At the end of each year, Money Sense Magazine puts out a list of the Top 100 Dividend Stocks for the following year. This one is for 2020. It is a great list to start looking for your next dividend growth stock. The list for this year is found here. The list for 2019 is here. The one for 2018 is here.
On my other blog I wrote yesterday about Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more. Next, I will write about HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) ... learn more on Wednesday, May 20, 2020 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, May 21, 2020
Tuesday, May 19, 2020
How I Handle Booms and Busts
As most westerners do, I believe in linear time. However, I also believe in cycles. If you read history and economics as I do, you can see that there are lots of cycles. The one that I am most interested in, because I invest, is the booms and busts or bulls and bear cycles of the stock market. Because I believe in cycles, I know that there will be bull and bear markets in my future.
I know a lot of people believe in the bull and bear cycle of the markets, but they try to control what is impossible to control. By that I mean they try to anticipate these bull and bear markets. I do not try to invest in the time of the bull and go to cash or mostly cash in the time of the bears. This is an impossible job. I do not do this, but rather I just go with the flow.
What I mean is that I have built a portfolio in my Canadian Trading account to withstand bear markets. We are in a bear market and my portfolio is behaving as it should. I build a portfolio of good dividend growth stocks and I have hung on to these stocks through the good times and through the bad times. I have stocks from a variety of sectors in Financials, Utilities, Consumer, and Industrials. I do have resource stocks but they are less and 1% of my portfolio.
Since I have been through a number of bear markets, I do know what to expect. I expect that the value of my portfolio will drop. I expect that some of my stocks will cut or suspend their dividends. However, others will keep the dividends flat and still others will raise their dividends. Each bear market is different and therefore sectors are hit differently in every bear market.
Currently, I am keeping an eye on the market, both TSX and S&P500 indexes. Both have sort of been flat since April. I keep an eye on the stocks in my Canadian Trading Account. Stock Trades Canadian currently seem good at tracking Dividend Cuts, so I keep an eye on what new stocks appear on their site.
I have a couple of stocks cut or suspend dividends, but this is nothing unusual in a bear market. I see nothing I want to buy at present. Our stocks are not that cheap, considering we are in a bear market. There is nothing that is particularly worrisome for me at present. For the future I am worried about the recovery of the economy from the lockdown and the high level of debt (personal, companies and government).
On my other blog I wrote yesterday about Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more. Next, I will write about Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more on Wednesday, May 13, 2020 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 know a lot of people believe in the bull and bear cycle of the markets, but they try to control what is impossible to control. By that I mean they try to anticipate these bull and bear markets. I do not try to invest in the time of the bull and go to cash or mostly cash in the time of the bears. This is an impossible job. I do not do this, but rather I just go with the flow.
What I mean is that I have built a portfolio in my Canadian Trading account to withstand bear markets. We are in a bear market and my portfolio is behaving as it should. I build a portfolio of good dividend growth stocks and I have hung on to these stocks through the good times and through the bad times. I have stocks from a variety of sectors in Financials, Utilities, Consumer, and Industrials. I do have resource stocks but they are less and 1% of my portfolio.
Since I have been through a number of bear markets, I do know what to expect. I expect that the value of my portfolio will drop. I expect that some of my stocks will cut or suspend their dividends. However, others will keep the dividends flat and still others will raise their dividends. Each bear market is different and therefore sectors are hit differently in every bear market.
Currently, I am keeping an eye on the market, both TSX and S&P500 indexes. Both have sort of been flat since April. I keep an eye on the stocks in my Canadian Trading Account. Stock Trades Canadian currently seem good at tracking Dividend Cuts, so I keep an eye on what new stocks appear on their site.
I have a couple of stocks cut or suspend dividends, but this is nothing unusual in a bear market. I see nothing I want to buy at present. Our stocks are not that cheap, considering we are in a bear market. There is nothing that is particularly worrisome for me at present. For the future I am worried about the recovery of the economy from the lockdown and the high level of debt (personal, companies and government).
On my other blog I wrote yesterday about Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more. Next, I will write about Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more on Wednesday, May 13, 2020 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, May 14, 2020
Canadian REITs
Everyone has their own view on what REITs to buy. This article in Advise for Investors was reprinted from an article in their Investor’s Digest of Canada. However, note that this article was published in January of this year before lockdown.
A lot of people have been recently talking negatively about REITs that have apartment buildings, retail space and office spaces. Divya Balji on Bloomberg has a more recent April 2020 on Canadian REITs and their problems. Also, Joey Frenette in March on Motley Fool talks about why you should buy SmartCentres REIT (TSX:SRU.UN).
The REIT Report has put out a Canadian REITs Report. On this page you will find all the Canadian REITs and their profile. The profile here is what sector they are in such as Offices, Hotels, Residential, Diversified, Retail, Healthcare or Industrial. The Blogger Dividend Earner has a January article about Canadian REITs and he talks about the best REITs and the ones on the Aristocrat list.
I have some REITs. I bought them for some diversification. I do not own any property at the present time. I may or may not buy a condo at some point. I used to have a cottage, but most of my adult live I have rented and I am quite happy to do so.
