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The 5-Stock RSP Portfolio

With the eager-beaver investors already making their TFSA contributions for the year, the focus is beginning to move towards RSP contributions and what should be held inside of a retirement savings account.

The good news for investors is that the RSP account is typically long term in nature, which translates to many investors having fewer holdings that can be more volatile. For those seeking the best long-term investments to own, the formula does not have to be very complicated.

The first name on the list is none other than Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM), which, at a current price of $122.50 per share, offers investors a dividend yield of 4.25%. As the company recently completed a major U.S. wealth management acquisition, and North American markets have been rising, investors can expect to see higher contributions to the bottom line from this particular segment in the next earnings report.

The second name on the list is dividend champion Enbridge Inc. (TSX:ENB)(NYSE:ENB). At a current price of $49.50, Enbridge offers investors a dividend yield of almost 5.5% as operating income has increased at a compounded annual growth rate (CAGR) of more than 23% over the past three fiscal years. As operating efficiency increases, so too does the reward paid to shareholders.

For those seeking exposure to mining, shares of Teck Resources Ltd. (TSX:TECK.B)(NYSE:TECK), at a current price of $37 per share, may just be ready for another major run. The entire mining sector will once again be in a position to leap higher, as interest rates increase over the next year. To make this investment even more attractive, the company boasts a high amount of tangible book value for every share of stock. The only question is how fast it can be converted to cash and returned to shareholders.

On the speculative side, certain investors may want to take a very small position with shares of Bombardier, Inc. (TSX:BBD.B), as the company continues to turn the corner. With support from the provincial government, potentially the worst case is that investors will see very little movement for the foreseeable future until a clear direction is found by company management. As a provincial gem, it is highly unlikely that this company will fly away anytime soon.

The final name on the list is U.S.-based Alphabet Inc. (NASDAQ:GOOG)(NASDAQ:GOOGL), which very well known across the globe. As cars become driverless, and numerous devices start to become operated via cell phone or by artificial intelligence, Google may be the best name to hold over the next decade. In spite of already being a behemoth, the chances that investors will achieve an above-average return with this name are very high.

With so many fantastic names to choose from, investors need not be concerned about the ability to find the potential, but instead they should focus on the right allocations and the right mix of stocks.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor RyanGoldsman owns shares of ENBRIDGE INC. David Gardner owns shares of Alphabet (A shares) and Alphabet (C shares). Tom Gardner owns shares of Alphabet (A shares) and Alphabet (C shares). The Motley Fool owns shares of Alphabet (A shares), Alphabet (C shares), and Enbridge. Enbridge is a recommendation of Stock Advisor Canada.

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