This is a measure I include for Mutual Fund companies. It is an important measure of the success a Mutual Fund company. It measures the flow of money into and out of a company and also the changes to the funds a Mutual Fund company manages.
You need growth in Assets under Management to get growth in Revenue. When need growth in Revenue to get growth in earnings and cash flow.
The site Investing Answers explains about Assets under Management (AUM). You can find definitions of this concept at Investopedia.
On my other blog I am today writing about CI Financial Corp (TSX-CIX, OTC-CIFAF) ... 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.
Monday, June 29, 2015
Wednesday, June 24, 2015
Dividend Growth Calculations
Recently I spoke about my actual experience with dividend growth stocks. Today I want to talk about the theory and how to calculate dividend growth. The problem with doing straight calculations is that life is messier than such calculations.
Over the life of a stock a shareholder might buy and sell shares of the stock at different times. Also, dividend increases vary all the time and sometimes dramatically. In recessions companies tend to low dividend increases and in expansions tend to raise them. Also in recessions some companies will lower or stop dividends for a time.
What I will illustrate is 6 different scenarios, 3 with higher dividends and 3 with lower dividends and all with different dividend growth rates. I am basing these scenarios on some actual performance of stocks I own. The scenarios are as shown below with the names of stocks which matched in the past these sorts of original dividends and dividend growth rates.
The first table shows what sorts of dividend yield you could expect on your original investment after 5 years and what percentage of your original stock costs would be covered after 5 years. So for the first stock after 5 year your dividend yield should be around 7.9% on your original costs. The dividends paid to the end of the 5th year should cover some 32.40% of your stock's original cost. I have highlighted the stock with the highest and lowest dividend yield after 5 years. I have also highlighted the stocks for which dividends have covered the most and the least of the original stock cost.
After 10 years the table below shows what the dividend yield should be on your original stock cost and what percentage of the original costs have now been covered by dividends paid to date. Here the stocks with the highest dividend yield on original cost and percentage of stock's cost covered has changed. Stock #1 with a good dividend and good growth and stock #6 with a low dividend and high growth compete for the highest dividend yield on original cost.
After 10 years the stock (#2) with a good dividend and moderate growth has covered more of the original cost of the stock. The stock (#4) that has covered the least percentage of the original cost has a low dividend with fairly high growth.
Things change again after 15 years. It is a stock with a rather low initial dividend but a high dividend growth that has the highest dividend yield on original cost. It is also the one that has covered the highest percentage of the stock's cost. The one with the lowest dividend yield on original cost is the stock starting off with a very low dividend, but a fairly high right of growth.
The last table shows what the dividend yields on original cost and what percentage of the original stock costs are covered after 20 years. All but one of the stocks has covered with dividends the original cost of the stock. They are all giving quite good dividend yields on the original cost of the stock.
See the full spreadsheet here.
On my other blog I am today writing about Power Corp of Canada (TSX-POW, OTC-PWCDF) ... 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.
Over the life of a stock a shareholder might buy and sell shares of the stock at different times. Also, dividend increases vary all the time and sometimes dramatically. In recessions companies tend to low dividend increases and in expansions tend to raise them. Also in recessions some companies will lower or stop dividends for a time.
What I will illustrate is 6 different scenarios, 3 with higher dividends and 3 with lower dividends and all with different dividend growth rates. I am basing these scenarios on some actual performance of stocks I own. The scenarios are as shown below with the names of stocks which matched in the past these sorts of original dividends and dividend growth rates.