On my other blog I wrote yesterday about Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more. Next, I will write Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more on Friday, May 15, 2020 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.
A lot of people have been recently talking negatively about REITs that have apartment buildings, retail space and office spaces. Divya Balji on Bloomberg has a more recent April 2020 on Canadian REITs and their problems. Also, Joey Frenette in March on Motley Fool talks about why you should buy SmartCentres REIT (TSX:SRU.UN).
The REIT Report has put out a Canadian REITs Report. On this page you will find all the Canadian REITs and their profile. The profile here is what sector they are in such as Offices, Hotels, Residential, Diversified, Retail, Healthcare or Industrial. The Blogger Dividend Earner has a January article about Canadian REITs and he talks about the best REITs and the ones on the Aristocrat list.
I have some REITs. I bought them for some diversification. I do not own any property at the present time. I may or may not buy a condo at some point. I used to have a cottage, but most of my adult live I have rented and I am quite happy to do so.
On my other blog I wrote yesterday about Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more. Next, I will write Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more on Friday, May 15, 2020 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, May 12, 2020
Stocks, Best Asset Class
There is an Investment Report article on Daily Advice talking about stocks for the long term. It mentions Jeremy Siegel’s book of Stocks for the Long Run. This was a great book. I read it a number of years ago.
I certainly agree with the premise of the book. I had a mixture of growth and dividend stocks when I was building a portfolio. When I stopped working, that was when I switched to dividend growth stocks. Unlike a lot of people I have read, I do not go for the stocks with high dividend yields. I have a mixture of low, moderate, and high dividend yields. I want dividend growth as well as dividend income.
There tends to be a correlation between dividend yield and dividend growth. The higher the dividend yield, the lower the dividend growth and vis versa. I am willing to sacrifice current yield to get a growth in dividends above the rate of inflation.
On my other blog I wrote yesterday about Kirkland Lake Gold (TSX-KL, NYSE-KL) ... learn more. Next, I will write about Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more on Wednesday, May 13, 2020 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 certainly agree with the premise of the book. I had a mixture of growth and dividend stocks when I was building a portfolio. When I stopped working, that was when I switched to dividend growth stocks. Unlike a lot of people I have read, I do not go for the stocks with high dividend yields. I have a mixture of low, moderate, and high dividend yields. I want dividend growth as well as dividend income.
There tends to be a correlation between dividend yield and dividend growth. The higher the dividend yield, the lower the dividend growth and vis versa. I am willing to sacrifice current yield to get a growth in dividends above the rate of inflation.
On my other blog I wrote yesterday about Kirkland Lake Gold (TSX-KL, NYSE-KL) ... learn more. Next, I will write about Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more on Wednesday, May 13, 2020 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, May 7, 2020
Something to Buy May 2020
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.
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 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 May 2020 Spreadsheet 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 23 stocks in the Consumer Discretionary category. Five of these stocks (22%) are showing as cheap by the historically high dividend yield and they are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), 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). BRP Inc (TSX-DOO, NASDAQ-DOOO) has been removed from this list.
Eleven (or 49%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), Goodfellow Inc (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), 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), Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF), Savaria Corporation (TSX-SIS, OTC-SISXF), and Stingray Digital Group Inc (TSX-RAY.A).
BRP Inc (TSX-DOO, NASDAQ-DOOO), Dollarama Inc (TSX-DOL, OTC-DLMF), Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF), and Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) has been removed from this list. Both Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF), and Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) have cut their dividends.
I follow 10 Consumer Staples stocks. No stocks are showing as cheap by the historically high dividend yield. There is no change from last month.
Seven stocks (or 70%) 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), North West Company (TSX-NWC, OTC-NWTUF), 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 stock (20%) of these stocks is showing as cheap by the historically high dividend yield. It is HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF) has been removed from this list.
Five (100%) are cheap by the historical median dividend yield. The stocks are Chartwell Retirement Residences (TSX-CSH.UN, NYSE-CWSRF), 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). There is no change from last month.
I follow 10 Energy stocks. Four stocks or 40% are showing as cheap by the historical high dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Ensign Energy Services (TSX-ESI, OTC-ESVIF), Ovintiv Inc (TSX-OVV, OTC-OVV), and Suncor Energy (TSX-SU, NYSE-SU). Cenovus Energy Inc (TSX-CVE, NYSE-CVE), Husky Energy (TSX-HSE, OTC-HUSKF), and Mullen Group (TSX-MTL, OTC-MLLGF), have been removed from the last. Cenovus Energy Inc has suspended its dividend and Husky Energy has cut their dividends.
There are Five stocks (or 50%) showing cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Ensign Energy Services (TSX-ESI, OTC-ESVIF), Mullen Group (TSX-MTL, OTC-MLLGF), Ovintiv Inc (TSX-OVV, OTC-OVV), and Suncor Energy (TSX-SU, NYSE-SU). Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), and Husky Energy (TSX-HSE, OTC-HUSKF), has been removed from this list.
