Image source: Getty Images.
Canadians who are actively saving and investing in their retirement account should be on the lookout for opportunities in an increasingly turbulent North American market. The Registered Retirement Savings Plan (RRSP) remains one of the best options as it offers tax-free capital gains and dividend income as well as a chance of tax relief for those who contribute. Today I want to look at three dividend stocks that are perfect for a Canadian RRSP in early September. Let’s go.
I am looking to store this stock of green energy in my long-term RRSP
Capital Power (TSX:CPX) is an Edmonton-based company that develops, acquires, owns and operates renewable and thermal power generation facilities in Canada and the United States. Shares of this dividend-paying stock soared 30% in 2022 as of the September 1 close. This pushed the stock well into the black over the year-over-year period.
This company released its fiscal 2022 second quarter (Q2) results on August 2. It reported revenue and other income of $713 million in Q2 2022, up from $387 million a year earlier. Meanwhile, revenue in the first six months of 2022 reached $1.21 billion of $941 million year-to-date in 2021. Adjusted funds from operations (FFO) nearly doubled to $180 million, and adjusted FFO per share increased to $1.55 from $0.83 a year earlier.
Shares of this dividend-paying stock are trading in favorable value territory relative to its industry peers. RRSP investors can also count on its quarterly dividend of $0.58 per share, which represents a solid yield of 4.5%.
This REIT is the perfect dividend stock to target right now
Chartwell Pension REIT (TSX:CSH.UN) is a Mississauga-based real estate investment trust (REIT) that indirectly owns and operates a range of senior housing communities. This sector is experiencing strong growth as Canada’s senior population continues to grow. Shares of these dividend-paying stocks are down 15% since the start of the year. It is down 20% year over year.
In the second quarter of 2022, Chartwell reported resident revenue of $164 million, compared to $154 million in the second quarter of fiscal 2021. Meanwhile, net income was $1.10 billion , up from a net loss of $4.58 billion a year earlier. The occupancy rate for the same properties remained stable at 76%.
This dividend stock is trading at solid value levels relative to its major competitors. Even better, RRSP investors can count on its monthly distribution of $0.051 per share. This represents a very good return of 5.9%.
Another stable dividend stock ideal for your RRSP
Emera (TSX:EMA) is the third dividend stock I would suggest RRSP investors launch in September. Utilities stocks have shown resilience during the COVID-19 pandemic. Canadians can continue to trust utilities like Emera in times of economic uncertainty. Its shares fell 1.8% in 2022. The stock is still up 3.2% year-over-year.
The company reported its results for the second quarter of fiscal 2022 on August 10. Emera reported adjusted net income of $156 million, or $0.59 per common share, compared to $137 million, or $0.54 per common share, a year earlier. Its shares boast a price-earnings ratio of 29, which puts it in attractive territory relative to its industry peers. Emera is offering a quarterly dividend of $0.662 per share, representing a yield of 4.3%.