Money Where RRSP investors can find dividend growth

19:56  14 june  2018
19:56  14 june  2018 Source:

3 top Canadian dividend stocks to grow your TFSA retirement fund

  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, 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.

' Where should I hold U.S. dividend stocks?' Sober Second Thought: 'Other things being equal, U.S. stocks should be held in a non- registered or RRSP account.' That is, people may hold large amounts of cash or fixed income in non- registered accounts as a perceived security and focus on high growth

Dividends can play a key role in an investor ’s total return. Holders of registered retirement savings plans ( RRSPs ) should consider both U.S. and Canadian dividend growers. We asked three fund managers to offer dividend - growth -stock picks for an RRSP .

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For new and long-time investors, returns are most often very easy to understand:

Total return = capital appreciation + dividends (or cash inflows)

If a stock increases in value or pays a substantial amount in dividends over the holding period, then the total return will be higher. Capital appreciation, however, is a little more difficult to understand in down markets. For an investor who buys $1,000 worth of stock and loses 20%, the return to make up this loss must be $20/$80, which equates to 25%.

When a stock declines in value, it must increase by more (percentage wise) in order to get back to even. As many would say, “It’s just not fair.” As a result, many investors (especially retirees) have placed a premium on receiving dividends from their investments. As they would choose to say instead, “a bird in the hand is worth two in the bush,” which loosely means that cash in hand is better than allowing the company to retain it for future projects.

RRSP Investors: 2 Canadian Stocks to Hold for Decades

  RRSP Investors: 2 Canadian Stocks to Hold for Decades Here's why Nutrien Ltd. (TSX:NTR)(NYSE:NTR) and TransCanada Corporation (TSX:TRP)(NYSE:TRP) deserve to be on your radar.Canadian investors are searching for reliable stocks to build a buy-and-hold RRSP portfolio.

The RRSP has evolved over the last 60 years, giving investors increased incentive to save for their retirement . Most fundamentally, the growth on investments inside an RRSP is tax-deferred, meaning you don’t immediately pay tax. Any interest, capital gains or dividends earned will compound

The RRSP is a popular vehicle for setting cash aside for the golden years, especially for investors who find themselves in a higher tax bracket, as the contributions can be used to reduce taxable earnings. Royal Bank has a solid track record of dividend growth and investors should see the trend continue.

The first name for investors to consider adding to their RRSP accounts is none other than Enbridge Inc.(TSX:ENB)(NYSE:ENB). At a current price near $40 per share, Enbridge offers close to a 7% dividend. To make this investment even more attractive, management has posted on its website the plan to increase the dividend payment over a multi-year period. With such clear expectations, it’s difficult for investors to ignore this essential name.

The second name to consider is High Liner Foods Inc.(TSX:HLF). Given the recent USD/CAD exchange rate, High Liner has been under substantial pressure over the past few months. For investors who are willing to hold frozen seafood, however, the rewards may be plentiful, as the dividend yield is no less than 5.3%, and the company continues to take market share from its competitors.

I sold some art. What should I do with the money? Do I have to pay tax?

  I sold some art. What should I do with the money? Do I have to pay tax? How to calculate your capital gain on the sale of artMy current income is $39,000 gross per year. My assets are about $100,000. I have no real estate, no debt, and no dependents.

By picking dividend - growth stocks, you can reach your early retirement goals even faster. Over the past five years, CNR’s annual dividend distribution has doubled to .5 a share — a great incentive for its investors , who also benefit from explosive growth in CNR’s share value.

Dividend Growth Investor says. […] The Carnival of Personal Finance included my post on where to find dividend growth rates […]

In addition to the fundamental analysis, the technical indicators (the 10-day and 50-day Simple Moving Averages) are starting to line up very nicely on the stock. Sometimes, after the fundamental analysis is acceptable, an entry point can be chosen based on these indicators. Over time, the increase in market share will translate to higher dividends.

The last name on the list is Lassonde Industries Inc.(TSX:LAS.A), which operates in one of the least exciting industries available: fruit and vegetable juice. The reason to add this name to the list is due to the recent pay down of debt and the clear availability of cash flows, which can either be used to undertake a share buyback or increase the dividend payment to shareholders. To make this dividend-growth story even more interesting, it should be noted that the company is majority owned by a single investor, who may be taking the steps to privatize the company. Time will tell.

Stocks wobble after Fed says interest rates will rise faster

  Stocks wobble after Fed says interest rates will rise faster Stocks wobble after Fed says interest rates will rise fasterA federal court ruled that AT&T's $85 billion purchase of Time Warner can proceed, and that's sending ripples through the market as investors bet that hundreds of billions' worth of deals in the media, telecommunications and health care industries stand a better chance of getting approved.

Saving for retirement doesn’t have to be stressful. Young investors can still build a substantial portfolio by simply owning top dividend - growth stocks and reinvesting the distributions. Looking for a few more great dividend -paying stocks to buy today and put in your RRSP ?

This is a great incentive for RRSP investors to have their portfolios producing returns that beat inflation. Dividend growth will also leave more money With an annual dividend yield of 4.6% on a stock price of .16, Emera stock nicely fits in a dividend - investing strategy, where the objective is

There are so many opportunities for investors to obtain steady and growing dividends!

Free investor brief: Our 3 top SELL recommendations for 2018

Just one ticking time bomb in your portfolio can set you back months – or years – when it comes to achieving your financial goals. There’s almost nothing worse than watching your hard-earned nest egg dwindle!

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Fool contributor RyanGoldsman owns shares of ENBRIDGE INC and HIGH LINER. The Motley Fool owns shares of Enbridge. Enbridge is a recommendation of Stock Advisor Canada.

Boost Your TSFA Portfolio’s Income With These 2 REITs .
Boost Your TSFA Portfolio’s Income With These 2 REITsREITs have added excellent income to portfolios over the years. They are particularly suited to holding in a registered account, such as a TFSA or RRSP, because their payouts are not dividends, but distributions. These distributions are fully taxable in a non-registered account, but you can keep the entire payment if it is made within a registered account.

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