The Toronto Stock Exchange has been riding on a three-day winning streak since the start of April, though many analysts believe it’s a relief rally within a war-fatigued market. With expanded military operations in the Iran conflict more likely than peace negotiations, the stock market will continue to struggle in finding a clear direction.
Given the heightened geopolitical risks, investors with long-term horizons should anchor their portfolios with blue-chip companies that have endured past major conflicts, including financial crises of the last century.
If I’m staying invested for the next two decades, I’d buy shares of the Bank of Montreal (TSX:BMO) and Fortis (TSX:FTS). Both dividend stocks provide recurring income stability and long-term peace of mind.
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Dividend pioneer
Canada’s banking sector earned its global reputation as a bedrock of stability through its historical resilience and tempered but sustained growth. BMO is not only the country’s oldest bank but also the TSX’s dividend pioneer. The $133.7 billion bank has been paying dividends since 1829. BMO currently trades at $191.13 per share and pays an ultra-safe 3.5% dividend.
The premier bank extended full support to Canadian forces in both World Wars I and II. Around 1,500 bank employees served during the Second World War, while 230 bankers perished in the First. Both military conflicts reshaped the institution and fueled its expansion.
In addition to the two World Wars, BMO demonstrated strength and endurance during the Great Depression and the COVID-19 global pandemic (2020). BMO continues to actively support military communities in Canada and the United States to this day. The Big Bank invests in housing, education, mental health, and cultural programs and ensures military families and veterans have the resources to build a strong future.
In addition to the two World Wars, BMO demonstrated strength and endurance during the Great Depression (1929 to 1939) and the COVID-19 global pandemic (2020). From an investment perspective, BMO ranks high in financial strength, profitability, and growth prospects.
BMO had a strong start to fiscal 2026, but it is not insulated from trade tensions, geopolitical risks, and interest rate volatility. Nonetheless, its diversified business model provides a hedge against massive headwinds. More importantly, Canada’s financial system has a highly structured regulatory framework.
Canadian Big Banks, as mandated by the Office of the Superintendent of Financial Institutions (OSFI), must maintain sufficient buffers to absorb potential losses.
Dividend king
The modern-day Fortis was incorporated decades after 20th-century conflicts, but its predecessor companies survived both World Wars. Today, this $40.2 billion electric and gas utility company is a verified Dividend King, owing to 52 consecutive years of dividend increases.
According to its President and CEO, David Hutchens, the new $28.8 billion five-year capital plan focuses on utility infrastructure. He expects it to drive long-term rate base growth of 7%. Moreover, it supports the annual dividend growth target of 4% to 6% through 2030.
Performance-wise, FTS has been relatively stable amid extreme volatility in 2026. Also, the overall return in 20 years is plus-643.5%. If you invest today, the share price is $78.83, while the dividend yield is 3.2%.
Legacy holdings
BMO and Fortis are built for the long term, not only for a two-decade horizon. Both dividend stocks are legacy holdings, with many shareholders never needing to sell them.
