What I bought for my TFSA for 2014 was Saputo Inc. (TSX-SAP) and Hammond Power Solutions Inc. (TSX-HPS.A). Saputo was my main buy and I used Hammond Power Solutions Inc. as my filler. I use filler stocks to soak up excess money. They are usually small caps and cost less than $10 per share.
Both these stocks showed up as cheap on my dividend stocks list. Hammond was showing up cheap based on historical high dividend yields, historical average dividend yields and 5 year median dividend yield tests. Saputo was showing up as cheap just on the historical average dividend yields and 5 year median dividend yield tests. See my spreadsheet here. and my blog entries of Dividend Stocks, Dividend Stocks 2 and Dividend Stocks 3.
I have held Saputo since 2006 but it was in my RRSP accounts. Since I am now taking money out of these accounts, I am selling stocks with the lowest dividend yields. Saputo had one of the lowest dividend yields in my account. However, I still like this stock and therefore I am buying it for my TFSA account. In this account, I like stocks with low dividend yields but rather high dividend growth.
Hammond was my main TFSA choice last year. It has been having problems lately and that is why it is cheap. However, recently the stock has been picking up some momentum.
My most recent reviews of Saputo was in June 2013 and they are here or here. My spreadsheet is here sap.htm. My most recent reviews of Hammond was in June 2013 and is here. My spreadsheet is here hps.htm.
On my other blog I am today writing about Bank of Montreal (TSX-BMO, NYSE-BMO)...continue...
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
Showing posts sorted by relevance for query saputo. Sort by date Show all posts
Showing posts sorted by relevance for query saputo. Sort by date Show all posts
Monday, January 13, 2014
Thursday, January 10, 2019
Why Buy Food Stocks
In November of last year Daily Adviser from MPL Communications talk about why to buy food stocks. Four stocks of High Liner Foods (TSX-HLF), Loblaw Companies (TSX-L), Metro Inc. (TSX-MRU) and Saputo Inc. (TSX-SAP) are Key stocks for them.
I own both Metro Inc and Saputo Inc. I recently reviewed Metro Inc (TSX-MRU, OTC-MTRAF) ... here. You can see from the following table that shareholders have done fine with this stock. The lowest total return period was for 15 years and it was 14.76% with 13.27% from capital gains and 1.48% from dividends. A high percentage of the return is in capital gains, but dividend increases, as shown in the second column are quite good. Data is to the end of September 30, 2018 financial year.
For Saputo Inc. (TSX-SAP, OTC-SAPIF) chart below shows the same sort of information to the end of the March 2018 financial year. Here again most of the total return is capital gains. Their dividend growth until recently was good and in the past 5 years have dropped to moderate.
I follow High Liner Foods (TSX-HLF, OTC-HLNFF). The following chart shows information to the end of 2017. They have been paying dividends since 2004. Their dividend growth is good. The total return dropped for the last 5 years because the stock price fell in 2016 and 2017. They have a checkered pass for total returns.
The last stock is Loblaw Companies (TSX-L, OTC-LBLCF) and the chart is below with information to the end of 2017. I owned this stock from 1996 to 2007. I sold it in 2007 because they had flatted their dividend and it did not look like they would have their new supply management system working anytime soon.
On my other blog I wrote yesterday about Rogers Sugar Inc (TSX-RSI, OTC-RSGUF) ... learn more. Next, I will write about Calian Group Ltd (TSX-CGY, OTC- CLNFF) ... learn more on Friday, January 11, 2018 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I own both Metro Inc and Saputo Inc. I recently reviewed Metro Inc (TSX-MRU, OTC-MTRAF) ... here. You can see from the following table that shareholders have done fine with this stock. The lowest total return period was for 15 years and it was 14.76% with 13.27% from capital gains and 1.48% from dividends. A high percentage of the return is in capital gains, but dividend increases, as shown in the second column are quite good. Data is to the end of September 30, 2018 financial year.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2013 | 5 | 16.91% | 18.74% | 16.96% | 1.78% |
| 2008 | 10 | 15.71% | 15.98% | 14.40% | 1.58% |
| 2003 | 15 | 14.82% | 14.76% | 13.27% | 1.48% |
| 1998 | 20 | 16.32% | 16.00% | 14.44% | 1.56% |
| 1993 | 25 | 20.31% | 18.77% | 16.97% | 1.80% |
| 1992 | 26 | 18.78% | 17.05% | 1.73% |
For Saputo Inc. (TSX-SAP, OTC-SAPIF) chart below shows the same sort of information to the end of the March 2018 financial year. Here again most of the total return is capital gains. Their dividend growth until recently was good and in the past 5 years have dropped to moderate.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2013 | 5 | 8.97% | 14.12% | 12.43% | 1.69% |
| 2008 | 10 | 20.78% | 13.43% | 11.72% | 1.71% |
| 2003 | 15 | 10.50% | 16.14% | 14.14% | 2.00% |
| 1998 | 20 | 13.05% | 15.97% | 14.20% | 1.77% |
I follow High Liner Foods (TSX-HLF, OTC-HLNFF). The following chart shows information to the end of 2017. They have been paying dividends since 2004. Their dividend growth is good. The total return dropped for the last 5 years because the stock price fell in 2016 and 2017. They have a checkered pass for total returns.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2012 | 5 | 21.89% | 1.77% | -1.22% | 2.99% |
| 2007 | 10 | 18.91% | 15.28% | 11.88% | 3.40% |
| 2002 | 13-15 | 14.25% | 11.46% | 8.95% | 2.51% |
| 1997 | 20 | 7.70% | 6.14% | 1.55% | |
| 1992 | 25 | 6.56% | 5.38% | 1.17% | |
| 1997 | 30 | -2.20% | -2.84% | 0.64% | |
| 1983 | 33 | 0.72% | 0.07% | 0.65% |
The last stock is Loblaw Companies (TSX-L, OTC-LBLCF) and the chart is below with information to the end of 2017. I owned this stock from 1996 to 2007. I sold it in 2007 because they had flatted their dividend and it did not look like they would have their new supply management system working anytime soon.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2012 | 5 | 4.71% | 12.20% | 10.22% | 1.98% |
| 2007 | 10 | 2.45% | 9.21% | 7.21% | 2.00% |
| 2002 | 15 | 5.49% | 3.78% | 1.57% | 2.21% |
| 1997 | 20 | 9.97% | 2.93% | 1.69% | 1.24% |
| 1992 | 25 | 10.93% | 12.32% | 9.86% | 2.46% |
| 1999 | 27 | 10.63% | 11.55% | 9.33% | 2.22% |
On my other blog I wrote yesterday about Rogers Sugar Inc (TSX-RSI, OTC-RSGUF) ... learn more. Next, I will write about Calian Group Ltd (TSX-CGY, OTC- CLNFF) ... learn more on Friday, January 11, 2018 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Wednesday, August 8, 2012
Sold SAP, Bought ALA
Today, August 8th, I sold some of my Saputo (TSX-SAP) stock and bought some AltaGas (TSX-ALA) stock. The reason for the change is that I think money that where the money is going to be made is in dividends not capital gains until the West does something to solve our debt problems.
Also Saputo was my biggest holding. It got to be the biggest holding because it has done so well. I had made total returns of 17% per year on this stock.
The downside of Saputo is that the dividend is very low, coming in at just 1.76%. AltaGas has a current dividend coming in today at 4.53%. One thing that is important to me is cash flow because I am living off of my dividends.
There is a cautionary note with AltaGas as they have decreased their dividends as well as increased them in the past. However, the decrease in dividends did come as a result of them switching from a unit trust company to a corporation. Their Dividend Payout Ratio for EPS is still a little high, but I think it is manageable.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Also Saputo was my biggest holding. It got to be the biggest holding because it has done so well. I had made total returns of 17% per year on this stock.
The downside of Saputo is that the dividend is very low, coming in at just 1.76%. AltaGas has a current dividend coming in today at 4.53%. One thing that is important to me is cash flow because I am living off of my dividends.
There is a cautionary note with AltaGas as they have decreased their dividends as well as increased them in the past. However, the decrease in dividends did come as a result of them switching from a unit trust company to a corporation. Their Dividend Payout Ratio for EPS is still a little high, but I think it is manageable.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.
Wednesday, October 30, 2013
Money Show 2013 - Laurent Marien
Laurent Marien is Portfolio manager for StockPointer. His talk was called "Build a Portfolio of Top Economic Performers to Beat the Market with StockPointer". The approach in StockPointer is the EVA model. The web site is here.
First you do market allocation and then sector weight and then stock selection (based on StockPointer score and StockPointer reports). The portfolio analysis behind StockPointer is EVA (Economic Value added). This is the Return on Capital less the Cost of Capital. They focus on wealth creation for shareholders. Their Canadian Portfolio has 25 stocks and it is rebalanced quarterly.
In sector selection they have their own Indexes called SPIX and this is a propriety index. They show the top 100 Canadian stocks. They give a relative performance Index for each stock which is Return of Capital /Cost of Capital; a Price/Intrinsic index, and an Economic Performance Index for each stock. All stocks have a market cap of over $200M. Today, what you should hold in each sector is: Energy - 2; Materials - 1; Industrials - 4; Consumer Discretionary - 4; Consumer Staples - 4; Health Care - 1; Financials - 6; Information Tech - 1; Telecom - 1 and Utilities - 1.
For an example of their stock selection, he looked at Consumer Staples. They had 7 top performers. They were Metro Inc. (TSX-MRU), Alimentation Couche-Tard (TSX-ATD.B), Empire Company (TSX-EMP.A), Shoppers Drug Mart (TSX-SC) (still on TSX), Saputo In. (TSX-SAP), North West Company (TSX-NWC) and Jean Coutu Group (TSX-PJC.A). They form a list of top performers and then take risk into consideration.
The first stock he looked at depth is Metro Inc. (TSX-MRU) which was at $65.62 and program said it had an intrinsic value of $137.37, so the Price/Intrinsic Value Ratio is 0.48. The Return of Capital is above 10% and increasing. It has positive Free Cash Flow.
The next stock is Alimentation Couche-Tard (TSX-ATD.B), trading at $70.75 with an Intrinsic Value of $119.61 and therefore a P/IV Ratio of 0.59.
On Empire Company (TSX-EMP.A), he gets a current price of $75.71 and Intrinsic Value of $151.52, so it has a P/IV Ratio of 0.50. The Return on Capital is lower than 10%.
Saputo In. (TSX-SAP) has a current price of $51.46 and an intrinsic value of $64.47, with a P/IV Ratio of 0.84. This company has issues with its dairy divisions. The Return on Capital is higher than 10% and is going up.
North West Company (TSX-NWC) has a current price of $25.18 and an intrinsic value of $28.08. The P/IV Ratio is 0.87. The Return on Capital is above 10% but it is trending down.
Jean Coutu Group (TSX-PJC.A) has a current price of $18.39 and an intrinsic value of $21.08 and the P/IV is 0.87. The intrinsic Value of this stock fluctuations and is not as stable as other stocks in this list and therefore it has more risk. The Return on Capital is above 10% and going up.
The four stocks that you should buy would be Metro Inc. (TSX-MRU), Alimentation Couche-Tard (TSX-ATD.B), Saputo In. (TSX-SAP) and North West Company (TSX-NWC). You would buy NWC over Empire because the ROC on Empire is lower than 10%.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
First you do market allocation and then sector weight and then stock selection (based on StockPointer score and StockPointer reports). The portfolio analysis behind StockPointer is EVA (Economic Value added). This is the Return on Capital less the Cost of Capital. They focus on wealth creation for shareholders. Their Canadian Portfolio has 25 stocks and it is rebalanced quarterly.
In sector selection they have their own Indexes called SPIX and this is a propriety index. They show the top 100 Canadian stocks. They give a relative performance Index for each stock which is Return of Capital /Cost of Capital; a Price/Intrinsic index, and an Economic Performance Index for each stock. All stocks have a market cap of over $200M. Today, what you should hold in each sector is: Energy - 2; Materials - 1; Industrials - 4; Consumer Discretionary - 4; Consumer Staples - 4; Health Care - 1; Financials - 6; Information Tech - 1; Telecom - 1 and Utilities - 1.
