The Motley Fool

The 3 Best RRSP Stocks to Buy Right Now!

Image source: Getty Images

If you’re putting long-term investments in your Registered Retirement Savings Plan (RRSP), timing doesn’t usually matter all that much. That said, from time to time, great companies provide excellent entry points. In that context, I’m going to highlight three picks I think have immediate upside. These are also companies that have great long-term potential, making these well-suited for a long-term RRSP hold.

Nutrien

Given where the U.S. dollar is headed due to massive stimulus measure that have been put into place, I’m a firm believer a bull market in commodities could be underway. At the very least, I think a recovery from the levels we’ve seen in recent years is in order.

With that in mind, Nutrien is a great way to play the commodities space right now. This is a stock with a dividend yield of 3.3% and the best business model in its sector, in my view. Nutrien’s vertically integrated business model makes this a best-in-class holding for those seeking commodity exposure today.

Enbridge

Another stock with the potential to make some serious gains in a bull market in commodities is Enbridge (TSX:ENB)(NYSE:ENB).

Enbridge is fortunate to have a relatively low correlation to oil prices due to the nature of the pipeline business. That said, a rising commodity price environment is good for the sector, which is good for Enbridge. A significant amount of counterparty risk has been priced into this stock as a result of depressed commodity prices during the pandemic. The thesis was, if the health of the companies paying Enbridge to transport oil wasn’t great, Enbridge’s rock-solid cash flows might not be as solid as once thought.

Thankfully, oil prices have recovered nicely from the pandemic-driven panic we saw last year. I think a further recovery is in order and think Enbridge has a ton of upside potential to ride this trade higher.

Restaurant Brands

A company I view as essentially recession-proof, Restaurant Brands (TSX:QSR)(NYSE:QSR) has unfortunately underperformed of late. This defensive gem saw its share price drop markedly during the pandemic — something I didn’t expect. That said, shares have recovered to pre-pandemic levels, more than doubling from March lows.

I think Restaurant Brands is likely to get back on its growth path this year. The coronavirus pandemic is on its way out the door, with new vaccines ushering in a new normal soon (hopefully). I think we should see same store sales growth pick up, and new locations continue to open in growth markets. Additionally, Restaurant Brands has been one of the best acquirers on the TSX, so I think there’s room for acquisition-based growth on the horizon as well.

Like these three high-conviction picks? You'll definitely like these awesome high-conviction picks as well:

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More Today!

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends Nutrien Ltd and RESTAURANT BRANDS INTERNATIONAL INC.

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.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.