The Motley Fool

5 Safe Dividend-Growth Stocks for Your RRSP

Opening and contributing to a Registered Retirement Savings Plan (RRSP) is a great way to set money aside for retirement, and deductible contributions can also help reduce your taxes. Dividend-growth stocks are ideal investment options for RRSPs, so let’s take a quick look at five with very safe yields of 1-5% that you could add to yours today.

1. Metro, Inc.

Metro, Inc. (TSX:MRU) is one of Canada’s largest owners and operators of grocery stores, convenience stores, and pharmacies. Its banners include Metro, Super C, Food Basics, Marche Richelieu, and Brunet.

It pays a quarterly dividend of $0.14 per share, or $0.56 per share annually, which gives its stock a yield of about 1.3% at today’s levels. It’s also important to note that the company’s 20% dividend hike in January has it on pace for 2016 to mark the 22nd consecutive year in which it has raised its annual dividend payment.

2. TransCanada Corporation

TransCanada Corporation (TSX:TRP)(NYSE:TRP) is one of North America’s largest owners and operators of energy infrastructure assets, including natural gas and crude oil pipelines, natural gas storage terminals, and power-generation facilities.

It pays a quarterly dividend of $0.565 per share, or $2.26 per share annually, which gives its stock a yield of about 4.1% at today’s levels. It’s also important to note that the company’s 8.7% dividend hike in February has it on pace for 2016 to mark the 16th consecutive year in which it has raised its annual dividend payment, and it has a dividend-per-common-share growth target of 8-10% annually through 2020.

3. Saputo Inc.

Saputo Inc. (TSX:SAP) is Canada’s leading producer, marketer, and distributor of dairy products, including cheese, fluid milk, cream, and dairy ingredients, and it’s one of the 10-largest dairy processors in the world.

It pays a quarterly dividend of $0.135 per share, or $0.54 per share annually, which gives its stock a yield of about 1.4% at today’s levels. It’s also important to note that the company has raised its annual dividend payment for 16 consecutive fiscal years, and its very strong growth of operating cash flow in fiscal 2016 should allow this streak to continue in fiscal 2017.

4. Cogeco Communications Inc.

Cogeco Communications Inc. (TSX:CCA) is the 11th largest cable system operator in North America, and it’s the second-largest in Ontario and Quebec.

It pays a quarterly dividend of $0.39 per share, or $1.56 per share annually, which gives its stock a yield of about 2.3% at today’s levels. It’s also important to note that the company’s 11.4% dividend hike in October has it on pace for 2016 to mark the 12th consecutive year in which it has raised its annual dividend payment.

5. Canadian Apartment Properties REIT

Canadian Apartment Properties REIT (TSX:CAR.UN) is one of Canada’s largest residential landlords, serving over 47,750 families across the country through its ownership interests in apartments, townhomes, and manufactured home communities.

It pays a monthly distribution of $0.1042 per share, or $1.25 per share annually, which gives its stock a yield of about 4% at today’s levels. It’s also important to note that the company’s two distribution hikes since the start of 2015, including its 2.5% hike last month, have it on pace for 2016 to mark the fifth consecutive year in which it has raised its annual dividend payment.

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.

Fool contributor Joseph Solitro has no position in any stocks mentioned.

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