For an example of their stock selection, he looked at Consumer Staples. They had 7 top performers. They were Metro Inc. (TSX-MRU), Alimentation Couche-Tard (TSX-ATD.B), Empire Company (TSX-EMP.A), Shoppers Drug Mart (TSX-SC) (still on TSX), Saputo In. (TSX-SAP), North West Company (TSX-NWC) and Jean Coutu Group (TSX-PJC.A). They form a list of top performers and then take risk into consideration.
The first stock he looked at depth is Metro Inc. (TSX-MRU) which was at $65.62 and program said it had an intrinsic value of $137.37, so the Price/Intrinsic Value Ratio is 0.48. The Return of Capital is above 10% and increasing. It has positive Free Cash Flow.
The next stock is Alimentation Couche-Tard (TSX-ATD.B), trading at $70.75 with an Intrinsic Value of $119.61 and therefore a P/IV Ratio of 0.59.
On Empire Company (TSX-EMP.A), he gets a current price of $75.71 and Intrinsic Value of $151.52, so it has a P/IV Ratio of 0.50. The Return on Capital is lower than 10%.
Saputo In. (TSX-SAP) has a current price of $51.46 and an intrinsic value of $64.47, with a P/IV Ratio of 0.84. This company has issues with its dairy divisions. The Return on Capital is higher than 10% and is going up.
North West Company (TSX-NWC) has a current price of $25.18 and an intrinsic value of $28.08. The P/IV Ratio is 0.87. The Return on Capital is above 10% but it is trending down.
Jean Coutu Group (TSX-PJC.A) has a current price of $18.39 and an intrinsic value of $21.08 and the P/IV is 0.87. The intrinsic Value of this stock fluctuations and is not as stable as other stocks in this list and therefore it has more risk. The Return on Capital is above 10% and going up.
The four stocks that you should buy would be Metro Inc. (TSX-MRU), Alimentation Couche-Tard (TSX-ATD.B), Saputo In. (TSX-SAP) and North West Company (TSX-NWC). You would buy NWC over Empire because the ROC on Empire is lower than 10%.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
Thursday, December 9, 2021
Something to Buy December 2021
There is always something to buy in the stock market. On Tuesday, I put out a list of the stocks that I covered and showed what stock might be a good deal based on dividend yield. Now I am trying to categorize what sorts of stocks may be a good deal based on dividend yield. The dividend yield test in this note is a quick way of finding possible stock buys. See my Spreadsheet .
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield. However, this is just a place to start. It is a good idea to check the stock price with other tests, especially the P/S Ratio test. For other testing, like P/E Ratios, P/S Ratios, P/CF Ratios, P/BV Ratios and Price/Graham Price Ratios, you use estimates or data from the last reported financial quarter.
If a stock is showing as a buy using the dividend yield test, I usually like to verify it is a buy by doing a P/S Ratio test. Here you compare the current P/S Ratio to the 10 year median P/S Ratio. If the current P/S Ratio is lower than the 10 year median, then the stock is a buy. I note that Morningstar gives a current P/S Ratio. The 10 year median ratio is shown in my review of a stock. The 10 year median ratio in a review is good for one year from the date of review.
This historical dividend yield test does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 10 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy December 2021 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 22 stocks in the Consumer Discretionary category. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Eight (36%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goodfellow Inc (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP) and Stingray Digital Group Inc (TSX-RAY.A). High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF) have been added to this list.
I follow 10 Consumer Staples stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Saputo Inc. (TSX-SAP, OTC-SAPIF). Saputo Inc. (TSX-SAP, OTC-SAPIF) has been added to this list.
Six stocks (60%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Lassonde Industries (TSX-LAS.A, OTC-LSDAF), Loblaw Companies (TSX-L, OTC-LBLCF), Metro Inc (TSX-MRU, OTC-MTRAF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). There is no change from last month.
I follow Five Health Care stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Four stocks (80%) are cheap by the historical median dividend yield. The stocks are HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT), and Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF). HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) has been added to this list.
I follow 9 Energy stocks. One stock (11%) is showing as cheap by the historical high dividend yield. It is Suncor Energy (TSX-SU, NYSE-SU). Suncor Energy (TSX-SU, NYSE-SU) has been added.
There are three stocks (33%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). Mullen Group (TSX-MTL, OTC-MLLGF) has been added to this list.
I follow 26 Financial stocks under the categories of Banks (8), Financial Services (13), and Insurance (5).
I follow 8 Bank stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (38%) are showing as cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), CIBC (TSX-CM, NYSE-CM) and Toronto Dominion Bank (TSX-TD, NYSE-TD). CIBC (TSX-CM, NYSE-CM) has been added to this list.
I follow 13 Financial Service stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Five stocks (38%) are showing as cheap by the historical median dividend yield. These stocks are AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), and Element Fleet Management Corp (TSX-EFN, OTC-ELEEF) has been added to this list.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (60%) are showing as cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC). There is no change from last month.
I follow 33 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services. I
I have 7 Construction stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). Aecon Group Inc (TSX-ARE, OTC-AEGXF) has been added to this list.
Two stock (29%) are showing as cheap by historical median dividend yield. They are Aecon Group Inc (TSX-ARE, OTC-AEGXF), and Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF). There is no change from last month.
I have 3 stocks I have left with the sub-index of Industrial. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). There is no change from last month.
I have 7 Manufacturing stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) has been removed from this list.
I follow 16 Services stocks. One of these stocks (6.25%) is showing as cheap by the historically high dividend yield. It is Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF). There is no change from last month.
Four stock (25%) are showing as cheap by historical median dividend yield. They are Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) and Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF). Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), and Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF) has been added to this list.
I follow 10 Material stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Kirkland Lake Gold (TSX-KL, NYSE-KL). There is no change from last month.
Three stock (30%) are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), Kirkland Lake Gold (TSX-KL, NYSE-KL), and Stella-Jones (TSX-SJ, OTC-STLJF). There is no change from last month.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Two stocks (20%) are showing as cheap by historical median dividend yield. They are Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). There is no change from last month.
I follow 3 of the Telecom Service stocks. None of the stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Three stocks (100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Shaw Communications Inc (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
I follow 10 Tech stocks. No stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month.
Three stock (33%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF), Evertz Technologies (TSX-ET, OTC-EVTZF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.
I follow 7 of the Infrastructure Type utility companies. Inter Pipeline Ltd (TSX-IPL, OTC-IPPLF) has been removed as it has been bought out and removed from the TSX. None of the stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month.
Three stocks (38%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF), and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 9 of the Power Type utility companies. One stock (10%) is showing as cheap by historical high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
Three stocks (33%) are showing as cheap by historical median dividend yield. Those stocks are Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN), ATCO Ltd (TSX-ACO.X, OTC-ACLLF), and Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). Fortis Inc (TSX-FTS, OTC-FRTSF) has been removed from this list. Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN) has been added to this list.
On my other blog I wrote yesterday about Stantec Inc (TSX-STN, NYSE-STN) ... learn more. Next, I will write about Methanex Corp (TSX-MX, NASDAQ-MEOH) ... learn more on Friday, December 10, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield. However, this is just a place to start. It is a good idea to check the stock price with other tests, especially the P/S Ratio test. For other testing, like P/E Ratios, P/S Ratios, P/CF Ratios, P/BV Ratios and Price/Graham Price Ratios, you use estimates or data from the last reported financial quarter.
If a stock is showing as a buy using the dividend yield test, I usually like to verify it is a buy by doing a P/S Ratio test. Here you compare the current P/S Ratio to the 10 year median P/S Ratio. If the current P/S Ratio is lower than the 10 year median, then the stock is a buy. I note that Morningstar gives a current P/S Ratio. The 10 year median ratio is shown in my review of a stock. The 10 year median ratio in a review is good for one year from the date of review.
This historical dividend yield test does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 10 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy December 2021 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 22 stocks in the Consumer Discretionary category. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Eight (36%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goodfellow Inc (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP) and Stingray Digital Group Inc (TSX-RAY.A). High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF) have been added to this list.
I follow 10 Consumer Staples stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Saputo Inc. (TSX-SAP, OTC-SAPIF). Saputo Inc. (TSX-SAP, OTC-SAPIF) has been added to this list.
Six stocks (60%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Lassonde Industries (TSX-LAS.A, OTC-LSDAF), Loblaw Companies (TSX-L, OTC-LBLCF), Metro Inc (TSX-MRU, OTC-MTRAF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). There is no change from last month.
I follow Five Health Care stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Four stocks (80%) are cheap by the historical median dividend yield. The stocks are HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT), and Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF). HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) has been added to this list.
I follow 9 Energy stocks. One stock (11%) is showing as cheap by the historical high dividend yield. It is Suncor Energy (TSX-SU, NYSE-SU). Suncor Energy (TSX-SU, NYSE-SU) has been added.
There are three stocks (33%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). Mullen Group (TSX-MTL, OTC-MLLGF) has been added to this list.
I follow 26 Financial stocks under the categories of Banks (8), Financial Services (13), and Insurance (5).
I follow 8 Bank stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (38%) are showing as cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), CIBC (TSX-CM, NYSE-CM) and Toronto Dominion Bank (TSX-TD, NYSE-TD). CIBC (TSX-CM, NYSE-CM) has been added to this list.
I follow 13 Financial Service stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Five stocks (38%) are showing as cheap by the historical median dividend yield. These stocks are AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), and Element Fleet Management Corp (TSX-EFN, OTC-ELEEF) has been added to this list.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (60%) are showing as cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC). There is no change from last month.
I follow 33 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services. I
I have 7 Construction stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). Aecon Group Inc (TSX-ARE, OTC-AEGXF) has been added to this list.
Two stock (29%) are showing as cheap by historical median dividend yield. They are Aecon Group Inc (TSX-ARE, OTC-AEGXF), and Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF). There is no change from last month.
I have 3 stocks I have left with the sub-index of Industrial. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). There is no change from last month.
I have 7 Manufacturing stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) has been removed from this list.
I follow 16 Services stocks. One of these stocks (6.25%) is showing as cheap by the historically high dividend yield. It is Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF). There is no change from last month.
Four stock (25%) are showing as cheap by historical median dividend yield. They are Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) and Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF). Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), and Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF) has been added to this list.
I follow 10 Material stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Kirkland Lake Gold (TSX-KL, NYSE-KL). There is no change from last month.
Three stock (30%) are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), Kirkland Lake Gold (TSX-KL, NYSE-KL), and Stella-Jones (TSX-SJ, OTC-STLJF). There is no change from last month.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Two stocks (20%) are showing as cheap by historical median dividend yield. They are Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). There is no change from last month.
I follow 3 of the Telecom Service stocks. None of the stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Three stocks (100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Shaw Communications Inc (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
I follow 10 Tech stocks. No stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month.
Three stock (33%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF), Evertz Technologies (TSX-ET, OTC-EVTZF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.
I follow 7 of the Infrastructure Type utility companies. Inter Pipeline Ltd (TSX-IPL, OTC-IPPLF) has been removed as it has been bought out and removed from the TSX. None of the stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month.
Three stocks (38%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF), and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 9 of the Power Type utility companies. One stock (10%) is showing as cheap by historical high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
Three stocks (33%) are showing as cheap by historical median dividend yield. Those stocks are Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN), ATCO Ltd (TSX-ACO.X, OTC-ACLLF), and Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). Fortis Inc (TSX-FTS, OTC-FRTSF) has been removed from this list. Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN) has been added to this list.
On my other blog I wrote yesterday about Stantec Inc (TSX-STN, NYSE-STN) ... learn more. Next, I will write about Methanex Corp (TSX-MX, NASDAQ-MEOH) ... learn more on Friday, December 10, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, February 3, 2022
Something to Buy February 2022
There is always something to buy in the stock market. On Tuesday, I put out a list of the stocks that I covered and showed what stock might be a good deal based on dividend yield. Now I am trying to categorize what sorts of stocks may be a good deal based on dividend yield. The dividend yield test in this note is a quick way of finding possible stock buys. See my Spreadsheet .
