RRSP Investors: 3 TSX Stars for Tax-Efficient Wealth

The Registered Retirement Savings Plan (RRSP) is highly relevant to both taxpayers and investors. Since the Canada Revenue Agency (CRA) treats contributions as tax deductions, users can reduce their tax payable and save money, and more so for those in higher income brackets.

For investors, RRSP contributions enable tax-efficient wealth accumulation through tax-deferred growth. Stocks are popular choices, if not the preferred holdings of many RRSP investors. Instead of holding cash, consider using your contribution limits to buy leading TSX stocks that can help build wealth.

Rebuilding mode

Canadian Big Banks are legendary for their more than 100-year dividend track records. Of these, Toronto Dominion Bank (TSX:TD) – the second-largest by market capitalization – is considered the most “American” due to its extensive U.S. operations. This $218.6 billion bank is currently in rebuilding mode following a hefty anti-money laundering (AML) settlement in the United States.

A new reality for TD is the US$434 billion asset cap on its retail banking operations. The new management has implemented a structural overhaul, including AML oversight, to satisfy U.S. regulators. Fortunately, the stock has recovered from the shock. TD ended 2025 as the top-performing Canadian Big Bank.

TD did not stop paying dividends in the post-AML scandal. At $130.37 per share and a 3.3% yield, the 168-year streak of uninterrupted dividends continues.

Income-first king

Canadian Utilities (TSX: CU) is a prominent income-first stock to RRSP and Tax-Free Savings Account (TFSA) investors. This top-tier utility stock is the TSX’s first dividend king. It holds a prestigious record of 53 consecutive years of dividend increases. At $43.81 per share, the dividend yield is 4.2%.

The $11.9 billion utility and energy infrastructure company’s highly contracted and regulated earnings base sustains recurring cash flows and dividend growth. Its rate base stands at $15.9 billion but is projected to grow with the additional $6.1 billion investment in regulated utilities from 2025 to 2027.

According to its CEO, Bob Myles, it’s an exciting time at Canadian Utilities, driven by positive tailwinds in the current operating environment, particularly in Alberta. “Our unique position as an operator of utilities, storage, and generation assets positions us to capitalize on the opportunities ahead of us and to be a key provider for all of our current and future customers,” he said.

Shareholder-friendly

The bull case of Imperial Oil (TSX:IMO) for an RRSP is likewise strong. The $68.8 billion integrated energy producer is shareholder-friendly, evidenced by its 31-year dividend growth streak. In addition to oil sands operations, the company is the largest petroleum refiner in Canada.

American oil giant Exxon Mobil has a majority ownership stake (69.6%) in Imperial Oil. At $138.55 per share, the dividend is 2.1%. The yield is modest but is safe and secure owing to the low 35.3% payout ratio.

Call to action

The CRA will start accepting 2025 tax returns on February 23, 2026. This information is important for RRSP users because the “First 60 Days” rule is in effect. Contributions made by March 2 qualify as a deduction for the 2025 tax year; otherwise, contributions made after this deadline will have to be claimed on the 2026 tax return.

The post RRSP Investors: 3 TSX Stars for Tax-Efficient Wealth appeared first on The Motley Fool Canada.

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More reading

• Outlook for TD Stock in 2026
• 7 Top-Tier Canadian Stocks That Just Bumped Up Dividends (Again!)
• Got $5,000? 5 Income Stocks to Buy and Hold Forever
• 5 Canadian Blue-Chip Stocks That Keep Growing Through Every Market
• 3 Stocks Every Canadian Investor Needs to Own in 2026

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.