New investors who are beginning RRSP contributions often struggle with where to begin. Fortunately, there’s no shortage of great investments on the market to choose from.
Here’s a look at some of the beginning RRSP options for new investors to look at right now.
You need this autopilot investment
The first stock for beginning RRSP investments to consider is Telus (TSX:T). Telus is one of the big telecom stocks in Canada. Telecoms offer stable revenue streams that are backed by reliable, highly defensive subscription-based services.
Those services include wireless, internet, TV and wireline segments, all of which are steadily becoming necessities.
Telus continues to invest in those segments and recently announced a massive $70 billion investment. That funding includes network and infrastructure upgrades as well over the next several years.
Adding to that appeal, Telus also boasts one of the best dividends on the market, and this is where those beginning RRSP investments should take note.
Telus offers an insane 7.5% yield. This means that investors who drop $5,000 into Telus will earn over a dozen shares through reinvestments alone.
In other words, investors beginning RRSP investments can purchase those shares today and let reinvestments take over.
Don’t forget the big bank stocks
Canada’s big bank stocks are some of the best long-term options on the market. There are plenty of reasons for that view, but it comes down to a solid domestic segment, growth focused on international markets, and a juicy dividend.
That big bank to consider is Toronto-Dominion Bank (TSX:TD). TD is the second-largest of the big banks and boasts a massive branch network at home and in the U.S.
In fact, TD’s branch network in the U.S. stretches from Maine to Florida along the east Coast, making it a great offset to its operations in Canada.
Turning to income, TD offers a juicy quarterly dividend. Like Telus, beginning RRSP investors can let reinvestments do the heavy lifting over the longer term.
As of the time of writing, TD boasts a quarterly dividend carrying a yield of 4.09%.
Add in the ultimate passive income option
Beginning RRSP investors have one final option to consider – RioCan Real Estate (TSX:REI.UN). RioCan is a REIT. In fact, it’s one of the largest in Canada, with a growing portfolio of nearly 190 properties located primarily in metro markets.
RioCan’s mix of properties includes commercial retail and, more recently, mixed-use residential. This latter group presents a unique opportunity for investors to become a landlord and generate a monthly income.
This represents an attractive (and lower risk) option when compared to owning a traditional rental property.
As of the time of writing, RioCan offers a monthly distribution that carries a juicy 6.5% yield.
Perhaps best of all, investing in RioCan comes without the need for a mortgage, finding tenants, or paying property taxes.
Beginning RRSP investors: Start here
New investors who are beginning to invest have the benefit of time. And that’s precisely why the three stocks mentioned above are such attractive options.
All three options offer a stable (and growing) income, as well as long-term growth appeal.
In my opinion, one or all of the above would do well in a long-term portfolio.
Buy them, hold them, and let those reinvested dividends grow your future income.
