2024 Roller Coaster: Canadian Stocks That Delivered Major Surprises

The 2024 stock market has been nothing short of a roller coaster ride for many investors. As market conditions change, some Canadian stocks defied expectations, delivering unexpected highs after disappointing lows. Let’s explore three major surprises this year that made waves among investors.

Enbridge stock: A comeback for the ages

Enbridge (TSX: ENB) stock made a real impact in 2024, surprising investors who had written it off after a dismal 2023. In the previous year, the stock had plummeted by about 10%, making it a favourite pick for short-term bearish sentiment. Fast forward to 2024, and Enbridge has turned around dramatically, surging by an impressive 30%.

So, what sparked this dramatic recovery? Enbridge’s stable blue-chip status, reliable track record of dividend increases, and eye-catching dividend yield have made it a go-to for investors seeking safe, consistent returns. In an environment of falling interest rates, its yield became even more attractive, luring income-seeking investors back into the stock.

At $61.29 per share at writing, Enbridge continues to offer a solid 6.2% dividend yield. However, it’s important to temper expectations. While the stock has delivered stellar price gains in 2024, it’s unlikely to replicate another 30% increase in the near future. Still, for those seeking reliable dividends, Enbridge remains a solid choice.

Bank of Nova Scotia stock: From laggard to star performer

Bank of Nova Scotia (TSX: BNS) stock had a rough 2023, with its stock lagging behind the performance of its peers. But in 2024, the story is much different. After being overlooked by many investors, the big Canadian bank stock surged as income-focused investors noticed its value and attractive dividend yield.

In the depths of 2023, BNS’s yield was pushed to as high as 8%, prompting a wave of investor interest. This shift sparked a remarkable rally in the stock, with shares soaring by over 50% from the trough. Even if you didn’t manage to buy at the bottom, investors who jumped in at the beginning of 2024 have seen price gains of around 25%.

At $79.28 per share at writing, Bank of Nova Scotia still offers a solid 5.3% dividend yield, making it a reasonable option for income-seekers. While the meteoric gains of this year are unlikely to continue, the bank’s reliable dividends and potential for long-term growth make it a valuable asset for the long haul.

Waste Connections stock: A resilient growth story

Waste Connections (TSX: WCN), a leader in waste management services across Canada and the United States, has been a strong performer for years, offering a blend of stability and growth. This year, however, the stock has reached new heights, with its price-to-earnings (P/E) ratio hitting an all-time high of 40, reflecting investor confidence.

At $270.38 per share at writing, Waste Connections continues to exhibit growth potential, underpinned by its consistent earnings performance. In October, the company raised its quarterly dividend by 10.5%, a move supported by strong earnings growth.

Despite its high valuation, Waste Connections remains a growth stock worth watching. While its high P/E ratio may raise questions for some, its resilience and solid financials make it a stock that could offer potential upside —particularly if the stock consolidates and presents a buying opportunity.

The Foolish investor takeaway

2024 has been a year of surprises in the Canadian stock market, with stocks like Enbridge, Bank of Nova Scotia, and Waste Connections making impressive returns for investors. While these stocks have shown significant price appreciation, investors should manage expectations and focus on long-term growth and reliable income streams.