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Money RRSP Alert: 2 Top Canadian Dividend Stocks to Start a Self-Directed Pension

10:05  09 december  2019
10:05  09 december  2019 Source:   fool.com

Worried Your CPP Pension Won’t Pay Enough? Do This

  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.

Canadian savers are using the Registered Retirement Savings Plan to build substantial pension portfolios.

Self - directed RRSPs . If you want to, you can control the assets of your RRSP and make the investment decisions Your financial institution can tell you if it offers self - directed RRSPs . mutual funds. securities listed on a designated stock exchange. For more information, see Income Tax Folio

a close up of a nest: A golden egg in a nest© Provided by The Motley Fool, Inc A golden egg in a nest

Editor’s note: The opinions in this article are the author’s, as published by our content partner, and do not necessarily represent the views of Microsoft News or Microsoft. Always check with your advisor or other experts before making investment and other financial changes.

Young Canadian are starting to put some earnings aside for their retirement years.

The strategy makes sense, as most advice in the investment world highlights the long-term benefits of getting started early. In fact, the secret to building a large pension portfolio lies in making contributions every year, beginning as soon as you start your career.

Canada Revenue Agency: Here’s How Much You’re Paying Into CPP

  Canada Revenue Agency: Here’s How Much You’re Paying Into CPP CPP payments take a bite out of your paycheque. Offset them by buying ETFs like the iShares S&P/TSX 60 Index ETF (TSX:XIU) in your RRSP.With most retirees having expenses around $2,400 a month, it’s not much to live on.

Canadians are increasingly taking their retirement planning into their own hands, and building a balanced RRSP portfolio of top stocks is a popular Let’s take a look at three companies that deserve to be on your radar. Canadian National Railway (TSX:CNR)(NYSE:CNI) CN is an integral part of the

Canadian savers are using the Registered Retirement Savings Plan to build substantial pension portfolios. One popular option for the funds is to buy quality dividend stocks and invest the distributions in new shares. This can slowly build the size of the retirement fund from a small base to

The amount doesn’t have to be large, especially when the money is put in reliable dividend stocks and the distributions are used to buy additional shares. The power of compounding takes over at that point and does most of the heavy lifting.

Let’s take a look at two stocks that might be interesting picks to get your RRSP started.

TC Energy

TC Energy is an interesting company and is best known for its extensive natural gas pipeline network located in Canada, the United States, and Mexico, but the company also has power generation facilities, natural gas storage sites, and liquids pipelines.

TC Energy has $30 billion in development projects on the go that are expected to drive steady revenue and cash flow gains and support annual dividend increases of 8-10% through 2021.

Should start your CPP pension at age 60 or 70?

  Should start your CPP pension at age 60 or 70? Canadians approaching retirement might be quick to take advantage of CPP. Utilizing your CPP and supplementing it with stocks like Suncor can help you make the best of it.Canadians have plenty to put their faith in, so they can take care of themselves when they retire. One of the first things your mind might wander off to as you think about retirement is your Registered Retirement Savings Plan (RRSP). The Canadian government also has a role to play in supporting you through your best years.

The Motley Fool Canada » Dividend Stocks » RRSP Investors : 2 Top Canadian Dividend Stocks At this point, I would call it a draw between the two names. 1 Massive Dividend Stock to Buy Today The Motley Fool Canada ’s top dividend expert and lead adviser of Dividend Investor Canada .

Here's how investing in top stocks such as Royal Bank of Canada (TSX:RY)(NYSE:RY) can help you save a substantial pile of money for retirement .

The Keystone XL oil pipeline is the project that gets most of the media attention. It’s designed to bring Canadian crude to refineries based in the United States.

Extensively opposition has delayed the development, pushing up costs to potentially $10 billion on the pipeline that will be nearly 1,900 kilometres long and run through two provinces and three states.

While there could be additional holdups, this mega-project should eventually get built.

Growth can also come through consolidation and TC Energy has the financial strength to make strategic acquisitions when opportunities come up in the market.

We saw this when the firm spent US$13 billion to buy U.S.-based Columbia Pipeline Group. That deal positioned TC Energy to be a key player in the emerging sector of transporting natural gas to LNG facilities in the United States.

TC Energy’s current dividend provides a yield of 4.5%.

