4 Stocks That Have Consistently Outperformed the TSX

The TSX is one index you would not want your portfolio to mirror, as the returns have been dismal, to say the least. Year to date, the TSX has declined, and in the past 12 months, it has yielded returns of less than 3%. If we go back five years, the returns for the index increase to 27%. However, if we look at 10-year returns on the TSX, then the yield falls back down to just 12%. A return of 12% over the past 10 years equates to a compounded annual growth rate of just over 1%.

The TSX’s poor performance over the years provides plenty of reasons to find stocks outside that mould. If you’re frustrated with the lacklustre TSX, then check out the list below, which is made up of four stocks that have outperformed the TSX by wide margins not only this year, but in the past 10.

Waste Connections Inc.  (TSX:WCN)(NYSE:WCN) is in a recession-proof industry; waste services are a necessity regardless of how the economy is doing. The stock has done a tremendous job for its investors, yielding a year-to-date return of over 16% so far. If we look at the past 12 months, Waste Connections has seen its stock price appreciate by over 21%. In the past five, years the stock has gone up by almost 200% and by over 400% in the last 10 years.

Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) is a household brand in Canada that is not going anywhere, and its returns aren’t either. Year to date, the stock has gone up almost 25% in price, although, in the past 12 months, that return is reduced to just over 10%. However, in the past five years, the share price has yielded returns of 60%, while in the last 10 years, returns have totaled over 44%. Although the returns for Rogers may not be as impressive as Waste Connections’s, it has still outperformed the TSX, even though it is not immune to market conditions.

Air Canada  (TSX:AC)(TSX:AC.B) is another well-known brand to Canadian consumers, but recently the stock has been taking off. Year to date, the company’s share price has increased by over 67% and by 155% in the past 12 months. Over the past five years, the stock has seen an incredible return of over 2,000%. However, Air Canada’s returns for the past 10 years drop to just 99%, as the company saw its initial price of over $10 decline steeply in the first few years of being traded on the TSX.

CCL Industries Inc. (TSX:CCL.B) might not be as well known as the other companies in this list, but it too has generated excellent returns for its shareholders. Year to date, the stock has yielded returns of just under 10%, while in the past 12 months, its share price has appreciated by over 20%. Over the long term, CCL has seen returns on its stock price of over 672% in the past five years and 537% in the past 10.

Bottom line

It’s important to note that just because these companies have performed well in the past does not guarantee that the returns will be as impressive in the future. However, the four companies here all have bright futures and could very well continue to outperform the TSX.

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Fool contributor David Jagielski has no position in any stocks mentioned. CCL Industries is a recommendation of Stock Advisor Canada.

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