Monday, April 7, 2014

Something to Buy

There is always something to buy in the stock market. On Wednesday of last week, 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. Thing generally change very slowly and nothing much has changed since last month.

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 my spreadsheet at here. As in other spreadsheets, you can highlight a line or a number of lines for better viewing.

A number of Consumer Staple stocks seem to be cheap. Examples would be Dorel Industries (TSX-DII.B A) and Metro Inc. (TSX-MRU). This has not changed from last month. (Please note that Canada Bread (TSX-CBY) is being bought out.) A number of energy stocks also seem cheap. Examples are Canadian Natural Resources (TSX-CNQ); Cenovus Energy Inc. (TSX-CVE) and Suncor Energy (TSX-SU) and this has not changed from February.

There are not that many cheap companies in Finance, but the banks mostly seem on the cheaper side. Of the banks that I follow, TD Bank (TSX-TD), Bank of Nova Scotia (TSX-BNS), Royal Bank (TSX-RY) and National Bank (TYSX-NA) since seem to be priced rather reasonably. However, I note that Bank of Montreal (TSX-BMO) is no longer cheap.

There are not many companies cheap in the Tech sector except for small companies like Calian Technologies Ltd (TSX-CTY) and Evertz Technologies (TSX-ET) and this is the same as for February 2014.

The infrastructure type utility companies are still not cheap. Examples of these sorts of companies are TransCanada (TSX-TRP) and Enbridge Inc. (TSX-ENB). What utility companies that are cheap, seem to be cheap for a good reason. A current example is Atlantic Power Corp (TSX-ATP). TransAlta Corp (TSX-TA) is not only cheap looking at the 5 year median dividend yield. This company has just cut their dividend.

On my other blog I am today writing about Melcor Developments Inc. (TSX-MRD, OTC-MODVF)...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.


  1. Thank you for the posting! Do you think Metro inc will be good for long term investing? I always hesitate to buy Metro Inc or Loblaw because Consumer staple is very competitive market and many giant US retailers(Wal-mart and Target) are coming to Canada for business.

    1. My report just points out what stocks may be selling at a good price. This does not answer the question of whether or not you should buy the stock. That comes more from fundamental research. You are right about US gaint retailers coming to Canada and we do not know what effect it will have on Loblaws or Metro yet.