I follow 8 Bank stocks. Two (25%) is showing as cheap by the historically high dividend yield and it is and CIBC (TSX-CM, NYSE-CM) and Toronto Dominion Bank (TSX-TD, NYSE-TD). Barclays PLC (LSE-BARC, NYSE-BCS) has been removed from this list. Barclays have suspended their dividends. Toronto Dominion Bank (TSX-TD, NYSE-TD) has been added to this list
Six stocks (or 88%) are showing cheap by historical median dividend yield. They are Bank of Montreal (TSX-BMO, NYSE-BMO), Bank of Nova Scotia (TSX-BNS, NYSE-BNS), CIBC (TSX-CM, NYSE-CM), National Bank of Canada (TSX-NA, OTC-NTIOF), Royal Bank (TSX-RY, NYSE-RY), and Toronto Dominion Bank (TSX-TD, NYSE-TD). Barclays PLC (LSE-BARC, NYSE-BCS) has been removed from this list.
I follow 14 Financial Service stocks. Three stocks (21%) are showing as cheap by the historically high dividend yield. They are Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). Accord Financial Corp (TSX-ACD, OTC-ACCFF), AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), and Alaris Royalty Corp (TSX-AD, OTC-ALARF) have been removed from this list.
Nine (or 64%) stocks are showing 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 Royalty Corp (TSX-AD, OTC-ALARF), Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), CI Financial (TSX-CIX, OTC-CIFAF), Equitable Group Inc (TSX-EQB, OTC-EQGPF), IGM Financial (TSX-IGM, OTC-IGIFF), Onex Corp (TSX-ONEX, OTC-ONEXF) and Power Corp (TSX-POW, OTC-PWCDF). Chesswood Group (TSX-CHW, OTC-CHWWF) has been removed from this list. It has cut its dividend temporarily.
I follow 5 Insurance stocks. Two stocks (40%) are showing as cheap by the historically high dividend yield. They are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC). IA Financial Corp (TSX-IAG, OTC-IDLLF) has been removed from this list.
Four stocks (or 83%) are showing cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), Manulife Financial Corp (TSX-MFC, NYSE-MFC), and 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 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 6 Construction stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks or 50% is showing as cheap by historical median dividend yield. They are Bird Construction Inc (TSX-BDT, OTC-BIRDF), Stantec Inc. (TSX-STN, NYSE-STN), and Toromont Industries Ltd (TSX-TIH, OTC-TMTNF). There is no change from last month.
I have 3 stocks I have left with the sub-index of Industrial. Two stocks (67%) are cheap by the historically high dividend yield. They are Finning International Inc. (TSX-FTT, OTC-FINGF), and Russel Metals (TSX-RUS, OTC-RUSMF). There is no change from last month.
Three stocks or 100% are showing as cheap by historical median dividend yield. They are Exchange Income Corp (TSX-EIF, OTC-EIFZF), Finning International Inc. (TSX-FTT, OTC-FINGF), and Russel Metals (TSX-RUS, OTC-RUSMF). There is no change from last month.
I have 7 Manufacturing stocks. Three stocks (43%) is showing as cheap by the historically high dividend yield. They are Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF), and Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF). Ag Growth International (TSX-AFN, OTC-AGGZF) has been removed. It has cut its dividend.
Five stocks or 71% are showing as cheap by historical median dividend yield. They are Ag Growth International (TSX-AFN, OTC-AGGZF), Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF), Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF) and PFB Corp (TSX-PFB, OTC-PFBOF). Ag Growth International (TSX-AFN, OTC-AGGZF has been removed from this list.
I follow 16 Services stocks. Two stocks are showing as cheap by the historically high dividend yield. They are Pason Systems Inc. (TSX-PSI, OTC-PSYTF), and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). Canadian National Railway (TSX-CNR, NYSE-CNI), and Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) have been removed from this list.
Four stocks or 25% are showing as cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc. (TSX-PSI, OTC-PSYTF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA), and TFI International (TSX-TFII, OTC-TFIFF) has been removed from this list.
I follow 10 Material stocks. No stock (10%) is showing as cheap by the historically high dividend yield. Methanex Corp (TSX-MX, NASDAQ-MEOH) has been removed from this list.
Six stock or 60% are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), Chemtrade Logistics Inc. Fund (TSX-CHE.UN, OTC-CGIFF), Hardwoods Distribution Inc. (TSX-HDI, OTC-HDIUF), Stella-Jones (TSX-SJ, OTC-STLJF), Supremex Inc (TSX-SXP, OTC-SUMXF), and Teck Resources Ltd (TSX-TECK.B, NYSE-TECK . Methanex Corp (TSX-MX, NASDAQ-MEOH) has been removed this list.
I follow 10 Real Estate stocks. Two stocks (10%) are showing as cheap by historically high dividend yield. They are H & R REIT (TSX-HR.UN, OTC-HRUFF) and Melcor Developments Inc. (TSX-MRD, OTC-MODVF). Melcor Developments Inc. (TSX-MRD, OTC-MODVF) has been added to this list
Siv stocks (or 60%) are showing as cheap by historical median dividend yield. They are Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF), First Capital Realty (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 3 of the Telecom Service stocks. One (33%) stocks is showing as cheap by historically high dividend yield and it is Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR). There is no change from last month
Three stocks (or 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 9 Tech stocks. One stock (11%) are showing as cheap by historical high dividend yield. It is Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF). Evertz Technologies (TSX-ET, OTC-EVTZF) has been removed from this list.
