protect near-term spending, diversify long-term holdings, and understand when withdrawals restore room.

Read more »

senior couple looks at investing statements
Bank Stocks

BMO Says Canadians Need $1.7 Million to Retire: Your Number Could Be Very Different

BMO says Canadians need $1.7 million to retire, but your number may differ. See how CPP and OAS cut the…

Read more »

Concept of rent, search, purchase real estate, REIT
Stocks for Beginners

On a Variable Mortgage? Markets Are Now Betting on Hikes, Not Cuts

A rate hike remains possible, even after weak jobs data. Here's the household cost and the separate CIBC investment decision.

Read more »

woman checks off all the boxes
Stocks for Beginners

Using Your TFSA as a Retirement Account: Pros and Cons

The TFSA is an excellent tool to help you save and invest for your retirement nest egg, but there are…

Read more »

Paper Canadian currency of various denominations
Stocks for Beginners

Your Broker Withholds 15% on U.S. Dividends: Here’s The Tax Credit That Gets It Back

U.S. dividend withholding depends on your account, while BMO shows how a Canadian stock can offer U.S. exposure.

Read more »

Hand Protecting Senior Couple
Stocks for Beginners

How Much Do You Actually Need to Retire in Canada?

The same retirement lifestyle can require very different savings balances once pensions and withdrawal taxes enter the calculation.

Read more »