Young Investors: 3 Dividend Stocks for Your RRSP

Telecom stocks like BCE Inc. (TSX:BCE)(NYSE:BCE) boast income and a wide moat, which should pique the interest of young Canadians saving for retirement.

A Canadian Imperial Bank of Commerce survey released in February revealed what the perceptions of Canadians were regarding retirement. The average that Canadians believed they needed to have saved for retirement was $756,000, but 90% of those surveyed did not have a plan for how to amass this amount. Millennials tended to aim a little higher, and they gave an average of $917,000 to save for retirement.

In June, I’d discussed how millennials will need to adapt and take a more active role in their investment future to maximize capital growth. Today, we are going to focus on income-yielding stocks that are fantastic long-term holds in an RRSP or even a TFSA.

The telecommunications industry has faced new challenges, as Canadians have increasingly opted to cut their cable in recent years. Telecom companies have also come under fire for aggressive sales tactics. The industry has managed to evolve by pursuing wireless and internet customer growth as traditional cable continues its decline.

Here are three dividend stocks that are worth holding for the long haul.

BCE Inc. (TSX: BCE)(NYSE: BCE)

BCE is the largest communications company in Canada. Shares have dropped 9.8% in 2018 as of close on July 9. The stock is down 6.3% year over year. Currently, BCE is locked in competition with another telecom rival that we will discuss soon. It has made strides to be more competitive in the massive Toronto market. BCE announced the launch of its all-fibre network in Toronto in its most recent quarterly report.

In the first quarter, BCE saw net earnings climb 3.1% year over year to $709 million. Revenues were driven by over 100,000 net customer additions in the quarter. These additions were made in postpaid wireless, internet, and IPTV, and were up 39% from the same period in the prior year.

BCE declared a quarterly dividend of $0.755 per share, representing an attractive 5.4% dividend yield.

Rogers Communications Inc. (TSX: RCI.B)(NYSE: RCI)

Rogers is the largest wireless provider in Canada. The company is currently locked in the aforementioned battle with BCE in the vaunted Toronto market. Back in April, I’d recommended that investors pick Rogers stock over BCE. Shares have climbed 10% over a three-month period as of close on July 9.

The company was bolstered by its first-quarter results. It reported postpaid net additions of 95,000, which was up 35,000 from the prior year. This was also the highest total recorded in nine years. On the same day, Rogers declared a quarterly dividend of $0.48 per share, representing a 3% dividend yield.

Telus Corporation (TSX: T)(NYSE: TU)

Telus rounds out the Big Three wireless providers in Canada. Its stock has dropped 1.1% in 2018 so far but is up 5% year over year. In the first quarter, Telus reported postpaid wireless net additions of 91,000, which represented a 9.1% jump from the prior year. The company hiked its quarterly dividend to $0.525 per share, which adds up to a very solid 4.3% dividend yield.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned.

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