Stability and growth. They are the best options available when seeking long-term income for Canadian investors. But when it comes to those top options, there’s not much better than investing in a Big Six bank and a top-tier utility company. That’s why we’re going to look at it today Bank of Montreal (TSX:BMO) and Fortis (TSX:FTS), two Canadian stocks that give Canadian investors everything they need for a long-term portfolio.
BMO
BMO stands out as one of the most reliable and balanced Canadian banking stocks, offering investors both long-term stability and stable growth potential. As Canada’s oldest bank, BMO has built a reputation for disciplined risk management, conservative lending practices and a proven ability to navigate economic cycles. BMO’s recent Q3 2025 earnings results underlined its underlying strength, with net profit of $2.3 billion, up 25% year-on-year, driven by solid growth in the retail and commercial banking sector and an improvement in US operations.
This improvement comes after the integration of the Bank of the West. Adjusted earnings per share came in at $8.89, compared to $7.78 the year before. Revenues were nearly $9 billion, supported by stronger net interest income as BMO benefited from higher credit margins and credit growth on both sides of the border. Canadian stocks now offer both diversification and growth potential. With the US economy remaining resilient and the Federal Reserve signaling a gradual easing cycle, BMO is poised to benefit from improved credit conditions and a rebound in lending and capital market activity.
In terms of valuation, BMO looks attractive compared to its peers. The stock trades at about 13.5 times forward earnings, slightly below the industry average. Additionally, investors receive a top dividend of 3.8%, backed by a solid 55% payout ratio. All in all, investors get everything they could want: a solid history, strong valuations, and a bright future of growth.
FTS
Fortis is one of the most reliable and well-managed companies around, the kind of Canadian stock that investors can buy, hold and almost forget. Fortis generates approximately 99% of its revenues from predictable, rate-regulated activities such as electricity and natural gas distribution. That strength was reflected in the recent second quarter earnings results. Fortis reported a profit of $384 million or $0.76 per share. In addition, management reaffirmed its $25 billion five-year plan (2025-2029), which will increase the regulated interest base to over $50 billion by 2029, an annual growth rate of approximately 6%.
Fortis’ stability is anchored in its diversified footprint. The Canadian stocks operate ten utilities serving more than 3.5 million customers ranging from British Columbia and Alberta to Arizona, New York and the Caribbean. This geographic diversity helps smooth regional economic risks and regulatory changes. Its largest U.S. subsidiary, ITC Holdings, is a transmission giant that continues to benefit from North America’s electric grid modernization and transition to renewable energy. As governments and businesses push for cleaner energy and greater grid reliability, Fortis is well positioned to deliver regulated returns on large-scale infrastructure improvements.
Where Fortis really excels is its track record in dividends. The company has raised its dividend for 51 years in a row, making it one of the few Canadian companies in the ‘Dividend Knights’ class to maintain payouts for half a century. The current dividend yield is around 3.5%, with management targeting an annual increase of approximately 4% to 6% through 2029. Fortis’s payout ratio is comfortably around 71% of profits. For income-oriented investors, this makes Fortis a cornerstone position: reliable, inflation-protected income that grows year after year without taking excessive risk. All this while trading at a fair 19 times forward earnings.
In short
Fortis and BMO are two of the safest places to go when it comes to solid long-term investments. BMO offers growth, value, income and history. Fortis, meanwhile, offers much of the same. Yet they are both located in two of the safest areas you could wish for: banking and utilities. So if you’re looking for stability, these two Canadian stocks should be on your watchlist.
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