For investors looking to load up their Registered Retirement Savings Plan (RRSP) accounts this year, finding optimal options as core portfolio picks is important. The good news is that the TSX is chock full of TSX stars that can provide the kind of tax-efficient wealth so many investors are after.
Here are three of the top companies I’ve got on my radar right now.
Restaurant Brands
With well-known brands, including Tim Hortons, Burger King, Popeyes, and Firehouse Subs, within its portfolio, Restaurant Brands (TSX:QSR) remains a world leader in the quick-service restaurant sector. A stable and slow-and-steady sector in terms of growth (historically), this space has come under pressure of late thanks to the rise of GLP-1 drugs and an overall global economy that’s been growing at a slower rate than in the past.
Restaurant Brands’s recent results indicate that some of this is bleeding into the company’s financials. The company’s same-store sales growth has been stagnant despite some notes of positivity driven by the company’s Canadian operations (looking at you, Tim Hortons).
That said, the small growth the company has seen on certain metrics has been driven by an improved strategic focus. The management team has done a great job of improving menu innovation, digital innovations, and worldwide development. Because of its tenacity and capable leadership, the firm is expected to have organic adjusted operating income growth of more than 8% in 2024.
Restaurant Brands offers RRSP investors the chance to invest capital into a business with a significant worldwide presence and a diverse portfolio of brands. The firm is a good addition to a retirement portfolio because of its dedication to innovation and growth, which prepares it for long-term success.
Alimentation Couche-Tard
One of the top operators of convenience stores in North America, Europe, and other key markets, Alimentation Couche-Tard (TSX:ATD) is another company I’ve been banging the drum on in recent years. The company’s focus on becoming a world leader in the convenience store space hasn’t slowed, with a recent offer to buy Japan’s 7-Eleven as the latest bid for growth for this absolute giant.
Couche-Tard has grown to the size it has in recent years thanks to aggressive acquisitions, which have had to get larger and larger over time. While this 7-Eleven deal appears unlikely to go through (and other similar large bids have failed), Couche-Tard is a company that’s clearly not afraid to invest serious growth capital to get larger. For those bullish on the convenience store sector, this is a good thing.
The company’s recent results highlight how successful it has been in seeing steady growth. Comparable same-store sales growth of more than 5% in the midst of economic difficulties impacting lower-income consumers is impressive. If the global economy does turn around (as many expect could be the case in a lower interest rate environment), this is a top growth stock that could resume its upward trajectory.
In order to be an investor, some amount of inherent optimism is required. I think that’s the case when it comes to Couche-Tard (this stock isn’t as cheap as it once was), but I think in this case, this optimism could be well-rewarded over the long term.
Fortis
Last, but certainly not least, I think it’s important to include Fortis (TSX:FTS) in any list of investments those looking for top RRSP holdings may want to consider. Over the long term, Fortis’s total return profile has been strong. This has been driven not only by capital appreciation but also by very strong dividend distributions over time (which have increased for more than 50 years). Thus, for investors looking to add an income component to their retirement portfolio, this is a top option I think is worth considering.
Fortis operates a number of regulated gas and electricity utilities across the U.S., Canada, and Caribbean nations. The company’s notable reputation for providing stable power to residential and commercial clients makes this a top option to consider in a world where power consumption is expected to tick up at a faster rate than in the past (ahem, artificial intelligence).
Fortis’s recent results highlight the company’s growth trajectory, and with more than $22 billion in investments planned over the next five years, the company expects to see its rate base increase to $53 billion in 2029 (up from $38.8 billion in 2024). That’s growth most investors can get behind.
