The Motley Fool

Our Analysts’ Top Picks for Your RRSP

We asked our analysts to offer up their top stock ideas for your RRSP. 

Nelson Smith: Rogers Sugar (TSX:RSI)

My favorite stock for your RRSP is Rogers Sugar. It enjoys protection from the government, which restricts sugar imports. These restrictions also ensure pricing power for the company, which protect margins. The stock is down 20% so far in 2014, because a bumper U.S. crop forced down sugar prices and natural gas input costs have gone up.

You won’t get huge capital gains with this one, but Rogers could give you a nice steady return with a reasonable margin of safety. We still like our sweets.

Fool contributor Nelson Smith owns shares in Rogers Sugar.

Cameron Conway: Royal Bank of Canada (TSX:RY)(NYSE:RY) and Bank of Nova Scotia (TSX:BNS)(NYSE:BNS)

When it comes to RRSPs, I like to see Canadian bank stocks make up a good portion of the portfolio, at least 30%. Banks such as Royal Bank of Canada and Bank of Nova Scotia have proven year after year that profits will rise and the stock price will climb.

An RRSP should be the anchor of your portfolio, giving you a sense of stability with steady returns. Then out of that stability you have the freedom to have some real fun in the markets, without the fear of compromising your future. It also gives you something to fall back on and rebuild from if a high-risk venture goes up in smoke.

Canadian bank stocks may not be flashy or quick earners but by the time retirement comes around, the growth will be significant.

Fool contributor Cameron Conway does not own any shares in the companies mentioned.

Deon Vernooy: Telus (TSX:T)(NYSE:TU) and BCE (TSX:BCE)(NYSE:BCE)

Telus is one of the leading Canadian telecommunications companies operating in a virtual oligopoly with its two main competitors. The company has more than 13 million customers across its mobile, landline, high-speed internet and television services, and managed to grow the mobile customer base faster than any of its main competitors over past few years.

The company has an excellent track record in terms of profit growth and cash flow generation which has supported a consistent and growing dividend payment over time.

Telus has a strong Canadian franchise, a well-regarded management team and is reasonably valued when the above-average growth prospects are taken into account. This stock will make a great addition to a long-term focused RRSP.

BCE is another member of the Canadian telecommunication oligopoly, and has provided excellent investment returns to shareholders over time. BCE has more than 17 million subscribers across its mobile, landline, high-speed internet and television services.

BCE has considerable scale in the landline, digital television and high speed internet services. The firm’s considerable customer base, infrastructure and distribution network provide it with sustainable competitive advantage. Combined with a reasonable valuation, moderate growth prospects and a very attractive dividend yield of over 5%, I believe this is another stock that belongs in your RRSP.

Fool contributor Deon Vernooy holds positions in BCE Inc and Telus.

5 Canadian Growth Stocks Under $5

We are giving away a FREE copy of our "5 Small-Cap Canadian Growth Stocks Under $5" report. These are 5 Canadian stocks that we think are screaming buys today.

Get Your Free Report Today

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.