3 Stocks I’m Adding to my Retirement Account in March

Well Health Technologies, Cineplex, and Fortis each have their own strengths that make them good buys for retirement planning.

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The Registered Retirement Savings Plan (RRSP) contribution deadline is upon us again. This means that we have two days left to make our 2023 contribution. It’s not an easy decision to make, but what will you be buying with this latest inflow?

Here are the three stocks that I’ve decided to buy in my RRSP this year.

Cineplex: A cheap stock with good upside

The movie exhibition industry has not been for the weak of heart. These last few years have pretty much been brutal. And the difficulties and uncertainty have lingered well past the pandemic era. However, today, I continue to see Cineplex (TSX:CGX) as a strong opportunity.

You see, Cineplex survived after almost crumbling during the pandemic. With the help of the government, the banks, and solid business management, Cineplex not only survived the pandemic but is now thriving, by my calculation.

While there are still some problems, the underlying trends are really good. For example, in 2023, revenue increased 26% and adjusted free cash flow came in at $83.7 million. The business is strong, and with the resolution of the writers’ strike, we can expect to see more and better content. The stock remains undervalued, making now a good time to buy.

Fortis: Reliable retirement income

As one of North America’s leading utility companies, Fortis (TSX:FTS) has provided its shareholders with reliable and growing retirement income for decades. In fact, Fortis has 50 years of dividend increases under its belt.

But what led me to decide to add Fortis stock to my retirement account in March? Firstly, Fortis’s dividend track record is one that has clear value. Secondly, Fortis’s position in the utility industry is secure. Thirdly, the utility business is a defensive one that’s pretty much totally regulated. This means many more years of predictable dividend income can be expected from Fortis.

I like a holding like this for my retirement account. It’s one that I won’t have to worry about and one that will help fund my retirement. Currently, Fortis has a dividend yield of 4.5%, which is a pretty good yield for a stock like Fortis, which is pretty low risk.

Well Health: A long-term growth stock to help fund your retirement

The last stock that I’d like to discuss is Well Health Technologies (TSX:WELL). Well Health is an omnichannel digital health company. It’s a relatively new company in a relatively new business, which means that this is one of the higher-risk/higher-reward stocks. And I’m totally comfortable with that.

Well Health stock has stalled lately, as the economic and investor environment is not one that favours this kind of stock. Risk tolerance is lower, and investors are more nervous than a couple of years ago.

However, Well Health’s results have not stalled. On the contrary, it’s been full steam ahead for Well Health. In fact, in its latest quarter, the third quarter of 2023, the company reported a 40% increased in revenue to $204.5 million. This includes a 27% increase in Canadian patient services revenue and a 52% increase in U.S. patient care services. Organic growth was 16%, and the rest of the growth was due to acquisitions.

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 Karen Thomas has a position in Cineplex and Well Health. The Motley Fool recommends Cineplex and Fortis. The Motley Fool has a disclosure policy.

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