Single-stock investing was popular until many investors suffered significant losses in the early 1970s. The bear market during the period was a wake-up call, shattering a long-standing belief that the so-called ‘invincible’ stocks could withstand a severe downturn.
Diversification, or investing across various sectors, became standard for navigating volatile markets. Yet even with widespread adoption, some individual stocks still work for a buy-and-hold strategy.
The Bank of Montreal (TSX:BMO), for instance, is the single stock I’d hold forever, especially in a Tax-Free Savings Account (TFSA). This Big Bank stock is Canada’s dividend pioneer. No modern investor can outlive its legendary dividend track record.
Grandfather of dividends
Believe it or not, BMO began paying dividends even before Canada officially became a country in 1867. Since 1829, the Big Bank has paid dividends to shareholders. Its dividend track record is just three years shy of two centuries. More importantly, this longest payment record offers continuity and provides income-focused TFSA investors a sense of security.
BMO’s 197-year uninterrupted dividend payments indicate reliability through crisis. It survived the Great Depression, two World Wars, and the 2008 crash, and endured the 2020 pandemic. This blue-chip name is a true ‘hold forever’ stock.
In March 2020, the Office of the Superintendent of Financial Institutions (OSFI) directed Canadian banks to pause dividend hikes, share buybacks, and executive compensation increases during the COVID-19 pandemic. When the ban was lifted in 2021, BMO announced a 25% dividend increase.
High growth potential
The $137.2 billion Canadian bank has expanded its presence in the U.S. following the 2023 acquisition of Bank of the West and customer migration. BMO plans to implement its branch optimization strategy in mid-2026 once U.S. regulators approve the sale of 138 branches, mostly in lower-growth markets, to First-Citizens Bank & Trust Company.
BMO expects to record a goodwill charge of around US$117 million. According to management, the bank will focus on California, the market with the highest growth potential. The plan is to open 150 new branches within the next five years. It should strengthen its Personal and Business Banking, Commercial Banking, and Wealth Management services.
Strong fiscal 2025
Darryl White, CEO of BMO Financial Group, said, “We enter 2026 in a position of financial strength.” In fiscal 2025 (12 months ending October 31, 2025), net income increased 19% year-over-year to $8.7 billion. In Q4 fiscal 2025, net income of the U.S. banking segment rose 187% to $807 million versus Q4 fiscal 2024.
“Fiscal 2025 was a strong year for BMO,” White added. “Revenue increased across all of our diversified businesses, reflecting our success in delivering world-class client experiences and deepening relationships. We’re deploying capital to drive future growth and higher shareholder returns.”
If you invest today, BMO trades at $193.48 per share and pays a 3.5% dividend. Performance-wise, the Big Bank stock has maintained strong momentum to start 2026, advancing 27% in the last six months.
TFSA anchor
BMO isn’t just a stock for Canadian investors; it’s an ideal TFSA anchor stock. Its legendary payout record turns every contribution into a tax-free money growth engine.
