Dividend Growth Stock

I used to use Mike Higgs' Dividend Growth Stock list to find stocks to investigate. He felt that you should buy good dividend growth stocks when they were cheap. To him they were cheap if the current dividend yield was above the historical high dividend yield for a stock or if the dividend yield was above the historical average. His spreadsheet only saw stocks as cheap or expensive. There was no middle ground.

I have inserted some of his spreadsheet fields into my portfolio spreadsheet. The applicable sections are shown here and I have updated these fields for the stocks that I hold. I do not have a lot of history on some stocks. Mostly the ones that I do not have much data on have not been on the TSX for a long. I have taken a stab on putting in historical high dividend yield and historical low dividend yields for all my stocks. The average is yield is just the yield between the high and low yields.

I am using the historical high and historical average dividend yield to get my spreadsheet to points out stock that could possibly be cheap at this point. The problem with all filters is that you also get stocks that a cheap for a very good reason. You should always do your own investigation before buying any such stocks.

Below is a table of the stock that I personally hold that the spreadsheet has pointed to as cheap based on the historical high dividend yields or the historical average dividend yields. If you want a copy of this spreadsheet to update yourself, just email me. To follow a particular line on the spreadsheet, use your cursor to highlight that line.

Name	Symbol	P/Hi	P/Ave	Div Inc	Med Yld
Bank of Montreal	BMO	Exp.	Cheap	0.8%	4.9%
BCE	BCE	Exp.	Cheap	8.5%	5.3%
Calian Technologies Ltd	CTY	Exp.	Cheap	2.3%	5.2%
Canadian Natural Resources	CNQ	Cheap	Cheap	19.7%	0.7%
Ensign Energy Services	ESI	Cheap	Cheap	5.4%	2.5%
Evertz Technologies	ET	Cheap	Cheap	23.7%	2.3%
Hammond Power Solutions Inc.	HPS.A	Cheap	Cheap	21.6%	1.4%
Leon's Furniture	LNF	Exp.	Cheap	8.0%	2.7%
Manitoba Telecom	MBT	Exp.	Cheap	-8.2%	6.9%
McCoy	MCB	Exp.	Cheap	14.9%	2.3%
Power Financial Corp	PWF	Exp.	Cheap	3.8%	5.1%
Royal Bank	RY	Exp.	Cheap	5.8%	4.2%
Saputo Inc.	SAP	Exp.	Cheap	11.6%	1.8%
SNC-Lavalin	SNC	Exp.	Cheap	17.7%	1.3%
Sun Life Financial	SLF	Exp.	Cheap	1.8%	5.4%
Thomson Reuters Corp	TRI	Exp.	Cheap	3.8%	3.6%
Toromont Industries Ltd.	TIH	Exp.	Cheap	0.4%	2.2%
Toronto Dominion Bank	TD	Exp.	Cheap	6.5%	3.8%
TransAlta Corp	TA	Cheap	Cheap	3.3%	5.4%
Veresen Inc.	VSN	Exp.	Cheap	1.2%	8.9%

On Monday I will talk about the importance of dividend growth on dividend growth stocks.

On my other blog I am today writing about Kombat Copper Inc. (TSX-KBT, OTC-PNTZF)...continue...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.