Recently Daily Buy and Sell Advice site put out an article on 11 stocks to buy for rising dividends. This article is here. MPL communications likes dividend growth stocks as same as I do.
On my other blog I wrote today about Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF) ... learn more. Next, I will write about Reitmans (Canada) Ltd (TSX-RET.A, OTC-RTMAF) ... learn more on Wednesday, May 22, 2019 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 21, 2019
Thursday, May 16, 2019
Teaching my Son to Read
My son was not learning how to read. I even had him put into a special class so that he would learn to read. This was to no avail. It was increasing obvious that my son was not going to learn to read at school. We lived downtown Toronto, and the school he went to was considered a good one. His school was part of the Toronto School Board.
Looking online, it was suggested that I use limited vocabulary books. The US seems to produce a lot of these limited vocabulary books. I got several of these, but my son found the stories rather boring. In a toy store I came across some books from England. They had some very interesting stories and characters in them.
My son loved the stories. Another thing that my son loved about them was that I read one page and he read the next and so on. My side was the most complex and so the stories could be interesting. To start, his side was a big picture and few words. As we progressed with these books my son’s reading side go more complex with small pictures and more words.
From anything I have read, our kids are not learning how to read well. There have been stories that I have read complaining about the low literacy rates of students entering into Canadian colleges and universities.
On my other blog I wrote yesterday about Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more. Next, I will write about Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more on Friday, May 17, 2019 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.
Looking online, it was suggested that I use limited vocabulary books. The US seems to produce a lot of these limited vocabulary books. I got several of these, but my son found the stories rather boring. In a toy store I came across some books from England. They had some very interesting stories and characters in them.
My son loved the stories. Another thing that my son loved about them was that I read one page and he read the next and so on. My side was the most complex and so the stories could be interesting. To start, his side was a big picture and few words. As we progressed with these books my son’s reading side go more complex with small pictures and more words.
From anything I have read, our kids are not learning how to read well. There have been stories that I have read complaining about the low literacy rates of students entering into Canadian colleges and universities.
On my other blog I wrote yesterday about Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more. Next, I will write about Mullen Group Ltd (TSX-MTL, OTC-MLLGF) ... learn more on Friday, May 17, 2019 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 14, 2019
Buy Backs
I should mention right off the bat that I hate them. They do nothing good for a company. They are not reinvesting in their company as the company does not get to use the money for anything good for the long term prosperity of the company.
An investment in a company will put money into something real, like R&D, the employees, building better computer system or buildings or more factories or facilities. Buy Backs do not do that. Bay Backs make it appear, falsely, that per share values are rising when they are not.
For example, it produces a higher EPS, but earnings have not really gone up. Rising EPS generally shows a company is doing better, but if it rises because of Buy Backs, earnings are not really rising. You calculate EPS by dividing the Net Income by the outstanding shares. Mostly the EPS rising because the Net Income increases. However, you will get a higher EPS if the outstanding shares goes down. People see higher EPS and think that earnings are going up but they are not.
I cannot think of any good that Buy Backs do. I can sort of see it if the stock price is really low on a relative basis. However, most of the Buy Backs that I see they occur when stock prices are relatively high. I find that rather stupid.
On the web site Investopedia the author finds some good in buy backs, but mostly finds some bad scenarios. Annie Lowrey on The Atlantic has written an interesting article on this subject.
On my other blog I wrote yesterday about Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more. Next, I will write about Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more on Wednesday, May 15, 2019 around 8 am.
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.
An investment in a company will put money into something real, like R&D, the employees, building better computer system or buildings or more factories or facilities. Buy Backs do not do that. Bay Backs make it appear, falsely, that per share values are rising when they are not.
For example, it produces a higher EPS, but earnings have not really gone up. Rising EPS generally shows a company is doing better, but if it rises because of Buy Backs, earnings are not really rising. You calculate EPS by dividing the Net Income by the outstanding shares. Mostly the EPS rising because the Net Income increases. However, you will get a higher EPS if the outstanding shares goes down. People see higher EPS and think that earnings are going up but they are not.
I cannot think of any good that Buy Backs do. I can sort of see it if the stock price is really low on a relative basis. However, most of the Buy Backs that I see they occur when stock prices are relatively high. I find that rather stupid.
On the web site Investopedia the author finds some good in buy backs, but mostly finds some bad scenarios. Annie Lowrey on The Atlantic has written an interesting article on this subject.
