RRSP Investors: 3 Dividend Stocks I’ll Keep on Buying Until I Die

Dividend stocks can be the perfect choice for an RRSP, but these also come with value and so much growth ahead.

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The Registered Retirement Savings Plan (RRSP) has so many benefits for investors. One of the best benefits RRSP investors have is that every dollar you contribute comes off your taxable income. As long as you stay within your contribution limit, this could bring you down to an entirely different tax bracket!

But it gets better. You could then use that tax refund to put towards dividend stocks to create even more income. And when it comes to dividend stocks, these are the three I’ll load into my RRSP until I die.

BCE

If there’s one of the dividend stocks out there that remains as strong as ever, it’s BCE (TSX:BCE). BCE stock may be worried about an upcoming merger from its rivals, but it doesn’t have too much to fear. BCE stock remains the fastest of the telecommunications companies in terms of wireless speeds. What’s more, even after any mergers, it would still hold the most in terms of market share.

BCE stock is a dividend stock I’ll continue to feed into for my RRSP — especially considering where it is right now. BCE stock offers a dividend yield at 5.91% and trades at a reasonable 20.09 times earnings.

Shares are also up 137% in the last decade, a compound annual growth rate (CAGR) of 9% as of writing. Plus, its dividend has also been climbing. In the last decade alone, shares have also grown by a CAGR of 5.52%. And with decades and decades behind it, it’s one I’m sure will be around in the decades to come.

CIBC

If you’re looking for a long-term hold from dividend stocks, I would certainly consider the Big Six banks. Right now, one of the best deals comes from Canadian Imperial Bank of Commerce (TSX:CM). The bank has been around for decades, and yet shares are down because of the struggle in the housing market. Yet CIBC stock has proven it can recover.

This comes from provisions for loan losses, which CIBC stock is using right now. This will allow it to come out the other end of a recession and housing downturn relatively unscathed. So, right now, you can pick up the stock trading at just 9.08 times earnings and with a dividend yield at 5.72%.

Meanwhile, over the last decade, it’s done well. Shares are up 135% in the last decade for a CAGR of 8.92%. Furthermore, its dividend has grown at a CAGR of 6.03%. So, you’re locking up value as well as growth in returns and dividends.

Northland Power

Finally, Northland Power (TSX:NPI) is an excellent choice for investors seeking exposure to clean energy, and wanting income every month. Northland stock has been around for decades as well and has been buying up assets around the world in the clean energy sector. It now has a diversified portfolio, with a focus on solar and windfarms.

Yet again, you can pick up this stock for huge value as of writing. If you’re looking for something to drip feed into your RRSP, it doesn’t get much better. Northland stock trades at just 12.72 times earnings, with a dividend yield at 3.36%. The dividend is not as high as the others, but it offers an opportunity to reinvest on a more regular basis.

Shares have done quite well, climbing 191% in the last decade alone for a CAGR of 11.21%! Plus, that dividend has grown as well at a CAGR of 1.06%. Again, it’s not the highest, but it’s at least consistent. So, you can look forward to more growth in the years to come.

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 Amy Legate-Wolfe has positions in Canadian Imperial Bank Of Commerce. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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