The Motley Fool

2 Sleep-Easy Stocks for Your RRSP

Image source: Getty Images

Canadians are increasingly turning to self-directed portfolios to invest savings for their retirement.

The trend is driven by more user-friendly online trading platforms and improved access to information about a company’s financial situation, market status, and the ongoing economic outlook both in Canada and around the world.

Time is still required to research top picks, and depending on the company and its industry, investors often have to monitor the holdings on a regular basis. For some people, investing is a hobby; for others, it is viewed as a necessary part of their financial planning, but they would prefer to spend their time on other interests.

Fortunately, there are some stocks that fall into the buy-and-forget category that can help investors meet their goals without taking up too much time along the way.

Let’s look at these companies that might be interesting sleep-easy picks today for your RRSP portfolio.

Waste Connections

Waste Connections (TSX:WCN)(NYSE:WCN) collects, transfers, and disposes of residential and commercial waste and recycling material. The garbage business might not sound very appealing, but it is definitely recession proof, and demand for the services is growing.

Waste Connections is a major player in Canada and the United States. The company has typically grown through acquisitions, and more deals are likely on the way amid ongoing consolidation in the industry. The business generates significant free cash flow, and the board raised the dividend by 14% late last year.

In the past five years, the stock has gone from $38 to the current price above $125, and more gains should be on the way.

5 TSX Stocks Under $5

Click here to learn more!

Bank of Montreal

Bank of Montreal (TSX:BMO)(NYSE:BMO) might not be the first name investors consider when deciding on a Canadian bank stock for their portfolios, but the company likely deserves more attention.

Bank of Montreal has a diversified revenue stream coming from personal and commercial banking, wealth management, and capital markets activities. Its large U.S. operation provides a balanced revenue source that can give the bottom line a nice bounce when the U.S. dollar is strong. Bank of Montreal also has a lower relative exposure to the Canadian housing market than some of its peers.

The bank has paid a dividend every year since 1829, and the steady trend should continue. Investors who buy the stock today can pick up a solid 4% yield.

The bottom line

Waste Connections and Bank of Montreal are just two examples of stocks in the TSX Index that can help investors build RRSP wealth without having to worry about the state of their portfolios on a daily basis.

5 Canadian Growth Stocks Under $5

We are giving away a FREE copy of our "5 Small-Cap Canadian Growth Stocks Under $5" report. These are 5 Canadian stocks that we think are screaming buys today.

Get Your Free Report Today

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.