| # | Similar | Ori Yield | Div Growth |
|---|---|---|---|
| 1 | RY | 4.70% | 11.00% |
| 2 | BMO | 6.70% | 6.30% |
| 3 | RIO.UN | 7.60% | 3.10% |
| 4 | ATD.B | 0.80% | 15.30% |
| 5 | SAP | 2.20% | 11.80% |
| 6 | SNC | 1.90% | 22.00% |
| # | Similar | Ori Yield | Div Growth | Div Yield | % of stock |
|---|---|---|---|---|---|
| 1 | RY | 4.70% | 11.00% | 7.90% | 32.40% |
| 2 | BMO | 6.70% | 6.30% | 9.00% | 40.10% |
| 3 | RIO.UN | 7.60% | 3.10% | 8.80% | 41.30% |
| 4 | ATD.B | 0.80% | 15.30% | 1.60% | 6.10% |
| 5 | SAP | 2.20% | 11.80% | 3.90% | 15.80% |
| 6 | SNC | 1.90% | 22.00% | 5.00% | 17.60% |
After 10 years the table below shows what the dividend yield should be on your original stock cost and what percentage of the original costs have now been covered by dividends paid to date. Here the stocks with the highest dividend yield on original cost and percentage of stock's cost covered has changed. Stock #1 with a good dividend and good growth and stock #6 with a low dividend and high growth compete for the highest dividend yield on original cost.
After 10 years the stock (#2) with a good dividend and moderate growth has covered more of the original cost of the stock. The stock (#4) that has covered the least percentage of the original cost has a low dividend with fairly high growth.
| # | Similar | Ori Yield | Div Growth | Div Yield | % of stock |
|---|---|---|---|---|---|
| 1 | RY | 4.70% | 11.00% | 13.40% | 87.40% |
| 2 | BMO | 6.70% | 6.30% | 12.20% | 94.40% |
| 3 | RIO.UN | 7.60% | 3.10% | 10.30% | 89.80% |
| 4 | ATD.B | 0.80% | 15.30% | 3.20% | 18.40% |
| 5 | SAP | 2.20% | 11.80% | 6.80% | 43.50% |
| 6 | SNC | 1.90% | 22.00% | 13.40% | 64.50% |
Things change again after 15 years. It is a stock with a rather low initial dividend but a high dividend growth that has the highest dividend yield on original cost. It is also the one that has covered the highest percentage of the stock's cost. The one with the lowest dividend yield on original cost is the stock starting off with a very low dividend, but a fairly high right of growth.
| # | Similar | Ori Yield | Div Growth | Div Yield | % of stock |
|---|---|---|---|---|---|
| 1 | RY | 4.70% | 11.00% | 22.50% | 179.90% |
| 2 | BMO | 6.70% | 6.30% | 16.60% | 168.10% |
| 3 | RIO.UN | 7.60% | 3.10% | 11.90% | 145.90% |
| 4 | ATD.B | 0.80% | 15.30% | 6.70% | 43.90% |
| 5 | SAP | 2.20% | 11.80% | 11.90% | 91.60% |
| 6 | SNC | 1.90% | 22.00% | 36.10% | 190.70% |
The last table shows what the dividend yields on original cost and what percentage of the original stock costs are covered after 20 years. All but one of the stocks has covered with dividends the original cost of the stock. They are all giving quite good dividend yields on the original cost of the stock.
| # | Similar | Ori Yield | Div Growth | Div Yield | % of stock |
|---|---|---|---|---|---|
| 1 | RY | 4.70% | 11.00% | 38.10% | 336.00% |
| 2 | BMO | 6.70% | 6.30% | 22.50% | 268.00% |
| 3 | RIO.UN | 7.60% | 3.10% | 13.90% | 211.40% |
| 4 | ATD.B | 0.80% | 15.30% | 13.70% | 96.40% |
| 5 | SAP | 2.20% | 11.80% | 20.90% | 176.10% |
| 6 | SNC | 1.90% | 22.00% | 97.50% | 531.30% |
See the full spreadsheet here.
On my other blog I am today writing about Power Corp of Canada (TSX-POW, OTC-PWCDF) ... 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.
Monday, June 22, 2015
Mutual Funds
This is an article by Nelson Smith of Motley Fool asking why anyone would still buy Mutual Funds. He thinks that the heyday of Mutual Funds is behind us. I disagree.
I truly wonder about people getting out of mutual funds. I know lots of people and have talked to lots of people who have no clue about investing and frankly do not want to know. Mutual Funds are sold by Mutual Funds salesman or Mutual Funds based financial advisors. No one goes out to buy Mutual Funds.
Sorry and I do wish it was different, but I do not see the industry going bust as long as there are lots of people who just do not want to handle their own investments. The industry may have to deal with lower fees and more disclosure, but I really do not see the business being affected all that much. I think that Mutual Funds will continue to be sold and people continuing to buy them into the future.
