RRSP Investors: 2 Under-the-Radar Stocks to Boost Your Retirement Savings

Keyera Corp. (TSX:KEY) and a specialty insurance pick have growing businesses and rising dividends.

| More on:
The Motley Fool

Canadians are searching for quality stocks to add to their self-directed RRSP portfolios.

Everyone is familiar with the popular go-to names in the Canadian market, but the TSX Index is full of other great companies that might not get the attention they deserve.

Let’s take a look at Intact Financial (TSX:IFC) and Keyera (TSX:KEY) to see why they might be interesting picks.

Intact Financial

Intact Financial is Canada’s largest provider of home and auto insurance in Canada and has a growing specialty insurance business in the United States. The company’s 13,000 employees look after more than five million personal, business, public sector, and institutional customers. In Canada, the company sells insurance under the Intact and belairdirect brands, both through partner brokers and via its BrokerLink subsidiary.

In the U.S., Intact operates through OneBeacon Insurance Group, which it acquired last year for $2.3 billion.

The company reported solid Q2 2018 results. Net operating income rose 4% to $201 million compared to Q2 last year. Premiums grew 16% in the quarter and 18% in the first half of 2018, supported by the One Beacon acquisition.

Intact raised the quarterly dividend by more than 9% to $0.70 per share for 2018. That’s good for an annualized yield of 2.6%.


Keyera is a midstream energy solutions company with assets that include natural gas gathering and processing, natural gas liquids (NGL) processing, transportation, storage, and marketing. The name might not be familiar to you, but Keyera is a major player in its segment, with a market capitalization of $7.7 billion.

The company reported Q2 adjusted EBITDA of $210 million compared to $133 million in the same period last year. Net earnings came in at $107 million, or $0.52 per share, compared to $67 million, or $0.36 per share, in Q2 2017.

The diversified asset base provides a balanced revenue stream, and the company’s strong capital program should support ongoing revenue and cash flow growth.

Keyera just raised the monthly dividend by 7% to $0.15 per share. That’s good for a yield of 4.5%.

The stock has enjoyed a steady run from $32 in March to the current price near $37, but that’s still off the 2014 high of $49, so there could be some nice upside in the next couple of years as the energy sector continues to recover.

The bottom line

Intact and Keyera are growing companies with leadership positions in their respective markets. Both stocks should be solid picks for a buy-and-hold RRSP portfolio.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Andrew Walker has no position in any stock mentioned. Intact is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

grow money, wealth build
Dividend Stocks

1 Top Dividend Stock That Can Handle Any Kind of Market (Even Corrections)

While most dividend aristocrats can maintain their payouts during weak markets, very few can maintain a healthy valuation or bounce…

Read more »

Red siren flashing
Dividend Stocks

Income Alert: These Stocks Just Raised Their Dividends

Three established dividend-payers from different sectors are compelling investment opportunities for income-focused investors.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

3 Top Canadian Dividend Stocks to Buy Under $50

Top TSX dividend stocks are now on sale.

Read more »

Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks
Dividend Stocks

Index Funds or Stocks: Which is the Better Investment?

Index funds can provide a great long-term option with a diverse range of investments, but stocks can create higher growth.…

Read more »

A stock price graph showing declines
Dividend Stocks

1 Dividend Stock Down 37% to Buy Right Now

This dividend stock is down 37% even after it grew dividends by 7%. You can lock in a 6.95% yield…

Read more »

ETF chart stocks
Dividend Stocks

Invest $500 Each Month to Create a Passive Income of $266 in 2024

Regular monthly investments of $500 in the iShares Core MSCI Canadian Quality Dividend Index ETF (TSX:XDIV), starting right now in…

Read more »

edit Sale sign, value, discount
Dividend Stocks

2 Top Canadian Stocks Are Bargains Today

Discounted stocks in a recovering or bullish market are even more appealing because their recovery-fueled growth is usually just a…

Read more »

Hand writing Time for Action concept with red marker on transparent wipe board.
Dividend Stocks

TFSA Investors: Don’t Sleep on These 2 Dividend Bargains

Sleep Country Canada Holdings (TSX:ZZZ) stock and another dividend play in retail are looking deep with value.

Read more »