The Motley Fool

Dividend Investors: 5 Stocks That Provided Returns of 15% or More in 2017

Dividend stocks normally lag behind growth stocks in terms of performance, but there are some that have performed very well this year. Below are five dividend stocks that pay more than 3% annually, and that have generated returns of at least 15% in the past year.

Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) had a strong year in 2017 with its stock rising more than 23%. With a 3% dividend, the telecom giant also offers investors a strong and reliable payout.

The company had a strong Q3, as it continued to add subscribers and grow its sales. Rogers is a good long-term buy, as the company has a strong position in the industry, and that’s unlikely to change anytime soon.

However, investors shouldn’t expect this strong growth to be repeated in 2018, as in five years the share price has increased only 41%, and growing competition in the wireless segment will only make it more difficult to achieve further growth.

Algonquin Power & Utilities Corp. (TSX:AQN)(NYSE:AQN) pays investors more than 4% every year, and it too has seen returns of 23% in the past year. The company has achieved significant growth over the years and saw sales double in its most recent quarter, while profits of $59 million were more than triple the $18 million that Algonquin posted a year ago.

The company has an interest in as many as 35 different clean-energy facilities, including wind and solar. As the demand for more environmentally friendly energy continues to rise, Algonquin could see many opportunities to grow its business.

National Bank of Canada (TSX:NA) may not be one of the Big Five banks, but it still offers investors great dividends and has generated strong returns for its shareholders. In 2017, National Bank saw its share price rise 15%, as it outperformed all of the big major banks.

The company provides investors with a solid 3.8% return that is likely to continue to grow over the years.

Rising interest rates will help National Bank and other lenders take advantage of larger spreads, but the year won’t be without challenges, as greater stress tests in 2018 for mortgages will likely have an adverse impact on the bank’s top line.

Domtar Corp. (TSX:UFS)(NYSE:UFS) is a low-beta stock that offers investors a lot of stability. However, that hasn’t stopped this stock from outperforming the market with returns of 19% in 2017. Although Domtar has seen its sales drop for two straight years, its top line has consistently been above $5 billion in each of the past four years.

Domtar pays investors an annual yield of 3.4%, but it does have some variability, since dividend payments are in U.S. dollars. However, with the U.S. economy continuing to grow, that could help increase the currency’s value and provide investors with even greater payouts.

Chorus Aviation Inc. (TSX:CHR) has produced the most impressive returns of all the stocks on this list, with its share price rising 33% in 2017. Airline stocks have been very strong in the past year with Air Canada (TSX:AC)(TSX:AC.B) in particular having a tremendous year with its share price rising nearly 90%, as the company broke multiple records, which led to a great Q3.

Chorus pays its investors a high yield of more than 5.3%, with payouts being made on a monthly basis.

3,985 stocks listed between the TSX & TSXV, but here are the 5 we’d buy right now!

Overwhelmed by how many public companies there are to choose from in Canada? Motley Fool Canada Director of Research Iain Butler has you covered. Once a month, Iain and the rest of our team at Stock Advisor Canada reveal their five favourite Canadian stocks for new money now.

Considering they’ve walloped a “stuck in the mud” TSX by 10% over the past 4 years with truly life-changing winners like Shopify (up 236%, more than tripling your money), you’ll probably want to have your front-row seat reserved when our next five “Best Buys Now” are released – exclusively on behalf of Stock Advisor Canada members.

To make sure your name is on the list, just click here now... before the curtain is lifted without you.

Fool contributor David Jagielski has no position in any of the stocks mentioned.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.