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

Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) and these four other dividend stocks outperformed the market 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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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

More on Dividend Stocks

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »

calculate and analyze stock
Dividend Stocks

This 5.5% Dividend Stock Pays Cash Every Single Month!

This REIT may offer monthly dividends, but don't forget about the potential returns in the growth industry its involved with.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

How to Use Your TFSA to Earn up to $6,000 Per Year in Tax-Free Passive Income

A high return doesn't mean you have to make a high investment -- or a risky one -- especially with…

Read more »

path road success business
Dividend Stocks

2 High-Yield Dividend Stocks to Buy Hand Over Fist and 1 to Avoid

High yields are great and all, but only if returns come with them. And while two of these might, another…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 7% Dividend Stock Pays Cash Every Month

A high dividend yield isn't everything. But when it pays out each month and offers this stability, it's worth considering!

Read more »

young people stare at smartphones
Dividend Stocks

GST/HST “Vacation”: Everything Canadians Need to Know

The GST/HST "vacation" is a little treat for the holidays, along with a $250 payment. What should you do with…

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »