Business & Investment

RRSP Deadline: 3 Dividend Shares to Purchase by March 1st

The deadline for contributing to the Registered Retirement Savings Plan (RRSP) for fiscal year 2020 is March 1, 2021. This means that Canadians only have a few weeks to make the final move before the start of the next fiscal year. According to a recent report from Edward Jones Canada, 52% of Canadians had no plans to contribute to RRSP this year.

In the survey, 44% of these respondents said they could not afford to contribute to the pandemic. The remaining 56% said they prioritized tax-exempt savings account (TFSA) contributions or mortgage payments. If possible, investors should consider hiding dividend stocks that offer decent value at this stage.

Today, I would like to take a look at three dividend stocks that are perfectly compliant with RRSP before the March 1 deadline. Let’s dive into.

Why you should hide this dividend stock before the deadline

Scotiabank (TSX: BNS)(NYSE: BNS) It is sometimes referred to as an “international bank” because of its imbalanced global reach compared to other big six banks. This exposure left the vulnerability during the COVID-19 pandemic. It was devoted to the fast-growing Latin American economy. This strategy has been successful over the years, but these countries have been most devastated by pandemics. The share of this dividend stock has remained almost unchanged year-on-year.

Investors can expect Scotiabank’s first quarter 2021 results later this month. Banks exceeded analysts’ expectations in the fourth quarter of 2020. It was also boosted by the quarterly reduction in allowance for doubtful accounts. The global recovery is slow, but it should still give Scotiabank the momentum to start 2021.

I targeted Scotiabank My top bank stock In January. The stock finally had a solid price-to-book value ratio of 13 and a price-to-book value ratio of 1.3. Even better, Scotia offers a quarterly dividend of $ 0.90 per share. This represents a high yield of 5%.

Optimal green energy stock for RRSP

Back in January, I Discussed Why investors should hide their green energy dividend stocks. Brookfield renewable (TSX: BEP.UN)(NYSE: BEP) It is one of the most reliable dividend stocks in this area. RRSP investors can rely on their long-term growth potential and income. As of midnight trading on February 10, its share was up 62% year-on-year.

On February 4, the company announced excellent results for the fourth quarter of 2020. Operating capital (FFO) increased from $ 171 million or $ 0.29 per share to $ 201 million or $ 0.31 per share. Overall, Brookfield achieved 6% growth in FFO in 2020. The company is in a great position as the new Biden administration seeks to strengthen the renewable energy sector.

Brookfield offers a quarterly dividend of $ 0.434 per share. That’s a 2.6% yield.

Another dividend stock to buy by March 1st

The last dividend stock that RRSP investors should target Manulife Financial (TSX: MFC)(NYSE: MFC).. This top insurer and financial services company is ready to recover in the global economy. Manulife has a history as a dividend payer and is currently offering great value. RRSP investors should not overlook this dividend stock. The company will release a final batch of earnings at the end of today’s trading session.

The final price-earnings ratio for this dividend stock was 9.3 and the price-earnings ratio was 0.9. In addition, we will offer a quarterly dividend of $ 0.28 per share. This corresponds to a yield of 4.5%.

Speaking of stocks to add before the RRSP deadline. .. ..

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Stupid contributor Ambrose O’Callahan There are no positions in any of the listed stocks. Motley Fool recommends BANK OF NOVASCOTIA.

RRSP Deadline: 3 Dividend Shares to Purchase by March 1st RRSP Deadline: 3 Dividend Shares to Purchase by March 1st

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