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Attention Canadian Savers: 2 Top RRSP Picks for 2017

Canadian investors are always searching for quality names to add to their RRSP portfolios.

Let’s take a look at Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) to see why they are interesting picks right now.

Enbridge

Enbridge is in the process of buying Spectra Energy for $37 billion. The merger will create an energy infrastructure powerhouse with an enterprise value approaching $165 billion and give the company strategic assets located across Canada and the United States.

Weakness in the oil sector combined with public resistance to mega projects probably spurred the move, but Enbridge’s investors are set to benefit as a result.

Why?

The two businesses have a total of $26 billion in commercially secured projects currently under development. As these assets are completed and go into service, Enbridge expects to see strong enough cash flow growth to support annual dividend increases of at least 10% through 2024.

Beyond that point, the oil industry should be in better shape, and demand for new infrastructure is expected to improve.

If the oil sector woes linger, Enbridge is large enough to grow through additional acquisitions.

Investors who buy the stock today can pick up a dividend yield of 3.8%.

Bank of Nova Scotia

Bank of Nova Scotia has lagged its peers in recent years, but that is beginning to change as investors warm up to the company’s push into Latin America.

What’s the story?

Bank of Nova Scotia has pumped billions into its strategy of becoming a major player in Mexico, Colombia, Peru, and Chile. These four countries form the core of the Pacific Alliance, which is a trade bloc set up to promote the free movement of capital and goods among the member states.

With more than 200 million consumers, the Pacific Alliance market offers strong growth potential for the bank. In fact, the investments are already starting to pay off, as Bank of Nova Scotia’s international operations delivered $2 billion in earnings in fiscal 2016.

The stock has rallied significantly this year, but still offers an attractive dividend yield of 3.9%.

Is one a better bet?

Both companies are attractive picks and deserve to be in any RRSP portfolio.

Earlier in the year, I would have picked Bank of Nova Scotia as the first choice, but the stock is up nearly 50% from the January lows, so I would probably call it a coin toss between the two names today.

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Fool contributor Andrew Walker has no position in any stocks mentioned. The Motley Fool owns shares of Spectra Energy. Spectra Energy is a recommendation of Stock Advisor Canada.

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