3 Industry Leaders to Hold in Your RRSP

Consider these three industry-leading stocks if you’re looking for long-term investments for your RRSP.

| More on:
Target. Stand out from the crowd

Image source: Getty Images

After a strong start to the year, the Canadian stock market has re-entered a slump, suggesting a recession, or at least the possibility of it. As of this writing, the S&P/TSX Composite Index is up by 3.83% year to date.

While up year to date, the Canadian benchmark index has slipped by almost 3% since its January 2023 high. A downturn might make investors worry, it can be a good opportunity to invest in the stock market.

If you carefully identify and invest in high-quality stocks trading at discounted valuations, you can set yourself up for substantial wealth growth through long-term capital gains. To do this, it is essential to find stocks with the potential to deliver stellar returns. Buying and holding such assets in a Registered Retirement Savings Plan (RRSP) means you can enjoy tax-deferred returns on your investment.

For reliable long-term investments, what better to choose than industry-leading companies? Today, I will discuss three industry-leading stocks you can consider for your self-directed RRSP portfolio.

TFI International

TFI International (TSX:TFII) is a $14.54 billion market capitalization Canadian transportation and logistics company. Headquartered in Montreal, it operates in Canada, the U.S., and Mexico through four business segments: package and courier, less-than-truckload, truckload, and logistics.

It generates most of its revenue through domestic operations, followed by the U.S. and Mexico. The stock offers you exposure to the growing transportation and logistics sector.

Market Research Future projects that the global freight and logistics market will deliver a compound annual growth rate of 4.3% between 2022 to 2030, making it a potentially lucrative space to invest in right now. The company’s latest quarter saw its operating income increase by 1% year over year.

At the same time, its adjusted earnings per share climbed by 10% and net cash from operating activities soared by 30%. As of this writing, the stock trades for $168.06 per share.


FirstService (TSX:FSV) is not technically a leader in the broader real estate industry. However, the $8.31 billion market capitalization real estate services company undoubtedly has carved out a comfortable place in the sector with plenty of potential to grow.

It offers essential real estate services and property management, leading the North American market as such a provider. Additionally, it relies mostly on its operations across the border in the U.S. for a large chunk of its revenue. While it has domestic operations, the U.S. market accounts for most of its balance sheet.

The supercharged bullish phase in the post-pandemic market saw some of the best time the stock had on the stock market. Since inception, it soared massively until the bull market made way to market volatility, and it slumped.

However, its leadership position in a large but fragmented market gives it plenty of opportunities to grow. It already increased sales from US$1.93 billion in 2018 to US$3.24 billion in 2021 through a strategically executed acquisition program. Listed only in 2015, it trades for $187.77 per share at writing, up by 452.26% from its inception, despite the 24.47% pullback from its December 2021 peak.

StorageVault Canada

While StorageVault Canada (TSX:SVI) only boasts a $2.36 billion market capitalization, it is no small company. StorageVault engages in owning, operating, and leasing storage spaces to individual and commercial clients throughout Canada.

One of the largest companies in the Canadian storage space business, it has several brands under its banner. The niche market does not come into the limelight as often as other sectors, but it is a vital one.

StorageVault is no longer flying under the radar. Rather, it has soared. In the last five years, it is up by 156%. Interested investors can expect to see its final batch of fiscal 2022 earnings in March.

Its previous quarter saw the company report revenues of $69.3 million, up from $56.9 million in the same quarter last year. It is a solid business that finally seems to be getting the attention it deserves. If you’re looking for outsized gains potential for your RRSP, it can be an excellent stock to consider.

Foolish takeaway

FirstService stock, StorageVault stock, and TFI International stock might not be industry leaders in the biggest sectors of the economy. However, all three are leading the charge in niche markets with immense growth potentials. Adding shares of the three TSX stocks to your RRSP can deliver outsized and tax-deferred returns to your 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.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends FirstService. The Motley Fool has a disclosure policy.

More on Dividend Stocks

retirees and finances
Dividend Stocks

Retirees: 3 Ideal Stocks to Buy in a Bearish Market

Given their low-risk businesses and stable cash flows, these three Canadian stocks are ideal buys for risk-averse retirees.

Read more »

data analyze research
Dividend Stocks

3 Dividend Powerhouses to Buy for Reliable Passive Income

Are you seeking passive income? These three Canadian stocks are reliable investments for generate steady income.

Read more »

dividends grow over time
Dividend Stocks

For a Shot at $6,000 in Yearly Passive Income, Buy These 2 TSX Stocks

Canadian investors can make some nice passive income from parking money they don't need for a long time in high-yield…

Read more »

Man making notes on graphs and charts
Dividend Stocks

2 No-Brainer TSX Stocks to Buy (Especially if There’s a Market Correction)

No matter what is happening in the stock market, these two blue-chip stocks could be reliable investments to own.

Read more »

money cash dividends
Dividend Stocks

1 of the Smartest Stocks to Buy for Dividends and Share Repurchases in 2023

Dividend stocks like Power Corp of Canada will have an excellent year.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

3 Canadian Dividend Stocks I’d Buy Hand Over Fist This Month

Three high-quality dividend stocks can overcome the current headwinds and negative market sentiment in March 2023.

Read more »

Happy diverse people together in the park
Dividend Stocks

TFSA: 2 Stocks to Create Lasting Generational Wealth

Stock investing can help Canadians accumulate and grow generational wealth that they can pass on to their children and grandchildren.

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Sitting on Cash? Invest $20,000 in This Dividend Stock for $96,588 in 10 Years

This top dividend stock has quadrupled in share price in just a decade, and that could very well happen again!

Read more »