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield. However, this is just a place to start. It is a good idea to check the stock price with other tests, especially the P/S Ratio test. For other testing, like P/E Ratios, P/S Ratios, P/CF Ratios, P/BV Ratios and Price/Graham Price Ratios, you use estimates or data from the last reported financial quarter.
If a stock is showing as a buy using the dividend yield test, I usually like to verify it is a buy by doing a P/S Ratio test. Here you compare the current P/S Ratio to the 10 year median P/S Ratio. If the current P/S Ratio is lower than the 10 year median, then the stock is a buy. I note that Morningstar gives a current P/S Ratio. The 10 year median ratio is shown in my review of a stock. The 10 year median ratio in a review is good for one year from the date of review.
This historical dividend yield test does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 10 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy February 2022 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 22 stocks in the Consumer Discretionary category. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Eight (36%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goodfellow Inc (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP) and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
I follow 13 Consumer Staples stocks. One stock (7%) is showing as cheap by the historically high dividend yield. It is Saputo Inc. (TSX-SAP, OTC-SAPIF). Saputo Inc. (TSX-SAP, OTC-SAPIF) have been added to this list. Metro Inc (TSX-MRU, OTC-MTRAF) was originally added but it is a mistake.
Eight stocks (62%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), KP Tissue Inc (TSX-KPT, NYSE-KPTSF), Lassonde Industries (TSX-LAS.A, OTC-LSDAF), Loblaw Companies (TSX-L, OTC-LBLCF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Metro Inc (TSX-MRU, OTC-MTRAF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). There is no change from last month.
I follow Six Health Care stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Four stocks (67%) are cheap by the historical median dividend yield. The stocks are HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT), and Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none). Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none) has been added to this list.
I follow 9 Energy stocks. One stock (11%) is showing as cheap by the historical high dividend yield. It is Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
There are three stocks (22%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). Mullen Group (TSX-MTL, OTC-MLLGF) has been added back to this list.
I follow 26 Financial stocks under the categories of Banks (8), Financial Services (13), and Insurance (5).
I follow 8 Bank stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stocks (38%) are showing as cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), and Toronto Dominion Bank (TSX-TD, NYSE-TD). There is no change from last month.
I follow 13 Financial Service stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Six stocks (46%) are showing as cheap by the historical median dividend yield. These stocks are Accord Financial Corp (TSX-ACD, OTC-ACCFF), AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). Accord Financial Corp (TSX-ACD, OTC-ACCFF), and Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF) has been added to this list.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (60%) are showing as cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC). There is no change from last month.
I follow 33 Industrial stocks. Algoma Central Corporation (TSX-ALC, OTC-AGMJF) has been added to this as I am now following this stock. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 7 Construction stocks. No stock (0%) is showing as cheap by the historically high dividend yield. There is no change from last month.
Two stock (29%) are showing as cheap by historical median dividend yield. They are Aecon Group Inc (TSX-ARE, OTC-AEGXF) and Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF). Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF) has been added back to this list.
I have 3 stocks left with the sub-index of Industrial. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). There is no change from last month.
I have 6 Manufacturing stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). There is no change from last month.
I follow 17 Services stocks. Algoma Central Corporation (TSX-ALC, OTC-AGMJF) has been added to this as I am now following this stock. One of these stocks (6.25%) is showing as cheap by the historically high dividend yield. It is Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF). There is no change from last month.
Six stock (35%) are showing as cheap by historical median dividend yield. They are Algoma Central Corporation (TSX-ALC, OTC-AGMJF), Canadian National Railway (TSX-CNR, NYSE-CNI), Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF) and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). Algoma Central Corporation (TSX-ALC, OTC-AGMJF), and Canadian National Railway (TSX-CNR, NYSE-CNI) were added to this list.
I follow 10 Material stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Kirkland Lake Gold (TSX-KL, NYSE-KL). There is no change from last month.
Three stock (30%) are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), Kirkland Lake Gold (TSX-KL, NYSE-KL), and Stella-Jones (TSX-SJ, OTC-STLJF). There is no change from last month.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Two stocks (20%) are showing as cheap by historical median dividend yield. They are Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) has been added back to this list.
I follow 3 of the Telecom Service stocks. None of the stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Three stocks (100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Shaw Communications Inc (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
I follow 10 Tech stocks. No stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month.
Four stock (40%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF), Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF), Evertz Technologies (TSX-ET, OTC-EVTZF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF) has been added to this list.
I follow 7 of the Infrastructure Type utility companies. None of the stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month.
Three stocks (38%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF), and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 9 of the Power Type utility companies. One stock (10%) is showing as cheap by historical high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
Three stocks (33%) are showing as cheap by historical median dividend yield. Those stocks are Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN), ATCO Ltd (TSX-ACO.X, OTC-ACLLF), and Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN) has added back to this list.
On my other blog I wrote yesterday about Exco Technologies Ltd (TSX-XTC, OTC-EXCOF) ... learn more. Next, I will write about Absolute Software Corporation (TSX-ABST, NASDAQ-ABST) ... learn more on Friday, February 4, 2022 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield. However, this is just a place to start. It is a good idea to check the stock price with other tests, especially the P/S Ratio test. For other testing, like P/E Ratios, P/S Ratios, P/CF Ratios, P/BV Ratios and Price/Graham Price Ratios, you use estimates or data from the last reported financial quarter.
If a stock is showing as a buy using the dividend yield test, I usually like to verify it is a buy by doing a P/S Ratio test. Here you compare the current P/S Ratio to the 10 year median P/S Ratio. If the current P/S Ratio is lower than the 10 year median, then the stock is a buy. I note that Morningstar gives a current P/S Ratio. The 10 year median ratio is shown in my review of a stock. The 10 year median ratio in a review is good for one year from the date of review.
This historical dividend yield test does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 10 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy February 2022 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 22 stocks in the Consumer Discretionary category. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Eight (36%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goodfellow Inc (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP) and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
I follow 13 Consumer Staples stocks. One stock (7%) is showing as cheap by the historically high dividend yield. It is Saputo Inc. (TSX-SAP, OTC-SAPIF). Saputo Inc. (TSX-SAP, OTC-SAPIF) have been added to this list. Metro Inc (TSX-MRU, OTC-MTRAF) was originally added but it is a mistake.
Eight stocks (62%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), KP Tissue Inc (TSX-KPT, NYSE-KPTSF), Lassonde Industries (TSX-LAS.A, OTC-LSDAF), Loblaw Companies (TSX-L, OTC-LBLCF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Metro Inc (TSX-MRU, OTC-MTRAF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). There is no change from last month.
I follow Six Health Care stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Four stocks (67%) are cheap by the historical median dividend yield. The stocks are HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT), and Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none). Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none) has been added to this list.
I follow 9 Energy stocks. One stock (11%) is showing as cheap by the historical high dividend yield. It is Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
There are three stocks (22%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). Mullen Group (TSX-MTL, OTC-MLLGF) has been added back to this list.
I follow 26 Financial stocks under the categories of Banks (8), Financial Services (13), and Insurance (5).
I follow 8 Bank stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stocks (38%) are showing as cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), and Toronto Dominion Bank (TSX-TD, NYSE-TD). There is no change from last month.
I follow 13 Financial Service stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Six stocks (46%) are showing as cheap by the historical median dividend yield. These stocks are Accord Financial Corp (TSX-ACD, OTC-ACCFF), AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). Accord Financial Corp (TSX-ACD, OTC-ACCFF), and Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF) has been added to this list.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (60%) are showing as cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC). There is no change from last month.
I follow 33 Industrial stocks. Algoma Central Corporation (TSX-ALC, OTC-AGMJF) has been added to this as I am now following this stock. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 7 Construction stocks. No stock (0%) is showing as cheap by the historically high dividend yield. There is no change from last month.
Two stock (29%) are showing as cheap by historical median dividend yield. They are Aecon Group Inc (TSX-ARE, OTC-AEGXF) and Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF). Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF) has been added back to this list.
I have 3 stocks left with the sub-index of Industrial. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). There is no change from last month.
I have 6 Manufacturing stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). There is no change from last month.
I follow 17 Services stocks. Algoma Central Corporation (TSX-ALC, OTC-AGMJF) has been added to this as I am now following this stock. One of these stocks (6.25%) is showing as cheap by the historically high dividend yield. It is Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF). There is no change from last month.
Six stock (35%) are showing as cheap by historical median dividend yield. They are Algoma Central Corporation (TSX-ALC, OTC-AGMJF), Canadian National Railway (TSX-CNR, NYSE-CNI), Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF) and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). Algoma Central Corporation (TSX-ALC, OTC-AGMJF), and Canadian National Railway (TSX-CNR, NYSE-CNI) were added to this list.
I follow 10 Material stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Kirkland Lake Gold (TSX-KL, NYSE-KL). There is no change from last month.
Three stock (30%) are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), Kirkland Lake Gold (TSX-KL, NYSE-KL), and Stella-Jones (TSX-SJ, OTC-STLJF). There is no change from last month.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Two stocks (20%) are showing as cheap by historical median dividend yield. They are Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) has been added back to this list.
I follow 3 of the Telecom Service stocks. None of the stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Three stocks (100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Shaw Communications Inc (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
I follow 10 Tech stocks. No stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month.
Four stock (40%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF), Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF), Evertz Technologies (TSX-ET, OTC-EVTZF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF) has been added to this list.
I follow 7 of the Infrastructure Type utility companies. None of the stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month.
Three stocks (38%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF), and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 9 of the Power Type utility companies. One stock (10%) is showing as cheap by historical high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
Three stocks (33%) are showing as cheap by historical median dividend yield. Those stocks are Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN), ATCO Ltd (TSX-ACO.X, OTC-ACLLF), and Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN) has added back to this list.
On my other blog I wrote yesterday about Exco Technologies Ltd (TSX-XTC, OTC-EXCOF) ... learn more. Next, I will write about Absolute Software Corporation (TSX-ABST, NASDAQ-ABST) ... learn more on Friday, February 4, 2022 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, April 4, 2024
Something to Buy April 2024
There is always something to buy in the stock market. On Tuesday, I put out a list of the stocks that I covered and showed what stock might be a good deal based on dividend yield. Now I am trying to categorize what sorts of stocks may be a good deal based on dividend yield. The dividend yield test in this note is a quick way of finding possible stock buys. See my Spreadsheet .
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield. However, this is just a place to start. It is a good idea to check the stock price with other tests, especially the P/S Ratio test. For other testing, like P/E Ratios, P/S Ratios, P/CF Ratios, P/BV Ratios and Price/Graham Price Ratios, you use estimates or data from the last reported financial quarter.
If a stock is showing as a buy using the dividend yield test, I usually like to verify it is a buy by doing a P/S Ratio test. Here you compare the current P/S Ratio to the 10 year median P/S Ratio. If the current P/S Ratio is lower than the 10 year median, then the stock is a buy. I note that Morningstar gives a current P/S Ratio. The 10 year median ratio is shown in my review of a stock. The 10 year median ratio in a review is good for one year from the date of review.
This historical dividend yield test does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 10 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy January 2024 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical median dividend yields (P/Med), 10 year high dividend yields (P/10Hi), or 10 year median dividend yields (P/10Yr). As in other spreadsheets, you can highlight a line or several lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 21 stocks in the Consumer Discretionary category. One of these stocks (5%) are showing as cheap by the historically high dividend yield. It is Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF). High Liner Foods (TSX-HLF, OTC-HLNFF) has been deleted from this list.
Twelve (57%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are BRP Inc (TSX-DOO, NASDAQ-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goodfellow Inc (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Linamar Corporation (TSX-LNR, OTC-LIMAF) Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF), Sleep Country Canada Holdings Inc (TSX-ZZZ, OTC-SCCAF) and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
I follow 13 Consumer Staples stocks. Five stocks (38%) are showing as cheap by the historically high dividend yield. They are Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF), Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), Lassonde Industries (TSX (LAS.A, OTC-LSDAF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Saputo Inc. (TSX-SAP, OTC-SAPIF).
Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF), Lassonde Industries (TSX (LAS.A, OTC-LSDAF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Saputo Inc. (TSX-SAP, OTC-SAPIF) have been added to this list. This is a big increase for this category.
Nine stocks (62%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), KP Tissue Inc (TSX-KPT, NYSE-KPTSF), Lassonde Industries (TSX (LAS.A, OTC-LSDAF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Metro Inc (TSX-MRU, OTC-MTRAF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). Lassonde Industries (TSX (LAS.A, OTC-LSDAF) has been added to this list.
I follow Five Health Care stocks. One of these stocks (20%) is showing as cheap by the historically high dividend yield. It is Medtronic PCL (NYSE-MDT). Neighbourly Pharmacy Inc (TSX-NBLY, OTC-NBLYF) has been taken off this list because it was bought out last month.
Three stocks (60%) are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT), and Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF). Neighbourly Pharmacy Inc (TSX-NBLY, OTC-NBLYF) has been taken off this list because it was bought out last month.
I follow 9 Energy stocks. No stock (0%) is showing as cheap by the historical high dividend yield. There is no change from last month.
There are Five stocks (56%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc (TSX-CVE, NYSE-CVE), Mullen Group (TSX-MTL, OTC-MLLGF), Ovintiv Inc (TSX-OVV, OTC-OVV), and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
I follow 26 Financial stocks under the categories of Banks (7), Financial Services (14), and Insurance (5).
I follow 7 Bank stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Six stocks (86%) are showing as cheap by historical median dividend yield. They are Bank of Montreal (TSX-BMO, NYSE-BMO), Bank of Nova Scotia (TSX-BNS, NYSE-BNS), Barclays PLC (LSE-BARC, NYSE-BCS), Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM), and Royal Bank of Canada (TSX-RY, NYSE-RY) and Toronto Dominion Bank (TSX-TD, NYSE-TD). National Bank of Canada (TSX-NA, OTC-NTIOF) has been removed from this list.
I follow 14 Financial Service stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Nine stocks (64%) are showing as cheap by the historical median dividend yield. These stocks are AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), CI Financial (TSX-CIX, NYSE-CIXX), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), EQB Inc (TSX-EQB, OTC-EQGPF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Four stocks (80%) are showing as cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC), Sun Life Financial (TSX-SLF, NYSE-SLF). There is no change from last month.
I follow 32 Industrial stocks. Because I have so many and Industrial, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction (7), Industrial (3), Manufacturing (5) and (Business) Services (17).
I have 7 Construction stocks. No stock (0%) is showing as cheap by the historically high dividend yield. Aecon Group Inc (TSX-ARE, OTC-AEGXF) has been removed from this list.
One stock (14%) is showing as cheap by historical median dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). There is no change from last month.
I have 3 stocks left with the sub-index of Industrial. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). There is no change from last month.
I have 5 Manufacturing stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). There is no change from last month.
I follow 17 Services stocks. No stock (0%) is showing as cheap by the historically high dividend yield. McCoy Global Inc (TSX-MCB, OTC-MCCRF), and Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF) have been removed from this list.
Nine stock (50%) are showing as cheap by historical median dividend yield. They are Algoma Central Corporation (TSX-ALC, OTC-AGMJF), Canadian National Railway (TSX-CNR, NYSE-CNI), GFL Environmental Inc (TSX-GFL, NYSE-GFL), McCoy Global Inc (TSX-MCB, OTC-MCCRF), Pason Systems Inc (TSX-PSI, OTC-PSYTF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF), and Trican Well Service Ltd (TSX-TCW, OTC-TOLWF). There is no change from last month.
I follow 10 Material stocks. No stock (0%) is showing as cheap by the historically high dividend yield.
Two stock (20%) is showing as cheap by historical median dividend yield. They are Barrick Gold Corp (TSX-ABX, NYSE-ABX) and Stella-Jones (TSX-SJ, OTC-STLJF). There is no change from last month.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Eight stocks (80%) are showing as cheap by historical median dividend yield. They are Allied Properties REIT (TSX-AP.UN, OTC-APYRF), Artis REIT (TSX-AX.UN, OTC-ARESF), Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF), First Capital REIT (TSX-FCR.UN, OTC-FCXXF), Granite REIT (TSX-GRT.UN, NYSE-GRP.U), H & R REIT (TSX-HR.UN, OTC-HRUFF), Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). There is no change from last month.
I follow 4 of the Telecom Service stocks. Three of the stocks (75%) are showing as cheap by historically high dividend yield. They are BCE (TSX-BCE, NYSE-BCE), Quebecor Inc (TSX-QBR.B, OTC-QBCRF), and Telus Corp (TSX-T, NYSE-TU). Telus Corp (TSX-T, NYSE-TU) has been added to this list.
Four stocks (100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Cogeco Communications Inc (TSX-CCA, OTC-CGEAF), Quebecor Inc (TSX-QBR.B, OTC-QBCRF) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
I follow 9 Tech stocks. One stock (11%) is showing as cheap by historical high dividend yield and it is Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF). Nuvei Corp (TSX-NVEI, NASDAQ-NVEI) has been deleted from this list and Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF) has been added to this list.
Four stock (44%) are showing cheap by historical median dividend yield. They are Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF), Evertz Technologies (TSX-ET, OTC-EVTZF), Nuvei Corp (TSX-NVEI, NASDAQ-NVEI), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.
I follow 7 of the Infrastructure Type stocks. No stock (0%) is showing as cheap by historical high dividend yield. TC Energy Corp (TSX-TRP, NYSE-TRP) has been removed from this list.
Three stocks (43%) are showing cheap by historical median dividend yield. They are Capital Power Corp (TSX-CPX, OTC-CPRHF), Enbridge Inc. (TSX-ENB, NYSE-ENB), and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 9 of the Power Type utility companies. One stock (13%) is showing as cheap by historical high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
Five stocks (56%) are showing as cheap by historical median dividend yield. Those stocks are Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN), ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), Emera Inc (TSX-EMA, OTC-EMRAF), and Fortis Inc (TSX-FTS, OTC-FRTSF). There is no change from last month.
On my other blog I wrote yesterday about Melcor Developments Inc (TSX-MRD, OTC-MODVF) ... learn more. Next, I will write about Goodfellow Inc (TSX-GDL, OTC-GFELF) ... learn more on Friday, April 5, 2024 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield. However, this is just a place to start. It is a good idea to check the stock price with other tests, especially the P/S Ratio test. For other testing, like P/E Ratios, P/S Ratios, P/CF Ratios, P/BV Ratios and Price/Graham Price Ratios, you use estimates or data from the last reported financial quarter.
If a stock is showing as a buy using the dividend yield test, I usually like to verify it is a buy by doing a P/S Ratio test. Here you compare the current P/S Ratio to the 10 year median P/S Ratio. If the current P/S Ratio is lower than the 10 year median, then the stock is a buy. I note that Morningstar gives a current P/S Ratio. The 10 year median ratio is shown in my review of a stock. The 10 year median ratio in a review is good for one year from the date of review.
This historical dividend yield test does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 10 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy January 2024 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical median dividend yields (P/Med), 10 year high dividend yields (P/10Hi), or 10 year median dividend yields (P/10Yr). As in other spreadsheets, you can highlight a line or several lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 21 stocks in the Consumer Discretionary category. One of these stocks (5%) are showing as cheap by the historically high dividend yield. It is Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF). High Liner Foods (TSX-HLF, OTC-HLNFF) has been deleted from this list.
Twelve (57%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are BRP Inc (TSX-DOO, NASDAQ-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goodfellow Inc (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Linamar Corporation (TSX-LNR, OTC-LIMAF) Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF), Sleep Country Canada Holdings Inc (TSX-ZZZ, OTC-SCCAF) and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
I follow 13 Consumer Staples stocks. Five stocks (38%) are showing as cheap by the historically high dividend yield. They are Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF), Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), Lassonde Industries (TSX (LAS.A, OTC-LSDAF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Saputo Inc. (TSX-SAP, OTC-SAPIF).
Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF), Lassonde Industries (TSX (LAS.A, OTC-LSDAF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Saputo Inc. (TSX-SAP, OTC-SAPIF) have been added to this list. This is a big increase for this category.
Nine stocks (62%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), KP Tissue Inc (TSX-KPT, NYSE-KPTSF), Lassonde Industries (TSX (LAS.A, OTC-LSDAF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Metro Inc (TSX-MRU, OTC-MTRAF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). Lassonde Industries (TSX (LAS.A, OTC-LSDAF) has been added to this list.
I follow Five Health Care stocks. One of these stocks (20%) is showing as cheap by the historically high dividend yield. It is Medtronic PCL (NYSE-MDT). Neighbourly Pharmacy Inc (TSX-NBLY, OTC-NBLYF) has been taken off this list because it was bought out last month.
Three stocks (60%) are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT), and Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF). Neighbourly Pharmacy Inc (TSX-NBLY, OTC-NBLYF) has been taken off this list because it was bought out last month.
I follow 9 Energy stocks. No stock (0%) is showing as cheap by the historical high dividend yield. There is no change from last month.
There are Five stocks (56%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc (TSX-CVE, NYSE-CVE), Mullen Group (TSX-MTL, OTC-MLLGF), Ovintiv Inc (TSX-OVV, OTC-OVV), and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
I follow 26 Financial stocks under the categories of Banks (7), Financial Services (14), and Insurance (5).
I follow 7 Bank stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Six stocks (86%) are showing as cheap by historical median dividend yield. They are Bank of Montreal (TSX-BMO, NYSE-BMO), Bank of Nova Scotia (TSX-BNS, NYSE-BNS), Barclays PLC (LSE-BARC, NYSE-BCS), Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM), and Royal Bank of Canada (TSX-RY, NYSE-RY) and Toronto Dominion Bank (TSX-TD, NYSE-TD). National Bank of Canada (TSX-NA, OTC-NTIOF) has been removed from this list.
I follow 14 Financial Service stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Nine stocks (64%) are showing as cheap by the historical median dividend yield. These stocks are AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), CI Financial (TSX-CIX, NYSE-CIXX), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), EQB Inc (TSX-EQB, OTC-EQGPF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Four stocks (80%) are showing as cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC), Sun Life Financial (TSX-SLF, NYSE-SLF). There is no change from last month.
I follow 32 Industrial stocks. Because I have so many and Industrial, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction (7), Industrial (3), Manufacturing (5) and (Business) Services (17).
I have 7 Construction stocks. No stock (0%) is showing as cheap by the historically high dividend yield. Aecon Group Inc (TSX-ARE, OTC-AEGXF) has been removed from this list.
One stock (14%) is showing as cheap by historical median dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). There is no change from last month.
I have 3 stocks left with the sub-index of Industrial. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). There is no change from last month.
I have 5 Manufacturing stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). There is no change from last month.
I follow 17 Services stocks. No stock (0%) is showing as cheap by the historically high dividend yield. McCoy Global Inc (TSX-MCB, OTC-MCCRF), and Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF) have been removed from this list.
Nine stock (50%) are showing as cheap by historical median dividend yield. They are Algoma Central Corporation (TSX-ALC, OTC-AGMJF), Canadian National Railway (TSX-CNR, NYSE-CNI), GFL Environmental Inc (TSX-GFL, NYSE-GFL), McCoy Global Inc (TSX-MCB, OTC-MCCRF), Pason Systems Inc (TSX-PSI, OTC-PSYTF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF), and Trican Well Service Ltd (TSX-TCW, OTC-TOLWF). There is no change from last month.
I follow 10 Material stocks. No stock (0%) is showing as cheap by the historically high dividend yield.
Two stock (20%) is showing as cheap by historical median dividend yield. They are Barrick Gold Corp (TSX-ABX, NYSE-ABX) and Stella-Jones (TSX-SJ, OTC-STLJF). There is no change from last month.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Eight stocks (80%) are showing as cheap by historical median dividend yield. They are Allied Properties REIT (TSX-AP.UN, OTC-APYRF), Artis REIT (TSX-AX.UN, OTC-ARESF), Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF), First Capital REIT (TSX-FCR.UN, OTC-FCXXF), Granite REIT (TSX-GRT.UN, NYSE-GRP.U), H & R REIT (TSX-HR.UN, OTC-HRUFF), Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). There is no change from last month.
