RRSP Investors: Here’s Where I’d Invest the Next $5,000 in 2025

Here’s why Suncor Energy (TSX:SU) and Fortis (TSX:FTS) are two top holdings RRSP investors may want to consider with their next $5,000.

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

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The Registered Retirement Savings Plan (RRSP) is invaluable for Canadians looking to build a solid retirement nest egg. Contributions to an RRSP offer immediate tax advantages and a tax-sheltered environment for your investments to grow.

With 2025 now upon us, I think it’s a great time to consider where to strategically allocate your next $5,000. Here are two top-performing TSX stocks that align with long-term growth and income stability which I think are worth considering for their defensive attributes as well as their dividend income.

Suncor Energy 

Suncor Energy (TSX:SU) is a Canadian integrated energy company involved in oil sand operations, refining, and retail. As one of the largest players in Canada’s energy industry, Suncor has a diversified business model that supports resilience and profitability across economic cycles.

Created with Highcharts 11.4.3Suncor Energy PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The global energy sector is poised for sustained growth as demand for oil and gas continues to rebound post-pandemic. Suncor, with its strong production capabilities and cost-efficient operations, is well-positioned to capitalize on rising energy prices in 2025 and beyond. In addition, Suncor has demonstrated improved profitability through disciplined cost management and increased production efficiency. Its robust cash flows have enabled the company to pay down debt, repurchase shares, and increase dividends.

Suncor offers an attractive dividend yield of around 4.5%. The company has a solid track record of returning capital to shareholders through consistent dividends and share buybacks, making it a reliable choice for RRSP investors. Allocating $2,500 of your $5,000 RRSP investment to Suncor provides exposure to the growth potential of the energy sector while benefiting from a steady income stream through its dividends.

Fortis

Fortis (TSX:FTS) is one of largest utility companies in Canada, with operations spanning electricity and natural gas distribution across North America. Known for its defensive characteristics, Fortis is an excellent choice for RRSP investors seeking stability and reliable returns.

Created with Highcharts 11.4.3Fortis PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Fortis operates in a highly regulated industry, ensuring predictable cash flows and earnings regardless of economic conditions. As a provider of essential services like electricity and gas, Fortis is insulated from market volatility, making it a cornerstone for any retirement portfolio. FTS stock is a Dividend Aristocrat, boasting nearly 50 consecutive years of dividend increases. With a current yield of approximately 4%, Fortis plans to grow dividends by 4–6% annually, ensuring consistent income growth for RRSP investors.

Fortis is actively transitioning toward renewable energy sources, with plans to invest billions in clean energy projects and grid modernization. This positions the company for long-term growth while aligning with global sustainability goals. Allocating the remaining $2,500 of your RRSP investment to Fortis ensures a steady income stream through its growing dividends while adding a low-risk component to your portfolio.

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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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

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