As the year comes to a close, Canadian investors must once again be concerned with the status of their registered plans. Parents have an additional account to be concerned with: the Registered Education Savings Plan (RESP). As many are aware, the government will kick in up to $1,000 per year, making this an excellent way to increase the amount of money available to the beneficiaries as they enter post-secondary education.
With a December 31st deadline, many parents are running against the clock to get the money into the account and will have to decide which investment will be best suited for their portfolios. As a reminder to parents with beneficiaries who are on the verge of attending post-secondary education, safety comes first. For those with younger children, however, there are a number of excellent opportunities that have high probabilities of success.
For investors seeking the best dividend opportunities, shares of Toronto-Dominion Bank (TSX: TD)(NYSE: TD) currently pay close to 3.25%. The company has consistently increased dividends by a rate close to 10% per year since 2013. After expanding its footprint in the U.S. market, investors can look forward to many more dividend raises in addition to capital appreciation.
Investors may wise to consider shares of Sun Life Financial Inc. (TSX: SLF)(NYSE: SLF). Sun Life has recently raised its dividend to $0.455 per share per quarter. While doing nothing, investors have once again received a raise, as the company continues to appreciate in value. The opportunity presented to investors seeking a high probability of reoccurring revenues and profits is that the insurance industry measures itself over a generation, not annually, as most companies do. As another solid long-term hold, investors will receive a dividend close to 3.5%.
Near a 52-week low, shares of Hydro One Ltd. (TSX: H) have found a comfortable base, as the company came to market through an initial public offering approximately two years ago. At a price close to $22.50 per share, investors will receive a dividend yield of almost 4%, as the company, which is one of the most defensive on the market, should see long-term profits climb steadily. In the business of transmitting power to homes and businesses, the company has a unique position in being able to raise prices on consumers who have no other choice but to use the service.
The last name on the list is none other than Pure Industrial Real Estate Trust (TSX:AAR.UN), which, at a price now approaching $6.80, pays a dividend yield in excess of 4.5%. As an industrial real estate company, the value of the shares are largely supported by the value in real estate values. The major upside for investors is the long-term nature of the industrial leases, which will provide for price increases annually. With the expectation for consistent revenues an earnings, investors have very little to worry about over the next decade.
