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3 Top Dividend Stocks for Your RRSP

As the markets become more volatile, with increasingly greater risks to the downside, as investors digest many worrying data points as well as geopolitical events, stable dividend stocks are all the more attractive.

Let’s take a look at three top dividend stocks for your RRSP and your retirement income.

Industrial Alliance Insur. & Fin. Ser. (TSX:IAG)

Industrial Alliance pays an annual dividend of $1.52 for a dividend yield of 2.91%.

While the company is pretty much a domestic operator, which has a slower growth profile than some of the international geographies, such as Asia, the insurance business grew 15% in the quarter, and the recent acquisition of HollisWealth should help drive growth going forward.

And on the flip side, with a primary focus on the Canadian market, Industrial Alliance stands to gain the most of its peer group from rising interest rates. The company has disclosed that a 10-basis-point increase in interest rates will impact net income by $15 million.

With guidance for 2018 EPS in the range of $5.20-5.60 for growth in the range of 6.6-14.8%, Industrial Alliance shares are gaining momentum.

Sienna Senior Living Inc (TSX:SIA)

With a dividend yield of 5.07%, Sienna is poised to continue to satisfy investors’ hunger for dividends, while benefiting from one of the most lucrative secular trends today: the aging population.

As an operator of long-term care homes and retirement homes in Ontario and British Columbia, Sienna has and will continue to benefit from favourable demand/supply trends.

Simply put, the aging population has translated into increasing demand, while supply has not kept up pace.

In the latest quarter, the company reported an 8% increase in funds from operations, with the retirement home segment posting the strongest results.

Going forward, the company’s focus on increasing its presence in the retirement home category will serve to drive long-term growth.

Canadian Natural Resources Ltd. (TSX:CNQ)(NYSE:CNQ)

Canadian Natural currently has a dividend yield of 3.24%, and it is one of many energy companies beating expectations and delivering massive increases in its cash flow and bottom line. The stocks have been slower to react, so there still exists a major opportunity to buy.

It offers a long-life, low-decline portfolio and oil and gas assets that have given the company a predictable and reliable stream of cash flow with little reserve-replacement risk.

Along with the release of strong fourth-quarter results, the company increased its dividend by 22% — a testament to the confidence that management has in the fundamentals of its business.

So, there you have it: three dividend stocks with good long-term growth potential as well as steady, reliable dividends.

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Fool contributor Karen Thomas owns shares of Canadian Natural Resources and CDN NATURAL RES.

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