Young Investors: Should Bank of Montreal (TSX:BMO) Stock Be in Your RRSP?

  Young Investors: Should Bank of Montreal (TSX:BMO) Stock Be in Your RRSP? Dividend stocks have long-been popular picks for buy-and-hold RRSP investors.The RRSP is a great option for setting cash aside for the golden years. The contributions made to the plan can be used to reduce taxable income, effectively cutting the net out-of-pocket investment. Depending on your tax bracket, the reduction could have a meaningful impact on the amount you would have paid the CRA.

Suncor Energy is a top dividend stock in Canada , but is it a good company to invest in right now after the dip in prices it experienced earlier in this year? RRSP Alert : 2 Top Dividend Stocks to Start Your Self - Directed Pension Fund. Canadian savers are using the Registered Retirement Savings

Suncor Energy is a top dividend stock in Canada , but is it a good company to invest in right now after the dip in prices it experienced earlier in this year? RRSP Alert : 2 Top Dividend Stocks to Start Your Self - Directed Pension Fund. Canadian savers are using the Registered Retirement Savings

A $10,000 investment in TC Energy 20 years ago would be worth $100,000 today with the dividends reinvested.

CN

Canadian National Railway Company(TSX:CNR)(NYSE:CNI) just endured a week-long strike that will put a dent in expected 2019 results.

The company says it will take weeks to clear out all the backlog and get operations back on track, so there isn’t a lot of positive sentiment around the stock these days.

In fact, the share price slipped from $125 in early November to a recent low around $117.

Bargain hunters have started to step in and the stock is now back above $119. Investors who have some cash on the sidelines, should consider buying CN today. Historically, any pullback in the stock has proven to be a great long-term entry point.

CN is a core piece of the efficient operation of the Canadian and U.S. economies. The company transports everything from cars and coal to grain, crude oil, forestry products and finished goods. The unique rail network connects three coasts, offering customers access to global markets through key ports.

The board raised the dividend by 18% in 2019 and investors should see a hefty increase in 2020. The compound annual dividend growth rate over the past 20 years is about 16%.

TFSA Pension: How to Keep the CRA Away From Your Retirement Earnings

  TFSA Pension: How to Keep the CRA Away From Your Retirement Earnings Canadians are searching for ways to increase their income without paying more taxes. One way to meet that objective is to hold dividend stocks inside a TFSA.Beginning in 2020, each Canadian pensioner will have as much as $69,500 in TFSA contribution space. The TFSA protects all interest, dividends, and capital gains from the tax authorities, so you can create an income stream that won’t impact your current tax rate or put OAS payments at risk.Let’s take a look at two dividend stocks that might be interesting picks today.

Purchasing Canadian dividend stocks does not involve in exchanging currency, so it is way easier to pull the buy trigger. Meanwhile, if we want to purchase US listed stocks , we either need to exchange CAD to USD using Norbert gambit, or wait until we receive enough dividend income in US currency.

Stocks like Canadian National Railway Co. (TSX:CNR)(NYSE:CNI) are a solid place to start for new income investors. RRSP Alert : 2 Top Dividend Stocks to Start Your Self - Directed Pension Fund. Canadian savers are using the Registered Retirement Savings Plan to build substantial pension

CN has made some loyal investors quite rich. A $10,000 investment in the stock two decades ago would be worth about $225,000 today with the dividends reinvested.

The bottom line

TC Energy and CN are leading players in their respective industries and should be solid picks to start a self-directed RRSP portfolio.

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More reading

  • Long-Term Investors: The Number 1 Mistake You’ll Want to Avoid in 2020
  • Is Canadian National Railway (TSX:CNR) a Buy at the Current Price?
  • CN Rail (TSX:CNR) Is a Must-Buy After Strike Woes
  • Top Stocks for December
  • Canadian Retirees: How the Rail Strike Impacts Your Income

David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of and recommends Canadian National Railway. Fool contributor Andrew Walker has no position in any stock mentioned. Canadian National Railway is a recommendation of Stock Advisor Canada.

RRSP Investors: 2 Canadian Stocks to Start a Balanced Pension Fund .
Diversification is highly recommended for a self-directed RRSP portfolio. Here are two top Canadian stocks to get the ball rolling.Ideally, we make contributions and invest the funds throughout the year to take advantage of dips in the market and start earning dividends as soon as possible.

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