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First Brexit… then Trump… Now, it’s time for Pro

Is your portfolio really prepared for what’s coming next?

To help investors like you navigate this historically uncertain — yet high-flying — market and prepare for an inevitable downturn, we’re re-opening our Motley Fool Pro Canada service to a select few new members for a short time.

To discover how Pro Canada could help you to increase your upside potential… reduce your downside risk… and earn paycheque-like income in the process, simply click here — before the small number of spots we have left are all gone!

2 Dividend-Growth Stars for Your RRSP

Canadian investors are looking for reliable dividend-growth stocks to help them save for retirement.

Here are the reasons why Royal Bank of Canada (TSX:RY)(NYSE:RY) and Fortis Inc. (TSX:FTS) should be on your RRSP radar.

Royal Bank

Royal Bank generated just under $10 billion in profit in 2015. That’s an impressive feat considering the banks are battling some economic headwinds.

The secret to Royal Bank’s success lies in its balanced revenue stream. Personal and commercial banking represents 52% of earnings, but the bank also gets significant contributions from its capital markets, wealth management, and insurance divisions.

From a geographic perspective, Canada generates 62% of the company’s revenue, The U.S. kicks in 20%, and international operations contribute the remaining 18%.

Royal Bank recently completed its US$5 billion purchase of City National, a California-based private and commercial bank focused on high-net-worth clients.

The addition of the business gives Royal Bank a great platform to expand its U.S. presence, and investors should see stronger contributions from the American operation in the coming years.

Market watchers are concerned the oil rout is going to hit the Canadian banks. Loss provisions have certainly increased, but Royal Bank’s drawn exposure to energy companies represents less than 2% of the total loan book, so the risks are manageable.

Royal Bank has a long history of paying a reliable and growing dividend. The current quarterly distribution of $0.81 per share yields 4.2%.

Fortis

Fortis is a natural gas and electricity utility with assets in Canada, the U.S., and the Caribbean.

The company has grown significantly over the years through strategic acquisitions, and that trend continues.

Fortis spent US$4.5 billion two years ago to buy Arizona-based UNS Energy in a deal that expanded the company’s presence in the United States and added important regulatory and geographic diversification to the revenue stream.

The integration of UNS went very well, and investors are already reaping the benefits. Fortis raised its dividend 10% last fall and delivered a 20% increase in net income in 2015 when compared with the previous year.

With UNS comfortably in the stable, Fortis is setting its sights on an even bigger prize. The company is spending US$11.3 billion to acquire ITC Holdings Corp., the largest pure-play transmission company in the United States.

Fortis has raised its dividend every year for more than four decades, and management plans to hike the payout by 6% per year through 2020.

The current distribution offers a yield of 3.75%.

Urgent update: Motley Fool issues rare "double down" stock alert

Not to alarm you but you recently missed an important and rare event. Stock Advisor Canada issued a "double down"... and history suggests it pays to listen. Because 10 of the most lucrative "double downs" in one of the Motley Fool's premier services skyrocketed an average of 434%! So, simply click here to discover why Motley Fool "double downs" have some investors rocking with excitement. Five years from now, you'll wish you'd grabbed this stock. Click here to learn more.

Fool contributor Andrew Walker has no position in any stocks mentioned.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

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