2 Top TSX Stocks to Buy for Your RRSP in 2022

These two TSX stocks could be excellent long-term buy-and-hold assets for your retirement portfolio in an RRSP.

| More on:

Stock market investing has become all the rage in recent years, as Canadians increasingly realize the importance of better spending habits and identify better ways to use their savings.

The Registered Retirement Savings Plan (RRSP) is an excellent investment vehicle for Canadian investors who want to create a sizeable retirement fund that they could use to fund their golden years. If you’re just starting investing, creating the right portfolio in your RRSP could help you realize significant wealth growth by the time you retire.

Today, I will discuss two excellent TSX stocks you could consider adding to your RRSP to generate significant long-term wealth growth through capital gains and dividend income.

Canadian National Railway

Canadian National Railway (TSX:CNR)(NYSE:CNI) is generally one of the most boring stocks you can find on the TSX, because its shareholders do not get to see much in its price movements. However, the stock has been uncharacteristically volatile in recent weeks, as its share prices fell due to its acquisition deal to purchase Kansas City Southern falling through.

Acquiring the U.S.-based railway network would have given it access to strategic routes into Mexico, expanding its already extensive network.

U.S. regulators effectively forced the company to abandon its acquisition efforts, allowing CP Rail to buy the railway instead. The company’s current CEO is retiring in January, and the most favoured candidate to become the next CEO removed himself from the hiring process, sending CN Railway stock’s share prices reeling.

At writing, the stock is trading for $155.79 per share, down by almost 7% from its all-time high, and boasts a juicy 1.58% dividend yield. It could be an excellent time to pick up its shares for a discount and lock in its dividend yield.

TC Energy

TC Energy (TSX:TRP)(NYSE:TRP) is a $58.79 billion market capitalization giant in Canada’s energy infrastructure industry. The company is headquartered in Calgary, and it boasts an expansive pipeline network that spans Canada, the U.S., and Mexico. Its primary revenue stream is its natural gas transportation and storage segment, but it also boasts oil pipelines and power-generation facilities.

The company currently has $29 billion worth of projects under development that could paint a good picture for its revenues in the next few years. The cash flows that it can potentially generate through the new projects could theoretically support dividend increases of 3-5% annually for several years.

Natural gas has a strong future in Canada and the U.S., because it is a cleaner alternative to coal and oil as a power source, making TC Energy an attractive long-term pick.

At writing, TC Energy stock is trading for$60.29 per share, and it boasts a juicy 5.77% dividend yield that you can lock into your RRSP portfolio today.

Foolish takeaway

A balanced investment portfolio includes a combination of high-growth stocks and reliable assets that provide you with relatively low but stable long-term growth through capital gains and dividend income. Income-generating assets with long track records for dividend growth could be ideal long-term additions for your RRSP portfolio.

CN Railway stock and TC Energy stock are two of the top TSX stocks that you could consider buying and storing as core holdings in your RRSP for this purpose.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Canadian National Railway.

More on Dividend Stocks

Canadian Dollars bills
Dividend Stocks

3 Monthly-Paying Dividend Stocks to Boost Your Passive Income

Given their healthy cash flows and high yields, these three monthly-paying dividend stocks could boost your passive income.

Read more »

Make a choice, path to success, sign
Dividend Stocks

The TFSA Blueprint to Generate $3,695.48 in Yearly Passive Income

The blueprint to generate yearly passive income in a TFSA is to maximize the contribution limits.

Read more »

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »

calculate and analyze stock
Dividend Stocks

This 5.5% Dividend Stock Pays Cash Every Single Month!

This REIT may offer monthly dividends, but don't forget about the potential returns in the growth industry its involved with.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

How to Use Your TFSA to Earn up to $6,000 Per Year in Tax-Free Passive Income

A high return doesn't mean you have to make a high investment -- or a risky one -- especially with…

Read more »

path road success business
Dividend Stocks

2 High-Yield Dividend Stocks to Buy Hand Over Fist and 1 to Avoid

High yields are great and all, but only if returns come with them. And while two of these might, another…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 7% Dividend Stock Pays Cash Every Month

A high dividend yield isn't everything. But when it pays out each month and offers this stability, it's worth considering!

Read more »