Canadian individuals who are managing their own Registered Retirement Savings Plan (RRSP) portfolios are constantly on the lookout for trustworthy dividend stocks. One such example is the well-performing Fortis (TSX:FTS) that has recently announced its promising first-quarter (Q1) 2025 earnings. The earnings report showed a net income of $499 million, which translates to $1.00 per share, setting it apart from the $459 million, or $0.93 per share, recorded in the corresponding period last year.
Fortis indeed demonstrated significant strides in economic growth by involving $1.4 billion in capital within the quarter, forming part of their larger $5.2 billion capital plan for 2025. But even more remarkable is their audacious $26 billion capital project spanning over a five-year period. This venture plans to elevate the rate base from its 2024 figure of $39 billion to a potentially towering $53 billion by the end of 2025.
Accumulating to a compound annual growth rate of approximately 6.5% over the five-year period, this plan of action proves to be an ambitious endeavor for Fortis. The success of this project and resulting new asset developments will inevitably lead to growth in company earnings. Consequently, this will sustain the projected annual dividend growth, increasing between 4% and 6% over the next four years, concluding in 2029.
Fortis has shown strong performance over the past year with a 24% increase in their stock value, marking a new high for the company. Presently, investors have an encouraging opportunity – buying FTS stock at the current market price would mean a substantial dividend yield of 3.6%. In fact, Fortis’s commitment to investors is highlighted by its consistent annual dividend increases for the past 51 years.
Another fruitful company for RRSP investors to consider is the Canadian Natural Resources (TSX:CNQ). Known for its resiliency and growth, CNRL already upped its dividends twice in 2024 and has made another increase in 2025. Notably, this marks the 25th consecutive year the company has done so.
The consistency in CNRL’s dividend enhancement is attributed to its diversified assets and robust balance sheet. The company’s records indicate peak production levels in 2024 and forecast an analogous growth trend to continue in 2025. This prediction is backed by the company’s capital program along with the benefits reaped from the latest $6.5 billion acquisition of Chevron’s Canadian assets.
CNRL’s diverse portfolio and flexible capital operations amplify its resilience even amid unpredictable fluctuations in commodity prices. Its substantial natural gas endeavours, conventional heavy oil, conventional light oil, oil sands, and offshore oil production, work collectively to uphold the stability of the firm.
Over the past year, CNRL’s share price has seen a 25% decline. However, this dip in value presents an enticing opportunity for investors to purchase CNQ stocks at a reduced cost, in return offering a robust dividend yield of 6%. It’s prudent for investors to anticipate near-term volatility, especially with impending U.S trade negotiations with China and other top global trading partners.
While the possibility of further weakness in CNQ stock cannot be entirely ruled out, it should be viewed as a chance to purchase additional shares. The oil market oscillations may be unpredictable, yet the possibility of a rebound cannot be dismissed. CNRL’s profitability is clearly evident, even under the pressure of current oil prices.
CNRL confidently stated its West Texas Intermediate (WTI) breakeven price to be within the US$40 to US$45 range. While the current WTI oil price is $59 per barrel compared to a 12-month high above $80, any positive news on U.S and China’s trade deal could alleviate fears of a recession and trigger a significant upturn in oil prices.
Speaking of dividend stocks ideal for RRSP investors traded on TSX, both Fortis and CNRL serve as commendable examples. Their robust track records of consistent dividend growth even amidst periods of harsh economic conditions are truly noteworthy.
These two companies have proven themselves as solid investment options for those aiming to efficiently invest their cash in a self-managed RRSP. Their resilience, demonstrated through consistent dividend growth and strategic investment activities, positions them as strong contenders amidst other dividend stocks on the TSX.
To summarize, both Fortis and CNRL have displayed robust growth and offered investors high dividend yields consistently. This trend coupled with their strategic investments, such as Fortis’s ambitious $26 billion capital program or CNRL’s acquisition of Chevron’s Canadian assets, provides a strong basis for future growth, making them attractive picks for any RRSP portfolio.
Ultimately, any investors with spare cash seeking a reliable dividend stock for their self-directed RRSP should have Fortis and CNRL firmly in their sights. The consistent increase in dividends and promising growth projections position these stocks as worthy contenders for RRSP investors.