Money 3 top Canadian dividend stocks to grow your TFSA retirement fund

22:06  07 june  2018
22:06  07 june  2018 Source:   fool.com

Can I win by shifting funds from my RRSP to my TFSA?

  Can I win by shifting funds from my RRSP to my TFSA? An RRSP drawdown to fund your TFSA can mean more retirement incomeCP

Investing in top dividend stocks , such as Royal Bank of Canada (TSX:RY)(NYSE:RY), will grow your retirement income. Here is my simple advice to help you build your nest egg. Here are three safe dividend stocks to launch your TFSA retirement fund . Canadian banks.

Canadians are searching for ways to set aside adequate funds to support a comfortable retirement . One popular strategy involves owning top dividend stocks inside a TFSA and using the distributions to acquire additional shares.

  3 top Canadian dividend stocks to grow your TFSA retirement fund © Provided by Fool

Canadian savers are searching for quality companies to add to their Tax Free Savings Account (TFSA) portfolios.

The strategy makes sense, especially when the dividends are used to buy new shares to take advantage of a powerful compounding process that can turn a modest initial investment into a nice nest egg over time.

Let’s take a look at three stocks that deserve to be on your radar.

Quotes in the article

Suncor Energy Inc

SU

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Investing in top dividend stocks , such as Royal Bank of Canada (TSX:RY)(NYSE:RY), will grow your retirement income. Here is my simple advice to help you build your nest egg. 2 Canadian Dividend Stocks to Start Your TFSA Retirement Fund in 2018.

You can hold dividend stocks inside the account and reinvest the full value of the distributions in new shares. All three companies should be solid picks for a buy-and-hold TFSA retirement fund . Has Aurora Cannabis Displaced Canopy Growth as the Top Pot Stock ?

40.31
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Bank of Nova Scotia

BNS

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-0.56%
S&P/TSX Composite

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16,177.20
-6.73
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S&P/TSX Venture Composite

ISPVX

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-0.15%

Suncor Energy Inc. (TSX:SU)(NYSE:SU)

Suncor is primarily known for its large oil sands operations, but the company also owns refineries and more than 1,500 Petro-Canada retail locations. These downstream assets provide a nice hedge against rough times in the oil market and are a big reason Suncor’s stock held up so well during the downturn.

Management took advantage of the rout to add strategic assets at attractive prices, including the acquisition of Canadian Oil Sands. In addition, Suncor’s strong balance sheet enabled the company to push ahead with the Fort Hills and Hebron developments. These two projects are now complete and ramping up production, which bodes well for Suncor’s shareholders.

RRSP investors: 3 Top Canadian dividend stocks to build retirement wealth

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Here's how investing in top stocks such as Royal Bank of Canada (TSX:RY)(NYSE:RY) can help you save a substantial pile of money for retirement .

Canadian pensioners are searching for ways to increase the returns they get on their retirement savings . One popular strategy involves owning dividend -growth stocks inside a TFSA , as all the distributions are protected from the taxman. The company also has a growing health division

The company raised the dividend by 12.5% for 2018, and more gains should be on the way in the coming years. At the time of writing, the stock provides a yield of 2.8%.

A $10,000 investment in Suncor 20 years ago would be worth more than $100,000 today with the dividends reinvested.

Fortis Inc. (TSX:FTS)(NYSE:FTS)

Fortis owns natural gas distribution, power generation, and electric transmission assets in Canada, the Caribbean, and the United States. The company has grown over the years through strategic acquisitions and organic developments.

The acquisition of Michigan-based ITC Holdings for US$11.3 billion and Arizona-based UNS Energy for US$4.5 billion added important assets in the United States, providing key segment and geographic diversification. Fortis is currently working through a five-year $15.1 billion capital program that should boost the rate base to $33 billion by the end of 2022.

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There is no guarantee that these stocks will generate the same returns in the next 20 years, but all three should continue to be solid buy-and-hold picks for a dividend -focused TFSA retirement fund . Thomson Reuters grows revenue, sees Blackstone deal closing in fourth quarter.

Canadian income investors are searching for reliable dividend stocks to add to their TFSA portfolios. Let’s take a look at three of Canada ’s top companies that pay attractive and growing dividends .

As a result, management expects cash flow to grow enough over that time frame to support annual dividend increases of at least 6%. Fortis has raised the payout every year for more than four decades, so investors should feel comfortable with the guidance.

A $10,000 investment in Fortis 20 years ago would be worth more than $75,000 today with the dividends reinvested.

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS)

Investors often overlook Bank of Nova Scotia in favour of its larger peers, but that might be a mistake, especially for buy-and-hold investors.

Why?

Bank of Nova Scotia has invested billions to build a large international operation, with a focus on Mexico, Peru, Chile, and Colombia. The four countries represent the core of the Pacific Alliance, which is a trade bloc established to promote the free movement of goods and capital among the member states. Combined, the countries are home to more than 220 million consumers.

The international division already contributes close to 30% of Bank of Nova Scotia’s profits, and that could grow as the company expands its presence in Latin America. For example, Bank of Nova Scotia is currently working through its US$2.2 billion purchase of a majority stake in BBVA Chile. The deal will boost the bank’s market share to about 14% in the country.

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3 top Canadian dividend stocks to grow your TFSA retirement fund . Suncor Energy Inc. (TSX:SU)(NYSE:SU) and another two top companies have delivered impressive returns for buy-and-hold investors.The strategy makes sense

There is no guarantee that these stocks will generate the same returns in the next 20 years, but all three should continue to be solid buy-and-hold picks for a dividend -focused TFSA retirement fund .

In Canada, Bank of Nova Scotia is adding to its wealth-management business. The company recently bought Jarislowsky Fraser for $950 million and just announced plans to buy MD Financial for $2.59 billion.

Bank of Nova Scotia has a strong track record of dividend growth. The current payout provides a yield of 4.3%.

A $10,000 investment in Bank of Nova Scotia 20 years ago would be worth more than $80,000 today with the dividends reinvested.

The bottom line

There is no guarantee Suncor, Bank of Nova Scotia, and Fortis will generate the same returns over the next two decades, but all three remain attractive today, and the strategy of buying top-quality dividend stocks and investing the distributions in new shares is a proven one.

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Fool contributor Andrew Walker has no position in any stock mentioned.

The top 10 Canadian stocks ranked by overall strength .
Transcontinental Inc. (TSX:TCL.A) heads up a list of the 10 strongest stocks on the TSX, analyzed for income, track record, future growth, health, and value. It’s a nicely diversified list, so if you are starting an investment portfolio, you might be looking at the basics of one right here. Itching for income stocks? Most of the following pay a dividend, and all have great future prospects.Let’s start with number 10 and work our way towards the best one-size-fits-all stock on the TSX right now.10. Savaria Corp.

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