Canadian savers are searching for ways to balance out the geographic exposure they have in their retirement portfolios.
Let’s take a look at three stocks that might be interesting picks today for your self-directed RRSP.
Nutrien (TSX: NTR)(NYSE: NTR)
One year ago, the merger of Potash Corp. and Agrium created a global fertilizer giant called Nutrien. The two companies already sold potash to wholesale buyers around the world through their Canpotex marketing company, so the decision to combine the two businesses made sense.
Management has done a good job of cutting costs through the integration process. Run-rate synergies topped expectations in 2018, and the company is benefiting from a recovery in global fertilizer prices. In addition, Nutrien is expanding the retail operations that came with Agrium. The division sells seed and crop protection products to farmers around the world.
Nutrien just raised the dividend by 7.5% for 2019, and investors should see the distribution grow in the coming years. At the time of writing, the dividend provides a yield of 3.5%.
Bargain hunters have started to buy the stock after a steep slide through the end of 2018, and more upside should be on the way.
Sun Life Financial (TSX: SLF)(NYSE: SLF)
Sun Life sold off its U.S. annuities business after the Great Recession and has focused new investment on lower-risk assets, including real estate and property management. The trend continues with the latest announcement that Sun Life will merge its Bentall Kennedy division, which it bought in 2015, with GreenOak Real Estate, a global real estate investment company with US$11 billion in assets under management.
Sun Life is also building on its strong Asian operations. The company has subsidiaries or partnerships in India, China, Vietnam, Indonesia, and the Philippines. The region offers significant long-term insurance and wealth management growth opportunities, and it already accounts for 17% of underlying net income.
Dividend growth has resumed in recent years, and the current payout provides a solid 4.4% yield. The pullback in the stock over the past few months is giving investors an opportunity to pick up Sun Life at a reasonable price.
Brookfield Property Partners (TSX: BPY.UN)(NASDAQ:BPY)
Brookfield Property Partners is the real estate investment arm of Brookfield Asset Management.
The company is a global owner and operator of high-quality real estate that includes multi-family, hospitality, industrial, self-storage, office, retail, and student housing properties.
The company’s scale gives investors the opportunity to allocate capital around the world in investments that would otherwise be out of reach.
The stock is off the recent lows, but investors who buy today can still pick up a yield of 5.6%.
The bottom line
Nutrien, Sun Life, and Brookfield Property Partners should be solid buy-and-hold picks. An equal investment in all three stocks would give Canadian savers good global exposure across a variety of industries while providing a nice yield.
