3 Bank Stocks Delivering Decades of Dividends

Canadian bank stocks can deliver decades of dividends, and they already have been! The business model runs on consistency. Banks earn money from everyday lending, deposits, fees, and wealth management, and Canada’s banking market is relatively concentrated and tightly regulated. That combination usually encourages conservative capital management and steady payouts. Dividends can pause during extreme periods, but the long-term habit has been to protect the cheque and grow it when conditions allow. So let’s look at three that offer the biggest wins.

TD

Toronto Dominion Bank of Commerce (TSX:TD) remains one of Canada’s biggest “set it and forget it” banks, with a major Canadian franchise and meaningful U.S. exposure. The bank stock has staged a sharp rebound over the last year, with shares climbing about 69% over the last year. That range tells you sentiment swung from fearful to confident, and it also reminds you that TD can move a lot when U.S. headlines or rate expectations change.

Earnings still look sturdy underneath the noise. In fiscal Q4 2025, TD reported net income of $3.3 billion and diluted earnings per share (EPS) of $1.82, while adjusted net income came in at $3.9 billion and adjusted diluted EPS was $2.18. On valuation, it trades at about 11.4 times earnings, with a dividend yield at 3.3%. The outlook hinges on credit quality and the pace of rate cuts, but TD’s scale gives it plenty of ways to earn through a cycle. Yet overall, it’s a strong choice among bank stocks.

BNS

Bank of Nova Scotia (TSX:BNS) sits in a sweet spot for dividend investors as it blends Canadian stability with international earnings streams, especially in parts of Latin America. The bank stock has had a strong year, with shares up 35% in the last year. That kind of move suggests investors have warmed up to the turnaround story and improving confidence around the dividend.

The most recent quarter delivered a clear step up. In fiscal Q4 2025, Scotiabank reported net income of $2.2 billion and diluted EPS of $1.65. On an adjusted basis, it earned $1.93 per share and posted an adjusted profit of about $2.6 billion, helped by wealth and capital markets, even as it took restructuring charges and dealt with higher provisions for credit losses. The valuation looks reasonable for the story, with the bank stock trading at 17.8 times earnings, and offering a 4.4% dividend yield. The risk is that credit losses rise if the economy weakens, but the reward is a higher yield with room for operational improvement.

CM

Canadian Imperial Bank of Commerce (TSX:CM) has long appealed to dividend investors as it tends to stay focused, keeps a strong Canadian core, and pays a generous dividend without trying to be everything to everyone. The bank stock has also bounced back strongly, with shares up 42% in the last year alone. That move reflects improving sentiment toward Canadian financials, plus strong performance in businesses tied to market activity.

CIBC’s latest results showed real momentum. It reported fiscal Q4 2025 adjusted net income of about $2.2 billion, or $2.21 per share, up from $1.9 billion, or $1.91 per share, a year earlier, helped by capital markets strength and higher net interest income. Its highlights also showed reported diluted EPS of $2.20 for the quarter and $8.57 for the full year. On valuation, the bank stock trades at about 15 times earnings and offers a 3.4% dividend yield. The main risk is the usual one for banks. Credit turns fast if unemployment rises, but CIBC’s earnings mix can benefit when market activity remains strong.

Bottom line

Put TD, BNS, and CM together and you get three different bank stocks working toward the same outcome. Dividends that can keep showing up for years. TD gives you scale and optionality, Scotiabank gives you a higher yield and a turnaround angle, and CIBC gives you a focused Canadian bank with solid capital markets leverage. And here’s what $7,000 could bring in from each bank stock.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTTD$131.1553$4.32$228.96Quarterly$6,940.95BNS$101.0869$4.40$303.60Quarterly$6,974.52CM$127.1455$4.28$235.40Quarterly$6,992.70

None of them comes without risk, but if you want decades of dividend potential, Canadian banks remain one of the most proven places to start.

The post 3 Bank Stocks Delivering Decades of Dividends appeared first on The Motley Fool Canada.

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More reading

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Bank of Nova Scotia. The Motley Fool has a disclosure policy.