Business & Investment

3 Solid Holdings for Your RRSP

One of the “disclaimers” statements that always exist in connection with equity investments is that there is always a risk. No matter how old, established, and financially strong a business is, it is neither absolute nor its stock. Still, investing in relatively “solid” securities can significantly mitigate that risk. Best stocks, dividend aristocrats, market leaders, and some other traits will help you choose a winner in this category.

Electric service company

Businesses related to utilities like electricity tend to be very safe. Revenue is rarely a problem (unless there are internal weaknesses), whether it’s power generation or transmission. That is why we invest in the following transmission and distribution companies: Hydro One (TSX: H) And putting it in your RRSP is usually a good idea.

Especially in Ontario, it is one of the largest companies of its kind, powering approximately 1.4 million customers (both residential and corporate). The company focuses on rural areas. The rural electricity market (depending on the number of customers) occupies about a quarter of the state, but due to the lack of population density, the company covers about three quarters of the geographic area.

It’s a decent growth stock (with a yield of 3.45%) and since 2019 it has also been a good growth stock.

Heavy equipment auction company

Ritchie Brothers (TSX: RBA)(NYSE: RBA) Is one of Largest company That kind of thing in Canada. As a heavy equipment auctioneer, the company handles a wide range of transportation, construction and other specialty equipment. They carry out physical and online auctions around the world and are very successful.

Two of the latest auctions in Edmonton and Houston, Texas sold 88% and 91% lots, respectively. Its growth was a bit volatile, but inventories have increased since 2012 and have been aristocrats for much longer (18th consecutive year of dividend increases). Yields are low-end (1.46%), but a 10-year CAGR of nearly 14% is sufficient to buy this aristocrat at RRSP.

Underrated aristocrats

In this era of information age, society favorite Thomson reuters (TSX: TRI)(NYSE: TRI) It’s a good idea to work with information (one segment of the business). However, several other factors support the decision. We have elite customers and connect with most Fortune 500 companies through various business segments.

He is also one of TSX’s oldest aristocrats and has increased payments for 27 years. Yields drop to 1%, but the potential for capital appreciation is great. The 10-year CAGR is 21.4%, and the best part is that a strong combination of good dividend history and growth potential is now available at a bargain price.

Stupid takeaway

All three Dividend stock There is potential for decent long-term growth. They have strong competitiveness and leadership positions in their respective industries, which means minimal competition. And they are businesses that are likely to remain relevant for decades to come. Relatively modest dividends should be considered an additional bonus, as the main offer of these holdings is the devaluation of capital.

This article represents the opinion of a writer who may disagree with the “official” recommendation position of the Motley Fool Premium Services or Advisors. We are Motley! Asking investment treatises, even our own treatises, can help you think critically about your investment and make decisions to be smarter, happier, and richer. As a result, we may publish articles that may not match recommendations, rankings, or other content. ..

Stupid contributor Adam Ottoman There are no positions in any of the listed stocks. Motley Fool does not have a position in any of the listed stocks.

3 Solid Holdings for Your RRSP 3 Solid Holdings for Your RRSP

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