I follow 4 of the Telecom Service stocks. Three of the stocks (75%) are showing as cheap by historically high dividend yield. They are BCE (TSX-BCE, NYSE-BCE), Quebecor Inc (TSX-QBR.B, OTC-QBCRF), and Telus Corp (TSX-T, NYSE-TU). Telus Corp (TSX-T, NYSE-TU) has been added to this list.
Four stocks (100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Cogeco Communications Inc (TSX-CCA, OTC-CGEAF), Quebecor Inc (TSX-QBR.B, OTC-QBCRF) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
I follow 9 Tech stocks. One stock (11%) is showing as cheap by historical high dividend yield and it is Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF). Nuvei Corp (TSX-NVEI, NASDAQ-NVEI) has been deleted from this list and Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF) has been added to this list.
Four stock (44%) are showing cheap by historical median dividend yield. They are Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF), Evertz Technologies (TSX-ET, OTC-EVTZF), Nuvei Corp (TSX-NVEI, NASDAQ-NVEI), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.
I follow 7 of the Infrastructure Type stocks. No stock (0%) is showing as cheap by historical high dividend yield. TC Energy Corp (TSX-TRP, NYSE-TRP) has been removed from this list.
Three stocks (43%) are showing cheap by historical median dividend yield. They are Capital Power Corp (TSX-CPX, OTC-CPRHF), Enbridge Inc. (TSX-ENB, NYSE-ENB), and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 9 of the Power Type utility companies. One stock (13%) is showing as cheap by historical high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
Five stocks (56%) are showing as cheap by historical median dividend yield. Those stocks are Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN), ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), Emera Inc (TSX-EMA, OTC-EMRAF), and Fortis Inc (TSX-FTS, OTC-FRTSF). There is no change from last month.
On my other blog I wrote yesterday about Melcor Developments Inc (TSX-MRD, OTC-MODVF) ... learn more. Next, I will write about Goodfellow Inc (TSX-GDL, OTC-GFELF) ... learn more on Friday, April 5, 2024 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, December 7, 2023
Something to Buy December 2023
There is always something to buy in the stock market. On Tuesday, I put out a list of the stocks that I covered and showed what stock might be a good deal based on dividend yield. Now I am trying to categorize what sorts of stocks may be a good deal based on dividend yield. The dividend yield test in this note is a quick way of finding possible stock buys. See my Spreadsheet .
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield. However, this is just a place to start. It is a good idea to check the stock price with other tests, especially the P/S Ratio test. For other testing, like P/E Ratios, P/S Ratios, P/CF Ratios, P/BV Ratios and Price/Graham Price Ratios, you use estimates or data from the last reported financial quarter.
If a stock is showing as a buy using the dividend yield test, I usually like to verify it is a buy by doing a P/S Ratio test. Here you compare the current P/S Ratio to the 10 year median P/S Ratio. If the current P/S Ratio is lower than the 10 year median, then the stock is a buy. I note that Morningstar gives a current P/S Ratio. The 10 year median ratio is shown in my review of a stock. The 10 year median ratio in a review is good for one year from the date of review.
This historical dividend yield test does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 10 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy December 2023 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical median dividend yields (P/Med), 10 year high dividend yields (P/10Hi), or 10 year median dividend yields (P/10Yr). As in other spreadsheets, you can highlight a line or several lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 20 stocks in the Consumer Discretionary category. Three of these stocks (15%) are showing as cheap by the historically high dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), High Liner Foods (TSX-HLF, OTC-HLNFF), and Leon's Furniture (TSX-LNF, OTC-LEFUF). Magna International Inc. (TSX-MG, NYSE-MGA) has been removed from this list. Leon's Furniture (TSX-LNF, OTC-LEFUF) has been added to this list.
Twelve (60%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are BRP Inc (TSX-DOO, NASDAQ-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goodfellow Inc (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Linamar Corporation (TSX-LNR, OTC-LIMAF) Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF), Savaria Corporation (TSX-SIS, OTC-SISXF) and Stingray Digital Group Inc (TSX-RAY.A). K-Bro Linen Inc (TSX-KBL, OTC-KBRLF) has been removed from this list.
I follow 13 Consumer Staples stocks. Three stocks (23%) are showing as cheap by the historically high dividend yield. They are Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), and Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF) and Saputo Inc. (TSX-SAP, OTC-SAPIF). Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF) have been removed from this list. Saputo Inc. (TSX-SAP, OTC-SAPIF) has been added.
Nine stocks (69%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), KP Tissue Inc (TSX-KPT, NYSE-KPTSF), Loblaw Companies (TSX-L, OTC-LBLCF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Metro Inc (TSX-MRU, OTC-MTRAF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). There is no change from last month.
I follow Six Health Care stocks. Two of these stocks (33%) are showing as cheap by the historically high dividend yield. They are Medtronic PCL (NYSE-MDT), Neighbourly Pharmacy Inc (TSX-NBLY, OTC-NBLYF). Thre is no change from last month.
Four stocks (67%) are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT), Neighbourly Pharmacy Inc (TSX-NBLY, OTC-NBLYF), and Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF). Chartwell Retirement Residences (TSX-CSH.UN, NYSE-CWSRF) has been removed from this list.
I follow 9 Energy stocks. No stock (0%) is showing as cheap by the historical high dividend yield. There is no change from last month.
There are Five stocks (56%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc (TSX-CVE, NYSE-CVE), Mullen Group (TSX-MTL, OTC-MLLGF), Ovintiv Inc (TSX-OVV, OTC-OVV), and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
I follow 25 Financial stocks under the categories of Banks (7), Financial Services (13), and Insurance (5).
I follow 7 Bank stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Seven stocks (100%) are showing as cheap by historical median dividend yield. They are Bank of Montreal (TSX-BMO, NYSE-BMO), Bank of Nova Scotia (TSX-BNS, NYSE-BNS), Barclays PLC (LSE-BARC, NYSE-BCS), Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM), National Bank of Canada (TSX-NA, OTC-NTIOF), and Royal Bank of Canada (TSX-RY, NYSE-RY) and Toronto Dominion Bank (TSX-TD, NYSE-TD). There is no change from last month.
I follow 13 Financial Service stocks. One of these stocks (0.8%) are showing as cheap by the historically high dividend yield. It is Accord Financial Corp (TSX-ACD, OTC-ACCFF). There is no change from last month.
Ten stocks (77%) are showing as cheap by the historical median dividend yield. These stocks are Accord Financial Corp (TSX-ACD, OTC-ACCFF), AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), CI Financial (TSX-CIX, NYSE-CIXX), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), EQB Inc (TSX-EQB, OTC-EQGPF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Four stocks (80%) are showing as cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC), Sun Life Financial (TSX-SLF, NYSE-SLF). There is no change from last month.
I follow 33 Industrial stocks. Because I have so many and Industrial, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction (7), Industrial (3), Manufacturing (5) and (Business) Services (18).
I have 7 Construction stocks. One stock (14%) is showing as cheap by the historically high dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). There is no change from last month.
I have 3 stocks left with the sub-index of Industrial. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). There is no change from last month.
I have 5 Manufacturing stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). There is no change from last month.
I follow 18 Services stocks. Three of these stocks (17%) is showing as cheap by the historically high dividend yield. They are McCoy Global Inc (TSX-MCB, OTC-MCCRF), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF), and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). There is no change from last month.
Ten stock (56%) are showing as cheap by historical median dividend yield. They are Algoma Central Corporation (TSX-ALC, OTC-AGMJF), Canadian National Railway (TSX-CNR, NYSE-CNI), GFL Environmental Inc (TSX-GFL, NYSE , GFL), McCoy Global Inc (TSX-MCB, OTC-MCCRF), Pason Systems Inc (TSX-PSI, OTC-PSYTF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF), Trican Well Service Ltd (TSX-TCW, OTC-TOLWF), and Wajax Corp (TSX-WJX, OTC-WJXFF). Parkland Fuel Corp (TSX-PKI, OTC-PKIUF) has been removed from this list. I follow 10 Material stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Agnico Eagle Mines Ltd (TSX-AEM, NYSE-AEM). There is no change from last month.
Three stock (30%) are showing as cheap by historical median dividend yield. The stocks are Adentra Inc (TSX-ADEN, OTC-HDIUF), Agnico Eagle Mines Ltd (TSX-AEM, NYSE-AEM), and Barrick Gold Corp (TSX-ABX, NYSE-ABX). Stella-Jones (TSX-SJ, OTC-STLJF) has been removed from this list.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. Allied Properties REIT (TSX-AP.UN, OTC-APYRF) has been removed from this list.
Eight stocks (80%) are showing as cheap by historical median dividend yield. They are Allied Properties REIT (TSX-AP.UN, OTC-APYRF), Artis REIT (TSX-AX.UN, OTC-ARESF), Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF), First Capital REIT (TSX-FCR.UN, OTC-FCXXF), Granite REIT (TSX- GRT.UN, NYSE-GRP.U), H & R REIT (TSX-HR.UN, OTC-HRUFF), Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). There is no change from last month.
I follow 2 of the Telecom Service stocks. One of the stocks (50%) are showing as cheap by historically high dividend yield. It is BCE (TSX-BCE, NYSE-BCE). There is no change from last month.
Two stocks (100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
I follow 8 Tech stocks. No stock (0%) is showing as cheap by historical high dividend yield. Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF) has been removed from this list.
Three stock (38%) are showing cheap by historical median dividend yield. They are Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF), Evertz Technologies (TSX-ET, OTC-EVTZF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.
I follow 8 of the Infrastructure Type utility companies. One of the stocks (13%) are showing as cheap by historical high dividend yield. It is TC Energy Corp (TSX-TRP, NYSE-TRP). Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP) has been removed from this list.
Four stocks (50%) are showing cheap by historical median dividend yield. They are Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP), Capital Power Corp (TSX-CPX, OTC-CPRHF), Enbridge Inc. (TSX-ENB, NYSE-ENB), and TC Energy Corp (TSX-TRP, NYSE-TRP). Keyera Corp (TSX-KEY, OTC-KEYUF) has been removed from this list.
I follow 9 of the Power Type utility companies. One stock (13%) is showing as cheap by historical high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
Six stocks (67%) are showing as cheap by historical median dividend yield. Those stocks are Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN), ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), Emera Inc (TSX-EMA, OTC-EMRAF), Fortis Inc (TSX-FTS, OTC-FRTSF), and Innergex Renewable Energy (TSX-INE, OTC-INGXF). There is no change from last month.
On my other blog I wrote yesterday about Magna International Inc (TSX-MG, NYSE-MGA) ... learn more. Next, I will write about Richards Packaging Income Fund (TSX-RPI.UN, OTC-RPKIF) ... learn more on Friday, December 8, 2023 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield. However, this is just a place to start. It is a good idea to check the stock price with other tests, especially the P/S Ratio test. For other testing, like P/E Ratios, P/S Ratios, P/CF Ratios, P/BV Ratios and Price/Graham Price Ratios, you use estimates or data from the last reported financial quarter.
If a stock is showing as a buy using the dividend yield test, I usually like to verify it is a buy by doing a P/S Ratio test. Here you compare the current P/S Ratio to the 10 year median P/S Ratio. If the current P/S Ratio is lower than the 10 year median, then the stock is a buy. I note that Morningstar gives a current P/S Ratio. The 10 year median ratio is shown in my review of a stock. The 10 year median ratio in a review is good for one year from the date of review.
This historical dividend yield test does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 10 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy December 2023 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical median dividend yields (P/Med), 10 year high dividend yields (P/10Hi), or 10 year median dividend yields (P/10Yr). As in other spreadsheets, you can highlight a line or several lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 20 stocks in the Consumer Discretionary category. Three of these stocks (15%) are showing as cheap by the historically high dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), High Liner Foods (TSX-HLF, OTC-HLNFF), and Leon's Furniture (TSX-LNF, OTC-LEFUF). Magna International Inc. (TSX-MG, NYSE-MGA) has been removed from this list. Leon's Furniture (TSX-LNF, OTC-LEFUF) has been added to this list.
