- The RRSP can help investors accelerate their retirement savings.
- Canadians can hold dividend stocks in their RRSP portfolio and reinvest the distributed dividend to purchase more such shares.
- A midstream energy stock listed here spiked by some 33 per cent in 12 months
The Registered Retirement Saving Plan, abbreviated as RRSP, can help investors accelerate their retirement savings. This savings plan, registered under the Canadian government, is known to provide growth exposure without raising much risk level.
Canadians can hold dividend stocks in their RRSP portfolio and reinvest the distributed dividend to purchase more such shares without incurring any tax liability until they are not withdrawn.
Let us explore five TSX dividend stocks that you could buy in May for your RRSP portfolio.
1. Royal Bank of Canada (TSX: RY)
Royal Bank mainly operates banking and financial business in Canada with additional operations in the United States and other nations.
The C$ 188-billion market cap bank will dole out a quarterly dividend of C$ 1.20 per share on May 24.
RY stock roughly swelled by 15 per cent in 12 months.
2. Fortis Inc (TSX: FTS)
Fortis Inc is a known utility company that owns and operates utility assets in Canada and the US.
The Canadian utility company will pay a dividend of C$ 0.535 per share on June 1 every quarter.
Fortis stock moved up by about 15 per cent in a year.
3. Dollarama Inc (TSX: DOL)
The Montreal, Quebec-based Dollarama saw an 11 per cent increase in sales to C$ 1.22 billion in Q4 FY2022 compared to Q4 2021.
The retail company will distribute a quarterly dividend of C$ 0.055 apiece on May 6.
The retail stock climbed by some 27 per cent in a year.
4. Emera Incorporated (TSX: EMA)
Emera Incorporated is a Halifax, Nova Scotia-based utility firm operating in North America and Caribbean nations.
Emera Incorporated pays a quarterly dividend of C$ 0.662 per share, payable on May 16.
EMA stock grew by around 11 per cent year-over-year (YoY).
5. Pembina Pipeline Corporation (TSX: PPL)
The oil player signed definitive agreements with KKR to merge their businesses that process natural gas in western Canada, where the former will own a 60 per cent stake in the new entity.
The midstream energy firm will pay a monthly dividend of C$ 0.21 apiece on May 13.
PPL stock spiked by about 33 per cent in 12 months.
Some investors believe that investing their savings from a young age can help them accumulate a large sum for retirement. TSX dividend stocks like Royal Bank, Fortis, Dollarama, etc. can help them build RRSP wealth in the long run.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.