Updated on October 3rd, 2025 by Bob Ciura
The largest Canadian bank stocks have demonstrated resilience over the past decade, not only weathering recessions but also achieving impressive growth as economies recover. This makes them an attractive option for investors seeking stability and growth.
One of the standout features of Canadian bank stocks is their higher dividend payouts compared to many U.S. counterparts. This characteristic makes them particularly appealing for income-focused investors. Additionally, recent low valuations have enhanced their total return potential, making them even more attractive.
In this article, we will explore the “Big 5” Canadian banks: Canadian Imperial Bank of Commerce (CM), Royal Bank of Canada (RY), The Bank of Nova Scotia (BNS), Bank of Montreal (BMO), and Toronto-Dominion Bank (TD). We will rank these banks based on their expected returns over the next five years.
Note: Canada imposes a 15% dividend withholding tax on U.S. investors. However, investing in Canadian stocks through a U.S. retirement account may waive this tax. Always consult your tax advisor for specific guidance.
The top five Canadian banks are known for their shareholder-friendly policies and attractive cash returns. For a comprehensive overview, you can access a full list of financial stocks.
To download the complete list of approximately 210 financial sector stocks, including key metrics like dividend yields and price-to-earnings ratios, click the link below:
For more in-depth analysis, visit the Sure Analysis Research Database, which ranks stocks based on dividend yield, earnings-per-share growth potential, and valuation changes.
The following sections rank the Canadian banks from lowest to highest expected returns over the next five years.
Table Of Contents
Use the table of contents below to jump to a specific stock:
Canadian Bank Stock #5: Bank of Montreal (BMO)
- 5-year expected annual returns: 3.3%
Founded in 1817, Bank of Montreal is Canada’s first bank and has evolved into a global financial services powerhouse. It operates around 2,000 branches across North America, generating approximately 45% of its earnings from the U.S.
In fiscal Q3 2025, BMO reported a 9.7% increase in revenue to C$9.0 billion, with net income rising 25% to C$2.3 billion. The bank’s common equity tier 1 ratio remained robust at 13.5%.
Download our most recent Sure Analysis report on BMO
Canadian Bank Stock #4: Canadian Imperial Bank of Commerce (CM)
- 5-year expected returns: 3.7%
Established in 1961, CIBC provides a range of financial services to individuals and businesses. The bank reported a 10% increase in revenue to C$7.3 billion in fiscal Q3 2025, with net income rising 17% to C$2.1 billion.
Download our most recent Sure Analysis report on CM
Canadian Bank Stock #3: Bank of Nova Scotia (BNS)
- 5-year expected annual returns: 5.6%
Scotiabank is the fourth-largest financial institution in Canada. In fiscal Q3 2025, it reported a 13% revenue increase to C$9.5 billion, with net income soaring 32% to C$2.5 billion.
Download our most recent Sure Analysis report on BNS
Canadian Bank Stock #2: Toronto-Dominion Bank (TD)
- 5-year expected annual returns: 6.0%
Tracing its roots back to 1855, TD Bank is a major player in the financial sector with C$1.9 trillion in assets. In fiscal Q3 2025, TD reported adjusted revenue growth of 9.7% to C$15.6 billion.
Download our most recent Sure Analysis report on TD
Canadian Bank Stock #1: Royal Bank of Canada (RY)
- 5-year expected returns: 8.0%
As the largest bank in Canada, RBC operates across various sectors, including personal banking, wealth management, and capital markets. In fiscal Q3 2025, RBC reported a 16% revenue increase to approximately C$17.0 billion, with net income climbing 21% to C$5.4 billion.
Download our most recent Sure Analysis report on RY
Canadian bank stocks may not receive as much attention as their U.S. counterparts, but they offer compelling opportunities for income and value investors. The Big 5—Royal Bank of Canada, TD Bank, Bank of Nova Scotia, Bank of Montreal, and Canadian Imperial Bank of Commerce—are all highly profitable institutions with reasonable valuations and attractive dividend yields.
For dividend growth investors, these banks represent solid options with long histories of stability and growth.
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