Last-Minute RRSP Investors: 9 Dividend Stocks to Grow Your Wealth

If you’re adding money to a self-directed account — or are simply on the hunt for dividend stock ideas — here are a few suggestions on where to invest.

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The contribution deadline for RRSP accounts is March 1. If you’re adding money to a self-directed account — or are simply on the hunt for dividend stock ideas — here are a few suggestions on where to invest.

European Residential REIT

What it does: European Residential Real Estate Investment Trust owns a portfolio of 6,900 apartment units across the Netherlands.

By Robin Brown: Not many Canadians have heard of European Residential REIT (TSX:ERE.UN) because almost all its assets are in the Netherlands. The country is seeing a huge amount of immigration, but it has very little new housing supply given land constraints.

Even though there is rent control, European Residential has maintained high occupancy and still grow its rents organically by 3-4% a year.

European Residential enjoys high margins because tenants are responsible for almost all expenses. Despite its high-quality portfolio, the REIT (real estate investment trust) trades for a near-40% discount to its private market value. It also pays a nice 4.9% dividend that is distributed monthly. For value, income, and modest growth, this is a great stock.

Fool contributor Robin Brown has positions in European Residential REIT.

Northwest Healthcare Properties REIT

What it Does: Northwest Healthcare Properties REIT  is Canada’s largest non-government owner and manager of medical office buildings and healthcare real estate assets in Canada and globally.

Karen Thomas: Northwest Healthcare Properties REIT (TSX:NWH.UN) has spent the last few years expanding its healthcare asset portfolio as the company attempts to capitalize on the aging population and its consequent affect on the value of healthcare real estate. The REIT’s dividend has been a great example of stability and today, it’s yielding an exceptional 8.2%.

This yield is backed by the REIT’s defensive and stable business that’s being driven by positive fundamentals, such as the increasing healthcare demands of the aging population. Also, Northwest is a great inflation hedge, as practically all of its revenue is inflation-indexed. This is a very attractive feature at any time, but especially in today’s inflationary environment. 

Canadian Tire

What it does: Canadian Tire operates as a retail provider, ranging from auto parts to everyday products.

By Amy Legate-Wolfe: Canadian Tire (TSX:CTC.A) continues to be one of those few stocks that manages to do well no matter what the market throws at it. We thought it would go down during the pandemic, yet e-commerce thrived more than ever. Analysts believed it might fall with a drop in retail. Yet again, shares have remained strong.

This comes in large part from two sectors. First, there’s the auto-parts sector, where Canadian Tire stock continues to see massive demand. Then there’s the second reason: options. If you want cheap, it’s got you. If you want high-quality, Canadian Tire has you as well.

Yet finally, the company continues to expand through loyalty programs, acquisitions, and its real estate investment trust. So while it’s already been around for 100 years, don’t think it won’t continue to be around for 100 years more. And that’s another 100 years of looking forward to a 4% dividend yield, all while trading at 9.6 times earnings today.

CT REIT

What it does: CT REIT is a real estate investment trust of Canadian Tire. It manages, develops, and maintains retail properties and earns rent from tenants. 

By Puja Tayal: CT REIT (TSX:CRT.UN) has more than 370 properties across Canada, and more than 99% of them are occupied. Its largest tenant is Canadian Tire, from which it earns 91.5% rent. The REIT’s performance depends on the retailer, and the retailer has proved resilient. It has survived all the crises in the last 23 years without cutting dividends. 

Rising interest rates have affected property prices, and REITs everywhere are reducing the fair values of their properties. But strong rent has kept the REIT’s distribution stable, with a distribution payout ratio below 75%. The ratio hints that the REIT can survive a recession without distribution cuts, making it my pick when other stocks are slashing dividends.

Brookfield Infrastructure Partners

What it does: Brookfield owns a global portfolio of essential infrastructure assets including utilities, pipelines, data and transportation businesses.