On my other blog I wrote yesterday about Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) ... learn more. Next, I will write about Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) ... learn more on Wednesday, May 15, 2019 around 8 am.
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 9, 2019
Something to Buy May 2019
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 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.
For other testing, like using P/E Ratios and Price/Graham Price Ratios, you use EPS estimates or from the last reported financial quarter. When using P/S Ratios, P/CF Ratios or P/BV Ratios you are using data from the last reported financial quarter.
This system 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 5 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 2019 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 now follow 22 stocks in the Consumer Discretionary category. Four of these stocks (18%) are showing as cheap by the historically high dividend yield and they are Dorel Industries (TSX-DII.B, OTC-DIIBF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF, OTC-LEFUF), and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
Eleven (or 50%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Dorel Industries (TSX-DII.B, OTC-DIIBF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF), Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF), Richelieu Hardware Ltd. (TSX-RCH, OTC-RHUHF) and Stingray Digital Group Inc (TSX-RAY.A). Richelieu Hardware Ltd. (TSX-RCH, OTC-RHUHF) has been added to this list.
I follow 11 Consumer Staples stocks. No companies are showing as cheap by the historically high dividend yield. There is no change from last month.
Five stocks (or 45%) are showing cheap by historical median dividend yield. These are AGT Food and Ingredients Inc. (TSX-AGT, OTC-AGXXF), 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). There is no change from last month.
I only follow three Health Care stocks. One stock (or 33%) of these stocks is showing as cheap by the historically high dividend yield. That stock is HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). There is no change from last month.
Three or 100% are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT) and HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). There is no change from last month.
I follow 10 Energy stocks. Three stock or 30% are showing as cheap by the historical high dividend yield. They are Ensign Energy Services (TSX-ESI, OTC-ESVIF), Mullen Group (TSX-MTL, OTC-MLLGF), and Suncor Energy (TSX-SU, NYSE-SU). Canadian Natural Resources (TSX-CNQ, NYSE-CNQ) has been taken off this list.
There are five stocks (or 50%) showing cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), Ensign Energy Services (TSX-ESI, OTC-ESVIF), Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Five stocks (or 63%) are showing cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), Barclays PLC (LSE-BARC, NYSE-BCS), CIBC (TSX-CM, NYSE-CM), National Bank of Canada (TSX-NA, OTC-NTIOF), and Toronto Dominion Bank (TSX-TD, NYSE-TD). Royal Bank (TSX-RY, NYSE-RY) has been taken off this list.
I follow 15 Financial Service stocks. No stock is showing as cheap by the historically high dividend yield. It is). Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF) has been deleted from this list.
Nine (or 60%) 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), CI Financial (TSX-CIX, OTC-CIFAF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), Equitable Group Inc. (TSX-EQB, OTC-EQGPF), Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
I follow 6 Insurance stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Six stocks (or 100%) are showing cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), Industrial Alliance Ins. and Fin. (TSX-IAG, OTC-IDLLF), Intact Financial Corp. (TSX-IFC, OTC-IFCZF), Manulife Financial Corp (TSX-MFC, NYSE-MFC), Power Financial Corp (TSX-PWF, OTC-POFNF) 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.
One stock or 17% are showing as cheap by historical median dividend yield. That stock is Stantec Inc. (TSX-STN, NYSE-STN). There is no change from last month.
I have 3 stocks I have left with the sub-index of Industrial. None are cheap by the historically high dividend yield. There is no change from last month.
Two stocks or 67% are showing as cheap by historical median 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.
I have 7 Manufacturing stocks. None are showing as cheap by the historically high dividend yield. This has not changed from last month.
Three stocks or 43% are showing as cheap by historical median 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). There is no change from last month.
I follow 16 Services stocks. None are showing as cheap by the historically high dividend yield. This has not changed from last month.
Five stocks or 31% 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), Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA), Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). There is no change from last month.
I follow 9 Material stocks. Supremex Inc (TSX-SXP, OTC-SUMXF) is a new following of mine. None are showing as cheap by the historically high dividend yield. This has not changed from last month.
Six stock or 67% 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), Methanex Corp (TSX-MX, NASDAQ-MEOH), Stella-Jones (TSX-SJ, OTC-STLJF), and Supremex Inc (TSX-SXP, OTC-SUMXF). Methanex Corp (TSX-MX, NASDAQ-MEOH), and Supremex Inc (TSX-SXP, OTC-SUMXF) has been added to this list.
