What’s up guys, it’s wiz.
Welcome back to the channel. If you are new, I am a Canadian investor. I cover a whole lot of information about investing in Canada and do research into our Canadian market. I dive into growth investing, dividend investing and Canadian small caps / penny stocks. Today I will be going over 2 very strong Canadian picks for RRSP investors to potentially add. These stocks look attractive right now for investors focused on total returns. Canadian savers are using their online broker accounts to set up self-directed RRSP portfolios. The pullback in the market this year is giving investors a chance to buy some top dividend stocks at undervalued prices for a fund focused on total returns. For new investors, you need to join Wealthsimple Trade if you are looking to start investing and live in Canada. If you use my link in the description to join Wealthsimple, you get 2 free stocks worth up to 4500$ so do not miss out.
The first stock is Bank of Montreal (ticker symbol BMO). Investors often overlook Bank of Montreal in favour of its larger Canadian financial peers, but the stock probably deserves more attention. Bank of Montreal raised the dividend by 25% late last year after the government lifted a ban on payout hikes and share buybacks that it imposed on banks and insurance companies during the pandemic. The board of directors just followed up with another 4.5% distribution increase. This additional payout hike suggests management is very comfortable with the bank’s revenue and profit outlook through the rest of this year and into 2023. Bank of Montreal is in the process of making a big acquisition in the United States. The 13.4 billion US dollars takeover of Bank of the West is Bank of Montreal’s largest deal to date and will add more than 500 branches to the American business that operates as BMO Harris Bank. With 70% of its deposits located in California, Bank of the West gives Bank of Montreal a strong platform to expand its business in the state. Investors should see the immediate impact on the bottom line once the deal closes, and the acquisition could drive strong growth for years, as the American economy expands. The stock appears cheap near the current price of $138 per share. Bank of Montreal traded as high as $154 earlier this year. Bank of Montreal paid its first dividend in 1829, and investors have received a slice of the profits every year since that time. The current payout provides a yield of 4%. It is a great Canadian stock consisting of growth and dividend income to consider for the long term.
The second stock is Enbridge (ticker symbol ENB). Enbridge is a major player in the North American energy infrastructure sector with extensive oil and natural gas transmission and storage assets that serve as important networks for the transfer of fuel across Canada and the United States. In fact, Enbridge moves 20% of the natural gas used in the United States and 30% of the oil produced in the two countries. Enbridge is shifting its capital outlays to focus on export opportunities. The company bought an oil export terminal and connected pipelines for 3 billion US dollars in the fourth quarter of 2021. Enbridge also just announced plans to build new pipelines to deliver natural gas to new liquified natural gas (LNG) terminals in Louisiana. The world energy market is undergoing a dramatic transition, as Europe searches for ways to limit its reliance on Russia for oil and natural gas and Asian countries seek more LNG to produce power, as they move to cleaner fuels and renewable energy. Enbridge has natural gas distribution utilities and renewable power assets that round out the revenue stream. The board raised the dividend by 3% this year, and management expects distributable cash flow to rise by 5-7% annually over the medium term. At the time of writing, the stock provides a 5.8% dividend yield.
Hope you guys enjoyed my suggestion on 2 Canadian stocks that look strong and promising. Please watch my previous videos on Canadian stock recommendations and let me know of any Canadian stocks you want me to look into and give my opinion on. Let me know in the comments, since I really want to expand my knowledge in the Canadian market, and you also expand your own knowledge by asking questions. If you did enjoy this video, leaving a like really helps grow the channel! Thanks for watching, I’ll see you guys in the next video!