On my other blog I am today writing about IGM Financial Inc. (TSX-IGM, OTC- IGIFF) ... 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.
I truly wonder about people getting out of mutual funds. I know lots of people and have talked to lots of people who have no clue about investing and frankly do not want to know. Mutual Funds are sold by Mutual Funds salesman or Mutual Funds based financial advisors. No one goes out to buy Mutual Funds.
Sorry and I do wish it was different, but I do not see the industry going bust as long as there are lots of people who just do not want to handle their own investments. The industry may have to deal with lower fees and more disclosure, but I really do not see the business being affected all that much. I think that Mutual Funds will continue to be sold and people continuing to buy them into the future.
On my other blog I am today writing about IGM Financial Inc. (TSX-IGM, OTC- IGIFF) ... 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.
Wednesday, June 17, 2015
Motley Fool Booklets
The Motley Fool has put out a few booklets about investing at a site called Ask a Pro
On this site, if you look to the left hand side of the page, you will see a number of options for information. For example, the Use Options Like a Pro shows you how to buy options. The Earn Income Like a Pro talks about dividend stocks and gives you 3 dividend picks. The Diversify Like a Pro gives you information on Diversifying and gives you 3 stock picks.
On my other blog I am today writing about Ensign Energy Services (TSX-ESI, OTC- ESVIF) ... 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.
On this site, if you look to the left hand side of the page, you will see a number of options for information. For example, the Use Options Like a Pro shows you how to buy options. The Earn Income Like a Pro talks about dividend stocks and gives you 3 dividend picks. The Diversify Like a Pro gives you information on Diversifying and gives you 3 stock picks.
On my other blog I am today writing about Ensign Energy Services (TSX-ESI, OTC- ESVIF) ... 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.
Monday, June 15, 2015
Next Bear Market
This is a Buy Sell Advisor that I recently received. It is asking readers to think back to the 2000 and 2008 markets and is asking how you felt at that time. It is a valid question. They are right that the current bull market is rather long in the tooth.
What I did re 2000 and 2008, and what I did in other times of bear markets, I just rode them out. The following chart show how I did through the recent bear markets. I did nothing to my portfolios to counter them. You can see I did fine from the chart below.
YOY is year over year and Y to Beg is year to beginning of the period, either 31 August 2000 or 30 May 2008. I only keep track of my stocks monthly so I have to use values at the end of months.
People are still talking about the next bear market and it will come. It just is hard to say when this will happen. However, I will do what I always do and wait it out.
On my other blog I am today writing about Hammond Power Solutions Inc. (TSX-HPS.A, OTC- HMDPF) ... 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.
What I did re 2000 and 2008, and what I did in other times of bear markets, I just rode them out. The following chart show how I did through the recent bear markets. I did nothing to my portfolios to counter them. You can see I did fine from the chart below.
YOY is year over year and Y to Beg is year to beginning of the period, either 31 August 2000 or 30 May 2008. I only keep track of my stocks monthly so I have to use values at the end of months.
| Date | TSX | My Portfolio | |||
|---|---|---|---|---|---|
| Value | YOY | Y to Beg. | YOY | Y to Beg. | |
| 31-Aug-00 | 11,248 | ||||
| 30-Sep-02 | 6,180 | -45.06% | -45.06% | -30.92% | -30.92% |
| 30-May-08 | 14,715 | 138.11% | 30.82% | 70.68% | 17.90% |
| 27-Feb-09 | 8,845 | -39.89% | -21.36% | -30.81% | -18.42% |
| 31-Dec-13 | 13,622 | 54.01% | 21.11% | 99.14% | 62.46% |
| 30-May-08 | 14,715 | ||||
| 27-Feb-09 | 8,845 | -39.89% | -39.89% | -30.81% | -30.81% |
| 31-Dec-13 | 13,622 | 54.01% | -7.43% | 99.14% | 37.79% |
People are still talking about the next bear market and it will come. It just is hard to say when this will happen. However, I will do what I always do and wait it out.
On my other blog I am today writing about Hammond Power Solutions Inc. (TSX-HPS.A, OTC- HMDPF) ... 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.