I follow 10 Real Estate stocks. No stock is showing as cheap by historically high dividend yield. Melcor Developments Inc. (TSX-MRD, OTC-MODVF) has been removed from this list. Two stocks (or 20%) are showing cheap by historical median dividend yield. They are Granite Real Estate (TSX-GRT.UN, NYSE-GRP.U) and Melcor Developments Inc. (TSX-MRD, OTC-MODVF). There is no change from last month.
I follow 4 of the Telecom Service stocks. No stocks are showing as cheap by historically high dividend yield. This has not changed from last month.
Four stocks (or 100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH), Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). This has not changed from last month.
I follow 8 Info Tech stocks. None are showing as cheap by historical high dividend yield. Maxar Technologies Ltd (TSX-MAXR-NYSE-MAXR) has been removed from this list.
Three stocks (or 38%) 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 6 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. This has not changed from last month.
Three stocks (or 50%) are showing cheap by historical median dividend yield. They are), Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF) and TransCanada Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 11 of the Power type utility companies. Only ATCO Ltd (TSX-ACO.X, OTC-ACLLF) is showing as cheap by the historically high dividend yield. This has not changed from last month.
Three stocks (or 27%) are showing cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), and Just Energy Group Inc. (TSX-JE, NYSE-JE). Fortis Inc. (TSX-FTS, OTC-FRTSF) has been removed from this list.
On my other blog I wrote yesterday about Power Financial Corp (TSX-PWF, OTC-POFNF) ... learn more. Next, I will write about Ag Growth International (TSX-AFN, OTC-AGGZF) ... learn more on Friday, May 10, 2019 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.
For other testing, like using P/E Ratios and Price/Graham Price Ratios, you use EPS estimates or from the last reported financial quarter. When using P/S Ratios, P/CF Ratios or P/BV Ratios you are using data from the last reported financial quarter.
This system 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 5 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 2019 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 now follow 22 stocks in the Consumer Discretionary category. Four of these stocks (18%) are showing as cheap by the historically high dividend yield and they are Dorel Industries (TSX-DII.B, OTC-DIIBF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF, OTC-LEFUF), and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
Eleven (or 50%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Dorel Industries (TSX-DII.B, OTC-DIIBF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF), Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF), Richelieu Hardware Ltd. (TSX-RCH, OTC-RHUHF) and Stingray Digital Group Inc (TSX-RAY.A). Richelieu Hardware Ltd. (TSX-RCH, OTC-RHUHF) has been added to this list.
I follow 11 Consumer Staples stocks. No companies are showing as cheap by the historically high dividend yield. There is no change from last month.
Five stocks (or 45%) are showing cheap by historical median dividend yield. These are AGT Food and Ingredients Inc. (TSX-AGT, OTC-AGXXF), 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). There is no change from last month.
I only follow three Health Care stocks. One stock (or 33%) of these stocks is showing as cheap by the historically high dividend yield. That stock is HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). There is no change from last month.
Three or 100% are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT) and HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). There is no change from last month.
I follow 10 Energy stocks. Three stock or 30% are showing as cheap by the historical high dividend yield. They are Ensign Energy Services (TSX-ESI, OTC-ESVIF), Mullen Group (TSX-MTL, OTC-MLLGF), and Suncor Energy (TSX-SU, NYSE-SU). Canadian Natural Resources (TSX-CNQ, NYSE-CNQ) has been taken off this list.
There are five stocks (or 50%) showing cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), Ensign Energy Services (TSX-ESI, OTC-ESVIF), Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Five stocks (or 63%) are showing cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), Barclays PLC (LSE-BARC, NYSE-BCS), CIBC (TSX-CM, NYSE-CM), National Bank of Canada (TSX-NA, OTC-NTIOF), and Toronto Dominion Bank (TSX-TD, NYSE-TD). Royal Bank (TSX-RY, NYSE-RY) has been taken off this list.
I follow 15 Financial Service stocks. No stock is showing as cheap by the historically high dividend yield. It is). Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF) has been deleted from this list.
Nine (or 60%) 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), CI Financial (TSX-CIX, OTC-CIFAF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), Equitable Group Inc. (TSX-EQB, OTC-EQGPF), Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
I follow 6 Insurance stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Six stocks (or 100%) are showing cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), Industrial Alliance Ins. and Fin. (TSX-IAG, OTC-IDLLF), Intact Financial Corp. (TSX-IFC, OTC-IFCZF), Manulife Financial Corp (TSX-MFC, NYSE-MFC), Power Financial Corp (TSX-PWF, OTC-POFNF) 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.