Four stocks (or 44%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF), Evertz Technologies (TSX-ET, OTC-EVTZF), Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF) has been removed from this list.
I follow 7 of the Infrastructure type utility companies. One stock (14%) is showing as cheap by historical high dividend yield. It is Enbridge Inc. (TSX-ENB, NYSE-ENB). Keyera Corp (TSX-KEY, OTC-KEYUF) has been removed from this list.
Four stocks (or 57%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF), Pembina Pipeline Corp (TSX-PPL, NYSE-PBA) and TC Energy Corp (TSX-TRP, NYSE-TRP). AltaGas Ltd (TSX-ALA, OTC-ATGFF), and Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP) have been removed from this list.
I follow 10 of the Power type utility companies. One stock is showing as cheap by historical high dividend yield. This is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no changed from last month.
Two stocks (or 20%) are showing cheap by historical median dividend yield. Those stocks are 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.
On my other blog I wrote yesterday about Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more. Next, I will write about Ag Growth International (TSX-AFN, OTC-AGGZF) .... learn more on Monday, May 8, 2020 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 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 May 2020 Spreadsheet 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 23 stocks in the Consumer Discretionary category. Five of these stocks (22%) are showing as cheap by the historically high dividend yield and they are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), 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). BRP Inc (TSX-DOO, NASDAQ-DOOO) has been removed from this list.
Eleven (or 49%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), Goodfellow Inc (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), 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), Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF), Savaria Corporation (TSX-SIS, OTC-SISXF), and Stingray Digital Group Inc (TSX-RAY.A).
BRP Inc (TSX-DOO, NASDAQ-DOOO), Dollarama Inc (TSX-DOL, OTC-DLMF), Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF), and Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) has been removed from this list. Both Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF), and Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) have cut their dividends.
I follow 10 Consumer Staples stocks. No stocks are showing as cheap by the historically high dividend yield. There is no change from last month.
Seven stocks (or 70%) 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), North West Company (TSX-NWC, OTC-NWTUF), 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 stock (20%) of these stocks is showing as cheap by the historically high dividend yield. It is HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF) has been removed from this list.
Five (100%) are cheap by the historical median dividend yield. The stocks are Chartwell Retirement Residences (TSX-CSH.UN, NYSE-CWSRF), 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). There is no change from last month.
I follow 10 Energy stocks. Four stocks or 40% are showing as cheap by the historical high dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Ensign Energy Services (TSX-ESI, OTC-ESVIF), Ovintiv Inc (TSX-OVV, OTC-OVV), and Suncor Energy (TSX-SU, NYSE-SU). Cenovus Energy Inc (TSX-CVE, NYSE-CVE), Husky Energy (TSX-HSE, OTC-HUSKF), and Mullen Group (TSX-MTL, OTC-MLLGF), have been removed from the last. Cenovus Energy Inc has suspended its dividend and Husky Energy has cut their dividends.
There are Five stocks (or 50%) showing cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Ensign Energy Services (TSX-ESI, OTC-ESVIF), Mullen Group (TSX-MTL, OTC-MLLGF), Ovintiv Inc (TSX-OVV, OTC-OVV), and Suncor Energy (TSX-SU, NYSE-SU). Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), and Husky Energy (TSX-HSE, OTC-HUSKF), has been removed from this list.
I follow 8 Bank stocks. Two (25%) is showing as cheap by the historically high dividend yield and it is and CIBC (TSX-CM, NYSE-CM) and Toronto Dominion Bank (TSX-TD, NYSE-TD). Barclays PLC (LSE-BARC, NYSE-BCS) has been removed from this list. Barclays have suspended their dividends. Toronto Dominion Bank (TSX-TD, NYSE-TD) has been added to this list
Six stocks (or 88%) are showing cheap by historical median dividend yield. They are Bank of Montreal (TSX-BMO, NYSE-BMO), Bank of Nova Scotia (TSX-BNS, NYSE-BNS), CIBC (TSX-CM, NYSE-CM), National Bank of Canada (TSX-NA, OTC-NTIOF), Royal Bank (TSX-RY, NYSE-RY), and Toronto Dominion Bank (TSX-TD, NYSE-TD). Barclays PLC (LSE-BARC, NYSE-BCS) has been removed from this list.
I follow 14 Financial Service stocks. Three stocks (21%) are showing as cheap by the historically high dividend yield. They are Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). Accord Financial Corp (TSX-ACD, OTC-ACCFF), AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), and Alaris Royalty Corp (TSX-AD, OTC-ALARF) have been removed from this list.
Nine (or 64%) stocks are showing 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 Royalty Corp (TSX-AD, OTC-ALARF), Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), CI Financial (TSX-CIX, OTC-CIFAF), Equitable Group Inc (TSX-EQB, OTC-EQGPF), IGM Financial (TSX-IGM, OTC-IGIFF), Onex Corp (TSX-ONEX, OTC-ONEXF) and Power Corp (TSX-POW, OTC-PWCDF). Chesswood Group (TSX-CHW, OTC-CHWWF) has been removed from this list. It has cut its dividend temporarily.
