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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. 2 Canadian Dividend Stocks to Start Your TFSA Retirement Fund in 2018.

Young Canadians are searching for ways to set aside ample funds to support a comfortable retirement . The bottom line. Both stocks pay dividends that should continue to grow at a steady rate. If you are looking for reliable buy-and-hold picks to start your TFSA retirement fund , Fortis and

  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

3 growth stocks that can heat up your TFSA this summer

  3 growth stocks that can heat up your TFSA this summer Stocks like Bombardier, Inc. (TSX:BBD.B) and others are still attractive targets, as investors look ahead to the summer months.BDRAF

All three companies should be solid picks for a buy-and-hold TFSA retirement fund . Motley Fool CEO Tom Gardner Goes Live and Tells Hong Kong Investors To Buy This Canadian Darling Tech Stock … The Richest Man Alive Invests in This. Stock Strategies. Top TSX Stocks .

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 .

40.31
+0.89
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Bank of Nova Scotia

BNS

58.68
-0.33
-0.56%
S&P/TSX Composite

0000

16,177.20
-6.73
-0.04%
S&P/TSX Venture Composite

ISPVX

773.96
-1.14
-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

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

Let’s take a look at two top Canadian dividend stocks that might be attractive picks today. Is one more attractive? Both companies should be reliable buy-and-hold picks for a new TFSA retirement fund .

Canadian investors are searching for ways to save for a comfortable retirement . One popular strategy involves holding dividend -growth stocks inside a TFSA and using the distributions to purchase new shares. Let’s take a look at five of Canada ’s top dividend stocks .

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.

Do I pay tax on dividends after I withdraw my fund from a TFSA?

  Do I pay tax on dividends after I withdraw my fund from a TFSA? Do I pay tax on dividends after I withdraw my fund from a TFSA?

Here are three safe dividend stocks to launch your TFSA retirement fund . Canadian banks. Canadian banks should be on the top of your shopping list when you’re starting to build your TFSA portfolio. Canada ’s top lenders offer stable and growing dividends .

Canadians are searching for reliable dividend -growth stocks to add to their TFSA portfolios. The company has grown over the years through organic projects and strategic acquisitions, with the largest deals taking place in the U.S. market.

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.

Hefty savings, careful spending pay off for this Alberta couple as they coast toward retirement

  Hefty savings, careful spending pay off for this Alberta couple as they coast toward retirement Sam and Mary want to know when they can afford to retire. The good news is they are financially secure thanks to their frugal lifestyleSolution: Maintain frugal ways to keep retirement-timing options open

Dividend stocks are your best friends. Companies that pay regular dividends and grow them over time generally outperform other asset classes. Here are my two top picks for your TFSA retirement fund in 2018.

Dividend stocks are your best friends. Companies that pay regular dividends and grow them over time generally outperform other asset classes. Here are my two top picks for your TFSA retirement fund in 2018.

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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