Wednesday, June 10, 2015
Dividend Taxes
Taxes you pay on dividend income are less than on other income. I am looking at Ontario Taxes as that is the province where I live. Here I am talking about taxes wholly from eligible Canadian dividends.
Distributions from Income Trust companies are handled very differently as the distributions can be designated ad dividends, interest, foreign income or capital gains or some combinations of these categories. This also does not apply to dividends which are received from US or other foreign companies.
Most dividends from Canadian companies are eligible dividends. You can generally find this information on a company's web site. See this information on the website of Canadian Nation Railway. See information under Canadian Tax information. There is a statement there of "CN's dividends are designated as eligible dividends, as provided under subsection 89(14) of the Canadian Income Tax Act and its provincial counterpart".
What I want to compare is dividend income to salary income. With your income from dividends you get to keep a lot more of your income. In these examples I am comparing dividend and salary incomes of $35,000 and $70,000. I got my figures using my 2014 tax return software.
With a salary, not only do you have to taxes, but you have to pay CPP and EI premiums too. As shown in the table below, on $35,000 of salary you get to keep 80.68% of your salary and pay some 19.32% to the government. On $70,000 of salary you get to keep 74.18% of it and pay some 25.82% to the government.
If you get dividend income, it is treated differently. Because dividends are paid from after tax company money, the tax form grosses up your dividend income to take this into account and then gives you a Dividend Tax Credit. As you can see from the table below on $35,000 of dividend income you would get to keep 98.50% of your income and pay 1.5% to the government. On $70,000 of dividend income you would get to keep 95.58% and pay 4.42% to the government.
What is interesting about the above tax calculation is that the $525.00 tax on $35,000 of dividend income is the Ontario Health Premium. It is based on the dividend grossed up amount of $48,300. You can earn around $49,000 of dividend income before Federal taxes kicks in. Also you can earn just over $87,000 before Ontario taxes, besides the Ontario Health Premium, kicks in.
This is important because why I could stop working in 1999 and live off my dividends was because my net income was the same between my job and my dividend income. My gross income was not.
On my other blog I am today writing about McCoy Global Inc. (TSX-MCB, OTC- MCCRF) ... 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.
Distributions from Income Trust companies are handled very differently as the distributions can be designated ad dividends, interest, foreign income or capital gains or some combinations of these categories. This also does not apply to dividends which are received from US or other foreign companies.
Most dividends from Canadian companies are eligible dividends. You can generally find this information on a company's web site. See this information on the website of Canadian Nation Railway. See information under Canadian Tax information. There is a statement there of "CN's dividends are designated as eligible dividends, as provided under subsection 89(14) of the Canadian Income Tax Act and its provincial counterpart".
What I want to compare is dividend income to salary income. With your income from dividends you get to keep a lot more of your income. In these examples I am comparing dividend and salary incomes of $35,000 and $70,000. I got my figures using my 2014 tax return software.
With a salary, not only do you have to taxes, but you have to pay CPP and EI premiums too. As shown in the table below, on $35,000 of salary you get to keep 80.68% of your salary and pay some 19.32% to the government. On $70,000 of salary you get to keep 74.18% of it and pay some 25.82% to the government.
| Income | Taxes | CPP | EI | Net |
|---|---|---|---|---|
| $35,000.00 | $4,544.85 | $1,559.25 | $658.00 | $28,237.90 |
| $70,000.00 | $14,737.03 | $2,425.50 | $913.68 | $51,923.79 |
If you get dividend income, it is treated differently. Because dividends are paid from after tax company money, the tax form grosses up your dividend income to take this into account and then gives you a Dividend Tax Credit. As you can see from the table below on $35,000 of dividend income you would get to keep 98.50% of your income and pay 1.5% to the government. On $70,000 of dividend income you would get to keep 95.58% and pay 4.42% to the government.
| Income | Taxes | CPP | EI | Net |
|---|---|---|---|---|
| $35,000.00 | $525.00 | $0.00 | $0.00 | $34,475.00 |
| $70,000.00 | $3,093.35 | $0.00 | $0.00 | $66,906.65 |
This is important because why I could stop working in 1999 and live off my dividends was because my net income was the same between my job and my dividend income. My gross income was not.
