Should RRSP investors explore these financial stocks?

Highlights

• The RRSP encourages citizens to save money for retirement and is one of Canada's most well-liked registered accounts.
• In the past three years, RY's dividend grew at the rate of 5.8 per cent.
• In Q1 2023, the revenue of Canadian Imperial Bank was C$ 5,927 million.

It makes sense to consider choices that can enable you to reduce your tax liability now that tax season has arrived. For instance, Canadians can reduce their tax obligations by contributing money to the Registered Retirement Savings Plan.

The RRSP encourages citizens to save money for retirement and is one of Canada's most well-liked registered accounts. Under the RRSP, you are allowed to own a range of qualifying investments from different asset classes. Also, all payments made to this account are tax-exempt, according to the Canada Revenue Agency.

If you are looking for some stocks for your RRSP, you may explore these TSX-listed equities:

Royal Bank of Canada (TSX:RY)

It provides diversified financial services and held a market capitalization of C$ 176.7 billion at the time of writing. The bank had announced a quarterly dividend of C$ 1.32 per share, payable in May this year.

In the past three years, RY's dividend grew at the rate of 5.8 per cent, and on March 24, the stock's dividend yield was 4.15 per cent.

In Q1 2023, Royal Bank of Canada's net income was C$ 3.2 billion, and its diluted earnings per share were C$ 2.29. In the personal and commercial banking segment, the net income was C$ 2,126 million, up eight per cent from a year ago.

The wealth management segment's net income amounted to C$ 848 million, up by C$ 27 million or three per cent from a year ago.

Although economic uncertainty has affected the financial sector since the Russia-Ukraine war, Royal Bank remains a blue-chip stock. It is relatively stable compared to companies in other sectors like technology.

Canadian Imperial Bank Of Commerce (TSX:CM)

The Canadian Imperial Bank of Commerce (CIBC) is one of the largest banks in Canada and a leading financial institution in North America. With over 11 million clients, CIBC offers a wide range of banking products and services, including personal banking, business banking, wealth management, investment banking, and capital markets.

In Q1 2023, the revenue of Canadian Imperial Bank was C$ 5,927 million, up eight per cent YoY and 10 per cent quarter-over-quarter (QoQ).

The adjusted diluted EPS was C$ 1.94 in the first quarter of 2023, up 40 per cent QoQ. Meanwhile, the adjusted return on equity (ROE) 15.5 per cent compared to 11.2 per cent in Q4 2022.

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.