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Money RRSP Investors: 2 Canadian Stocks to Hold for Decades

13:31  13 june  2018
13:31  13 june  2018 Source:   fool.com

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  Can investors win by following government money? Can investors win by following government money?

Canadian investors are searching for top dividend stocks to add their RRSP portfolios. Is one a better bet? Both companies should be solid buy-and- hold picks for a dividend-focused RRSP .

Canadian investors are searching for top dividend stocks to add their RRSP portfolios. Both companies should be solid buy-and- hold picks for a dividend-focused RRSP . At this point, the two stocks look somewhat oversold after their recent pullbacks, so I would probably split a new

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Canadian investors are searching for reliable stocks to build a buy-and-hold RRSP portfolio.

Let’s take a look at Nutrien Ltd. (TSX:NTR) (NYSE:NTR) and TransCanada Corporation (TSX:TRP) (NYSE:TRP) to see why they might be interesting picks.

Nutrien

Nutrien was created through the merger of Potash Corp. and Agrium.

The combined potash, nitrogen, and phosphate operations position the company to better compete on the global stage, and Agrium’s strong retail division provides a nice revenue hedge to offset any volatility in the wholesale segment.

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RRSP Investors : 2 Canadian Stocks to Hold for Decades . Both companies should be reliable buy-and- hold picks for a new TFSA retirement fund . 5 Top Canadian Dividend Stocks to Build a TFSA Retirement Fund - www.fool.ca.

A Registered Retirement Savings Plan ( RRSP ), or Retirement Savings Plan (RSP), is a type of Canadian account for holding savings and investment assets.

Fertilizer prices appear to be improving after going through a multi-year slump. In fact, Nutrien upgraded its earnings guidance when it reported the Q1 2018 results, citing improvements in potash and nitrogen markets. The phosphate group is expected to perform in line with 2017.

Nutrien also declared a quarterly dividend of US$0.40 per share during its first three months. That’s good for a yield of 3%.

Both Agrium and Potash wrapped up major capital programs before the merger, so Nutrien is well positioned to compete on the global stage and meet rising market needs in the coming decades. As the fertilizer segment continues its recovery, shareholders should see a strong improvement in free cash flow, which would support dividend hikes.

3 top Canadian dividend stocks to grow your TFSA retirement fund

  3 top Canadian dividend stocks to grow your TFSA retirement fund Suncor Energy Inc. (TSX:SU)(NYSE:SU) and another two top companies have delivered impressive returns for buy-and-hold investors.The strategy makes sense, especially when the dividends are used to buy new shares to take advantage of a powerful compounding process that can turn a modest initial investment into a nice nest egg over time.

The bottom line. An equal investment in these two stocks would provide an average yield of more than 5%. In addition, RRSP investors get good exposure to Canada , the U.S., and Latin America. A Top Dividend Stock You Could Hold in Your TFSA for Decades .

However, some investors might be concerned about the large Canadian residential mortgage portfolio in an era of high I would probably split a new investment between the two companies. Other buy-and- hold opportunities exist today to help Top Stocks for June. Two New Stock Picks Every Month!

TransCanada

TransCanada reported a 21% increase in Q1 earnings per share compared to the same period last year. The company’s legacy assets continue to perform well, and the completion of $7 billion in new projects helped offset revenue lost through the disposition of some non-core power assets in the United States.

TransCanada is currently working its way through $21 billion in near-term developments, of which $11 billion should go into service this year. The rest is scheduled for completion through 2021. As the new assets go online, TransCanada expects to see revenue and cash flow improve enough to support annual dividend growth of at least 8% over this time frame.

The current payout provides a yield of 5%.

Beyond 2021, TransCanada has $20 billion in larger projects under consideration, including the Bruce Power life extension, Coastal GasLink, and Keystone XL. If any one of these projects gets the green light, investors could see the dividend-growth guidance extended.

Where RRSP investors can find dividend growth

  Where RRSP investors can find dividend growth Where RRSP investors can find dividend growthTotal return = capital appreciation + dividends (or cash inflows)

Canadians are searching for reliable stocks to hold inside their self-directed RRSP accounts. Investors like the company for its dividend-growth track record. Fortis has increased its distribution every year for more than four decades .

BCE Inc. (TSX:BCE)(NYSE:BCE) and Telus Corporation (TSX:T)(NYSE:TU) are two top dividend stocks that TFSA investors should consider due to their solid income potential and growing payouts.

In addition, management is evaluating opportunities for smaller tuck-in projects along TransCanada’s extensive gas and liquids infrastructure portfolio.

The bottom line

Nutrien and TransCanada should be attractive picks for a buy-and-hold RRSP fund. An equal investment between the two companies would provide a 4% yield and give your portfolio solid exposure to both North American and global growth.

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Fool contributor Andrew Walker owns shares of Nutrien. Nutrien is a recommendation of Stock Advisor Canada.

3 stocks that have soared more than 75% in just 3 months .
3 stocks that have soared more than 75% in just 3 monthsAnd for that reason, buying when a stock price is rising could be a better strategy than buying on a dip, since there’s likely some optimism or good news behind the shares’ growth in the first place.

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