Canada Markets closed

3 Top Dividend Stocks to Own Forever in Your RRSP

Mat Litalien, MBA
Growing plant shoots on coins

When it comes to quality management, look no further than the Brookfield family of companies. Brookfield is a household name and has an impressive list of assets under management.

It does however, come with a slightly complicated structure. At the top, we have parent company Brookfield Asset Management. The company has several limited partnerships, each specializing in a particular area, and each making great investments in their own right.

The best part about this high-quality family of companies is that they are all focused on returning cash to shareholders. They are all Canadian Dividend Aristocrats with very attractive yields. You can invest in parent company Brookfield Asset Management or you can choose from any of its subsidiaries listed below. Regardless, each will provide you with stable and reliable income for years to come.

Brookfield Property Partners (TSX:BPY.UN)(NASDAQ:BPY)

Property Partners is a diversified real estate company. It owns and operates a large portfolio of diversified assets such as retail, commercial, office, multifamily, industrial, and hospitality properties, which is part of what makes it so attractive. Thanks to its diversification, it’s almost a REIT exchange-traded fund (ETF), without the fees.

The company has a target return on equity of 12-15% and expects to raise distributions by 5-8% annually. It has a six-year dividend growth streak and a juicy 7.10% yield.

Brookfield Infrastructure LP (TSX:BIP-UN)(NYSE:BIP)

The fastest-growing company among the group, Brookfield Infrastructure’s stock price has been a star. Over the past five years, it has averaged approximately 20% annual growth, a rate that isn’t expected to slow anytime soon. Over the next five years, analysts expect average growth in the mid-to-high teens on an annual basis.

The company has a an 11-year dividend growth streak and has averaged double-digit dividend growth over the past five years. This is not surprising given BIP’s strong earnings growth.

The limited partnership owns and operates utilities, transport, energy and data infrastructure businesses. It owns everything from electricity lines to pipelines. Once again, its diversification across a large number of asset types is an attractive aspect of the company.

Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP)

Next, we have Brookfield Renewable Partners. The industry in which it operates is fairly self-evident, namely, it owns and operates a portfolio of renewable power assets. In total, it has approximately 17, 400 megawatts of installed capacity.

Whereas Brookfield Infrastructre has historically been the best performer, BEP may outperform moving forward. Analysts expect robust earnings growth of 57% on average over the next five years. That type of growth is difficult to find.

The company has a nine-year dividend growth streak and a robust 6.39% yield that is growing by an average of 5% annually.

Unfortunately, the current geopolitical climate has tempered investment in the sector. As we have seen over the past couple of years, government policies around climate change can shift considerably. There are usually one of two outcomes: the government acknowledges climate change and supports investment in renewable energy, or it doesn’t. This leads to the elimination of subsidies or the outright cancellation of renewable power contracts and projects.

This uncertainty is what makes this limited partnership, the riskiest investment of the bunch.

More reading

Fool contributor mlitalien has no position in any of the stocks mentioned. The Motley Fool owns shares of Brookfield Asset Management and BROOKFIELD ASSET MANAGEMENT INC. CL.A LV. Brookfield Property Partners and Brookfield Infrastructure Partners are recommendations of Stock Advisor Canada.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2019