I follow 5 Insurance stocks. Two stocks (40%) are showing as cheap by the historically high dividend yield. They are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC). IA Financial Corp (TSX-IAG, OTC-IDLLF) has been removed from this list.
Four stocks (or 83%) are showing cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), Manulife Financial Corp (TSX-MFC, NYSE-MFC), and 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 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 6 Construction stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks or 50% is showing as cheap by historical median dividend yield. They are Bird Construction Inc (TSX-BDT, OTC-BIRDF), Stantec Inc. (TSX-STN, NYSE-STN), and Toromont Industries Ltd (TSX-TIH, OTC-TMTNF). There is no change from last month.
I have 3 stocks I have left with the sub-index of Industrial. Two stocks (67%) are cheap by the historically high dividend yield. They are Finning International Inc. (TSX-FTT, OTC-FINGF), and Russel Metals (TSX-RUS, OTC-RUSMF). There is no change from last month.
Three stocks or 100% are showing as cheap by historical median dividend yield. They are Exchange Income Corp (TSX-EIF, OTC-EIFZF), Finning International Inc. (TSX-FTT, OTC-FINGF), and Russel Metals (TSX-RUS, OTC-RUSMF). There is no change from last month.
I have 7 Manufacturing stocks. Three stocks (43%) is showing as cheap by the historically high dividend yield. They are Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF), and Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF). Ag Growth International (TSX-AFN, OTC-AGGZF) has been removed. It has cut its dividend.
Five stocks or 71% are showing as cheap by historical median dividend yield. They are Ag Growth International (TSX-AFN, OTC-AGGZF), Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF), Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF) and PFB Corp (TSX-PFB, OTC-PFBOF). Ag Growth International (TSX-AFN, OTC-AGGZF has been removed from this list.
I follow 16 Services stocks. Two stocks are showing as cheap by the historically high dividend yield. They are Pason Systems Inc. (TSX-PSI, OTC-PSYTF), and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). Canadian National Railway (TSX-CNR, NYSE-CNI), and Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) have been removed from this list.
Four stocks or 25% are showing as cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc. (TSX-PSI, OTC-PSYTF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA), and TFI International (TSX-TFII, OTC-TFIFF) has been removed from this list.
I follow 10 Material stocks. No stock (10%) is showing as cheap by the historically high dividend yield. Methanex Corp (TSX-MX, NASDAQ-MEOH) has been removed from this list.
Six stock or 60% are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), Chemtrade Logistics Inc. Fund (TSX-CHE.UN, OTC-CGIFF), Hardwoods Distribution Inc. (TSX-HDI, OTC-HDIUF), Stella-Jones (TSX-SJ, OTC-STLJF), Supremex Inc (TSX-SXP, OTC-SUMXF), and Teck Resources Ltd (TSX-TECK.B, NYSE-TECK . Methanex Corp (TSX-MX, NASDAQ-MEOH) has been removed this list.
I follow 10 Real Estate stocks. Two stocks (10%) are showing as cheap by historically high dividend yield. They are H & R REIT (TSX-HR.UN, OTC-HRUFF) and Melcor Developments Inc. (TSX-MRD, OTC-MODVF). Melcor Developments Inc. (TSX-MRD, OTC-MODVF) has been added to this list
Siv stocks (or 60%) are showing as cheap by historical median dividend yield. They are Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF), First Capital Realty (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 3 of the Telecom Service stocks. One (33%) stocks is showing as cheap by historically high dividend yield and it is Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR). There is no change from last month
Three stocks (or 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 9 Tech stocks. One stock (11%) are showing as cheap by historical high dividend yield. It is Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF). Evertz Technologies (TSX-ET, OTC-EVTZF) has been removed from this list.
Four stocks (or 44%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF), Evertz Technologies (TSX-ET, OTC-EVTZF), Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF) has been removed from this list.
I follow 7 of the Infrastructure type utility companies. One stock (14%) is showing as cheap by historical high dividend yield. It is Enbridge Inc. (TSX-ENB, NYSE-ENB). Keyera Corp (TSX-KEY, OTC-KEYUF) has been removed from this list.
Four stocks (or 57%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF), Pembina Pipeline Corp (TSX-PPL, NYSE-PBA) and TC Energy Corp (TSX-TRP, NYSE-TRP). AltaGas Ltd (TSX-ALA, OTC-ATGFF), and Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP) have been removed from this list.
I follow 10 of the Power type utility companies. One stock is showing as cheap by historical high dividend yield. This is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no changed from last month.
Two stocks (or 20%) are showing cheap by historical median dividend yield. Those stocks are 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.
On my other blog I wrote yesterday about Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more. Next, I will write about Ag Growth International (TSX-AFN, OTC-AGGZF) .... learn more on Monday, May 8, 2020 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, May 5, 2020
Dividend Stocks May 2020
The Blogger Stock Trades Canada has on his site a list of Canadian stocks that have cut their dividends. If you want to stay update on dividend cuts, this seems to a good place to keep an eye on. Also. My Own Advisor Blogger has done a recent blog on Top Canadian stocks to weather COVID-19. You might also want to get the free weekly newsletter from Canadian Stock Channel which says what might be the best Canadian Dividend Stocks to buy at the present time.
