The TSX Index (S&P/TSX Composite index), Canadaâs benchmark index, is up 6.7% since the beginning of 2017, but it’s virtually unchanged this year — up just 1.1% since January. Needless to say, those arenât the type of returns that are going to help you become Foolishly rich, retire early, or buy that expensive Lamborghini youâve always dreamed of
But just because the market has been âmissing in actionâ lately doesnât mean there isnât any potential to make money out there. Over the past year or so, there have been countless stocks helping Foolish investors make handsome sums of money.
Here are three companies that have been handily outperforming the TSX Index in 2018.
Have you ever heard about the company Nutrien (TSX: NTR)(NYSE: NTR) before?
No? What if I asked if you had ever heard of Potash Corp, the worldâs largest fertilizer company? Would your answer be different?
Well, news flash: Nutrien is Potash Corp, plus there’s the bonus that it added another one of the worldâs largest fertilizer companies to its portfolio, Agrium.
The two companies merged at the beginning of this year to form arguably the worldâs dominant vertically integrated potash and fertilizer company.
Taking Potash Corpâs manufacturing capabilities and combining them with Agriumâs leading retail network puts the newly formed Nutrien in an enviable position to meet the growing nutritional needs of the worldâs population — expected to reach 10 billion by 2050.
Investors have responded positively to the opportunity since the new company was formed, with NTR shares up more than 42% already from their early February lows.
So far in 2018, it’s been Enbridge grabbing most of the headlines;Â however, rather quietly, TransCanada (TSX: TRP)(NYSE: TRP) has continued to impress.
TRP shares, which yielded 4.90% heading into Fridayâs trading, are up a little more than 13.4% since the beginning of April.
Enbridge made a big push with its purchase of Houston-based Spectra Energy, but while the deal will be transformative in a good way, it’s added a lot of debt to Enbridgeâs balance sheet, which may end up inhibiting the companyâs growth somewhat moving forward.
Meanwhile, TransCanada is a smaller, nimbler company that may offer more long-term potential.
TransCanadaâs board of directors is currently guiding for consecutive double-digit dividend increases over the next couple of years, which only make the current dividend that much more appealing.
They say you can never go wrong with an investment in the Canadian banks.
While I donât know if I would agree with that sentiment 100%, the Canadian banks have indeed been on a bit of a roll lately, and Toronto-Dominion Bank (TSX: TD)(NYSE: TD) has been performing as well as any with the shares up a little more than 38% going back to the middle of May last year.
TD shares are currently yielding 3.39% heading into Fridayâs trading, making them a worthwhile investment for your TFSA or even your RRSP, where youâll be able to take advantage of the magic of compound interest.
If TD doesnât quite âfloat your boat,â you may want to take a closer look at stock in Bank of Nova Scotia — the company has, for the most part, been lagging its peer group on a relative basis in 2018 and may offer superior value on a relative basis.
Stay Smart. Stay Hungry. Stay Foolish.
