If you could only buy and hold a single stock, what stock would you pick? Holding a single stock changes the selection process for investors. Instead of short-term noise and quarterly updates, the focus turns to reliable income and growth that can be relied on for decades.
That’s the kind of appeal that comes from Canada’s big bank stocks. And there’s one big bank I would buy and hold if I could only be invested in a single stock.
It’s a stock that rewards patience, offers stability through market cycles and continues to deliver a growing dividend income year after year.
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Why this buy and hold stock stands out long term
That buy-and-hold stock is Bank of Nova Scotia (TSX:BNS). Scotiabank has operated for nearly two centuries, which matters when considering a stock to own for decades.
Canada’s big bank stocks are known for their conservative lending practices, consistent profits, strong capital buffers, and robust dividends. This helps make the big bank stocks reliable anchor holdings for any portfolio.
But what factors differentiate Scotiabank from its peers when considering it as the only stock to hold?
Scotiabank, like its peers, offers a diversified mix of retail banking, wealth management, and commercial lending. Where the bank differs from its peers is with respect to growth focus.
The banking market in Canada is saturated, if not dominated by the big banks. This means that the banks have increasingly turned to foreign markets to attain growth. For most banks, that expansion means the U.S. market.
That’s where Scotiabank differs. The bank has developed the name of “Canada’s most international bank.” And in recent years, Scotiabank has lived up to that name. The bank has operations in over a dozen countries around the world, and has, until recently placed a focus on high-growth markets in Latin America.
Over the past years Scotiabank has scaled back that focus and moved to investing in less volatile, more-developed markets in North America to fuel its growth. That includes both Mexico and the U.S., where the bank has a growing presence.
Overall, the bank offers a long history of navigating market volatility while building up an international portfolio of operations that pays a handsome dividend.
For investors looking at a buy-and-hold stock that can compound quietly for decades, Scotiabank’s stability and growth is a clear advantage.
A dividend track record that supports long‑term investors
‘One of the main reasons why investors flock to Scotiabank is for the quarterly dividend that the bank offers. That’s another area where Scotiabank’s stability excels.
In fact, the bank has paid dividends without fail since the 1800s. That’s a record that few companies across the world can match.
As of the time of writing, the yield on that quarterly dividend is 4.2%, which is the highest across its big bank peers. More importantly, it’s both well-covered and growing. Scotiabank has provided annual upticks to that dividend going back well over a decade.
For long‑term investors, that dividend is more than just cash flow. It’s a built‑in return that compounds over time, especially when reinvested. That’s an appealing part that most investors overlook.
Given the current yield, investors who drop $10,000 into Scotiabank will generate another share every quarter from reinvested dividends alone. That can compound without any significant additional investments over longer periods of time.
Scotiabank’s consistency over market cycles reinforces its position as a buy-and-hold stock. Even during periods of market volatility, Scotiabank has maintained its payout, making it a compelling choice for anyone prioritizing dependable long‑term income.
Why Bank of Nova Scotia fits a single‑stock strategy
No stock, even the most defensive, is without some risk. Fortunately, Scotiabank’s defensive appeal, reliable business, and growing dividend minimize that overall risk.
As a long-term income producer, Scotiabank checks all the boxes as a buy-and-hold stock for investors. It offers a unique mix of global diversification, dependable dividends, and stability that even some of its own big bank peers cannot match.
In my opinion, this is the big bank stock for investors to buy and hold for decades.
