RRSP Investors: The 3 Best Dividend Stocks to Buy This Spring fool.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from fool.ca Daily Mail and Mail on Sunday newspapers.
The Globe and Mail Dale Jackson Published March 17, 2021
ROMAN/istock
Now that this year’s deadline for making contributions to registered retirement savings plans (RRSP) has passed, many Canadians who managed to make contributions are looking forward to a tax refund in the spring. However, tax experts are quick to point out the advantages of having a long-term plan that keeps more of those tax dollars invested.
In fact, over a lifetime, investors can generate hundreds of thousands of dollars in extra retirement savings through “tax-free compounding.” The strategy allows tax savings to generate further tax savings while compounding in investments over time. It also means reinvesting that cherished RRSP refund that comes in the spring.
Young and old, active workers or retirees in Canada have handy tax breaks to claim from the CRA. For TFSA or RRSP investors, the high-yield Enbridge stock is the ideal core holding.
The Keyera stock, Fiera Capital, and Extendicare stock are among the TSX’s dividend beasts. Yield-hungry investors should find the higher than 6.5% dividend offer truly enticing.