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RRSP Investors: 3 Dividend Stocks to Buy and Hold Forever

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Canada is one of the best places to live as an older adult due to the several retirement pension plans available. Retiring Canadian citizens get access to retirement income through programs like the Old Age Security (OAS) and the Canada Pension Plan (CPP).

However, these plans are designed to only partially fulfill your retirement income requirements. It is vital to have a substantial retirement nest egg for your golden years if you want to enjoy a comfortable retirement.

The Registered Retirement Savings Plan (RRSP) is an excellent tool that can help you create a sizeable retirement fund for yourself. The global health crisis came along to sidetrack many retirement plans. Governments took steps to pump stimulus into the economy and offset the economic impact of the pandemic, and central banks stepped in to help by reducing interest rates.

With discretionary spending significantly lower, many Canadians managed to amass substantial savings. If you want to make the most of your savings to contribute to your retirement fund, investing in a portfolio of dividend stocks and storing it in your RRSP could be an excellent way to enjoy tax-deferred wealth growth.

Enbridge

Enbridge (TSX:ENB)(NYSE:ENB) enjoys the reputation for being one of the most dependable dividend-paying stocks on the TSX for a long time. After a difficult year in 2020, energy sector stocks are making a strong comeback in 2021, and Enbridge stock is one of the assets leading the charge.

The company has been paying its shareholders their dividends for almost 70 years, and it has increased its payouts to shareholders for the last 25 of them.

Enbridge is one of the largest energy infrastructure companies on the continent. With the rising oil demand, Enbridge investors can enjoy substantial upside for their portfolios. Higher asset utilization rates can boost the company’s cash flows, allowing it to deliver stronger growth in the coming years.

Trading for $49.41 per share at writing, the stock boasts a juicy 6.76% dividend yield.

Fortis

I consider Fortis (TSX:FTS)(NYSE:FTS) stock a no-brainer for investors looking for a long-term cash cow that can continue growing their wealth for decades. The utility holding company owns and operates several businesses that provide essential utility services to millions of customers. Fortis is also one of the top Canadian Dividend Aristocrats, boasting a 47-year dividend growth streak.

Fortis generates most of its cash flows through highly regulated and long-term contracted assets. It means that the company can earn predictable revenues that it can use to comfortably fund its increasing dividend payouts and expansion plans. Trading for $55.96 per share at writing, Fortis stock boasts a juicy 3.61% dividend yield that you can lock into your RRSP portfolio today.

BCE

BCE (TSX:BCE)(NYSE:BCE) is another excellent stock to consider if you seek income-generating assets that can continue to grow your wealth for decades through reliable dividend payouts. The largest telecom company in the country, BCE provides an essential service catering to the needs of millions of customers throughout the country. In an increasingly digital world, the need to communicate and stay connected through the internet can never be understated.

BCE is a leading telecom provider. It is also spending a lot of money on establishing its 5G infrastructure to gear itself for the future. Leading the charge among Canadian telecom providers for the 5G revolution, BCE stock could be looking at substantial long-term profits. At writing, the stock is trading for $62.28 per share and boasts a juicy 5.62% dividend yield.

Foolish takeaway

The best way to capitalize on the tax-deferred growth offered by an RRSP portfolio is to find assets that you can buy and hold in the account for several decades. Income-generating assets that can continue to provide substantial wealth growth through reliable dividend payouts can play a critical role in helping you accumulate a sizable retirement nest egg.

Fortis stock, Enbridge stock, and BCE stock could be ideal assets that you can buy and hold forever in your RRSP for this purpose.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends FORTIS INC.

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