First, I want to point out that not all of the stocks I follow are great investments. I follow a diverse selection of stocks. There are some that I would never invest in personally. I follow a number of resource stocks even though I personally have little invested in this area. I follow what I find interesting and with resource stocks, I think it is important for Canadians to know what is happening in the resource area. On the other hand, I do follow of good number of great dividend growth stocks.
The theory is that you should use the dividend yield to see if a dividend stock is selling at a stock price that is relatively cheap. A stock price is considered cheap if it is selling at a dividend yield higher than the historical high yield or higher than the historical average yield or historical median yield. See my spreadsheet at dividend growth stocks that I just updated for May 2020. On this list,
Johnson and Johnson (NYSE-JNJ)
Sylogist Ltd (TSXV-SYZ, OTC-SYZLF)
Of the stocks I follow, 8 have cut their dividends.
Accord Financial Corp (TSX-ACD, OTC-ACCFF)
Ag Growth International (TSX-AFN, OTC-AGGZF)
Husky Energy (TSX-HSE, OTC-HUSKF)
Mullen Group (TSX-MTL, OTC-MLLGF) dividend suspension for 3 months
Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF)
Methanex Corp (TSX-MX, NASDAQ-MEOH)
Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF)
Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) first dividend of 2020 not paid
Of the stocks I follow, 4 stock has suspended or terminated their dividends.
Barclays PLC (LSE-BARC, NYSE-BCS), suspended for 2020
BRP Inc (TSX-DOO, NASDAQ-DOOO) suspended until further notice
Cenovus Energy Inc (TSX-CVE, NYSE-CVE) temporary suspension
Chesswood Group (TSX-CHW, OTC-CHWWF) temporary cut
The dividend cut to Ag Growth International (TSX-AFN, OTC-AGGZF) and the dividend suspension of BRP Inc (TSX-DOO, NASDAQ-DOOO), Cenovus Energy Inc (TSX-CVE, NYSE-CVE) Mullen Group (TSX-MTL, OTC-MLLGF), Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) were missed by both TD WebBroker and G&M but picked up by Stock Trades Canada. I checked into these stocks and what Stock Trades Canada says was true. This is discouraging.
Brookfield Asset Management (TSX-BAM.A, NYSE-BAM) did a 3 to 2 split recently. TD WebBroker says the current dividend is $0.32 US$. However, on a post-split basis I get $0.48 and so does the G&M. BAM, on their site says dividends post-split will be $0.12 a quarter (or $0.48) I cannot see anything on their site to lead me to believe they have cut their dividends, so I am leaving the dividend at $0.48.
Of the stock that I follow, 11 stocks decreased in share price compared to last month. Since most stock went up since last month, this could indicate possible problems in these stocks.
Most of my stocks started out as Dividend Payers. Currently 14 stocks are not paying any dividends and this would be some 9.03% of the stocks that I follow. Four of these stocks never had dividends, so 5.81% of the stocks I follow have suspended their dividends. The three stocks that never paid dividends are Ballard Power Systems Inc. (TSX-BLD, NASDAQ-BLDP), Blackberry Ltd. (TSX-BB, NASDAQ-BBRY) and Trigon Metals Inc. (TSX-TM, OTC-PNTZF).
I am 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 10 year median dividend yields (P/10Y). See these fields on the right side of the file. You can highlight a particular stock using your cursor to highlight the appropriate line.
There are always some stocks to buy because they are priced reasonably. There are always stocks to currently avoid because they are overpriced. Looking at dividend growth stocks that are selling at stock prices that give them a dividend yield above the historical median dividend yield are probably the best bet.
The stocks that are selling at prices that give them a dividend yield above the historical high yield could be good stocks to buy. However, these stocks may be selling so cheap because of current troubles, especially financial troubles and should be treated with caution. Do not forget that I have all the stocks I follow on this spreadsheet and some are much better investments than others.
You should always investigate a stock before you buy. Sometimes different stocks in certain sectors are just out of favour or the stock market is just in one of its declines. However, a stock may be relatively cheap because it has problems. That is why you should always investigate a stock before buying.
Looking at stock this way is equivalent to a stock filter. A main problem I know of is for the old income trusts. These companies have generally lowered their dividend yields forever and they will probably never get back to the old dividend yield highs they made as an income trust company. For these stocks, you might be better comparing the current dividend yield to the 5 year median dividend yield. I also 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.
Also, on some stocks I have a lot more information years in my spreadsheets than for other stocks. So, finding a stock on the list as "cheap" is only the first step in finding a stock to buy. This is the same with any other sort of stock filters that you can use.
The last thing to remember is that I have entering figures into a spreadsheet. I could put them in incorrectly, I can transpose figures and I can misread figures. This is another great reason why you should check a stock out before investing. As this is just a filter, it works better on some stocks than on others.
