A little over two weeks remain until you can take advantage of your 2019 registered retirement savings plan (RRSP) contribution room for taxes. You have until March 2, 2020, to contribute to an RRSP for the previous tax year.
Any contributions you make to your RRSP beyond this point will count against your 2020 tax year. While that’s a significant amount of time to make investment decisions, I would advise against rushing your decision.
Rounding up possible options for your RRSP’s contribution room can help you prepare for the 2019 tax year deadline. To this end, I am going to discuss the Toronto-Dominion Bank (TSX:TD)(NYSE:TD) stock and the Brookfield Renewable Energy Partners (TSX:BEP.UN)(NYSE:BEP) stock.
Toronto-Dominion
RRSP can help build a significant portion of your retirement fund. When it comes to creating a portfolio, you need to take every possible measure to protect your capital and increase the potential of income from your wealth.
Canada’s Big Five Banks will always be worthy of consideration for any long-term financial goals you have. One of the best-performing among the Big Five is Toronto-Dominion over the past 10 years.
Several factors contribute to TD’s success in the past decade. Its exposure to the retail banking sector in U.S. markets is perhaps the most significant driver for its performance.
The expansion into U.S. markets has allowed TD Bank to outperform most of its peers. Its exposure to the foreign market insulates it from a meltdown in domestic banking operations.
The bank expects to grow at an average of 7% each year for the next five years. It is a Canadian Dividend Aristocrat with a dividend growth streak of nine years. At the time of writing, its dividend yield is 3.90%, while the stock is trading for $75.98 per share at writing.
Brookfield Renewable Energy
Canada’s energy sector has bloomed over the years thanks to its massive reserves of fossil fuel. An increasing concern in recent years has been the limited time that fossil fuels will be around, as there’s only so much oil and gas in the world. Something needs to be done to replace them when the reserves finish.
There is a definite shift toward renewable energy sources. Investors who are inclined to take advantage of sustainable energy investments can look to Brookfield Renewable Energy Partners.
The stock is a star performer with gains of 90.70% in the past 12 months. At the time of writing, the stock is trading for $75.04 per share, with a juicy dividend yield of 3.78%. The underlying company has a global portfolio of renewable energy assets that produces more than 18,000MW capacity.
It’s also a Canadian Dividend Aristocrat with a dividend-growth streak of 10 years. The company has raised its distributions by 5% recently, and expects to increase its distributions by 5-9% each year.
Foolish takeaway
The RRSP contribution deadline for the 2019 tax year is fast on your heels. It’s time to start putting together a list of high-quality stocks you can consider investing in, so you’re not caught wrong-footed when the deadline finally arrives.
Both Brookfield and Toronto-Dominion are excellent companies to consider adding to your RRSP watch list.
