RRSP Investors: 3 Cheap Canadian Dividend Stocks to Buy Today

RRSP investors can appreciate cheap Canadian dividend stocks like Enbridge Inc. (TSX:ENB)(NYSE:ENB) while they’re still depressed.

| More on:
Dollar symbol and Canadian flag on keyboard

Image source: Getty Images

The Registered Retirement Savings Plan (RRSP) may not be the perfect investment vehicle for every Canadian. But for those with specific long-term goals in mind (saving to buy a home or investing for a comfortable retirement), the RRSP is an invaluable vehicle that can help bring your wealth creation to the next level. In this piece, we’ll have a look at three overly battered Canadian dividend stocks to stash in your RRSP for the long haul.

TC Energy

TC Energy (TSX:TRP)(NYSE:TRP) stock got pummeled 4.6% on Monday on worries that U.S. president-elect Joe Biden could cancel the Keystone XL pipeline. Alberta premier Jason Kenney reportedly contacted Canadian prime minister Justin Trudeau, urging him to discuss the matter with the Biden administration. A potential axing of the Keystone XL project could cost Canada a considerable number of jobs and bring forth further downside in TRP shares, which have already been battered in 2020.

The stock is currently down 29% from its 2020 all-time high and may be worth scooping up for your RRSP on recent weakness for the juicy dividend, even though it seems like the Keystone XL project could find itself up in the air. TRP stock sports a bountiful, safe 6% yield at the time of writing.


Sticking with the pipeline theme, we have shares of Enbridge (TSX:ENB)(NYSE:ENB), which have also been under extreme pressure in recent months. TC Energy’s rough day spread to ENB stock, sending ENB stock nearly 2% lower on a thinly traded Monday for the TSX Index.

At the time of writing, shares of Enbridge are sitting down 22% from 2020 highs and 33% from 2015 all-time highs. As COVID-induced headwinds in the oil patch gradually fade away en route to post-pandemic normalcy, I view ENB stock as an opportunity for contrarians to lock in a swollen dividend yield (currently at 7.6%) alongside a shot at outsized gains over the medium term. And with one of the most shareholder-friendly management teams out there, I don’t see the dividend getting slashed, even if Enbridge’s recent relief rally were to come to another crashing halt.

If you’re willing to hold the name for decades at a time, ENB looks like a deep-value dividend bargain that’s perfect for RRSP investors.

Bank of Montreal

Finally, we have Bank of Montreal (TSX:BMO)(NYSE:BMO), one of my favourite bank stocks for dividend-focused RRSP investors at this juncture. Shares of BMO crumbled during the February-March sell-off, but since bottoming out in March, the stock has not looked back. Shares are up over 62% from their March lows on the back of better-than-feared fourth-quarter results (BMO beat earnings estimates by a whopping 26%) and 2021 recovery hopes.

As we head into the latter part of 2021, BMO stock could have way more room to run as credit expenses shrink and the bank gets right back on the earnings growth track. Sure, a “lower-for-longer” interest rate environment doesn’t bode well for the Big Six Canadian banks over the medium term. But looking beyond 2024, I think that rates will be on the rise again, and the big banks will enjoy their next leg higher after many years of treading water.

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 Joey Frenette owns shares of BANK OF MONTREAL. The Motley Fool owns shares of and recommends Enbridge.

More on Investing


Better Rail Buy: CN Stock or CP Shares?

CP Rail (TSX:CP)(NYSE:CP) looks way too cheap to ignore after the recent bear market turbulence.

Read more »

data analyze research

3 TSX Small Caps to Buy Right Now

Given their high-growth prospects and cheaper valuation, these three small-cap stocks look attractive.

Read more »

rail train
Dividend Stocks

3 TSX Stocks I Own and Will Buy More of If the Stock Market Crashes

These TSX stocks may be down, but don't count them out. In fact, buy up as much as you can…

Read more »

Upwards momentum

3 of the Top-Growing Stocks on Earth

Canadian investors may want to branch out and target top-growing stocks like Exxon Mobil Corp. (NYSE:XOM) in the early fall.

Read more »

A worker uses a laptop inside a restaurant.

3 of the Best Stocks to Buy After Last Week’s Selloff

After many Canadian stocks fell rapidly in price last week, here are three of the best to buy to take…

Read more »

stream movies at home
Dividend Stocks

3 TSX Stocks With High Dividend Yields

As markets continue to sell off, here are three of the best TSX dividend stocks you can buy to earn…

Read more »

A worker gives a business presentation.

3 TSX Stocks That Are Actually Beating the Market

Dependable TSX stocks like Hydro One Ltd. (TSX:H) and Loblaw Companies Ltd. (TSX:L) have beaten the TSX in a harsh…

Read more »

analyze data
Dividend Stocks

Got $250? Here Are 3 Smart Stocks to Buy Now

Are you looking for some smart stocks to buy? Here are three options that offer growth and income that you…

Read more »