RRSP Investors: 2 Dividend Stocks to Build Your Retirement Nest Egg

These industry-leading stocks can be an excellent part of your portfolio to align with your retirement plan for a sizeable nest egg.

| More on:
A golden egg in a nest

Image source: Getty Images.

When the stock market crashed suddenly in 2020 due to the pandemic-stricken panic, many stock market investors missed the opportunity to leverage the rally that quickly followed. It was a great chance for investors to pick up shares of high-quality dividend stocks at heavily discounted prices.

With 2023 having been a rollercoaster of a year for Canadian stock market investors, now might be a good time to identify such high-quality picks.

Buying stocks on the dip is difficult. When the market is volatile, it is a good opportunity to scoop up shares of high-quality but discounted stocks. The key to using the pullback successfully is identifying stocks that can recover and continue paying shareholder dividends.

Making the right picks and adding them to your self-directed Registered Retirement Savings Plan (RRSP) portfolio can mean tax-sheltered wealth growth to align with your retirement plan. Today, we will look at two top dividend stocks that might warrant a place in your RRSP to help you build your retirement nest egg.

Royal Bank of Canada

Royal Bank of Canada (TSX:RY) is a $167.07 billion market capitalization Canadian multinational financial services company and the largest among Canada’s Big Six banks. Headquartered in Toronto, it is also the biggest publicly traded company on the TSX.

Higher interest rates led to pullbacks in the stock market across the board. While effective in cooling inflation, the interest rate hikes will likely trigger a deeper economic downturn.

If that happens, financial institutions are likely to suffer heavy losses. However, RBC stock has seen several of those come and go, only to come out stronger when the dust settles.

Well capitalized and well managed, Royal Bank of Canada is well positioned to weather near-term volatility to make it through to the other side. As of this writing, Royal Bank of Canada stock trades for $119.14, paying its shareholders their dividends at a 4.53% dividend yield.


Enbridge (TSX:ENB) is a $96.84 billion market capitalization giant in the Canadian energy industry. Just as RBC stock is the industry leader among Canadian banks, Enbridge stock has established itself as the leading entity in the Canadian energy sector.

Headquartered in Calgary, Enbridge owns and operates energy pipelines throughout Canada and the United States. Transporting a significant chunk of hydrocarbon products used in North America, its services are essential to the region’s economy.

Energy companies use debt to at least partially fund capital projects. With interest rates higher, Enbridge stock has seen its borrowing costs rise, negatively affecting its profits and cash available for distributions. However, the energy giant continues to put up excellent numbers on its operational side.

As the demand for traditional energy products remains high, Enbridge stock can continue growing shareholder value.

With its growing renewable energy portfolio, the company is also future-proofing itself for a greener energy industry future. As of this writing, Enbridge stock trades for $45.56 per share, boasting a juicy 7.79% dividend yield that you can lock into your RRSP portfolio today.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Enbridge Inc. made the list!

Foolish takeaway

RRSP investing is an excellent way to put your money to work in the stock market and generate wealth without incurring taxes. Granted, taxes will be applicable when you withdraw after retirement.

Still, building a well-balanced portfolio and maintaining it with discipline until then can help you see immense wealth growth. To stay invested, you must find and invest in stocks capable of providing returns and long-term wealth growth for decades.

As leaders in their respective industries, Royal Bank of Canada and Enbridge stocks can be excellent picks to build foundations for a self-directed RRSP 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 Enbridge. The Motley Fool has a disclosure policy.

More on Dividend Stocks

sale discount best price
Dividend Stocks

2 Remarkably Cheap TSX Stocks I’d Buy Right Now

Cheap and undervalued TSX stocks such as goeasy can offer investors the opportunity to generate outsized returns next year.

Read more »

TFSA and coins
Dividend Stocks

TFSA Investors: How to Make Passive Income in 2024

These two passive-income stocks offer growth and dividends but should also remain stable going into 2024 and beyond.

Read more »

Dividend Stocks

Should You Buy This High-Growth Utility Stock Today?

While from a typically "boring" sector, this TSX utility stock offers unusually high growth potential if you are interested in…

Read more »

Baubles On Snow With Snowy Christmas Tree
Dividend Stocks

3 TSX Stocks to Buy in December 2023

Here's why quality TSX stocks such as Jamieson Wellness should be part of your shopping list in December 2023.

Read more »

analyze data
Dividend Stocks

Adjusting Your Portfolio for the New Normal: Higher Interest Rates in Canada

The 5% interest rate is here to stay until the second half of 2024. It's time to adjust your portfolio…

Read more »

Gas pipelines
Dividend Stocks

Is Enbridge Stock a Buy for its Big Dividend?

Enbridge is down more than 10% over the past year. Should you buy the dip?

Read more »

stock research, analyze data
Dividend Stocks

2 Top Stocks to Buy With $500 Today

Investing in the stock market does not always require massive capital. You can begin with just $500 allocated to stocks…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

Are These the Best Canadian Dividend Stocks for a High-Rate Environment?

Are you looking for some of the best Canadian dividend stocks to buy? Here are two top picks for decades…

Read more »