Finding the right dividend stocks for one’s RRSP can feel like a difficult task. But it all comes down to a few basic and simple principles, and dividend stocks that are financially sound and operationally efficient are a good place to start.
So, let’s review two dividend stocks that can help RRSP investors enjoy long-term wealth and prosperity.
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Canadian National Railway
As one of Canada’s two railway companies, Canadian National Railway Co. (TSX:CNR) enjoys many benefits. This is an industry that’s characterized by limited competition and high barriers to entry. And it’s a business that’s all but guaranteed as long as there’s an economy.
With total revenue of $17.3 billion and free cash flow of $3.3 billion in 2025, CN Rail is clearly doing well. And with its strong history of stable results, CN Rail stock has a lot going for it. Its far-reaching and diversified business has proven to be resilient, reliable, and value-creating.
In the five years ended 2025, CN Rail achieved a compound annual growth rate (CAGR) of 6% in its earnings per share and 10% in its dividends per share. Also, CN Rail stock has 30 consecutive years of dividend growth.
I would hold CN Rail stock in my RRSP for the long term. This dividend stock is yielding a respectable 2.2%, and it’s armed with a strong and resilient business. Furthermore, CN Rail stock is well-positioned with positive opportunities to grow with the economy.
TD Bank
Toronto-Dominion Bank (TSX:TD) is one of Canada’s top two banks. It has an extensive branch network in Canada and the U.S. It also has significant scale in the fragmented U.S market, and one of the strongest balance sheets and liquidity positions. These competitive advantages have placed TD Bank in a prime position for future growth and long-term value creation. Thus, TD Bank stock is an ideal holding for one’s RRSP.
TD Bank stock has enjoyed strong earnings once again in the last quarter. Adjusted earnings per share (EPS) increased 21% to $2.38, and the bank’s return on equity (ROE) increased more than 200 basis points to 14.4%. This was driven by record earnings in the bank’s insurance business, momentum in market-driven businesses, strong volumes, and margin expansion.
This dividend stock clearly continues to benefit from momentum in its business as it continues to expand, grow with the population, and take market share down south in the U.S. With its history of strong risk management and prudent growth strategies, I think we can count on this dividend stock for years to come. Moreover, TD is using technology to simplify, grow, and reduce costs. This couldn’t come at a better time.
TD Bank stock currently has a dividend yield of 2.7%, and TD Bank’s stock price has enjoyed a strong run. In fact, TD Bank’s stock price has rallied 170% in the last five years, with more long-term upside to be had. This makes it a solid buy for long-term RRSP investors.
The bottom line
CN Rail and TD Bank stocks are in different industries but have key characteristics in common that make them both strong options for one’s RRSP.
They both benefit from their respective competitive moats, they are leaders in their industries, and barriers to entry are high. Therefore, I view these two dividend stocks as strong buys for long-term wealth creation in one’s RRSP.