Twelve (60%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are BRP Inc (TSX-DOO, NASDAQ-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goodfellow Inc (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Linamar Corporation (TSX-LNR, OTC-LIMAF) Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF), Savaria Corporation (TSX-SIS, OTC-SISXF) and Stingray Digital Group Inc (TSX-RAY.A). K-Bro Linen Inc (TSX-KBL, OTC-KBRLF) has been removed from this list.
I follow 13 Consumer Staples stocks. Three stocks (23%) are showing as cheap by the historically high dividend yield. They are Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), and Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF) and Saputo Inc. (TSX-SAP, OTC-SAPIF). Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF) have been removed from this list. Saputo Inc. (TSX-SAP, OTC-SAPIF) has been added.
Nine stocks (69%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), KP Tissue Inc (TSX-KPT, NYSE-KPTSF), Loblaw Companies (TSX-L, OTC-LBLCF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Metro Inc (TSX-MRU, OTC-MTRAF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). There is no change from last month.
I follow Six Health Care stocks. Two of these stocks (33%) are showing as cheap by the historically high dividend yield. They are Medtronic PCL (NYSE-MDT), Neighbourly Pharmacy Inc (TSX-NBLY, OTC-NBLYF). Thre is no change from last month.
Four stocks (67%) are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT), Neighbourly Pharmacy Inc (TSX-NBLY, OTC-NBLYF), and Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF). Chartwell Retirement Residences (TSX-CSH.UN, NYSE-CWSRF) has been removed from this list.
I follow 9 Energy stocks. No stock (0%) is showing as cheap by the historical high dividend yield. There is no change from last month.
There are Five stocks (56%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc (TSX-CVE, NYSE-CVE), Mullen Group (TSX-MTL, OTC-MLLGF), Ovintiv Inc (TSX-OVV, OTC-OVV), and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
I follow 25 Financial stocks under the categories of Banks (7), Financial Services (13), and Insurance (5).
I follow 7 Bank stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Seven stocks (100%) are showing as cheap by historical median dividend yield. They are Bank of Montreal (TSX-BMO, NYSE-BMO), Bank of Nova Scotia (TSX-BNS, NYSE-BNS), Barclays PLC (LSE-BARC, NYSE-BCS), Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM), National Bank of Canada (TSX-NA, OTC-NTIOF), and Royal Bank of Canada (TSX-RY, NYSE-RY) and Toronto Dominion Bank (TSX-TD, NYSE-TD). There is no change from last month.
I follow 13 Financial Service stocks. One of these stocks (0.8%) are showing as cheap by the historically high dividend yield. It is Accord Financial Corp (TSX-ACD, OTC-ACCFF). There is no change from last month.
Ten stocks (77%) are showing as cheap by the historical median dividend yield. These stocks are Accord Financial Corp (TSX-ACD, OTC-ACCFF), AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), CI Financial (TSX-CIX, NYSE-CIXX), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), EQB Inc (TSX-EQB, OTC-EQGPF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Four stocks (80%) are showing as cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC), Sun Life Financial (TSX-SLF, NYSE-SLF). There is no change from last month.
I follow 33 Industrial stocks. Because I have so many and Industrial, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction (7), Industrial (3), Manufacturing (5) and (Business) Services (18).
I have 7 Construction stocks. One stock (14%) is showing as cheap by the historically high dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). There is no change from last month.
I have 3 stocks left with the sub-index of Industrial. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). There is no change from last month.
I have 5 Manufacturing stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). There is no change from last month.
I follow 18 Services stocks. Three of these stocks (17%) is showing as cheap by the historically high dividend yield. They are McCoy Global Inc (TSX-MCB, OTC-MCCRF), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF), and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). There is no change from last month.
Ten stock (56%) are showing as cheap by historical median dividend yield. They are Algoma Central Corporation (TSX-ALC, OTC-AGMJF), Canadian National Railway (TSX-CNR, NYSE-CNI), GFL Environmental Inc (TSX-GFL, NYSE , GFL), McCoy Global Inc (TSX-MCB, OTC-MCCRF), Pason Systems Inc (TSX-PSI, OTC-PSYTF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF), Trican Well Service Ltd (TSX-TCW, OTC-TOLWF), and Wajax Corp (TSX-WJX, OTC-WJXFF). Parkland Fuel Corp (TSX-PKI, OTC-PKIUF) has been removed from this list. I follow 10 Material stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Agnico Eagle Mines Ltd (TSX-AEM, NYSE-AEM). There is no change from last month.
Three stock (30%) are showing as cheap by historical median dividend yield. The stocks are Adentra Inc (TSX-ADEN, OTC-HDIUF), Agnico Eagle Mines Ltd (TSX-AEM, NYSE-AEM), and Barrick Gold Corp (TSX-ABX, NYSE-ABX). Stella-Jones (TSX-SJ, OTC-STLJF) has been removed from this list.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. Allied Properties REIT (TSX-AP.UN, OTC-APYRF) has been removed from this list.
Eight stocks (80%) are showing as cheap by historical median dividend yield. They are Allied Properties REIT (TSX-AP.UN, OTC-APYRF), Artis REIT (TSX-AX.UN, OTC-ARESF), Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF), First Capital REIT (TSX-FCR.UN, OTC-FCXXF), Granite REIT (TSX- GRT.UN, NYSE-GRP.U), H & R REIT (TSX-HR.UN, OTC-HRUFF), Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). There is no change from last month.
I follow 2 of the Telecom Service stocks. One of the stocks (50%) are showing as cheap by historically high dividend yield. It is BCE (TSX-BCE, NYSE-BCE). There is no change from last month.
Two stocks (100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
I follow 8 Tech stocks. No stock (0%) is showing as cheap by historical high dividend yield. Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF) has been removed from this list.
Three stock (38%) are showing cheap by historical median dividend yield. They are Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF), Evertz Technologies (TSX-ET, OTC-EVTZF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.
I follow 8 of the Infrastructure Type utility companies. One of the stocks (13%) are showing as cheap by historical high dividend yield. It is TC Energy Corp (TSX-TRP, NYSE-TRP). Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP) has been removed from this list.
Four stocks (50%) are showing cheap by historical median dividend yield. They are Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP), Capital Power Corp (TSX-CPX, OTC-CPRHF), Enbridge Inc. (TSX-ENB, NYSE-ENB), and TC Energy Corp (TSX-TRP, NYSE-TRP). Keyera Corp (TSX-KEY, OTC-KEYUF) has been removed from this list.
I follow 9 of the Power Type utility companies. One stock (13%) is showing as cheap by historical high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
Six stocks (67%) are showing as cheap by historical median dividend yield. Those stocks are Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN), ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), Emera Inc (TSX-EMA, OTC-EMRAF), Fortis Inc (TSX-FTS, OTC-FRTSF), and Innergex Renewable Energy (TSX-INE, OTC-INGXF). There is no change from last month.
On my other blog I wrote yesterday about Magna International Inc (TSX-MG, NYSE-MGA) ... learn more. Next, I will write about Richards Packaging Income Fund (TSX-RPI.UN, OTC-RPKIF) ... learn more on Friday, December 8, 2023 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, November 7, 2024
Something to Buy November 2024
There is always something to buy in the stock market. On Tuesday, I put out a list of the stocks that I covered and showed what stock might be a good deal based on dividend yield. Now I am trying to categorize what sorts of stocks may be a good deal based on dividend yield. The dividend yield test in this note is a quick way of finding possible stock buys. See my Spreadsheet .
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield. However, this is just a place to start. It is a good idea to check the stock price with other tests, especially the P/S Ratio test. For other testing, like P/E Ratios, P/S Ratios, P/CF Ratios, P/BV Ratios and Price/Graham Price Ratios, you use estimates or data from the last reported financial quarter.
If a stock is showing as a buy using the dividend yield test, I usually like to verify it is a buy by doing a P/S Ratio test. Here you compare the current P/S Ratio to the 10 year median P/S Ratio. If the current P/S Ratio is lower than the 10 year median, then the stock is a buy. I note that Morningstar gives a current P/S Ratio. The 10 year median ratio is shown in my review of a stock. The 10 year median ratio in a review is good for one year from the date of review.
This historical dividend yield test does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 10 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy January 2024 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical median dividend yields (P/Med), 10 year high dividend yields (P/10Hi), or 10 year median dividend yields (P/10Yr). As in other spreadsheets, you can highlight a line or several lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 20 stocks in the Consumer Discretionary category. Three of these stocks (10%) are showing as cheap by the historically high dividend yield. They are BRP Inc (TSX-DOO, NASDAQ-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Magna International Inc. (TSX-MG, NYSE-MGA). BRP Inc (TSX-DOO, NASDAQ-DOOO) has been added to this list. I am down 1 stock, Sleep Country Canada Holdings Inc (TSX-ZZZ, OTC-SCCAF) as it has been bought out.
Nine (45%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are BRP Inc (TSX-DOO, NASDAQ-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Linamar Corporation (TSX-LNR, OTC-LIMAF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), and Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF).
Goodfellow Inc (TSX-GDL, OTC-GFELF), and Stingray Digital Group Inc (TSX-RAY.A, OTC-STGYF) have been removed from this list. Sleep Country Canada Holdings Inc (TSX-ZZZ, OTC-SCCAF) has been bought out and so also removed.
I follow 13 Consumer Staples stocks. Four stocks (31%) are showing as cheap by the historically high dividend yield. They are Andrew Peller Ltd (TSX-ADW.A, Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). Saputo Inc. (TSX-SAP, OTC-SAPIF) has been added to this list.
Nine stocks (62%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), KP Tissue Inc (TSX-KPT, NYSE-KPTSF), Lassonde Industries (TSX (LAS.A, OTC-LSDAF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Metro Inc (TSX-MRU, OTC-MTRAF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). No change from last month.
I follow Five Health Care stocks. One of these stocks (20%) is showing as cheap by the historically high dividend yield. It is Medtronic PCL (NYSE-MDT). There is no change from last month.
Two stocks (40%) are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ), and Medtronic Inc. (NYSE-MDT). There is no change from last month.
I follow 9 Energy stocks. No stock (0%) is showing as cheap by the historical high dividend yield. There is no change from last month.
There are Five stocks (56%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc (TSX-CVE, NYSE-CVE), Mullen Group (TSX-MTL, OTC-MLLGF), Ovintiv Inc (TSX-OVV, OTC-OVV), and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
I follow 26 Financial stocks under the categories of Banks (7), Financial Services (14), and Insurance (5).
I follow 7 Bank stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (43%) are showing as cheap by historical median dividend yield. They are Bank of Montreal (TSX-BMO, NYSE-BMO), Bank of Nova Scotia (TSX-BNS, NYSE-BNS), and Toronto Dominion Bank (TSX-TD, NYSE-TD). There is no change from last month.
I follow 14 Financial Service stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Six stocks (43%) are showing as cheap by the historical median dividend yield. These stocks are Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), EQB Inc (TSX-EQB, OTC-EQGPF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), CI Financial (TSX-CIX, NYSE-CIXX) have been removed from this list.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Four stocks (80%) are showing as cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC), Sun Life Financial (TSX-SLF, NYSE-SLF). There is no change from last month.
I follow 32 Industrial stocks. Because I have so many and Industrial, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction (7), Industrial (3), Manufacturing (5) and (Business) Services (17).
I have 7 Construction stocks. No stock (0%) is showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). There is no change from last month.
I have 3 stocks left with the sub-index of Industrial. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). There is no change from last month.
I have 5 Manufacturing stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). There is no change from last month.
I follow 17 Services stocks. One stock (6%) is showing as cheap by the historically high dividend yield. It is Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF). There is no change from last month.
Eleven stock (65%) are showing as cheap by historical median dividend yield. They are Algoma Central Corporation (TSX-ALC, OTC-AGMJF), Canadian National Railway (TSX-CNR, NYSE-CNI), McCoy Global Inc (TSX-MCB, OTC-MCCRF), Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), Pason Systems Inc (TSX-PSI, OTC-PSYTF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Superior Plus Corp (TSX-SPB, OTC-SUUIF), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF), Trican Well Service Ltd (TSX-TCW, OTC-TOLWF), and Wajax Corp (TSX-WJX, OTC-WJXFF). There is no change from last month.
