2 Top-Performing Canadian Growth Stocks to Stash in Your RRSP

Waste Connections (TSX:WCN) and another wonderful (dividend) growth stock to consider stashing away in an RRSP for years.

| More on:
RRSP (Registered Retirement Savings Plan) on wooden blocks and Canadian one hundred dollar bills.

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

Regarding your registered retirement savings plan (RRSP), there are downsides to overweighting risk-free securities, especially as rates come down. Indeed, recent Bank of Canada rate cuts may have already pinched savers as certain financial institutions were quick to react by lowering their rates on savings accounts.

Additionally, as bond yields come down, RRSP investors may find it’s a good time to dip their toe back into the dividend stock waters. Of course, even the most defensive of dividend stocks have the potential to be wild movers when the stock market really gets rocked. Indeed, when there’s fear on Bay and Wall Street, no stocks can be safe from the extreme selling.

That said, if you’re not one to get rattled by volatility and envision yourself buying more shares of dividend stocks in your portfolio on weakness, I do think it can make sense to consider bolstering your RRSP with Canadian dividend growth stocks. In this piece, we’ll look at two names that may just be worth stashing in your RRSP portfolio for the next five to eight years.

Waste Connections

Sometimes, boring businesses can outdo the most exciting ones. Waste Connections (TSX:WCN) stock has quietly gained more than 107% over the past five years. More recently, however, shares of the North American trash collector have consolidated, trading sideways since July.

As the name looks to “correct” by going sideways in the $250–253 range, I do think long-term investors should look to punch their ticket into the name. The stock still looks rather expensive at just shy of 50 times trailing price-to-earnings (P/E), but as we head into 2025, some potential catalysts may help propel the name out of its consolidation channel.

The company has been taking steps to improve its operating performance while reducing its emissions through various means. And as the firm continues exploring acquisition opportunities as they arise, I wouldn’t at all be surprised if WCN stock gets even pricier over time.

Indeed, sometimes premium price tags on stocks are well worth paying if you’re getting a fundamentally sound business that has the levers to pull to move earnings higher. At the end of the day, Waste Connections is a top-tier operator that could become a heck of a lot greener in a decade’s time.

Created with Highcharts 11.4.3Waste Connections PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

TFI International

TFI International (TSX:TFII) is a trucking company that’s seen its stock fall off the road a bit. Though there could be a double-top technical pattern in the works, I wouldn’t be afraid to pick up a few shares on the way down, especially as TFI moves past this “challenging” environment.

Like Waste Connections, TFI has taken advantage of acquisition opportunities over the past year. Indeed, I think the firm is getting great deals amid industry turbulence. And going into 2025, I don’t expect the pace of such deals to slow, especially should the industry environment improve a bit.

At the end of the day, growth-by-acquisition can be a fantastic strategy, especially if managers are keen on synergy-rich deals. All considered, I think RRSP investors have plenty of reasons to stick with the relatively small (nearly $16 billion market cap) grower after its latest correction.

Created with Highcharts 11.4.3TFI International PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Should you invest $1,000 in Sierra Wireless right now?

Before you buy stock in Sierra Wireless, consider this:

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… and Sierra Wireless wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” 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.

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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 Investing

Stocks for Beginners

Dip Buyers Could Win Big: The Best Canadian Stocks to Buy Now

These two growth stocks have taken hits recently, but their fundamentals remain strong, and their growth prospects are intact.

Read more »

A bull and bear face off.
Stock Market

Bear Market Bargains Emerge as Recession Stocks Return

If you want a deal, then go to the best stocks during a recession market dip.

Read more »

Canadian Red maple leaves seamless wallpaper pattern
Dividend Stocks

5 Canadian Dividend Stocks to Buy and Hold for the Next 20 Years

These Canadian stocks have paid dividends for decades, making them reliable investments to generate regular passive income.

Read more »

An investor uses a tablet
Stocks for Beginners

The Smartest Canadian Stock to Buy With $250 Right Now

Are you looking for the smartest Canadian stock to buy right now? Consider this gem and avoid market volatility.

Read more »

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

Electricity transmission towers with orange glowing wires against night sky
Investing

Fortis Just Might Be the Best Canadian Dividend Stock to Buy in April

Let's dive into a few reasons why Canadian utility giant Fortis (TSX:FTS) still looks like a screaming buy heading into…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

a man relaxes with his feet on a pile of books
Investing

Got $7,000? How I’d Spread It Across 5 Blue-Chip Stocks for an Investing Foundation

Spreading $7,000 across these five blue-chip stocks provides a solid foundation for long-term financial success.

Read more »