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Money RRSP Investors: 2 Top Canadian Stocks to Tap Global Population Growth

09:50  12 november  2019
09:50  12 november  2019 Source:   fool.com

RRSP wealth: How to turn $20K into a $190K retirement fund

  RRSP wealth: How to turn $20K into a $190K retirement fund The need to create a self-directed pension is arguably more important today than it was in the past. Here's how Canadian investors can build a substantial RRSP.Canadians have a number of options to consider when putting together a retirement plan.

Canadian investors are searching for top -quality stocks to help diversify the geographic exposure in their RRSP portfolios. Let’s take a look at Bank of Nova Scotia The bank has a long track record of dividend growth , and that trend should continue. Investors who buy today can pick up a yield of 4%.

Canadian savers are using their RRSP accounts to hold top stocks that have the capacity to deliver long-term growth . Getting international exposure is important to diversify the portfolio, but buying stocks on foreign exchanges comes with added risks, including currency volatility and geopolitical

a person sitting at a table using a laptop: Businessmen teamwork brainstorming meeting.© Provided by The Motley Fool, Inc Businessmen teamwork brainstorming meeting.

Advisors often recommend adding exposure to global growth as a way to diversify a retirement portfolio.

This is particularly true for Canadian investors. The bulk of the TSX Index is centred around domestic banks and energy companies, making it difficult to get balanced exposure across sectors, let alone geographic markets.

Buying stocks outside Canada is possible, but the costs can be higher and there are political and currency risks to consider.

Fortunately, some top Canadian companies have extensive international operations, providing investors with safer ways to get global exposure.

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One popular strategy involves owning top -quality stocks inside RRSP portfolios. The best companies to own tend to be sector leaders with solid long-term Diversification across industries and countries is also recommended to balance risk and ensure exposure to broader economic growth opportunities.

The Motley Fool Canada » Dividend Stocks » RRSP Investors : 2 Top Canadian Stocks With Global diversification and sector balance should be a goal for your RRSP portfolio, but that can The board’s goal is to maintain 5-8% annual distribution growth supported by reliable cash flow from a

Let’s take a look at two stocks that might be interesting picks right now for a self-directed RRSP.

Sun Life

Sun Life Financial(TSX:SLF)(NYSE:SLF) just reported solid results for Q3 2019, supported by strong revenue and earnings in its operations in Asia.

Sun Life has invested heavily over the past two decades to build partnerships and subsidiaries in a number of international markets, including a well-established presence in India, Vietnam, Indonesia, China, Malaysia, the Philippines, Singapore, and Japan.

A growing middle class offers significant long-term opportunities for insurance and wealth management products and service in these areas.

Canada and the United States remain the largest contributors to revenue and profits, but the engine of growth for the future lies in its global operations.

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Canadians are using their self-directed RRSP accounts to create portfolios of top -quality stocks . The RRSP has been around for a long time and offers Royal Bank has a long history of dividend growth , and that is expected to continue in line with anticipated earnings-per-share gains of 7-10% per year

Canadian savers are using their RRSP accounts to hold top stocks that have the capacity to deliver long-term growth . Getting international exposure is important to diversify the portfolio, but buying stocks on foreign exchanges comes with added risks, including currency volatility and geopolitical

Total assets under management topped $1 trillion at the end of the third quarter. The company generated underlying net income of $809 million compared to $730 million in the same period last year. Underlying return on equity rose to 15.5% from 14% and earnings per share jumped to $1.37 from $1.20.

The board raised the quarterly dividend by 5% to $0.055 per share at writing.

Sun Life’s stock is up from $45 at the start of 2019 to $61 per share. At the current price, investors can pick up a yield of 3.6%.

Nutrien

Nutrien(TSX:NTR)(NYSE:NTR) produces potash, nitrogen, and phosphate for sale to wholesale buyers around the globe. The company’s potash marketing company, Canpotex, negotiates deals with countries such as China and India. These contracts normally set the bar for wholesale pricing for the year.

Potash prices saw an extended downturn but have recovered in recent years. Total global shipments have increased to new records, and while sales and prices in the second half of 2019 have weakened due to extreme weather conditions and trade battles, the long-term prospects remain robust.

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Canadians are using their self-directed RRSP accounts to create portfolios of top -quality stocks . The RRSP has been around for a long time and offers Royal Bank has a long history of dividend growth , and that is expected to continue in line with anticipated earnings-per-share gains of 7-10% per year

Buying top -quality stocks when they’re out of favour can help investors boost the long-term growth Studies suggest that global farmers will have to feed 10 billion people by 2050 compared to the current population of Buying top -quality stocks when they are down can help RRSP investors reach their

Farmers use crop nutrients to improve production yield. The demand for the fertilizers is expected to increase as food requirements expand in line with population growth. At the same time, less arable land is available as a result of urban development.

Nutrien raised the dividend twice in the past year. The existing distribution provides an annualized yield of 3.7%.

The stock trades at $64.50 per share compared to $73 a year ago, so there’s decent upside potential on a rebound in the market. Management anticipates a strong recovery in 2020 as customers work through existing stockpiles.

The bottom line

Sun Life and Nutrien are top-quality Canadian companies that give investors exposure to global economic and population growth without taking on some of the risks associated with buying stocks in specific countries.

If you only buy one, Nutrien appears cheap today and should see a decent rebound in the next couple of years.

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TFSA 101: 3 Dividend Stocks for Retirees Who Want to Avoid OAS Clawbacks

  TFSA 101: 3 Dividend Stocks for Retirees Who Want to Avoid OAS Clawbacks Here's how retirees squeeze more earnings out of their savings without putting their Old Age Security payments at risk. The government adds up your total net world income when deciding whether to impose an OAS clawback. The threshold for the 2019 income year is $77,580.Any taxable income earned above that level will trigger a pension recovery tax equal to 15% of the amount earned above the limit. The clawback effectively wipes out the OAS once your income goes above $126,058.

Canadian investors are searching for reliable stocks to add to their retirement portfolios. The company has a strong track record of dividend growth , and that trend should Canadian savers with a buy-and-hold strategy can set aside some serious cash for retirement in their RRSP portfolios by

The Motley Fool Canada » Bank Stocks » 2 Top Canadian Dividend- Growth Stocks to Build RRSP As a result, management sees cash flow improving enough to support annual dividend growth of The company has raised the payout every year for more than four decades, so investors should

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More reading

  • Long-Term Investors: This Top Stock Should Be a Core Part of Your Portfolio
  • The #1 Type of Investment to Buy for Your RRSP and TFSA
  • RRSP Investors: 2 Top Canadian Stocks to Own for 30 Years
  • 3 Stocks to Buy Now and Collect Your Dividends
  • Millennials: 2 Strategies to Help You Retire Rich

The Motley Fool recommends Nutrien Ltd. Fool conbtributor Andrew Walker owns shares of Nutrien Ltd. Nutrien is a recommendation of Stock Advisor Canada.

Worried Your CPP Pension Won’t Pay Enough? Do This .
If you're worried that CPP and OAS won't pay you enough to live on in retirement, open an RRSP and hold iShares S&P/TSX 60 Index ETF (TSX:XIU). This index ETF holds a highly diversified basket of stocks based on the TSX 60 — the 60 largest stocks in Canada by market cap.XIU is not the most diversified nor the highest-yielding ETF in Canada, but it has a great combination of both attributes. With 60 large-cap stocks, it has enough diversification to make up the entire equity component of your portfolio. With a 2.7% yield, it generates enough income to gradually boost your cash savings even in bear markets.

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