Single-stock investing was widespread till many traders suffered vital losses within the early Nineteen Seventies. The bear market in the course of the interval was a wake-up name, shattering a long-standing perception that the so-called ‘invincible’ shares might stand up to a extreme downturn.
Diversification, or investing throughout numerous sectors, grew to become commonplace for navigating risky markets. But even with widespread adoption, some particular person shares nonetheless work for a buy-and-hold technique.
The Financial institution of Montreal (TSX:BMO), as an example, is the only inventory I’d maintain without end, particularly in a Tax-Free Financial savings Account (TFSA). This Large Financial institution inventory is Canada’s dividend pioneer. No fashionable investor can outlive its legendary dividend monitor file.
Grandfather of dividends
Consider it or not, BMO started paying dividends even earlier than Canada formally grew to become a rustic in 1867. Since 1829, the Large Financial institution has paid dividends to shareholders. Its dividend monitor file is simply three years shy of two centuries. Extra importantly, this longest fee file provides continuity and gives income-focused TFSA traders a way of safety.
BMO’s 197-year uninterrupted dividend funds point out reliability via disaster. It survived the Nice Despair, two World Wars, and the 2008 crash, and endured the 2020 pandemic. This blue-chip identify is a real ‘maintain without end’ inventory.
In March 2020, the Workplace of the Superintendent of Monetary Establishments (OSFI) directed Canadian banks to pause dividend hikes, share buybacks, and govt compensation will increase in the course of the COVID-19 pandemic. When the ban was lifted in 2021, BMO introduced a 25% dividend improve.
Excessive development potential
The $137.2 billion Canadian financial institution has expanded its presence within the U.S. following the 2023 acquisition of Financial institution of the West and buyer migration. BMO plans to implement its department optimization technique in mid-2026 as soon as U.S. regulators approve the sale of 138 branches, largely in lower-growth markets, to First-Residents Financial institution & Belief Firm.
BMO expects to file a goodwill cost of round US$117 million. In accordance with administration, the financial institution will give attention to California, the market with the very best development potential. The plan is to open 150 new branches throughout the subsequent 5 years. It ought to strengthen its Private and Enterprise Banking, Business Banking, and Wealth Administration providers.
Robust fiscal 2025
Darryl White, CEO of BMO Monetary Group, stated, “We enter 2026 able of economic power.” In fiscal 2025 (12 months ending October 31, 2025), web earnings elevated 19% year-over-year to $8.7 billion. In This autumn fiscal 2025, web earnings of the U.S. banking phase rose 187% to $807 million versus This autumn fiscal 2024.
“Fiscal 2025 was a powerful 12 months for BMO,” White added. “Income elevated throughout all of our diversified companies, reflecting our success in delivering world-class shopper experiences and deepening relationships. We’re deploying capital to drive future development and better shareholder returns.”
In case you make investments at present, BMO trades at $193.48 per share and pays a 3.5% dividend. Efficiency-wise, the Large Financial institution inventory has maintained robust momentum to start out 2026, advancing 27% within the final six months.
TFSA anchor
BMO isn’t only a inventory for Canadian traders; it’s a great TFSA anchor inventory. Its legendary payout file turns each contribution right into a tax-free cash development engine.