See my entry on my methodology in establishing the historical dividend yield highs and lows for the stocks that I cover. I have an entry on my introduction to Dividend Growth. You might want to look at my original entry on Dividend Growth Stocks. I have also written about why I like Dividend Growth companies.
On my other blog I wrote yesterday about TFI International (TSX-TFII, OTC-TFIFF) ... learn more. Next, I will write about Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more on Wednesday, May 6, 2020 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 website for stocks followed and investment notes. 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 or StockTwits. I am on Instagram with #walktoronto.
First, I want to point out that not all of the stocks I follow are great investments. I follow a diverse selection of stocks. There are some that I would never invest in personally. I follow a number of resource stocks even though I personally have little invested in this area. I follow what I find interesting and with resource stocks, I think it is important for Canadians to know what is happening in the resource area. On the other hand, I do follow of good number of great dividend growth stocks.
The theory is that you should use the dividend yield to see if a dividend stock is selling at a stock price that is relatively cheap. A stock price is considered cheap if it is selling at a dividend yield higher than the historical high yield or higher than the historical average yield or historical median yield. See my spreadsheet at dividend growth stocks that I just updated for May 2020. On this list,
- I have 30 stocks with a dividend yield higher than the historical high dividend yield,
- I have 59 stocks with a dividend yield higher than the historical average dividend yield
- I have 86 stocks with a dividend yield higher than the historical median dividend yield and
- 94 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 43 stocks with a dividend yield higher than the historical high dividend yield,
- I have 77 stocks with a dividend yield higher than the historical average dividend yield
- I have 101 stocks with a dividend yield higher than the historical median dividend yield and
- 117 stocks with a dividend yield higher than the 5 year average dividend yield.
- I had 9 stocks with a dividend yield higher than the historical high dividend yield,
- I had 45 stocks with a dividend yield higher than the historical average dividend yield and
- 39 stocks with a dividend yield higher than the 5 year average dividend yield.
Johnson and Johnson (NYSE-JNJ)
Sylogist Ltd (TSXV-SYZ, OTC-SYZLF)
Of the stocks I follow, 8 have cut their dividends.
Accord Financial Corp (TSX-ACD, OTC-ACCFF)
Ag Growth International (TSX-AFN, OTC-AGGZF)
Husky Energy (TSX-HSE, OTC-HUSKF)
Mullen Group (TSX-MTL, OTC-MLLGF) dividend suspension for 3 months
Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF)
Methanex Corp (TSX-MX, NASDAQ-MEOH)
Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF)
Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) first dividend of 2020 not paid
Of the stocks I follow, 4 stock has suspended or terminated their dividends.
Barclays PLC (LSE-BARC, NYSE-BCS), suspended for 2020
BRP Inc (TSX-DOO, NASDAQ-DOOO) suspended until further notice
Cenovus Energy Inc (TSX-CVE, NYSE-CVE) temporary suspension
Chesswood Group (TSX-CHW, OTC-CHWWF) temporary cut
The dividend cut to Ag Growth International (TSX-AFN, OTC-AGGZF) and the dividend suspension of BRP Inc (TSX-DOO, NASDAQ-DOOO), Cenovus Energy Inc (TSX-CVE, NYSE-CVE) Mullen Group (TSX-MTL, OTC-MLLGF), Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) were missed by both TD WebBroker and G&M but picked up by Stock Trades Canada. I checked into these stocks and what Stock Trades Canada says was true. This is discouraging.
Brookfield Asset Management (TSX-BAM.A, NYSE-BAM) did a 3 to 2 split recently. TD WebBroker says the current dividend is $0.32 US$. However, on a post-split basis I get $0.48 and so does the G&M. BAM, on their site says dividends post-split will be $0.12 a quarter (or $0.48) I cannot see anything on their site to lead me to believe they have cut their dividends, so I am leaving the dividend at $0.48.
Of the stock that I follow, 11 stocks decreased in share price compared to last month. Since most stock went up since last month, this could indicate possible problems in these stocks.
| Name | Exch | Symbol | Exch | Symbol | Decrease |
|---|---|---|---|---|---|
| Reitmans (Canada) Ltd | TSX | RET.A | OTC | RTMAF | -57.33% |
| Pulse Seismic Inc. | TSX | PSD | OTC | PLSDF | -50.64% |
| Just Energy Group Inc | TSX | JE | NYSE | JE | -16.44% |
| Melcor Developments Inc | TSX | MRD | OTC | MODVF | -9.86% |
| Lassonde Industries | TSX | LAS.A | OTC | LSDAF | -8.62% |
| McCoy Global Inc | TSX | MCB | OTC | MCCRF | -7.50% |
| Loblaw Companies | TSX | L | OTC | LBLCF | -6.07% |
| Choice Properties REIT | TSX | CHP.UN | OTC | PPRQF | -4.51% |
| BCE | TSX | BCE | NYSE | BCE | -1.97% |
| Metro Inc | TSX | MRU | OTC | MTRAF | -1.46% |
| Bank of Nova Scotia | TSX | BNS | NYSE | BNS | -0.64% |
Most of my stocks started out as Dividend Payers. Currently 14 stocks are not paying any dividends and this would be some 9.03% of the stocks that I follow. Four of these stocks never had dividends, so 5.81% of the stocks I follow have suspended their dividends. The three stocks that never paid dividends are Ballard Power Systems Inc. (TSX-BLD, NASDAQ-BLDP), Blackberry Ltd. (TSX-BB, NASDAQ-BBRY) and Trigon Metals Inc. (TSX-TM, OTC-PNTZF).
