Something to Buy January 2015

There is always something to buy in the stock market. On Monday, 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.

However, no system is perfect. But if you are interested in buy 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 my spreadsheet at here. As in other spreadsheets, you can highlight a line or a number of lines for better viewing.

Of the consumer discretionary stocks, Dorel Industries (TSX-DII.B A) and Newfoundland Capital Corp (TSX-NCC.A) are showing as relatively cheap by the historical average. Another consumer discretionary stocks which is showing as cheap by the 5 year median is Goodfellow Inc. (TSX-GDL).

One Consumer Staple stocks is showing as relatively cheap by the 5 year median and that is .North West Co. (TSX-NWC).

Both the US Health Care stocks I follow, that is Johnson and Johnson (NYSE-JNJ) and Medtronic Inc. (NYSE-MDT) are relatively cheap by the historical average.

Of the Real Estate Stocks, Granite Real Estate (TSX-GRT.UN) and Melcor Developments Inc. (TSX-MRD) are showing relatively cheap by the historical average. H & R Real Estate Investment Trust (TSX-HR.UN) is showing as relatively cheap by the 5 year median.

All the Canadian banks of Bank of Montreal (TSX-BMO), Bank of Nova Scotia (TSX-BNS) National Bank of Canada (TSX-NA), Royal Bank (TSX-RY) and Toronto Dominion Bank (TSX-TD) are showing as relatively cheap by the historical average.

Of the Financial Services stocks, AGF Management (TSX-AGF) is still showing as cheap historically. CI Financial (TSX-CIX), Home Capital Group (TSX-HCG), IGM Financial (TSX-IGM) and Power Corp (TSX-POW) are showing as relatively cheap by the historical average. None of the Insurance group is show as cheap.

Of the industrials Hammond Power Solutions Inc. (TSX-HPS) and PFB Corp (TSX-PFB) are showing as relatively cheap historically. Also, Bombardier Inc. (TSX-BBD.B), Finning International Inc. (TSX-FTT), Pason Systems Inc. (TSX-PSI), Pulse Seismic Inc. (TSX-PSD), Russel Metals (TSX-RUS), SNC-Lavalin (TSX-SNC) and Transcontinental Inc. (TSX-TCL) are showing as relatively cheap by the historical average.

Other industrials are showing as relatively cheap by the 5 year median. They are Canexus Corporation (TSX-CUS), Canyon Services Group (TSX-FRC), Exchange Income Corp (TSX-EIF), McCoy Global Inc. (TSX-MCB), Mullen Group (TSX-MTL), Stantec Inc. (TSX-STN) and Wajax Corp (TSX-WJX).

There are not many companies in the Tech sector, but Calian Technologies Ltd (TSX-CTY) is showing as relatively cheap historically and Evertz Technologies (TSX-ET) is showing as relatively cheap by the historical average.

A number of energy stocks also seem cheap. Examples are Canadian Natural Resources (TSX-CNQ); Canadian Oil Sands Ltd (TSX-COS), Cenovus Energy Inc. (TSX-CVE), Ensign Energy Services (TSX-ESI) and Suncor Energy (TSX-SU) are showing as relatively cheap historically. Husky Energy (TSX-HSE) and Penn West Petroleum (TSX-PWT) are showing as relatively cheap by the historical average. Crescent Point Energy Corp (TXS-CPG) is showing as relatively cheap by the 5 year median.

I have two materials stocks and both are showing up cheap. Teck Resources Ltd (TSX-TCK.B) is showing as relatively cheap historically. Barrick Gold Corp. (TSX-ABX) is showing as relatively cheap by the historical average.

The infrastructure type utility companies only Enbridge Inc. (TSX-ENB) is showing relatively cheap by the 5 year median. The only utility companies that is showing as cheap, is TransAlta Corp (TSX-TA) which is showing as relatively cheap by the historical average and Northland Power Inc.(TSX-NPI) which is showing relatively cheap by the 5 year median.

Of the Telecom Stocks Shaw Communications Inc. (TSX-SJR.B) and Manitoba Telecom (TSX-MBT) are showing as relatively cheap by the historical average. WiLan Inc. (TSX-WIN) is showing as relatively cheap historically.

On my other blog I am today writing about Calian Technologies Ltd. (TSX-CTY, OTC-CLNFF)...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. 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.

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