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4 Dividend Stocks That Will Beat the Market in 2018

The S&P/TSX Index has dropped 3% in 2018 as of close on March 16. This decade has seen retail investors flock into index funds and ETFs, but industry experts have started to sound the alarm over passive investing this year and beyond. Today, we are going to look at four dividend-yielding stocks that have outperformed the TSX in 2018 thus far and are in a good position to continue to do so.

Toronto-Dominion Bank (TSX:TD)(NYSE:TD)

TD Bank stock has climbed 3% in 2018 as of close on March 16. Shares are up 14.9% year over year. TD Bank boasts the largest footprint in the United States out of any other Canadian bank and stands to benefit from U.S. tax reform in 2018 and beyond.

The bank released its first-quarter results on March 1. TD Bank reported $405 million in tax charges related to U.S. tax reform, but this represents a one-time charge. In its U.S. Retail segment, TD Bank reported adjusted net income of $1.02 billion, which represented a 28% jump from Q1 2017. Overall adjusted earnings were up 15% year over year to $2.9 billion. TD Bank stock also offers a quarterly dividend of $0.67 per share, representing a 3.1% dividend yield.

Sleep Country Canada Holdings Inc. (TSX:ZZZ)

Sleep Country is a Brampton-based mattress retailer. Sleep Country stock has climbed 7% in 2018 so far. Shares are up 10.4% year over year. Sleep Country released its 2017 fourth-quarter and full-year results on March 1.

For the full year, revenue climbed 12.3% to $588 million, and gross profit jumped 15.6% to $175 million representing 29.8% of revenue. Sleep Country has adapted well to the evolving retail environment and in 2017 launched its e-commerce platform. The stock also offers a dividend of $0.165 per share, representing a 1.8% dividend yield.

Andrew Peller Ltd. (TSX:ADW.A)

Andrew Peller is a Grimsby-based company engaged in wine and wine-making products. Shares of Andrew Peller have climbed 18.8% in 2018 and have soared 75% year over year. Wine has surpassed beer as the favourite drink of the millennial generation, which recently passed the boomers as the most populous in North America.

The company released its fiscal 2018 third-quarter results on February 7. Adjusted EBITDA was up 27.5% year to date, and third-quarter sales rose 10.1% year over year. The company has reported impressive success in marketing its premium and ultra-premium brands so far this year. The stock has delivered a dividend of $0.76 in fiscal 2018 so far.

Sun Life Financial Inc. (TSX:SLF)(NYSE:SLF)

Sun Life is a Toronto-based financial services company. Shares of Sun Life have increased 6.6% in 2018 thus far, and the stock is up 12.3% year over year. Sun Life has a significant overseas footprint and has reported impressive growth in its Asia-based business. In the fourth quarter net income surged 43% year over year in Sun Life Asia as its wealth sales grew to $3.6 billion compared to $3.1 billion in Q4 2016.

Sun Life also declared a dividend of $0.455 per share, representing a 3.2% dividend yield.

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Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned.

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