I am 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 10 year median dividend yields (P/10Y). See these fields on the right side of the file. You can highlight a particular stock using your cursor to highlight the appropriate line.
There are always some stocks to buy because they are priced reasonably. There are always stocks to currently avoid because they are overpriced. Looking at dividend growth stocks that are selling at stock prices that give them a dividend yield above the historical median dividend yield are probably the best bet.
The stocks that are selling at prices that give them a dividend yield above the historical high yield could be good stocks to buy. However, these stocks may be selling so cheap because of current troubles, especially financial troubles and should be treated with caution. Do not forget that I have all the stocks I follow on this spreadsheet and some are much better investments than others.
You should always investigate a stock before you buy. Sometimes different stocks in certain sectors are just out of favour or the stock market is just in one of its declines. However, a stock may be relatively cheap because it has problems. That is why you should always investigate a stock before buying.
Looking at stock this way is equivalent to a stock filter. A main problem I know of is for the old income trusts. These companies have generally lowered their dividend yields forever and they will probably never get back to the old dividend yield highs they made as an income trust company. For these stocks, you might be better comparing the current dividend yield to the 5 year median dividend yield. I also 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.
Also, on some stocks I have a lot more information years in my spreadsheets than for other stocks. So, finding a stock on the list as "cheap" is only the first step in finding a stock to buy. This is the same with any other sort of stock filters that you can use.
The last thing to remember is that I have entering figures into a spreadsheet. I could put them in incorrectly, I can transpose figures and I can misread figures. This is another great reason why you should check a stock out before investing. As this is just a filter, it works better on some stocks than on others.
See my entry on my methodology in establishing the historical dividend yield highs and lows for the stocks that I cover. I have an entry on my introduction to Dividend Growth. You might want to look at my original entry on Dividend Growth Stocks. I have also written about why I like Dividend Growth companies.
On my other blog I wrote yesterday about TFI International (TSX-TFII, OTC-TFIFF) ... learn more. Next, I will write about Power Corp of Canada (TSX-POW, OTC-PWCDF) ... learn more on Wednesday, May 6, 2020 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 website for stocks followed and investment notes. 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 or StockTwits. I am on Instagram with #walktoronto.
Thursday, April 30, 2020
Benefits, Danger with Monthly Dividends
Moez Mahraz, an analyst at 5iReserch talks on Money Letter the benefits and dangers of monthly dividend payments.
I must admit, I have never had a problem with fluctuating dividend payments. I take out from my trading account cash each month according to my budget. For me March, June, September, and December (the third month of the quarterly dividend cycle) have the highest level of dividend income and almost twice what I get in the other months.
I must admit I have heard complaints from others on dividend income about the fluctuations. I do plan. I have a budget. I do know budgets have a bad reputation, but that seems to be that people set up unrealistic ones. You have to set up a realistic one. I base mine on what I spent in the previous year, how I would like to change my spending habits, if applicable, on dividends I received in the previous year and on what I will be taking out of my RIF accounts.
I use Quicken to record my spending and income from investment. It is not the only product out there to use. I also use spreadsheets. Personally, I love spreadsheets but I do realize that what I do is not applicable to others and is not necessary. You can get the necessary information from using any applicable software. But if you are going to live off dividends, you have to plan accordingly to what money you are going to get and when you are going to get it.
On my other blog I wrote yesterday about Thomson Reuters Corp (TSX-TRI, NYSE-TRI) ... learn more. Next, I will write about McCoy Global Inc (TSX-MCB, OTC-MCCRF) ... learn more on Friday, May 1, 2020 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 must admit, I have never had a problem with fluctuating dividend payments. I take out from my trading account cash each month according to my budget. For me March, June, September, and December (the third month of the quarterly dividend cycle) have the highest level of dividend income and almost twice what I get in the other months.
I must admit I have heard complaints from others on dividend income about the fluctuations. I do plan. I have a budget. I do know budgets have a bad reputation, but that seems to be that people set up unrealistic ones. You have to set up a realistic one. I base mine on what I spent in the previous year, how I would like to change my spending habits, if applicable, on dividends I received in the previous year and on what I will be taking out of my RIF accounts.
I use Quicken to record my spending and income from investment. It is not the only product out there to use. I also use spreadsheets. Personally, I love spreadsheets but I do realize that what I do is not applicable to others and is not necessary. You can get the necessary information from using any applicable software. But if you are going to live off dividends, you have to plan accordingly to what money you are going to get and when you are going to get it.
On my other blog I wrote yesterday about Thomson Reuters Corp (TSX-TRI, NYSE-TRI) ... learn more. Next, I will write about McCoy Global Inc (TSX-MCB, OTC-MCCRF) ... learn more on Friday, May 1, 2020 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.
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