By Daniel Da Costa: Brookfield Infrastructure Partners (TSX:BIP.UN) is one of the top TSX dividend stocks to buy in March 2023.

The stock is highly defensive and ideal for this economic environment, thanks to its essential infrastructure assets. Furthermore, it’s constantly expanding its portfolio and recycling capital to continue growing value for investors. In addition, Brookfield recently increased its annual distribution by 6%, in line with its long-term goal of 5%-9% increases each year.

The yield is currently 4.4%, making it an excellent long-term investment today.

Fool contributor Daniel Da Costa has positions in Brookfield Infrastructure Partners. 

Brookfield Renewable Partners

What it does: Brookfield Renewable provides exposure to a leading renewable power platform that owns, invests, and operates a quality and diversified portfolio.

By Kay Ng: While Brookfield Renewable Partners (TSX:BEP.UN) is expanding its globally diversified portfolio, the company has also paid out an increasing cash distribution for more than a decade. The utility even renewed its stock buyback program in December, which could see it repurchasing up to 5% of its outstanding units. (This is a good time for share buybacks because the stock is undervalued.)

At writing, its forward yield is 4.9%. This is an attractive opportunity for growing income and total returns.

Fool contributor Kay Ng has shares in Brookfield Renewable Partners.

By Jed Lloren: Fortis (TSX:FTS)

Fortis

What it does: Fortis produces and supplies regulated gas and electricity to more than 3 million customers across Canada, the United States, and the Caribbean.

By Jed Lloren: When it comes to dividend stocks, Fortis (TSX:FTS) is a company that I think should always be in the conversation. It has managed to increase its dividend distribution in each of the past 49 years. That’s good enough for the second-longest active dividend growth streak in Canada.

The company plans to continue increasing its dividend to at least 2027 at a rate of 4% to 6%. Fortis is able to plan ahead like that, in my opinion, because of the predictable nature of its revenue. If you’re looking for a stable company that could provide you with a nice dividend through good and bad markets, Fortis is one stock you should really consider.

BCE

What it does: BCE is Canada’s biggest communications company by market capitalization.

By Vineet Kulkarni: Canada’s leading telecom stock, BCE (TSX:BCE), looks well placed in these volatile markets. It recently increased its quarterly dividend by 5%, taking it to $0.97 per share. So, BCE currently yields a handsome 6.4%.

BCE’s stable earnings growth facilitates its stable dividend growth — the company has increased shareholder dividends for the last 15 consecutive years.

BCE caters to more than 10 million wireless subscribers, one of the largest subscriber bases in the three-player-dominated Canadian telecom industry. Its scale and strong balance sheet stand tall in the industry and will likely drive consistent financial growth in the long term.

BCE’s stock has lagged behind its peers in the past year. But its superior dividend yield and relative undervaluation make it an attractive TSX stock to buy today.

Enbridge

What it does: Enbridge is an energy infrastructure company that operates a complex pipeline network and a growing renewable energy business.

By Demetris Afxentiou: Enbridge (TSX:ENB) is an energy infrastructure behemoth with massive defensive appeal and an enticing dividend — currently 6.9%!

Enbridge’s pipeline network generates a stable recurring revenue stream that’s often compared to a tollbooth network. In terms of volume, Enbridge hauls one-third of all North American crude and one-fifth of the natural gas consumed by the U.S., making it a titan among defensive picks.

Turning to renewables, Enbridge has invested more than $8 billion into the segment over the past two decades. This has allowed the company to establish a portfolio of more than 40 facilities in Europe and North America.

Between a healthy backlog of new facilities, an appetite for expansion, and the growing importance of renewables, Enbridge is sure to be one of the top TSX dividend stocks for years to come.

Fool contributor Demetris Afxentiou has positions in Enbridge.

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 recommends Brookfield Infrastructure Partners, Brookfield Renewable Partners, Enbridge, Fortis, and NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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