Picking the best income plays to put in an RRSP can be quite tricky for a number of reasons. Indeed, the sheer number of quality dividend stocks available in Canada and globally is incredible.
However, there are a few top-notch stocks with not only the track record of providing dividend yield but also growth (on the capital appreciation and dividend side) that are worth looking at. Here are two of my top picks in this regard.
Top dividend stocks: Fortis
From a dividend-growth standpoint, there are few dividend stocks better than Fortis (TSX:FTS)(NYSE:FTS). Indeed, hands down, this utilities player’s track record of dividend hikes is second to none. For almost the last five decades, this company has raised its dividend every year.
Indeed, the stellar fundamentals of this company make it one of the best defensive income plays on the TSX today. Undoubtedly, much of this stability is because of its favourable balance sheet and the regulated nature of its utilities operations.
Fortis is planning to increase its dividend at a rate of 6% through 2025. Even if there’s a lot of volatility in the stock market, this company’s yield of 3.5% will provide investors with much-needed stability. Accordingly, I think that Fortis stock is an excellent option for income investors who are in or approaching retirement.
Also, investors might want to note that this company is making considerable progress in the ESG space. As of now, Fortis has invested a total of $20 billion in green energy. Indeed, this can provide shareholders with higher dividends over the long term.
For investors seeking top income stocks, Restaurant Brands (TSX:QSR)(NYSE:QSR) continues to remain one of my top picks. Indeed, the company is well placed in the fast-food space, which makes it one of the best defensive options in this sector.
Restaurant Brands is the holding company of some of the top banners renowned globally. These include Burger King, Tim Hortons, and Popeyes Louisiana Kitchen. As its subsidiaries expand their operations into the Asian markets, there appears to be a tonne of growth on the horizon for Restaurant Brands.
Besides having top-notch banners, this company has a highly efficient management team. It is investing a substantial amount of funds to facilitate the investment of existing restaurants. At the time of writing, Restaurant Brands stock offers a dividend yield of 3.4%. Accordingly, I believe that individuals seeking income stocks for retirement might want to invest in shares of this company.
Without a doubt, this company appears to be on the right track. Moreover, its prudent business model seems to be working out great for individuals with a long-term investment horizon.