Investing for the long term in a Registered Retirement Savings Plan (RRSP) is all about finding companies that can weather economic cycles, grow steadily, and reward investors with dividends and capital appreciation. Today, let’s look at Canadian stocks that have demonstrated resilience, steady earnings growth, and a commitment to returning value to shareholders, making them ideal for investors who want to set their RRSP on autopilot and let their wealth compound over time.
CIBC
Canadian Imperial Bank of Commerce (TSX:CM) is one of Canada’s largest banks and has a long history of rewarding shareholders with dividends while steadily growing its business. The bank has had its challenges, particularly in the U.S. commercial real estate sector, where declining occupancy rates have been a concern. However, it has also made significant strides in strengthening its core business.
In its fourth-quarter earnings report, CIBC posted an adjusted net income of $1.89 billion, or $1.91 per share, compared to $1.52 billion, or $1.57 per share, in the same quarter the previous year. The bank benefited from lower provisions for credit losses, which dropped by 22.5% to $419 million. Earlier in the year, its third-quarter earnings also saw strong growth, with a 28.5% increase in adjusted net income. Driven in part by a significant rebound in its U.S. commercial banking and wealth management division. This posted a staggering 187% increase in net income.
These results suggest that CIBC’s strategy of focusing on personal banking and wealth management is working, giving it a solid foundation for future growth. The bank’s dividend yield of 4.02% also makes it an attractive pick for income-focused investors looking to generate passive income within their RRSP.
TFI
TFI International (TSX:TFII) is another stock that has long-term potential for RRSP investors. The Canadian stock operates one of the largest trucking and logistics networks in North America, making it a crucial part of the supply chain. Even in a challenging economic environment, TFII has continued to perform well.
In the third quarter of 2024, the company reported operating income of $203.3 million. Slightly higher than the $200.6 million it posted a year earlier. While net income dropped slightly to $128.0 million from $133.3 million, adjusted net income still came in at $136.6 million, showing a small increase.
What stood out most in the earnings report was the Canadian stock’s ability to generate strong cash flow. Net cash from operating activities surged to $351.1 million, up from $278.7 million in the same quarter the previous year. This allowed TFII to reduce its debt by over $130 million while also raising its quarterly dividend by 13% to $0.45 per share. That combination of growth and financial discipline makes it a compelling stock for long-term investors who want exposure to a sector that will always be essential to the economy.
WSP
WSP Global (TSX:WSP) is another standout stock that fits well in a long-term RRSP strategy. The Canadian stock provides engineering and consulting services for major infrastructure projects around the world, positioning it at the centre of global development. As governments and businesses invest in sustainable infrastructure, urban planning, and energy projects, WSP is in a prime position to benefit.
The Canadian stock’s recent announcement that it will acquire Power Engineers marks a major step toward expanding its market presence and accelerating growth. Financially, WSP continues to deliver strong results. In its most recent earnings report, it posted an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.92 billion. Earnings before net financing expense and income taxes were $947.5 million.
These figures highlight its ability to generate steady earnings from large-scale projects. While its forward dividend yield is lower at 0.60%, WSP’s strength lies in its ability to reinvest in high-growth opportunities, making it a solid pick for investors looking for long-term capital appreciation.
Bottom line
While markets can be unpredictable in the short term, investing in high-quality stocks with strong fundamentals can help investors achieve financial security in retirement. CIBC offers stability and a strong dividend, TFI International provides exposure to the ever-important logistics sector, and WSP Global capitalizes on long-term infrastructure trends. By holding these stocks in an RRSP, investors can benefit from tax-advantaged growth — all while minimizing the need for active portfolio management.
