Try Fund Library Premium
For Free with a 30 day trial!
The best income stocks should offer what is known in football as a triple threat. First, they must provide steady and dependable cash flow with a decent yield (minimum 3%). Second, the company should be committed to regular dividend increases. Third, the stock should have capital gains potential.
When all three combine, the results can be impressive. Here are the top total return performers for 2024, chosen from securities on the recommended lists of my Income Investor and Internet Wealth Builder newsletters that trade on the TSX. Returns are to Dec. 20.
Capital Power Corp. (TSX: CPX). The utilities sector staged a major turnaround in 2024, fueled by the rapid decline in interest rates in the second half of the year. CPX was one of the best performers, with the shares rising $25.31, or about 67%. The Edmonton-based utility has increased its dividend five times since 2020 and now pays $0.65 a quarter ($2.60 a year) to yield 4.1%. The total return year-to-date has been $27.91, or 73.8%.
Manulife Financial Corp. (TSX: MFC). Canada’s biggest insurer has always been a steady divided payer, but it was precluded from increasing its payout during the pandemic along with all other financial institutions. It’s made up for that since, increasing the dividend by 18% in late 2021, 12% in 2022, and 8% in 2024, to its current level of $0.40 per quarter for a yield of 3.7%. The stock has gained $14.25 a share this year. Add the dividend to that and the gain for 2024 is $15.85 per share, or 54.1%, based on the Dec. 29, 2023, closing price.
Canadian Imperial Bank of Commerce (TSX: CM). It was a good year for banks, with several of the Big Six posting impressive total returns. CIBC was one of the best performers, with the stock rising 45%, to $92.50. The bank has increased its dividend six times since the freeze was lifted in the fall of 2021. For 2024, the stock paid $0.90 per quarter ($3.60 a year). That will increase to $0.97 per quarter ($3.88 annually) effective with the Jan. 28 payment. Combined with a capital gain of $28.70 on the share price, the total return for 2024 is 50.6%.
Keyera Corp. (TSX: KEY). Keyera has steadily raised its dividend over time. The latest bump was a hike of 4%, to $0.52 per quarter, effective with the September payment. The shares benefitted from the continued strong performance in the energy sector to gain $12.41 for the year, or 40.8%. Factor in dividend payments of $2.04 and the total return is 47.5%.
TC Energy Corp. (TSX: TRP). It’s been a good year for pipeline companies and falling interest rates were a bonus. TRP stock is up $18.41 for the year, a gain of 38.9%. It paid $3.52 in dividends by the end of December, for a total return of 46.3%.
Obviously, we shouldn’t expect a repeat of these kinds of returns in 2025. All these stocks benefited from the decline in interest rates. But the underlying strategy is sound. When choosing an income stock, don’t focus exclusively on the current yield. Do some research to see how the stock has performed on a total return basis over time.
Gordon Pape is one of Canada’s best-known personal finance commentators and investment experts. He is the publisher of The Internet Wealth Builder and The Income Investor newsletters, which are available through the Building Wealth website.
Follow Gordon Pape on X at X.com/GPUpdates and on Facebook at www.facebook.com/GordonPapeMoney.
Notes and Disclaimer
Content © 2025 by Gordon Pape Enterprises. All rights reserved. Reprinted with permission. The foregoing is for general information purposes only and is the opinion of the writer. Securities mentioned carry risk of loss, and no guarantee of performance is made or implied. This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting, or tax advice. Always seek advice from your own financial advisor before making investment decisions.
Image: iStock.com/manassanant pamai
Try Fund Library Premium
For Free with a 30 day trial!
Fund Library