I follow 10 Material stocks. No stock (0%) is showing as cheap by the historically high dividend yield. There is no change from last month.
Two stock (20%) is showing as cheap by historical median dividend yield. They are Barrick Gold Corp (TSX-ABX, NYSE-ABX), and Stella-Jones (TSX-SJ, OTC-STLJF). There is no change from last month.
I follow 10 Real Estate stocks. No stock (0%) is showing as cheap by historically high dividend yield. There is no change from last month.
Six stocks (60%) are showing as cheap by historical median dividend yield. They are Allied Properties REIT (TSX-AP.UN, OTC-APYRF), Artis REIT (TSX-AX.UN, OTC-ARESF), ). First Capital REIT (TSX-FCR.UN, OTC-FCXXF), Granite REIT (TSX-GRT.UN, NYSE-GRP.U), Melcor Developments Inc. and (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). First Capital REIT (TSX-FCR.UN, OTC-FCXXF), and Granite REIT (TSX-GRT.UN, NYSE-GRP.U) have been added to this list.
I follow 4 of the Telecom Service stocks. Three of the stocks (75%) are showing as cheap by historically high dividend yield. They are BCE (TSX-BCE, NYSE-BCE), Quebecor Inc (TSX-QBR.B, OTC-QBCRF), and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
Four stocks (100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Cogeco Communications Inc (TSX-CCA, OTC-CGEAF), Quebecor Inc (TSX-QBR.B, OTC-QBCRF) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
I follow 9 Tech stocks. One stock (11%) is showing as cheap by historical high dividend yield and it is Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF). There is no change from last month.
Four stock (44%) are showing cheap by historical median dividend yield. They are Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF), Evertz Technologies (TSX-ET, OTC-EVTZF), Nuvei Corp (TSX-NVEI, NASDAQ-NVEI), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.
I follow 7 of the Infrastructure Type stocks. No stock (0%) is showing as cheap by historical high dividend yield. There is no change from last month.
Two stocks (29%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 9 of the Power Type utility companies. No stock (0%) is showing as cheap by historical high dividend yield.
Five stocks (56%) are showing as cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Boralex Inc (TSX-BLX, OTC-BRLXF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), Emera Inc (TSX-EMA, OTC-EMRAF), and Fortis Inc (TSX-FTS, OTC-FRTSF). There is no change from last month.
On my other blog I wrote yesterday about Veren Inc (TSX-VRN, NYSE-VRN) ... learn more. Next, I will write about Finning International Inc (TSX-FTT, OTC-FINGF) ... learn more on Friday, November 8, 2024 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield. However, this is just a place to start. It is a good idea to check the stock price with other tests, especially the P/S Ratio test. For other testing, like P/E Ratios, P/S Ratios, P/CF Ratios, P/BV Ratios and Price/Graham Price Ratios, you use estimates or data from the last reported financial quarter.
If a stock is showing as a buy using the dividend yield test, I usually like to verify it is a buy by doing a P/S Ratio test. Here you compare the current P/S Ratio to the 10 year median P/S Ratio. If the current P/S Ratio is lower than the 10 year median, then the stock is a buy. I note that Morningstar gives a current P/S Ratio. The 10 year median ratio is shown in my review of a stock. The 10 year median ratio in a review is good for one year from the date of review.
This historical dividend yield test does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 10 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy January 2024 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical median dividend yields (P/Med), 10 year high dividend yields (P/10Hi), or 10 year median dividend yields (P/10Yr). As in other spreadsheets, you can highlight a line or several lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 20 stocks in the Consumer Discretionary category. Three of these stocks (10%) are showing as cheap by the historically high dividend yield. They are BRP Inc (TSX-DOO, NASDAQ-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Magna International Inc. (TSX-MG, NYSE-MGA). BRP Inc (TSX-DOO, NASDAQ-DOOO) has been added to this list. I am down 1 stock, Sleep Country Canada Holdings Inc (TSX-ZZZ, OTC-SCCAF) as it has been bought out.
Nine (45%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are BRP Inc (TSX-DOO, NASDAQ-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Linamar Corporation (TSX-LNR, OTC-LIMAF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), and Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF).
Goodfellow Inc (TSX-GDL, OTC-GFELF), and Stingray Digital Group Inc (TSX-RAY.A, OTC-STGYF) have been removed from this list. Sleep Country Canada Holdings Inc (TSX-ZZZ, OTC-SCCAF) has been bought out and so also removed.
I follow 13 Consumer Staples stocks. Four stocks (31%) are showing as cheap by the historically high dividend yield. They are Andrew Peller Ltd (TSX-ADW.A, Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). Saputo Inc. (TSX-SAP, OTC-SAPIF) has been added to this list.
Nine stocks (62%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), KP Tissue Inc (TSX-KPT, NYSE-KPTSF), Lassonde Industries (TSX (LAS.A, OTC-LSDAF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Metro Inc (TSX-MRU, OTC-MTRAF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). No change from last month.
I follow Five Health Care stocks. One of these stocks (20%) is showing as cheap by the historically high dividend yield. It is Medtronic PCL (NYSE-MDT). There is no change from last month.
Two stocks (40%) are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ), and Medtronic Inc. (NYSE-MDT). There is no change from last month.
I follow 9 Energy stocks. No stock (0%) is showing as cheap by the historical high dividend yield. There is no change from last month.
There are Five stocks (56%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc (TSX-CVE, NYSE-CVE), Mullen Group (TSX-MTL, OTC-MLLGF), Ovintiv Inc (TSX-OVV, OTC-OVV), and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
I follow 26 Financial stocks under the categories of Banks (7), Financial Services (14), and Insurance (5).
I follow 7 Bank stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (43%) are showing as cheap by historical median dividend yield. They are Bank of Montreal (TSX-BMO, NYSE-BMO), Bank of Nova Scotia (TSX-BNS, NYSE-BNS), and Toronto Dominion Bank (TSX-TD, NYSE-TD). There is no change from last month.
I follow 14 Financial Service stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Six stocks (43%) are showing as cheap by the historical median dividend yield. These stocks are Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), EQB Inc (TSX-EQB, OTC-EQGPF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), CI Financial (TSX-CIX, NYSE-CIXX) have been removed from this list.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Four stocks (80%) are showing as cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC), Sun Life Financial (TSX-SLF, NYSE-SLF). There is no change from last month.
I follow 32 Industrial stocks. Because I have so many and Industrial, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction (7), Industrial (3), Manufacturing (5) and (Business) Services (17).
I have 7 Construction stocks. No stock (0%) is showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). There is no change from last month.
I have 3 stocks left with the sub-index of Industrial. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). There is no change from last month.
I have 5 Manufacturing stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). There is no change from last month.
I follow 17 Services stocks. One stock (6%) is showing as cheap by the historically high dividend yield. It is Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF). There is no change from last month.
Eleven stock (65%) are showing as cheap by historical median dividend yield. They are Algoma Central Corporation (TSX-ALC, OTC-AGMJF), Canadian National Railway (TSX-CNR, NYSE-CNI), McCoy Global Inc (TSX-MCB, OTC-MCCRF), Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), Pason Systems Inc (TSX-PSI, OTC-PSYTF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Superior Plus Corp (TSX-SPB, OTC-SUUIF), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF), Trican Well Service Ltd (TSX-TCW, OTC-TOLWF), and Wajax Corp (TSX-WJX, OTC-WJXFF). There is no change from last month.
I follow 10 Material stocks. No stock (0%) is showing as cheap by the historically high dividend yield. There is no change from last month.
Two stock (20%) is showing as cheap by historical median dividend yield. They are Barrick Gold Corp (TSX-ABX, NYSE-ABX), and Stella-Jones (TSX-SJ, OTC-STLJF). There is no change from last month.
I follow 10 Real Estate stocks. No stock (0%) is showing as cheap by historically high dividend yield. There is no change from last month.
Six stocks (60%) are showing as cheap by historical median dividend yield. They are Allied Properties REIT (TSX-AP.UN, OTC-APYRF), Artis REIT (TSX-AX.UN, OTC-ARESF), ). First Capital REIT (TSX-FCR.UN, OTC-FCXXF), Granite REIT (TSX-GRT.UN, NYSE-GRP.U), Melcor Developments Inc. and (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). First Capital REIT (TSX-FCR.UN, OTC-FCXXF), and Granite REIT (TSX-GRT.UN, NYSE-GRP.U) have been added to this list.
I follow 4 of the Telecom Service stocks. Three of the stocks (75%) are showing as cheap by historically high dividend yield. They are BCE (TSX-BCE, NYSE-BCE), Quebecor Inc (TSX-QBR.B, OTC-QBCRF), and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
Four stocks (100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Cogeco Communications Inc (TSX-CCA, OTC-CGEAF), Quebecor Inc (TSX-QBR.B, OTC-QBCRF) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
I follow 9 Tech stocks. One stock (11%) is showing as cheap by historical high dividend yield and it is Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF). There is no change from last month.
Four stock (44%) are showing cheap by historical median dividend yield. They are Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF), Evertz Technologies (TSX-ET, OTC-EVTZF), Nuvei Corp (TSX-NVEI, NASDAQ-NVEI), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.
I follow 7 of the Infrastructure Type stocks. No stock (0%) is showing as cheap by historical high dividend yield. There is no change from last month.
Two stocks (29%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 9 of the Power Type utility companies. No stock (0%) is showing as cheap by historical high dividend yield.
Five stocks (56%) are showing as cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Boralex Inc (TSX-BLX, OTC-BRLXF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), Emera Inc (TSX-EMA, OTC-EMRAF), and Fortis Inc (TSX-FTS, OTC-FRTSF). There is no change from last month.
On my other blog I wrote yesterday about Veren Inc (TSX-VRN, NYSE-VRN) ... learn more. Next, I will write about Finning International Inc (TSX-FTT, OTC-FINGF) ... learn more on Friday, November 8, 2024 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, October 9, 2012
Dividend Growth Index
Last July I joining a great group of guys who blog about investing, especially about dividend investing. Back in September 2011, a group of 8 dividend bloggers launched the Dividend Growth Index. Each blogger could pick 3 stocks for the index for a total of 24 stocks. Stock could be either US or CDN. Each quarter, each blogger will follow their picks and the overall portfolio results.
My contribution to this index is also 3 stocks. My pick to add to the Dividend Growth index is Fortis Inc. (TSX-FTS), Toromont Industries Ltd. (TSX-TIH), and Saputo (TSX-SAP). They are all dividend growth stocks of various risk levels and in different sectors.
I try to buy good companies and I try to diversify my portfolio so that a loss of a stock or dismal returns in one sector does not do irreparable damage to my investments. So, I will review my picks and why I like these particular stocks.
Fortis Inc. (TSX-FTS)
This stock was one of my first buys and I have had it since 1987. I also bought some for another account in 1995 and 1996 and then sold some in 1998 because this stock was too high a percentage of my portfolio. Overall, I have made a return of 13.27% per year on this stock to the end of September 2012. Some 8.47% per year of my return was in capital gain and 4.8% per year was in dividends.
This company has a great record of increasing their dividends. The 5 year median dividend yield is 3.3%, which is a decent return. The 5 and 10 year growth in dividends is 11.6% and 9.5% per year. The yield I am earnings on my original investment in 1987 is 25.8% and the dividend yield I am earning for my 1995 investment is 13.4%.
The 5 year median Dividend Payout Ratios are 67% for earnings and 27% for cash flow.
Utilities stocks tend to have lots of debt with low Liquidity Ratios. This stock is no different. However, this stock has a very good cash flow and this makes up for the low Liquidity Ratios. This stock generally has good Debt Ratios.
We are half way through 2012 as far as financial reporting is concerned. Analysts since March have moved the expected revenue down slightly. Over the past 90 days, the expected EPS has remained the same.
See my spreadsheet at fts.htm. For my latest blog postings dated March 2012, click here or here.
This has been a good stock for me and a very solid earner. It is the sort of stock that new investors should start with as it is a utility stock.