One stock or 17% are showing as cheap by historical median dividend yield. That stock is Stantec Inc. (TSX-STN, NYSE-STN). There is no change from last month.
I have 3 stocks I have left with the sub-index of Industrial. None are cheap by the historically high dividend yield. There is no change from last month.
Two stocks or 67% are showing as cheap by historical median 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.
I have 7 Manufacturing stocks. None are showing as cheap by the historically high dividend yield. This has not changed from last month.
Three stocks or 43% are showing as cheap by historical median 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). There is no change from last month.
I follow 16 Services stocks. None are showing as cheap by the historically high dividend yield. This has not changed from last month.
Five stocks or 31% 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), Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA), Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). There is no change from last month.
I follow 9 Material stocks. Supremex Inc (TSX-SXP, OTC-SUMXF) is a new following of mine. None are showing as cheap by the historically high dividend yield. This has not changed from last month.
Six stock or 67% 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), Methanex Corp (TSX-MX, NASDAQ-MEOH), Stella-Jones (TSX-SJ, OTC-STLJF), and Supremex Inc (TSX-SXP, OTC-SUMXF). Methanex Corp (TSX-MX, NASDAQ-MEOH), and Supremex Inc (TSX-SXP, OTC-SUMXF) has been added to this list.
I follow 10 Real Estate stocks. No stock is showing as cheap by historically high dividend yield. Melcor Developments Inc. (TSX-MRD, OTC-MODVF) has been removed from this list. Two stocks (or 20%) are showing cheap by historical median dividend yield. They are Granite Real Estate (TSX-GRT.UN, NYSE-GRP.U) and Melcor Developments Inc. (TSX-MRD, OTC-MODVF). There is no change from last month.
I follow 4 of the Telecom Service stocks. No stocks are showing as cheap by historically high dividend yield. This has not changed from last month.
Four stocks (or 100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH), Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). This has not changed from last month.
I follow 8 Info Tech stocks. None are showing as cheap by historical high dividend yield. Maxar Technologies Ltd (TSX-MAXR-NYSE-MAXR) has been removed from this list.
Three stocks (or 38%) 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 6 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. This has not changed from last month.
Three stocks (or 50%) are showing cheap by historical median dividend yield. They are), Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF) and TransCanada Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 11 of the Power type utility companies. Only ATCO Ltd (TSX-ACO.X, OTC-ACLLF) is showing as cheap by the historically high dividend yield. This has not changed from last month.
Three stocks (or 27%) are showing cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), and Just Energy Group Inc. (TSX-JE, NYSE-JE). Fortis Inc. (TSX-FTS, OTC-FRTSF) has been removed from this list.
On my other blog I wrote yesterday about Power Financial Corp (TSX-PWF, OTC-POFNF) ... learn more. Next, I will write about Ag Growth International (TSX-AFN, OTC-AGGZF) ... learn more on Friday, May 10, 2019 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 7, 2019
Dividend Stocks May 2019
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 2019. On this list,
Hammond Power Solutions Inc. (TSX-HPS.A, OTC-HMDPF)
Johnson and Johnson (NYSE-JNJ)
Loblaw Companies (TSX-L, OTC-LBLCF)
Methanex Corp (TSX-MX, NASDAQ-MEOH)
For Barrick Gold Corp. (TSX-ABX, NYSE-ABX) the dividend I have given since the increase in January has been wrong. The January dividend was for $0.07, so I and others gave an annual one of $0.28. However, it appears that the amount would not be the permanent dividend, rather that the dividend would be $0.04 per quarter or $0.16 per year. I have corrected the current spreadsheet.
Of the stocks I follow, no stock has cut their dividends. Of the stocks I follow, no stock has suspended or terminated their dividends. There is a tension between needing money for investing in growth and paying dividends.
Most of my stocks started out as Dividend Payers. Currently 13 stocks are not paying any dividends and this would be some 8.39% 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 5 year median dividend yields (P/5Yr). 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 be Power Financial Corp (TSX-PWF, OTC-POFNF) ... learn more on Wednesday, May 08, 2019 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.
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 2019. On this list,
- I have 09 stocks with a dividend yield higher than the historical high dividend yield,
- I have 53 stocks with a dividend yield higher than the historical average dividend yield
- I have 73 stocks with a dividend yield higher than the historical median dividend yield and
- 83 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 10 stocks with a dividend yield higher than the historical high dividend yield,
- I have 56 stocks with a dividend yield higher than the historical average dividend yield
- I have 75 stocks with a dividend yield higher than the historical median dividend yield and
- 86 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.
