Friday, October 18, 2013

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.

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