On my other blog I am today writing about McCoy Global Inc. (TSX-MCB, OTC- MCCRF) ... 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.
Monday, June 8, 2015
Why Dividend Growth
I wished I knew about dividend growth stocks and what they could do when I first started to invest. I would probably been able to retire on my dividends a lot earlier than I did. However, I do not really have regrets as I loved the jobs that I did have.
In this post I am talking about my actual experience. In most of these accounts there was activity besides the original investment. Why I want to talk about actual experience is because life is messy. I will talk about the theory behind original yields and dividend growth and the percentage of the cost that dividends could cover in another post.
One of the earliest stocks I bought that I still have is Bank of Montreal (TSX-BMO). I bought this stock in 1983 just over 31 years ago. It is a great illustration of why I like dividend growth stocks. On my original investment, I am earning a dividend yield of 44.23%. I paid $7.28 per share when I bought this stock and the current dividend is $3.22 per shares. On my shares I have collected $44.84 per share of dividends or I have collected 615.9% of my cost in dividends.
My dividends on BMO have grown at 6.24% per year. My original dividend yield was 6.73%. The current dividend yield for this stock is 4.05%. This historical median dividend yield is 4.62%. The historical median dividend yield is important as it says where the yield is most likely to be most of the time.
I bought Fortis Inc. (TSX-FTS) in 1987 some 27 years ago. I am making a dividend yield of 29.27% on my original investment. I have received $17.69 in dividends per share on shares costing $4.65. I have received dividends equal to 380.23% of my cost.
My dividends on Fortis have grown at 5.47% per year. My original dividend yield was 6.88%. The current dividend yield is 3.5% and the historical median dividend yield is 3.67%
I bought RioCan Real Estate (TSX-REI.UN) for my Trading Account in 2000 some 15 years ago. I am making a dividend yield of 16.89% on my original investment. I paid $13.39 for my shares in this company in my Trading Account as I bought this stock on 3 different occasions. I have received in dividends $16.13 per share or 120.46% of my costs.
My Dividends have grown at 1.92% per year. When I first bought this stock the dividend yield was 12.75%. The current dividend yield is 5.1%. The historical median dividend yield is 7.81%.
I bought Canadian National Railway (TSX-CNR) almost 10 years ago. I am making 6.93% dividend yield on my original investment. I paid $19.11 per share for my shares in this company. I have collected $5.62 per share and so my dividends have covered 27.8% of the cost of my shares.
My dividends have grown at 18.48% per year. When I bought this stock my dividend yield was 1.39%. The current dividend yield for this stock is 1.43%. The historical median dividend yield is 1.44%.
I also Bought Metro Inc. (TSX-MRU) some 10 years ago. I am currently earning 7.93% in dividends on my original stock purchase price. I paid $5.89 per share for this stock and I have earned $2.45 per share in dividends. Dividends paid to date cover some 41.6% of the original stock cost.
Dividends have grown at 14.9% per year. When I bought this stock my dividend yield was 1.87%. The current dividend yield is 1.51%. The historical median dividend yield is 1.44%.
My stock Computer Modeling Group (TSX-CMG) is a little charmer. I bought this in 2008, just less than 7 years ago. I am earning 17.39% on my original investment. I have so far collected $2.42 per share in dividends and the stock cost me $3.15. That is dividends have paid for 76.7% of the share price. I was originally earning 5.2% dividend yield when I bought this stock.
Dividends have grown at 20.43% per year. When I bought this stock my dividend yield was 5.22%. The current dividend yield is 2.73%. The historical median dividend yield is 3.52%.
In the chart below, the Yield is the one I am getting on my original investment. The Collect Div refers to the amount in dividends per share I have so far collected. The Div % of Cost is showing how much of my stock's original cost is covered by the dividends I have received so far. The Div Grth refers to the rate my dividends have been growing since I bought the stock. The Years refers to the number of years I have held the stock.
On my other blog I am today writing about WSP Global Inc. (TSX-WSP, OTC- WSPOF) ... 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.
In this post I am talking about my actual experience. In most of these accounts there was activity besides the original investment. Why I want to talk about actual experience is because life is messy. I will talk about the theory behind original yields and dividend growth and the percentage of the cost that dividends could cover in another post.
