5 Dividend Stocks That Belong in Your RRSP

Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM), Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI), Enbridge Income Fund Holdings Inc. (TSX:ENF), First Capital Realty Inc. (TSX:FCR), and Innergex Renewable Energy Inc. (TSX:INE) belong in your RRSP. Which should you buy today?

The Motley Fool

The best dividend stocks to put in your Registered Retirement Savings Plan (RRSP) are those that have high and safe dividend yields, track records of growing their payouts, and the ability to continue growing their payouts going forward. Finding stocks that meet these criteria can be difficult, but fortunately for you I’ve done the hard part and compiled a list of five great opportunities, so let’s take a quick look at each.

1. Canadian Imperial Bank of Commerce

Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is Canada’s fifth-largest bank with approximately $478.1 billion in assets.

It pays a quarterly dividend of $1.21 per share, or $4.84 per share annually, which gives its stock a yield of approximately 4.8% at today’s levels. It’s also important to note that the company’s six dividend hikes since the start of 2015, including its 2.5% hike last month, have it on pace for 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment, and it has a long-term payout target of 40-50% of its net earnings.

2. Rogers Communications Inc.

Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) is one of Canada’s largest diversified communications and media companies, providing services such as wireless voice and data communications, high-speed internet, and data networking to individual consumers and businesses.

It pays a quarterly dividend of $0.48 per share quarterly, or $1.92 per share annually, which gives its stock a yield of approximately 3.9% at today’s levels. It’s also important to note that the company has raised its annual dividend payment for 11 consecutive years, and I think it’s well positioned to continue this streak in 2016.

3. Enbridge Income Fund Holdings Inc.

Enbridge Income Fund Holdings Inc. (TSX:ENF) owns a portfolio of high-quality, low-risk energy infrastructure assets located across North America, including pipelines, oil storage facilities, and renewable power generation facilities.

It pays a monthly dividend of $0.1555 per share, or $1.866 per share annually, which gives its stock a yield of approximately 6% at today’s levels. It’s also important to note that the company’s two dividend hikes since the start of 2015, including its 10% hike in December, have it on pace for 2016 to mark the sixth consecutive year in which it has raised its annual dividend payment, and it has a dividend-per-common-share growth target of 10% annually through 2019.

4. First Capital Realty Inc.

First Capital Realty Inc. (TSX:FCR) is one of Canada’s largest owners, developers, and managers of grocery-anchored commercial real estate with interests in 161 properties located across four provinces.

It pays a quarterly dividend of $0.215 per share, or $0.86 per share annually, which gives its stock a yield of approximately 4% at today’s levels. It’s also important to note that the company has raised its annual dividend payment for four consecutive years, and I think its strong financial performance will allow this streak to continue in 2016.

5. Innergex Renewable Energy Inc.

Innergex Renewable Energy Inc. (TSX:INE) is one of world’s largest independent renewable power producers with ownership interests in 42 hydroelectric, wind, and solar power generation facilities located across Canada, the United States, and France.

It pays a quarterly dividend of $0.16 per share, or $0.64 per share annually, which gives its stock a yield of approximately 4.4% at today’s levels. It’s also important to note that the company’s 3.2% dividend hike in February has it on pace for 2016 to mark the third consecutive year in which it has raised its annual dividend payment.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joseph Solitro has no position in any stocks mentioned. The Motley Fool owns shares of ROGERS COMMUNICATIONS INC. CL B NV. Rogers Communications is a recommendation of Stock Advisor Canada.

More on Dividend Stocks

A meter measures energy use.
Dividend Stocks

Is Fortis Stock a Buy, Sell, or Hold for 2025?

Fortis has increased its dividend annually for the past five decades.

Read more »

analyze data
Dividend Stocks

3 Dividend Stocks That Are Screaming Buys in November

Here are three top dividend stocks long-term investors won't want to ignore during this part of the market cycle.

Read more »

senior relaxes in hammock with e-book
Dividend Stocks

Generate $175/Month in Passive Income With a $30,000 Investment

Dividend aristocrats offer reliability, and many of them also offer generous yields. With sizable enough discounts, these yields can become…

Read more »

dividends can compound over time
Dividend Stocks

Best Dividend Stocks to Buy Now for Canadian Investors

These three stocks would be excellent additions to your portfolios, given their solid underlying businesses, consistent dividend growth, and healthy…

Read more »

data analyze research
Dividend Stocks

3 Undervalued Stocks to Watch in November

Not all undervalued and discounted stocks are destined or poised to make a comeback soon, and a protracted timeline can…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

The Perfect TFSA Stocks for Long-Term Growth

Two industry heavyweights are perfect stock holdings in a TFSA for long-term money growth.

Read more »

Make a choice, path to success, sign
Dividend Stocks

Is Fortis Stock a Buy for its Dividend Yield?

Fortis has increased the dividend for 51 consecutive years.

Read more »

Middle aged man drinks coffee
Dividend Stocks

Is Brookfield Stock a Buy, Sell, or Hold for 2025?

BAM stock recently jumped after beating earnings. But is it still a buy, or is it better to wait?

Read more »