Hammond Power Solutions Inc. (TSX-HPS.A, OTC-HMDPF)
Johnson and Johnson (NYSE-JNJ)
Loblaw Companies (TSX-L, OTC-LBLCF)
Methanex Corp (TSX-MX, NASDAQ-MEOH)
For Barrick Gold Corp. (TSX-ABX, NYSE-ABX) the dividend I have given since the increase in January has been wrong. The January dividend was for $0.07, so I and others gave an annual one of $0.28. However, it appears that the amount would not be the permanent dividend, rather that the dividend would be $0.04 per quarter or $0.16 per year. I have corrected the current spreadsheet.
Of the stocks I follow, no stock has cut their dividends. Of the stocks I follow, no stock has suspended or terminated their dividends. There is a tension between needing money for investing in growth and paying dividends.
Most of my stocks started out as Dividend Payers. Currently 13 stocks are not paying any dividends and this would be some 8.39% 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 5 year median dividend yields (P/5Yr). 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 be Power Financial Corp (TSX-PWF, OTC-POFNF) ... learn more on Wednesday, May 08, 2019 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, May 2, 2019
Gluskin Sheff
I bought this stock of Gluskin Sheff + Associates Inc (TSX-GS, OTC-GLUSF) in 2016 with high hopes that it would recover and be a great stock. However, this has not happened and the stock continues on the down tread. I will lose money on this stock. It is going to be bought out by Onex. I think they are getting it cheap.
Some analysts have said to just cut your losses. I agree with this assessment and I have sold my shares in this company today. Now I have to figure out what to do with the money from this sale. This was in my TFSA account which I have been using for my fool around money. But I will be looking at the current yield versus historical median yield this weekend, so that should spread some light on what to buy.
Onex has agreed to buy the firm. See an article on Globe Newswire on this buy out. An interesting thing to note is the buyout is at $14.25, but the stock was recently trading at $14.41. This generally reflects the fact that analysts and traders expect the offer to get better before Onex buyouts this firm.
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 3, 2019 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.
Some analysts have said to just cut your losses. I agree with this assessment and I have sold my shares in this company today. Now I have to figure out what to do with the money from this sale. This was in my TFSA account which I have been using for my fool around money. But I will be looking at the current yield versus historical median yield this weekend, so that should spread some light on what to buy.
Onex has agreed to buy the firm. See an article on Globe Newswire on this buy out. An interesting thing to note is the buyout is at $14.25, but the stock was recently trading at $14.41. This generally reflects the fact that analysts and traders expect the offer to get better before Onex buyouts this firm.
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 3, 2019 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, April 30, 2019
Dividend Yield Testing
What I like about dividend yield testing is that you are using current amounts, not the latest quarterly amounts and not any estimates. It uses the latest stock price and what the stock is currently paying in dividends. The current yield is compared against the historical median dividend yield. It works best on dividend growth stocks.
The dividend increases for a company generally reflect how the management of the company feel about the future and the future earnings of a company. Dividend increases show that the management is positive about the future. Dividend cuts and suspensions, of course, show the opposite. It shows that the management is uncertain about the future or see problems in the short term.
This testing does not work well on old income trust companies that changed to corporations. This is because income trusts payout higher yields than corporations. It does not work well also on companies that have cut their dividends, especially if the dividend cut was big and recent.
On my other blog I wrote yesterday about WSP Global Inc. (TSX-WSP, OTC-WSPOF) ... learn more. Tomorrow, I will write about Thomson Reuters Corp. (TSX-TRI, NYSE-TRI) ... learn more on Wednesday, May 1, 2019 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.
The dividend increases for a company generally reflect how the management of the company feel about the future and the future earnings of a company. Dividend increases show that the management is positive about the future. Dividend cuts and suspensions, of course, show the opposite. It shows that the management is uncertain about the future or see problems in the short term.
This testing does not work well on old income trust companies that changed to corporations. This is because income trusts payout higher yields than corporations. It does not work well also on companies that have cut their dividends, especially if the dividend cut was big and recent.
On my other blog I wrote yesterday about WSP Global Inc. (TSX-WSP, OTC-WSPOF) ... learn more. Tomorrow, I will write about Thomson Reuters Corp. (TSX-TRI, NYSE-TRI) ... learn more on Wednesday, May 1, 2019 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.
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