One of the earliest stocks I bought that I still have is Bank of Montreal (TSX-BMO). I bought this stock in 1983 just over 31 years ago. It is a great illustration of why I like dividend growth stocks. On my original investment, I am earning a dividend yield of 44.23%. I paid $7.28 per share when I bought this stock and the current dividend is $3.22 per shares. On my shares I have collected $44.84 per share of dividends or I have collected 615.9% of my cost in dividends.
My dividends on BMO have grown at 6.24% per year. My original dividend yield was 6.73%. The current dividend yield for this stock is 4.05%. This historical median dividend yield is 4.62%. The historical median dividend yield is important as it says where the yield is most likely to be most of the time.
I bought Fortis Inc. (TSX-FTS) in 1987 some 27 years ago. I am making a dividend yield of 29.27% on my original investment. I have received $17.69 in dividends per share on shares costing $4.65. I have received dividends equal to 380.23% of my cost.
My dividends on Fortis have grown at 5.47% per year. My original dividend yield was 6.88%. The current dividend yield is 3.5% and the historical median dividend yield is 3.67%
I bought RioCan Real Estate (TSX-REI.UN) for my Trading Account in 2000 some 15 years ago. I am making a dividend yield of 16.89% on my original investment. I paid $13.39 for my shares in this company in my Trading Account as I bought this stock on 3 different occasions. I have received in dividends $16.13 per share or 120.46% of my costs.
My Dividends have grown at 1.92% per year. When I first bought this stock the dividend yield was 12.75%. The current dividend yield is 5.1%. The historical median dividend yield is 7.81%.
I bought Canadian National Railway (TSX-CNR) almost 10 years ago. I am making 6.93% dividend yield on my original investment. I paid $19.11 per share for my shares in this company. I have collected $5.62 per share and so my dividends have covered 27.8% of the cost of my shares.
My dividends have grown at 18.48% per year. When I bought this stock my dividend yield was 1.39%. The current dividend yield for this stock is 1.43%. The historical median dividend yield is 1.44%.
I also Bought Metro Inc. (TSX-MRU) some 10 years ago. I am currently earning 7.93% in dividends on my original stock purchase price. I paid $5.89 per share for this stock and I have earned $2.45 per share in dividends. Dividends paid to date cover some 41.6% of the original stock cost.
Dividends have grown at 14.9% per year. When I bought this stock my dividend yield was 1.87%. The current dividend yield is 1.51%. The historical median dividend yield is 1.44%.
My stock Computer Modeling Group (TSX-CMG) is a little charmer. I bought this in 2008, just less than 7 years ago. I am earning 17.39% on my original investment. I have so far collected $2.42 per share in dividends and the stock cost me $3.15. That is dividends have paid for 76.7% of the share price. I was originally earning 5.2% dividend yield when I bought this stock.
Dividends have grown at 20.43% per year. When I bought this stock my dividend yield was 5.22%. The current dividend yield is 2.73%. The historical median dividend yield is 3.52%.
In the chart below, the Yield is the one I am getting on my original investment. The Collect Div refers to the amount in dividends per share I have so far collected. The Div % of Cost is showing how much of my stock's original cost is covered by the dividends I have received so far. The Div Grth refers to the rate my dividends have been growing since I bought the stock. The Years refers to the number of years I have held the stock.
| Name | Yield | Collect Div | Div % of Cost | Div Grth | Years |
|---|---|---|---|---|---|
| BMO | 44.23% | $44.84 | 615.9% | 6.24% | 31.6 |
| FTS | 29.25% | $17.69 | 380.32% | 5.47% | 27.55 |
| REI.UN | 16.89% | $16.13 | 120.46% | 1.92% | 15.2 |
| MRU | 7.93% | $2.45 | 41.63% | 14.9% | 10.8 |
| CNR | 6.93% | $5.30 | 27.8% | 18.48% | 9.9 |
| CMG | 17.39% | $2.42 | 76.67% | 20.43% | 6.8 |
On my other blog I am today writing about WSP Global Inc. (TSX-WSP, OTC- WSPOF) ... 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.
