Dividend investing is not always about chasing the highest yield. Even a dividend yield above 2% can be considered attractive, especially if it’s actually backed by a strong and well-diversified business. Overall, the best dividend stocks are usually companies with strong business models, dependable earnings, and a well-proven track record of rewarding shareholders consistently over time. That’s one of the key reasons Canadian bank stocks have continued to be favourites among long-term investors for decades. Most of them tend to combine stable cash flow, resilient business models, and reliable dividends that could continue growing even amid market volatility.
Let’s look at two top Canadian bank stocks that not only fit the description but also have the potential to deliver growing passive income for years to come.
Source: Getty Images
Scotiabank stock offers income and global diversification
For investors who want a mix of steady income and global exposure, Bank of Nova Scotia (TSX:BNS) stands out as a well-rounded option among Canadian banks. Commonly known as Scotiabank, it is one of the country’s largest financial institutions, with operations spanning personal banking, commercial banking, wealth management, and capital markets.
After rallying by nearly 50% over the last year due mainly to its strong financial growth trends, BNS stock currently trades at $105.93 per share with a market cap of about $130 billion. In addition to its share-price gains, Scotiabank offers a dividend yield of 4.2%, paid quarterly.
Financially, Scotiabank’s latest numbers show a much stronger picture. In the first quarter of its fiscal year 2026 (ended in January), the bank’s adjusted diluted earnings climbed 16% year-over-year (YoY) to $2.05 per share with the help of broad-based strength. Its Canadian banking earnings rose 5% YoY to $960 million, while international banking segment earnings increased 7% to $737 million.
Scotiabank’s long-term growth strategy also looks promising as it continues investing heavily in digital transformation initiatives to improve customer experience and operational efficiency. At the same time, Scotiabank is expanding its international footprint while strengthening its position in key growth markets.
National Bank stock continues delivering strong growth
If growth is the priority alongside dividends, National Bank of Canada (TSX:NA) has also been quietly setting itself apart with strong execution and expanding operations. Headquartered in Montreal, it has built a solid presence across multiple banking segments while continuing to grow its footprint beyond Quebec.
This bank stock currently trades at $207.45 per share, giving it a market cap of $80 billion. Over the last year, NA stock has climbed an impressive 65%. At this market price, it has a dividend yield of 2.4%.
In the January quarter, National Bank delivered net income of $1.3 billion, reflecting a 26% YoY increase, while its diluted earnings rose 11% from a year ago to $3.08 per share. Its personal and commercial banking segment posted a 47% YoY jump in net income, while wealth management and capital markets also delivered strong double-digit growth.
Moreover, National Bank is also making strategic moves to support future growth. Its acquisition of Canadian Western Bank and planned transaction involving Laurentian Bank could significantly strengthen its pan-Canadian presence and expand its customer base over time.
Which bank stock stands out?
Both Scotiabank and National Bank offer solid reasons for long-term investors to pay attention right now. Scotiabank may appeal more to investors prioritizing higher dividend income and global diversification. Meanwhile, National Bank has stood out for its faster earnings growth and strong operational execution.
Given that, both bank stocks could look really attractive right now, especially for investors seeking a balance of income, stability, and long-term growth.
