3 Evergreen RRSP Stocks Every Canadian Investor Should Own

If you’re looking into RRSP stocks, it’s quite likely you’ve come across these on many, if not all, of the lists of recommendations. Here’s why.

| More on:
Close up of an egg in a nest of twigs on grass with RRSP written on it symbolizing a RRSP contribution.

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 want to create a solid foundation for a Registered Retirement Savings Plan (RRSP). And when they start to look at where to invest, several names stand out. But among all the lists you’ll come across, you’re likely to find Royal Bank of Canada (TSX:RY), Fortis (TSX:FTS), and the BMO Canadian Dividend ETF (TSX:ZDV) on many of them.

Each offers a unique advantage for long-term, steady growth – exactly what RRSP investors need. From impressive recent earnings to a robust outlook for future growth, these picks bring stability and strong dividend potential. Thus making them evergreen choices for retirement planning.

Created with Highcharts 11.4.3Royal Bank Of Canada + Fortis + Bmo Canadian Dividend ETF PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Royal Bank

Royal Bank stock is Canada’s largest bank and a financial giant globally. With a market cap of over $240 billion and a trailing price-to-arnings (P/E) ratio around 15, it demonstrates consistent profitability and growth. In its most recent quarter, RY reported a 13% year-over-year increase in revenue and a 16.2% rise in earnings. This growth showcases Royal Bank’s strong footing in both Canadian and international markets. RY’s stability and resilience make it a reliable RRSP addition for anyone looking for both income and long-term growth potential.

On top of impressive earnings, Royal Bank’s dividend yield, currently around 3.3%, has historically been generous. With a payout ratio below 50%, RY has room to grow dividends further, a significant factor for retirement accounts. Investors can count on the bank’s established presence in the financial sector to sustainability support its dividend, thereby making RY a safe choice for Canadian RRSPs looking to balance income and growth.

Fortis stock

Fortis is another essential piece in a diversified RRSP portfolio. This utility company is known for its stability and strong dividend history. FTS recently reported quarterly revenue growth of 1.9% and a profit margin of 14.5%, thereby reflecting its consistent cash flow from essential services like electricity and gas distribution. Fortis’ predictable business model aligns well with RRSP goals, especially for conservative investors looking for steady returns.

Fortis stock has also shown commitment to dividend growth. Its current yield is around 4%, with a payout ratio of about 73%, balancing income and growth. Fortis’ record of dividend increases of 50 years signals a high level of reliability for income-seeking RRSP investors, thus making it an ideal choice for those who prefer a stable, utility-based investment in their retirement portfolio.

ZDV ETF

For a diversified approach, the BMO Canadian Dividend exchange-traded fund (ETF) offers exposure to high-dividend Canadian companies across several sectors. The ETF allows for broad access to dividend-paying stocks without focusing solely on one sector. Plus, this ETF’s yield of 3.9% provides RRSP investors with a dependable income stream.

ZDV’s sector diversification includes finance, energy, and utilities, which is ideal for RRSPs looking for a low-risk, diversified approach. With nearly 42% in financials, 18% in energy, and 10% in utilities, ZDV balances out some sector volatility, thus making it a robust choice for conservative investors. Plus, the ETF’s affordable management fee and its steady performance make it a smart pick for those who want hands-off exposure to dividend stocks.

Bottom line

When comparing these investments, Royal Bank and Fortis bring individual strengths with direct exposure to banking and utilities, respectively, whereas ZDV offers the benefit of broader diversification. Each choice aligns with the steady, income-generating needs of RRSP investors, making these picks truly evergreen.

Altogether, Royal Bank of Canada, Fortis, and the BMO Canadian Dividend ETF represent a balanced approach to long-term growth and income for Canadian RRSPs. The consistent performance, solid dividend histories, and dependable future outlook make these well-suited to help secure a comfortable retirement.

Should you invest $1,000 in Fairfax Financial right now?

Before you buy stock in Fairfax Financial, 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 Fairfax Financial 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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. 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 Dividend Stocks

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

I’d Put $15,000 in These 3 Dividend-Growth Champions for Increasing Income Potential

Want to offset some volatility? Here are three defensive dividend-growth champions that can generate a juicy yield right now.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

Transform Your TFSA Into a Cash-Creating Machine With $7,000

Discover how the Tax-Free Savings Account can be your golden goose for generating cash without losing your investment.

Read more »

monthly desk calendar
Dividend Stocks

How I’d Invest $10,000 in Canadian Value Stocks for Monthly Dividend Income

A $10,000-diversified portfolio of value stocks focusing on dividend safety, yield, growth, and payment schedules can provide a reliable source…

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

Is This Correction Your Chance? Top 4 Canadian Dividend Stocks on Sale

Stocks may be down, but now is your chance to get some of these top dividend stocks on sale.

Read more »

Confused person shrugging
Dividend Stocks

Where to Invest $2,500 in the TSX Today

These TSX stocks offer attractive dividends and a shot at decent upside on a rebound.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Invest $25,000 in These Dividend Stocks for $1,956.66 in Annual Passive Income

Dividends stocks can make a huge difference, even if shares don't move an inch. And these might be the best.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Got $5,000? 5 Income Stocks to Buy and Hold Forever

These income stocks have a solid dividend-payout history that can help you earn stress-free passive income.

Read more »

grow money, wealth build
Dividend Stocks

Why I’d Invest $10,000 in This Undervalued Dividend-Growth Stock for Decades of Income

This undervalued dividend stock offers a high yield of over 8% and can help you earn more than $200 in…

Read more »