Business & Investment

3 Best RRSP Stocks to Buy Now!

Timing is usually less important when making a long-term investment in a Registered Retirement Savings Plan (RRSP). However, good companies can also offer good entry points. In that context, I emphasize three picks that I think will soon turn up. These are also companies with very high long-term potential and are well suited for long-term RRSP holdings.

Nutrien

Given where the US dollar is heading due to the large-scale stimulus, I’m convinced that a bull market for commodities may be underway. At least, I think the recovery from recent levels is going well.

With that in mind, Nutrien Is The best way to play product space just now. In my opinion, this is a stock with a dividend yield of 3.3%, which is the best business model in the sector. Nutrien’s vertically integrated business model makes it a best-in-class possession for those seeking product exposure today.

Embridge

Another stock that could make a serious profit in a commodity bull market Embridge (TSX: ENB)(NYSE: ENB)..

Due to the nature of the pipeline business, Embridge is fortunate to have a relatively low correlation with oil prices. That said, rising commodity prices are good for the sector and good for embridged. A significant amount of counterparty risk has been priced on this stock as a result of falling commodity prices during the pandemic. The treatise was that if the firms paying Embridge to transport oil were not sound, Embridge’s solid cash flow might not be as solid as once thought.

Thankfully, oil prices have recovered steadily from the pandemic panic we saw last year. I think further recovery is needed. I think Embridge has great potential to make this deal even higher.

Restaurant brand

A company that I consider to be inherently resilient to depression, Restaurant brand (TSX: QSR)(NYSE: QSR) Unfortunately, performance has slowed recently. This defensive gem saw stock prices fall sharply during the pandemic — something I didn’t expect. That said, stocks have recovered to pre-pandemic levels, more than doubling from their March lows.

I think Restaurant Brands is likely to return to a growth trajectory this year. The coronavirus pandemic is heading outdoors, and new vaccines will soon (hopefully) be in a new normal state. I think existing store sales growth should recover and new bases should continue to open in growth markets. In addition, Restaurant Brands is one of the best acquirers in TSX, so I think there is room for acquisition-based growth.

Like these three confident picks? You will definitely like these great high belief picks too:

10 Best Stocks to Buy This Month

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Stupid contributor Chris Macdonald There are no positions in any of the listed stocks. Motley Fool owns and recommends a stake in Enbridge. Motley Fool recommends Nutrien Ltd and RESTAURANT BRANDS INTERNATIONAL INC.

3 Best RRSP Stocks to Buy Now!

https://www.fool.ca/2021/01/22/the-3-best-rrsp-stocks-to-buy-right-now/ 3 Best RRSP Stocks to Buy Now!

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