This Telecom Stock Could Be the Cornerstone of Your RRSP

The Registered Retirement Savings Plan (RRSP) is one of the best ways to save for the long term, with benefits that are also felt right away. Not only can you save for retirement, but the RRSP can bring down your taxable income each and every year!

That’s right, for every dollar you put into an RRSP, that’s taken off your taxable income. This can possibly bring you into a lower tax bracket, bringing down what you owe and instead offering up a tax return! All that cash can then be used to invest, reinvest, and put towards your future. The only question is, where should you invest?

Consider telecoms

Telecom stocks can be an excellent cornerstone for any RRSP. That’s because these companies combined three things long-term retirement investors need. That’s stability, income, and slow but steady growth. Stability comes from a few things. Telecom services offer wireless, internet, and broadband services. These are essential, as people need phones and internet, even during recessions. This means telecom stocks are some of the most resilient revenue and cash streams during economic cycles. That gives your RRSP solid income for decades.

Even better? Dividends. Canadian telecoms have a long history of paying some of the best dividends out there, as these keep increasing year after year. Yields are usually between 5% and 7%, giving investors regular income. Reinvesting over 20 or even 30 years can be a huge difference for retirement. This also fuels growth, and telecom stocks provide steady expansion that’s always changing. Faster internet, 5G, rising data consumption, cloud services — it’s all tied to telecoms.

With RRSPs tied to long-term investing, telecom stocks are a perfect fit. These don’t deliver quick returns, but instead are wealth builders for decades of reinvested income with modest growth. By holding in an RRSP, you’re not looking for excitement; you’re looking for strength.

Consider TELUS

Now, there are a few names you likely know already in the field of telecom stocks. However, I’d urge you to consider TELUS (TSX:T). TELUS stock is a perfect blend of a bit higher growth, with the same stability offered up from telecom stocks in Canada, especially as its digital-health arm expands.

During the second quarter of 2025, TELUS added 198,000 new customers across its mobile and fixed services, all while keeping postpaid churn under 1%. Basically, customers are sticking around, bringing in recurring revenue and stable cash flow. That’s exactly what RRSP investors want. With free cash flow (FCF) improving 11% to $535 million, and a $2.15 billion target for 2025, that is enough coverage for further growth, lower debt, and more dividends.

Yet TELUS Health is where the excitement lies. Revenue here jumped 16%, with earnings before interest, taxes, depreciation, and amortization (EBITDA) climbing 29%! It’s already hitting and even surpassing targets, with the segment providing diversification away from low-growth telecom revenues, building exposure in essential digital health.

Bottom line

Now, of course, risks remain. Revenue growth was modest at 2%, leverage was higher than peers, and this limits near-term flexibility. But the RRSP remains a strong growth model that also provides a steady dividend. In fact, a $7,000 investment could bring in $533 each and every year!

For RRSP investors, TELUS is the perfect blend of growth and income. It may not explode overnight, but that could lead to a plunge anyway! So, if you’re looking for stability and income with tax-deferred benefits, this is a telecom stock to hold for decades.