Ideally, withdrawals occur during retirement, when your income – and tax rate – are lower. That structure rewards patience, consistency, and ownership of high-quality businesses that can expand steadily over time.
Because market volatility creates selective opportunities, December can be an excellent time to add sustainable dividend payers to an RRSP. The following two Canadian companies combine long-term growth potential with earnings that can quietly emerge in a tax-sheltered account.
A dividend grower built on essential services
First Service (TSX:FSV) is a North American real estate company that generates recurring revenue by managing and maintaining residential and commercial properties. Its operations include property management – including condominiums and homeowners associations – and essential real estate services such as restoration, fire and water damage repair, HVAC, plumbing and painting.
Although FirstService’s dividend yield is a modest 0.7%, the company is a Canadian Dividend Aristocrat, having increased its payout for about twelve consecutive years. More importantly, the five-year dividend growth of nearly 11% reflects a company that prioritizes disciplined capital allocation and long-term returns for shareholders.
The stock recently pulled back after its third-quarter earnings report, creating a potential entry point for patient investors. Revenue rose 3.7% year over year to $1.45 billion, but fell short of analyst expectations due to a slowdown in restoration business and weaker consumer demand for home improvement services. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) still rose 3% to $165 million, although diluted earnings per share (EPS) fell 7.5% to $1.24.
Despite near-term pressures, year-to-date performance remains solid, with revenue up 6.8%, adjusted EBITDA up 13% and earnings per share up 2.7%.
Trading about 27% below its 52-week high, FirstService appears to be a classic example of a high-quality compound temporarily out of favor – exactly the kind of stock that can quietly build RRSP wealth over time.
Brookfield Asset Management: Income meets global growth
Brookfield Asset Management (TSX:BAM) offers a very different source of dividend income. As one of the world’s leading alternative asset managers, it specializes in real assets such as infrastructure, renewable energy, private equity and real estate.
The stock has weakened in recent months, likely due to profit-taking, as the stock has been on a general upward trend since it was spun off from its parent company in late 2022.
This pullback provides a reasonable entry point for long-term investors. BAM expects to double its business over the next five years, fueled by powerful secular trends including artificial intelligence infrastructure, decarbonization and growing demand for alternative investments.
Management estimates that fee-bearing capital could grow from approximately $581 billion today to approximately $1.2 trillion by 2030. At recent prices, the stock offers a dividend yield of approximately 3.3%, with management targeting double-digit growth in earnings and dividends over time.
Build RRSP wealth the smart way
Together, FirstService and Brookfield Asset Management offer a mix of dividend growth, resilience and long-term compounding potential. For Canadians focused on maximizing RRSP wealth, these are the types of companies worth owning – not just for December, but for decades to come.
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