It’s not too late! You can still contribute to your Registered Retirement Savings Plan (RRSP), though time is running out. As of March 1, 2021 the deadline will be over for the 2020 tax year. So if you’re an investor looking to put some of your extra cash away, there are few options better than in your RRSP. And that’s whether you’re retired or not!
Enbridge Inc. (TSX:ENB)(NYSE:ENB) will continue to be one of the top performers in the North American oil and gas transmission for decades. The company runs pipelines across the continent. As oil prices continue to rise, investors should already look forward to some serious gains from this stock.
The immediate and, frankly, fairly long-term outlook for natural gas and crude oil looks secure. Even as countries around the world shift to cleaner energy, oil and gas will continue to dominate during this time. In fact, natural gas in particular is seeing a boost as coal-fire plants become converted to natural gas.
Then, of course, pipelines will connect these plans across the continent, shipping that gas around the world. Considering how cheap it is to produce oil and gas in North America, our product should be in high demand in the years to come. And luckily, Enbridge stock will see a boost as its pipeline projects come online in the next few years.
But the company is solid without its growth projects. It’s supported by decades of long-term contracts that will ensure investors continue to see a 8-10% increase in dividends through the next few years. The stock trades at $45 per share as of writing, that’s a decrease of 13% since the highs before the crash. Investors today can pick up a 7.57% dividend yield with tons of growth in the near and far future.
NorthWest Healthcare Properties REIT Units (TSX:NWH.UN) is the perfect choice for RRSP investors. The company owns health care properties around the world, in a diverse range of properties to boot. The pandemic proved that investment was needed in these properties, and will continue to be in the future. Because of this, revenue has skyrocketed.
NorthWest stock has had a slew of stellar earnings report, with lease agreements now average around 14 years! At an occupancy rate around 97% as of writing, its revenue is 80% supported by public healthcare funding. That’s solidity you don’t get even with some of the best real estate investment trusts (REIT) out there.
While the company will report earnings on March 12, it looks like we’re set up for another quarter and yearly report of solid earnings. The company last reported a strong third quarter, with the closure of a $3 billion European joint venture! NorthWest reported net operating income of $72.2 million, increasing by 3.4% year over year, and has yet more assets on the horizon for investors to look forward to.
Chairman and CEO Paul Dalla Lana stated, “COVID-19 has highlighted the essential nature of services provided within the REIT’s properties and the infrastructure-like characteristics of its portfolio. This has underpinned strong operating and financial performance in Q3 and year to date along with the outperformance of cure-focused healthcare real estate relative to other real estate segments.”
Shares are already up 46% in the last three years, and 94% since the March crash, but more gains should absolutely be on the way, especially with earnings around the corner. The company is also crazy cheap trading only at $12.50 as of writing, with a dividend yield of 6.12%. I wouldn’t be surprised if shares doubled in the next few years.
There is a lot of chatter out there, and much of the market is overbought right now. Yet solid companies like Enbridge stock and Northwest stock offer strong returns in the next few years and beyond, which makes them the perfect choice for RRSP investors to receive strong returns and dividend growth through 2021 and more.
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Fool contributor Amy Legate-Wolfe owns shares of ENBRIDGE INC and NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.
The post RRSP Investors: 2 Top Stocks I’d Buy Now and Hold Forever appeared first on The Motley Fool Canada.
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