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, Newfoundland Capital Corp (TSX-NCC.A) and Leon's Furniture (TSX-LNF) are showing as cheap by the historical average dividend yield.
Consumer discretionary stocks showing as cheap by the historical median and 5 year median dividend yields is Goodfellow Inc. (TSX-GDL) and Newfoundland Capital Corp (TSX-NCC.A). Also Leon's Furniture (TSX-LNF) is showing as cheap by the historical median dividend yield.
Some Consumer Staple stocks are showing as relatively cheap. Jean Coutu Group Inc. (TSX-PJC.A) and Loblaw Companies (TSX-L) are showing as cheap only by the historical median dividend yield. Rogers' Sugar (TSX-RSI) is cheap using the 5 year median dividend yield.
Of the US Health Care stocks I follow Johnson and Johnson (NYSE-JNJ) and Medtronic Inc. (NYSE-MDT) are both relatively cheap by the historical average and historical median dividend yields.
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 and the historical median dividend yields. Artis REIT (TSX-AX.UN) is shown as cheap by the historical median dividend yield. Allied Properties (TSX-AP.UN), Granite Real Estate (TSX-GRT.UN) and Melcor Developments Inc. (TSX-MRD) are showing as relatively cheap by the 5 year median dividend yield.
The Canadian banks of 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 median and the 5 year median dividend yields. Bank of Nova Scotia (TSX-BNS) and Toronto Dominion Bank (TSX-TD) are also showing as cheap by the historical average dividend yield.
Of the Financial Services stocks, AGF Management (TSX-AGF), CI Financial (TSX-CIX), DirectCash Payments Inc. (TSX-DCI), Gluskin Sheff & Associates Inc. (TSX-GS), Home Capital Group (TSX-HCG), IGM Financial (TSX-IGM) and Power Corp (TSX-POW) are showing as relatively cheap by the historical median dividend yield. Of these, only CI Financial (TSX-CIX), Home Capital Group (TSX-HCG), IGM Financial (TSX-IGM) and Power Corp (TSX-POW) are showing as cheap by the historical average dividend yield.
Of the above Financial Services stocks DirectCash Payments Inc. (TSX-DCI), Gluskin Sheff & Associates Inc. (TSX-GS), and Home Capital Group (TSX-HCG) are showing as relatively cheap by the 5 year median dividend yield.
Of the Insurance group Great-West Lifeco Inc. (TSX-GWO, Manulife Financial Corp (TSX-MFC), Power Financial Corp (TSX-PWF) and Sun Life Financial (TSX-SLF) are showing as relatively cheap by the historical median dividend yield. Power Financial Corp (TSX-PWF) is also showing as cheap by the historical average dividend yield.
Of the industrials, the stocks showing as cheap historically are Hammond Power Solutions Inc. (TSX-HPS), Pason Systems Inc. (TSX-PSI) and SNC-Lavalin (TSX-SNC). Canadian National Railway (TSX-CNR), Canyon Services Group (TSX-FRC), Finning International Inc. (TSX-FTT), McCoy Global Inc. (TSX-MCB), Mullen Group (TSX-MTL), PFB Corp (TSX-PFB), Russel Metals (TSX-RUS), Toromont Industries Ltd. (TSX-TIH) and Transcontinental Inc. (TSX-TCL) are showing as cheap by the historical median dividend yields.
Of the above stocks, only Finning International Inc. (TSX-FTT), Mullen Group (TSX-MTL), PFB Corp (TSX-PFB), Russel Metals (TSX-RUS), and Transcontinental Inc. (TSX-TCL) are showing as cheap by the historical average dividend yields. Also, Pulse Seismic Inc. (TSX-PSD) is showing as cheap by historical average, but not historical median dividend yield.
Of the industrials, also Exchange Income Corp (TSX-EIF) is the only one just showing as cheap by 5 year median dividend yield.
There are not many companies in the Tech sector, but Calian Technologies Ltd (TSX-CTY) and Evertz Technologies (TSX-ET) are showing as relatively cheap by the historical median dividend yield, by the historical average dividend yield and by the 5 year median dividend yield.
A number of energy stocks also seem cheap. Canadian Natural Resources (TSX-CNQ), Cenovus Energy Inc. (TSX-CVE), Ensign Energy Services (TSX-ESI) and Suncor Energy (TSX-SU) are still showing as relatively cheap historically.
Husky Energy (TSX-HSE) is showing as cheap by the historical median and the historical average dividend yields. Crescent Point Energy Corp (TXS-CPG) is showing as cheap by the historical median and the historical average dividend yields. Encana Corp (TSX-ECA) is only showing as cheap by the historical median dividend yield.
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 and the historical median dividend yields.
Of the infrastructure type utility companies only Enbridge Inc. (TSX-ENB) is showing relatively cheap by the 5 year median. The utility companies TransAlta Corp (TSX-TA) is showing as relatively cheap by the historical average and the historical median dividend yields. ATCO Ltd (TSX-ACO.X) is showing relatively cheap by the historical median and 5 year median dividend yields. Canadian Utilities (TSX-CU) is showing as cheap by the 5 year median dividend yield.
Of the Telecom Stocks WiLan Inc. (TSX-WIN) is showing as relatively cheap historically. Shaw Communications Inc. (TSX-SJR.B) and Manitoba Telecom (TSX-MBT) are showing as relatively cheap by the historical average and the historical median dividend yields.
On my other blog I am today writing about AltaGas Ltd (TSX-ALA, OTC-ATGFF) ... 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.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
No comments:
Post a Comment