Technology 2020 RRSP Picks: 3 Top Stocks to Secure Income of $12,333/Year
RRSP investors: This simple rule can increase your dividend income
If you want to increase your RRSP dividend income, avoid Canadian ETFs that hold U.S. stocks, like the Vanguard S&P 500 Index ETF (TSX:VFV).If so, you have plenty of options to choose from. There are thousands of stocks listed on Canadian and U.S. indices, many of which have high dividend yields. Your easiest and most obvious choice, of course, is to invest in Canadian stocks. They let you invest your money without having to worry about exchange rates, currency conversion, or withholding taxes.
Hi, Fools. I’m back to highlight three top dividend-growth stocks. As a quick reminder, I do this because businesses with consistently increasing dividend payouts
- can guard against the harmful effects of inflation by providing a ; and
- tend to outperform the market averages over the long haul.
The three stocks below offer an average dividend yield of 4.9%. Thus, if you spread them out evenly in an average, the group will provide you with a growing $12,333 (C$16,311) annual income stream. And it’s all completely passive.
Hate Taxes? Then Do This 1 Awesome Trick With Your TFSA and RRSP
If you hate paying taxes, do this one cool trick with your TFSA and RRSP. Fortis Inc. (TSX:FTS)(NYSE:FTS) is a good company to start with.We all hate to pay taxes. As Canadians, we get to enjoy free health care, beautifully preserved nature, and world-class infrastructure. But we also pay extremely high taxes to get these things.
Let’s get to it.
Leading things off is renewable energy provider TransAlta Renewables, which has grown its dividend 22% over the past five years.
TransAlta’s solid network of 34 renewable power-generation facilities and diversified nature — wind, gas, hydro, solar — should continue to support steady dividend growth for many years to come. In the most recent quarter, adjusted funds from operations increased to $69 million (C$91.26 million) while distributable cash improved by $2 million (C$2.65 million).
“We remain very focused on successfully commissioning our two U.S. wind projects prior to the end of the year,” said President John Kousinioris. “In addition, we are continuing work to add further accretive projects to our portfolio, including potential additional drop-down opportunities from TransAlta Corporation.”
Half of Canadians Are Making 1 Horrible Investing Mistake
A TFSA can look pretty tempting, but an RRSP still has value.This has left many Canadians feeling that the Registered Retirement Savings Plan (RRSP) is now all but obsolete. But that’s where about half of the population is wrong. While there are many advantages to the TFSA, there are many reasons why Canadians should be investing in an RRSP as well.
TransAlta currently offer an attractive dividend yield of 6.5%.
With dividend growth of 55% over the past five years, electricity provider Canadian Utilitiesis next up on our list.
Canadian Utilities’s reliable dividend growth continues to be underpinned by economies of scale ($22 billion, C$29.10 billion in assets), global reach (two million-plus customers worldwide), and highly stable cash flow. Over the past year, the company has generated $1.35 billion (C$1.79 billion) in operating cash flow, even amid softening revenue.
“Our success as a financially secure and stable energy infrastructure company is a result of our disciplined and prudent capital investment in utility and utility-like assets with regulated or long-term contracted earnings,” said CFO Dennis DeChamplain in the most recent conference call.
Canadian Utilities currently offers a dividend yield of 4.4%.
RRSP Investors: 3 Top Dividend-Growth Stocks for 2020
This group of dividend-growth streakers, including Royal Bank of Canada (TSX:RY)(NYSE:RY), can help build your wealth the prudent way.Hi, Fools. I’m back to highlight three top dividend-growth stocks.
Rounding out our list is oil and gas giant Suncor Energy, which has grown its dividend 59% over the past five years.
Suncor’s stable payout growth continues to be backed by high-quality assets, a strong presence in the Athabasca oil sands, and hefty cash flow generation. In the most recent quarter, Suncor generated $2.7 billion (C$3.57 billion) in funds from operations, even as revenue declined 10%.
With that cash flow, management returned $1.4 billion (C$1.85 billion) to shareholders during the quarter through dividends and increased buybacks.
“Suncor generated $2.7 billion (C$3.57 billion) in funds from operations and $1.1 billion (C$1.45 billion) of operating earnings during the third quarter, reflecting the ability of our integrated business to deliver strong results across a wide range of market conditions” said CEO Mark Little.
Suncor shares currently offer an attractive dividend yield of 3.9%.
The bottom line
There you have it, Fools: three top dividend-growth stocks worth checking out.
As always, they aren’t formal recommendations. They’re simply a starting point for more research. The breaking of a dividend-growth streak can be especially painful, so plenty of due diligence is still required.
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- Remains a Top Energy Stock to Own Today
Fool contributor Brian Pacampara owns no position in any of the companies mentioned.
Retirees: This RRSP Mistake Could Cost You Millions .
Avoid RRSP withdrawal taxes by spreading stocks like Fortis Inc (TSX:FTS)(NYSE:FTS) across both an RRSP and a TFSA.Giving you a tax break along with the ability to grow your investments tax free, it can offer considerable tax savings.