2 Top Canadian Stocks to Start Your Self-Directed RRSP

RRSP investors are searching for top stocks to add to their self-directed pension portfolios. These two deserve to be on the RRSP buy list.

| More on:
edit Close-up Of A Piggybank With Eyeglasses And Calculator On Desk

Image source: Getty Images

Canadians are using online broker accounts to build RRSP portfolios. Let’s take a look at three stocks that should be good to buy for a self-directed RRSP.

Telus

Telus is a top Canadian communications company based in British Columbia. The firm offers mobile, internet, and TV services to subscribers across the country, supported by world-class wireless and wireline networks. Telus has avoided the temptation to spend billions on dollars on media assets. Pundits often debate whether or not that will be a long-term negative for the company. So far, it doesn’t appear to have hurt Telus.

In fact, directing investments to other opportunities is paying off in a different way. Telus successfully spun off its Telus International business earlier this year at a valuation that was worth more than all of Telus in 2000. Telus has also invested in its Telus Health division. The group saw a surge in demand for its services in the past year, and the trend should continue. Telus Health is a leading provider of digital health solutions to Canadian doctors, hospitals, and insurance companies.

The board raised the dividend when the Q1 2021 earnings came out, extending a strong track record of dividend growth. Telus is investing heavily in its fibre optic and 5G expansion initiatives, but investors should still see steady increases to the distribution.

A recent CRTC decision to cancel planned cuts to wholesale internet rates is good news for Telus. It gives the company better clarity on its revenue stream and should pave the way for additional network investments.

Investors who buy Telus today can pick up an attractive 4.5% dividend yield and should see solid long-term returns from the stock.

Brookfield Asset Management

Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM) has more than US$600 billion in assets under management around the globe primarily focused on real estate, infrastructure, and renewable energy. The firm invests money on behalf of institutional clients and also uses its own cash.

The investments made for clients generate steady fees. Brookfield is also adept at monetizing assets that have soared in value and uses the profits to invest in new opportunities. The size of the company and its level of international expertise makes it one of a handful of firms that are capable of doing large deals in its core sectors.

Brookfield Asset Management is an attractive stock for self-directed investors who want to get global exposure to real estate, infrastructure, or renewable energy opportunities that would otherwise be out of reach. The business is managed well and should grow steadily for decades.

The bottom line on self-directed RRSP investing

Investors who want to save money on advisor or fund management fees are increasingly taking charge of their own RRSP investments. This requires a lot of time spent on the analysis of opportunities, but the long-term savings can add up, and it is possible to generate great returns from top stocks.

Telus and Brookfield Asset Management are just two of the leading Canadian companies that should be solid buy-and-hold picks for a self-directed RRSP portfolio.

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.

The Motley Fool owns shares of and recommends Brookfield Asset Management. The Motley Fool recommends Brookfield Asset Management Inc. CL.A LV and TELUS CORPORATION. Fool contributor Andrew Walker owns shares of Telus.

More on Dividend Stocks

Growth from coins
Dividend Stocks

3 Canadian Dividend Stocks That Are Dirt Cheap Right Now

These three Canadian dividend stocks look attractive with their above 6% yields and cheaper valuations.

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

3 TSX Stocks That Could Make You a Millionaire

These three TSX stocks each have outstanding potential while trading undervalued today, creating significant opportunities for investors.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks You Haven’t Bought Yet, But Should

I get it, these dividend stocks aren't doing so hot these days. But investors should buy now and think long…

Read more »

telehealth stocks
Dividend Stocks

Retirees: 2 Dividend Stocks (With +6% Yields) for Worry-Free Passive Income

These TSX stocks offer attractive yields and have solid dividend payment histories, implying retirees can easily rely on them.

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Canadian Dividend Stocks to Buy Amid a Market Correction for Years of Passive Income

Here are two of the best Canadian dividend stocks long-term investors can buy right now to earn stable passive income…

Read more »

Caution, careful
Dividend Stocks

Top Investor-Favourite TSX Stocks to Avoid This Year

Here are two TSX stocks that could continue to underperform.

Read more »

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

New Investors: How to Safely Make $150 in Monthly Passive Income

In this current market environment, we’re all craving safety and security. New investors looking for stable and growing passive income…

Read more »

A golden egg in a nest
Dividend Stocks

3 Stocks to Turn Five-Digit Savings Into a Six-Digit Nest Egg

If you have enough time, you can achieve decent growth goals with safe and modest growth stocks in your portfolio.

Read more »