Toromont Industries Ltd. (TSX-TIH)
I built my portfolio initially on utility stocks and bank stocks. Once your portfolio gets to a certain size you need to diversify. This is a much riskier stock than Fortis and is considered to be an industrial stock. It is also more volatile and subject to the ups and downs of the business cycle.
Over long periods of time, you would expect this stock to produce better capital gains than a stock like Fortis. However, that long period of time would have to include both a secular bear and bull markets. We have been in a secular bear market since 2000.
I first bought this stock in 2008 and then some more in 2011. The 5 year median dividend yield is 2.23%, which is lower than the one for Fortis. To the end of September 2012, I have made a return of 6.8% on this stock. Some 3.28% per year of this return is in Capital Gain and 3.52% per year is dividend return.
The 5 and 10 year dividend growth is 5.7% and 12% per year. They were having a hard time in the latest recession and earnings are not growing well. So, dividends were decreased in 2011. The company started increasing the dividends again in 2012. This is an industrial stock, so you can expect some variations in dividends.
The 5 year median Dividend Payout Ratios are 32% and 19.5% for earnings and cash flow respectively. I have had no growth in dividends from when I bought the stock, but I expect to have dividend increases in the long term.
We are half way through 2012 as far as financial reporting is concerned. Analysts since March have moved the expected revenue down slightly. Over the past 90 days, the expected EPS has moved down from $1.51 to $1.46.
This stock has brought diversification to my portfolio and I expect it to do well in the long term.
See my spreadsheet at tih.htm. For my most recent blog entries dated April 2012, click here or here.
Saputo (TSX-SAP)
As I had said above, I built my portfolio initially on utility and bank stock. This is also a riskier stock than Fortis. However, it is a consumer products (consumer staple) stock and this would bring some stability to this stock. The 5 year median dividend is just 1.8%. Consumer stocks tend to have lower Dividend Payout Ratios because they need money to grow and invest. Lower Dividend Payout Ratios lead to lower dividends.
I bought this stock first in 2006 and then some more in 2007. My total return to the end of September 2012 on this stock is 16.50% per year. Some 14.19% per year comes from capital gain and 2.31% from dividends.
In August 2012, I sold some of this stock in my RRSP account because the dividends are low and I wanted to increase dividends in my RRSP Account. I replace some this stock with AltaGas (TSX-ALA). When I did this trade Saputo had a dividend yield of 1.76 and Alta Gas had a dividend yield of 4.53%.
Dividends have grown over the past 5 and 10 years at the rate of 13% and 34% per year, respectively. The 5 year median Dividend Payout Ratios for this stock is 33% and 24% for earnings and cash flow, respectively. Dividends increases vary for this company as the dividend increase for 2010 was 10.3%, the dividend increase for 2011 was 18.8% and the dividend increase for 2012 is 10.5%.
Over the past 90 days, the EPS for this stock has trended down from $2.68 to $2.64 to the current $2.62.
This stock has brought diversification to my portfolio and I expect it to do well in the long term. I expect to earn more in capital gains than in dividends compared to utility and bank stocks.
See my spreadsheet at sap.htm. For my most recent blog entries dated June 2012, click here or here.
Other Members of this Group
The other members of this group are listed below. I have also posted links to their October 2012 update for the Dividend Growth Index (DGI) where I know what the link is. Please note that these links will not work until the entry is posted by each blogger on October 9, 2012.
Dividend Growth Investor and DGI
Dividend Guy and DGI
Dividend Mantra and DGI
Dividend Monk and DGI
Dividend Ninja and DGI
My Own Advisor and DGI
Passive Income Earner and DGI
See Dividend Guy 's initial blog entry on this index.
Stocks Covered in this Index
Below is a chart showing all the stocks covered by this index and by which blogger and I have given a link to their sites. Since the inception of this Dividend Growth Index, the return is 22.2%. The year to date return is 6.6%.
We are tracking our index against a number of ETFs. The main drag on our return comes from Canadian National Resources (TSX-CNQ) which is down over 30%. However, this company is into Oil and Gas and these products are down year to date, so this is hardly surprising.
On my Investment Talk blog I am today writing about Keyera Corp. (TSX-KEY). Today, I am discussing the stock price and what analysts say about the stock. To read about this stock go here....
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
My contribution to this index is also 3 stocks. My pick to add to the Dividend Growth index is Fortis Inc. (TSX-FTS), Toromont Industries Ltd. (TSX-TIH), and Saputo (TSX-SAP). They are all dividend growth stocks of various risk levels and in different sectors.
I try to buy good companies and I try to diversify my portfolio so that a loss of a stock or dismal returns in one sector does not do irreparable damage to my investments. So, I will review my picks and why I like these particular stocks.
Fortis Inc. (TSX-FTS)
This stock was one of my first buys and I have had it since 1987. I also bought some for another account in 1995 and 1996 and then sold some in 1998 because this stock was too high a percentage of my portfolio. Overall, I have made a return of 13.27% per year on this stock to the end of September 2012. Some 8.47% per year of my return was in capital gain and 4.8% per year was in dividends.
This company has a great record of increasing their dividends. The 5 year median dividend yield is 3.3%, which is a decent return. The 5 and 10 year growth in dividends is 11.6% and 9.5% per year. The yield I am earnings on my original investment in 1987 is 25.8% and the dividend yield I am earning for my 1995 investment is 13.4%.
The 5 year median Dividend Payout Ratios are 67% for earnings and 27% for cash flow.
Utilities stocks tend to have lots of debt with low Liquidity Ratios. This stock is no different. However, this stock has a very good cash flow and this makes up for the low Liquidity Ratios. This stock generally has good Debt Ratios.
We are half way through 2012 as far as financial reporting is concerned. Analysts since March have moved the expected revenue down slightly. Over the past 90 days, the expected EPS has remained the same.
See my spreadsheet at fts.htm. For my latest blog postings dated March 2012, click here or here.
This has been a good stock for me and a very solid earner. It is the sort of stock that new investors should start with as it is a utility stock.
Toromont Industries Ltd. (TSX-TIH)
I built my portfolio initially on utility stocks and bank stocks. Once your portfolio gets to a certain size you need to diversify. This is a much riskier stock than Fortis and is considered to be an industrial stock. It is also more volatile and subject to the ups and downs of the business cycle.
Over long periods of time, you would expect this stock to produce better capital gains than a stock like Fortis. However, that long period of time would have to include both a secular bear and bull markets. We have been in a secular bear market since 2000.
I first bought this stock in 2008 and then some more in 2011. The 5 year median dividend yield is 2.23%, which is lower than the one for Fortis. To the end of September 2012, I have made a return of 6.8% on this stock. Some 3.28% per year of this return is in Capital Gain and 3.52% per year is dividend return.
The 5 and 10 year dividend growth is 5.7% and 12% per year. They were having a hard time in the latest recession and earnings are not growing well. So, dividends were decreased in 2011. The company started increasing the dividends again in 2012. This is an industrial stock, so you can expect some variations in dividends.
The 5 year median Dividend Payout Ratios are 32% and 19.5% for earnings and cash flow respectively. I have had no growth in dividends from when I bought the stock, but I expect to have dividend increases in the long term.
We are half way through 2012 as far as financial reporting is concerned. Analysts since March have moved the expected revenue down slightly. Over the past 90 days, the expected EPS has moved down from $1.51 to $1.46.
This stock has brought diversification to my portfolio and I expect it to do well in the long term.
See my spreadsheet at tih.htm. For my most recent blog entries dated April 2012, click here or here.
Saputo (TSX-SAP)
As I had said above, I built my portfolio initially on utility and bank stock. This is also a riskier stock than Fortis. However, it is a consumer products (consumer staple) stock and this would bring some stability to this stock. The 5 year median dividend is just 1.8%. Consumer stocks tend to have lower Dividend Payout Ratios because they need money to grow and invest. Lower Dividend Payout Ratios lead to lower dividends.
I bought this stock first in 2006 and then some more in 2007. My total return to the end of September 2012 on this stock is 16.50% per year. Some 14.19% per year comes from capital gain and 2.31% from dividends.
In August 2012, I sold some of this stock in my RRSP account because the dividends are low and I wanted to increase dividends in my RRSP Account. I replace some this stock with AltaGas (TSX-ALA). When I did this trade Saputo had a dividend yield of 1.76 and Alta Gas had a dividend yield of 4.53%.
Dividends have grown over the past 5 and 10 years at the rate of 13% and 34% per year, respectively. The 5 year median Dividend Payout Ratios for this stock is 33% and 24% for earnings and cash flow, respectively. Dividends increases vary for this company as the dividend increase for 2010 was 10.3%, the dividend increase for 2011 was 18.8% and the dividend increase for 2012 is 10.5%.
Over the past 90 days, the EPS for this stock has trended down from $2.68 to $2.64 to the current $2.62.
This stock has brought diversification to my portfolio and I expect it to do well in the long term. I expect to earn more in capital gains than in dividends compared to utility and bank stocks.
See my spreadsheet at sap.htm. For my most recent blog entries dated June 2012, click here or here.
Other Members of this Group
The other members of this group are listed below. I have also posted links to their October 2012 update for the Dividend Growth Index (DGI) where I know what the link is. Please note that these links will not work until the entry is posted by each blogger on October 9, 2012.
Dividend Growth Investor and DGI
Dividend Guy and DGI
Dividend Mantra and DGI
Dividend Monk and DGI
Dividend Ninja and DGI
My Own Advisor and DGI
Passive Income Earner and DGI
See Dividend Guy 's initial blog entry on this index.
Stocks Covered in this Index
Below is a chart showing all the stocks covered by this index and by which blogger and I have given a link to their sites. Since the inception of this Dividend Growth Index, the return is 22.2%. The year to date return is 6.6%.
| Company | Symbol | Blogger |
| Chevron Corp | CVX-N | Dividend Growth Investor |
| Enterprise Product Partners | EPD-N | Dividend Growth Investor |
| McDonald's Corp | MCD-N | Dividend Growth Investor |
| Coca-Cola | KO-N | Dividend Guy |
| Intel | INTC-Q | Dividend Guy |
| National Bank | NA-T | Dividend Guy |
| Conoco Phillips | COP-N | Dividend Mantra |
| Phillip Morris | PM-N | Dividend Mantra |
| Procter & Gamble | PG-N | Dividend Mantra |
| Energy Transfer Equity | ETE-Np | Dividend Monk |
| Novartis AG | NVS-N | Dividend Monk |
| Wal-Mart | WMT-N | Dividend Monk |
| Husky Energy | HSE-T | Dividend Ninja |
| PepsiCo | PEP-N | Dividend Ninja |
| Staples | SPLS-Q | Dividend Ninja |
| Abbott Labs | ABT-N | My Own Advisor |
| Bank of Nova Scotia | BNS-T | My Own Advisor |
| CML Healthcare | CLC-T | My Own Advisor |
| Aflac | AFL-N | Passive Income Earner |
| Canadian Nat. Railway | CNR-T | Passive Income Earner |
| Canadian Nat. Resources | CNQ-T | Passive Income Earner |
| Fortis Inc | FTS-T | SPBrunner |
| Toromont Industries Ltd | TIH-T | SPBrunner |
| Saputo Inc | SAP-T | SPBrunner |
We are tracking our index against a number of ETFs. The main drag on our return comes from Canadian National Resources (TSX-CNQ) which is down over 30%. However, this company is into Oil and Gas and these products are down year to date, so this is hardly surprising.
| ETF | Symbol | YTD |
| S&P/TSX 60 Index Fund | XIU | 5.39% |
| Dow Jones Canada Select Dividend Index Fund | XDV | 3.89% |
| SPDR S&P 500 ETF | SPY | 16.43% |
| Vanguard Dividend Appreciation ETF | VIG | 10.92% |
| Dividend Growth Index | DGI | 5.7% |
On my Investment Talk blog I am today writing about Keyera Corp. (TSX-KEY). Today, I am discussing the stock price and what analysts say about the stock. To read about this stock go here....
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on Twitter or StockTwits.
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