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Here are the 3 worst performing shares on the S&P/ASX 20

Year-to-date the S&P/ASX 20 (Index: ^AXTL) (ASX: XTL) has gained just under 2% thanks partly to the strong performance of Transurban Group (ASX: TCL), Woolworths Limited (ASX: WOW), and CSL Limited (ASX: CSL).

However, the index would have gained far more had it not been for three particular under-performers. Here’s why these three shares have been a drag on the index this year:

The Brambles Limited (ASX: BXB) share price has dropped a massive 25% in 2017. The supply-chain logistics company’s shares have come under heavy selling pressure this year after it advised that its North American business was struggling with both revenue and cost pressures. As a result, management was forced to lower its full-year guidance. For FY 2017 the company now expects underlying profit to be flat. Whilst Brambles’ shares look far more attractive today than last year, I still believe there are better options out there for investors.

The Telstra Corporation Ltd (ASX: TLS) share price has fallen a disappointing 9% so far this year. The telco giant’s shares sank after it reported a 14% drop in half-year net profit after tax last month. Whilst this was a big disappointment, I trust management will deliver on its promise of a stronger second-half with full-year mid-to-high single-digit profit growth. In light of this I believe the current share price is a buying opportunity for investors. Especially those in search of dividends. After all, at present Telstra’s shares provide a trailing fully franked 6.7% dividend

The Westfield Corp Ltd (ASX: WFD) share price has fallen 6% so far this year. In February the shopping centre operator reported an 11% drop in Funds From Operations (FFO) to US$700 million. Whilst the drop was a slight worry, I was pleased to see its Flagship properties continue their strong performance. Furthermore, the company has a number of significant developments in its pipeline, which I expect to provide it with solid long-term growth. However, I wouldn’t class it as a bargain buy right now and would suggest investors hold off an investment for the time being.

If your portfolio took a hit because of these declines I would suggest you consider an investment in these hot stocks. I'm tipping each of them to have a strong 2017.

Big, Fat, Dividends

This company's dividend is almost the stuff of legends. Its reliable cash flows support a high payout ratio, and the company's stash of franking credits are the cherry on the top of the dividend cake. Based on the last 12-months of dividends, shares are offering a fully-franked 6.5% yield, which grosses up to a whopping 9.3%, when those franking credits are included.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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