RRSP Investors: 3 Top TSX Stocks With Great Records of Dividend Growth

These stocks have paid reliable dividends for decades.

| More on:
A plant grows from coins.

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Canadians use their self-directed Registered Retirement Savings Plan (RRSP) accounts to build investment portfolios that will complement government and work pensions. Investors who missed the TSX rally this year are wondering which dividend stocks might still be attractive and good to buy for a portfolio focused on yield and total returns.

Fortis

Fortis (TSX:FTS) raised the dividend in each of the past 50 years. This is the type of stock RRSP investors with buy-and-hold strategies should seek out when looking for companies to add to their portfolios.

Fortis grows through a combination of strategic acquisitions and development projects. Management hasn’t made a large acquisition for several years, but Fortis is working through a $25 billion capital program that is expected to increase the rate base from $37 billion in 2023 to $49.4 billion in 2028. As new assets go into service, the increase in cash flow should support planned annual dividend hikes in the range of 4% to 6%.

Created with Highcharts 11.4.3Fortis PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Fortis is up about 20% in the past six months. More gains could be on the way as interest rates continue to fall in Canada and the United States.

Bank of Montreal

Bank of Montreal (TSX:BMO) paid its first dividend in 1829. Investors have received a distribution in every year since that time.

The stock is up from $110 in late August to around $128 at the time of writing, but is still well below the $152 it reached in 2022. Banks should start reporting lower provisions for credit losses (PCL) in the coming quarters as falling interest rates on both sides of the border ease pressure on borrowers who are carrying too much debt and were hit hard by the sharp rate increases that occurred in 2022 and 2023.

The stock fell out of favour with investors as a result of a large acquisition in the U.S. market in 2023, but the deal should be positive for shareholders over time. Bank of Montreal has been successful building its U.S. business over the past 40 years and the presence in the American market should help drive long-term growth. Investors who buy BMO stock at the current level can get a dividend yield of 4.8%.

Telus

Telus (TSX:T) has increased its dividend annually for more than 20 years. The communications firm gets most of its revenue from mobile and internet subscriptions, often bundled with TV packages. These services tend to be recession-resistant. Everyone needs a phone and an internet connection and most people, especially customers that like sports, will cut other discretionary spending before giving up their TV.

Telus took a hit in the past two years as rising interest rates drove up debt expenses. The company borrows money to partially fund its capital programs. Interest rates are expected to continue falling in Canada in the coming months and through next year. This, along with reduced operating costs from staff reductions, should help the bottom line in 2025.

Canadian telecoms still face some headwinds heading into next year, but Telus is probably oversold right now. Investors who buy Telus stock at the current level can get a dividend yield of 7%.

The bottom line on top dividend stocks

Fortis, Bank of Montreal, and Telus all pay good dividends that should continue to grow. If you have some RRSP cash to put to work, these stocks deserve to be on your radar.

What Stocks Should You Add to Your Retirement Portfolio?

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now. The Top Stocks that made the cut could produce monster returns in the coming years, potentially setting you up for a more prosperous retirement.

Consider when "the eBay of Latin America," MercadoLibre, made this list on January 8, 2014 ... if you invested $1,000 at the time of our recommendation, you’d have $20,697.16*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Fortis and TELUS. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker owns shares of Telus.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

dividend growth for passive income
Dividend Stocks

Why I’d Invest in Canadian Value Stocks for Both Stability and Growth

Three Canadian value stocks are buying opportunities for investors looking for stability and growth.

Read more »

investment research
Dividend Stocks

Got $15,000? 3 Blue-Chip Stocks Every Canadian Should Consider

Here's why investing in blue-chip TSX stocks such as CNQ and CNR should derive outsized gains in 2025 and beyond.

Read more »

protect, safe, trust
Dividend Stocks

Where I’d Allocate $20,000 in 2 Safer High-Yield Dividend Stocks for Retirement Needs

Here are two safer, high-yield dividend stocks I'm looking at for my retirement needs.

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

3 Reasons I’m Considering Enbridge Stock for a $5,000 Investment This April

I'm considering Enbridge stock to provide some defensive appeal and a juicy dividend to my long-term portfolio.

Read more »

monthly desk calendar
Dividend Stocks

A 9.2% Dividend Stock Paying Cash Every Single Month

With one of the highest dividends out there, this dividend stock deserves attention in your portfolio.

Read more »

Happy golf player walks the course
Dividend Stocks

Build a Powerful Passive Income Portfolio With Just $20,000

If you are worried that the bear market could reduce your savings, these stocks can build a powerful passive income…

Read more »

Hand Protecting Senior Couple
Dividend Stocks

How I’d Use My $7,000 TFSA Contribution to Start Retirement Planning

These TSX stocks have solid fundamentals and are well-positioned to deliver significant tax-free total returns over time.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

How to Turn Your TFSA Into a Gold Mine Starting With Only $10,000

It doesn't have to be complicated or scary. You can turn any portfolio into a major gold mine.

Read more »