The Motley Fool

RRSP Pension: Generate $10,000 a Year With These 3 Top TSX Stocks

Image source: Getty Images

An RRSP with approximately $180,000 invested could produce an income stream of $10,000 a year by investing in these three stocks!

In this article, I’m going to highlight three dividend-paying companies that provide defensiveness, growth, and, importantly yield to long-term investors!

Enbridge

A higher-yielding company in the energy space, Enbridge (TSX:ENB)(NYSE:ENB) has the potential to boost any investor’s average yield. Indeed, the company’s 7.5% yield is high. So high that many investors may be considering the risk associated with Enbridge’s yield today.

However, I think this stock’s dividend is safe at current levels. This is because the company’s management team has recently shifted its focus on redirecting cash flows away from dividend increases toward balance sheet-improving activities. With a yield of 7.5% currently, Enbridge does not need to raise its dividend substantially over the medium term to provide investors with excellent yield. Focusing on paying down debt and investing in capital-intensive long-term projects is a much better use of this company’s cash flows.

Accordingly, I think Enbridge is a great long-term dividend holding for those seeking yield today.

WPT Industrial REIT

As far as long-term income stocks go, WPT Industrial REIT (TSX:WIR.U) remains one of my top picks. The company’s predictable (and stable) yield of 4.9% is attractive right now.

This is a company with a business model I think puts this REIT in a position to outperform its peers long term. Industrial real estate (warehouses and distribution centres) benefit from growing e-commerce volumes. This is a great indirect way to play the growth in this sector, and achieve a substantial yield while doing so.

WPT’s payout ratio remains very low relative to the REIT sector. Indeed, a payout ratio of only 32% at the time of writing is highly desirable for those seeking safety in REITs today.

Royal Bank

Perhaps the safest dividend stock on the TSX, Royal Bank of Canada (TSX:RY)(NYSE:RY) ought to be a core cornerstone holding for long-term income investors. This stock has a yield of 4.1% and is well-positioned for long-term double-digit total returns.

Canadian banks have been largely pushed aside by investors out of fear of a correction in the Canadian housing market. However, Royal Bank is much more of a global player than its peers. This is a bank with strong a wealth management business and international operations, diversifying this domestic risk. As one of the globally important banks, Royal Bank is often seen as too big to fail. Even in the worst economic conditions, I expect Royal Bank to be able to weather the storm. Indeed, this is a great long-term income pick for investors right now.

Like these top TSX income stocks? Here are 10 other picks well positioned for long-term growth!

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!

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge.

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.