Wednesday, June 3, 2015
Something to Buy June 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 to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr).. As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
I follow 19 stocks in the consumer discretionary category. Of these stocks, only Dorel Industries (TSX-DII.B) is showing as cheap by the historically high dividend yield. Four stocks (or 21%) are showing cheap by the historical average dividend yield, 5 (or 26%) are showing cheap by historical median dividend yield and 3 (or 16%) are showing cheap by 5 year median dividend yield.
I follow 10 Consumer Staples stocks. None are showing as cheap by the historically high dividend yield. Two stocks (or 20%) are showing cheap by the historical average dividend yield, 2 (or 20%) are showing cheap by historical median dividend yield and 1 (or 10%) is showing cheap by 5 year median dividend yield.
I only follow two Health Care stocks and both are US stocks. They are both only cheap by the historical average dividend yield and the historical median dividend yield.
I follow 11 Real Estate stocks. None are showing as cheap by the historically high dividend yield. Two stocks (or 18%) are showing cheap by the historical average dividend yield, 3 (or 27%) are showing cheap by historical median dividend yield and 4 (or 36%) are showing cheap by 5 year median dividend yield.
I follow 4 Bank stocks. None are showing as cheap by the historically high dividend yield. Two stocks (or 33%) are showing cheap by the historical average dividend yield, 3 (or 50%) are showing cheap by historical median dividend yield and 4 (or 67%) are showing cheap by 5 year median dividend yield.
I follow 12 Financial Service stocks. None are showing as cheap by the historically high dividend yield. Four stocks (or 33%) are showing cheap by the historical average dividend yield, 7 (or 58%) are showing cheap by historical median dividend yield and 5 (or 42%) are showing cheap by 5 year median dividend yield.
I follow 12 Insurance stocks. None are showing as cheap by the historically high dividend yield. One stock (or 20%) is showing cheap by the historical average dividend yield, 4 (or 80%) are showing cheap by historical median dividend yield and none are showing cheap by 5 year median dividend yield.
I follow 34 Industrial stocks. None are showing as cheap by the historically high dividend yield. Nine stocks (or 26%) are showing cheap by the historical average dividend yield, 12 (or 35%) are showing cheap by historical median dividend yield and 14 (or 41%) are showing cheap by 5 year median dividend yield.
I follow 7 Tech stocks. None are showing as cheap by the historically high dividend yield. Two stocks (or 29%) are showing cheap by the historical average dividend yield, cheap by historical median dividend yield and cheap by 5 year median dividend yield.
I follow 10 Energy stocks. Four Stocks or (40) are showing as cheap by the historical high dividend yield, 5 stocks (or 50%) are showing cheap by the historical average dividend yield, 7 (or 70%) are showing cheap by historical median dividend yield and 7 (or 70%) are showing cheap by 5 year median dividend yield.
I follow 2 Material stocks. None are showing as cheap by the historically high dividend yield. Both stocks are showing cheap by the historical average dividend yield, 1 is showing cheap by historical median dividend yield and 1 is showing cheap by 5 year median dividend yield.
I follow 8 of the infrastructure type utility companies. Only 2 stocks (or 38%) are showing cheap by 5 year median dividend yield and that is it.
I follow 12 of the power type utility companies. Two stocks (or 17%) are showing cheap by the historical average dividend yield, 2 (or 17%) are showing cheap by historical median dividend yield and 4 (or 33%) are showing cheap by 5 year median dividend yield.
I follow 5 of the Telecom Service type utility companies. Three stocks (or 50%) are showing cheap by the historical average dividend yield, 4 (or 67%) are showing cheap by historical median dividend yield and 2 (or 33%) are showing cheap by 5 year median dividend yield.
On my other blog I am today writing about Ag Growth International (TSX-AFN, OTC-AGGZF) ... 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.
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 to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr).. As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
I follow 19 stocks in the consumer discretionary category. Of these stocks, only Dorel Industries (TSX-DII.B) is showing as cheap by the historically high dividend yield. Four stocks (or 21%) are showing cheap by the historical average dividend yield, 5 (or 26%) are showing cheap by historical median dividend yield and 3 (or 16%) are showing cheap by 5 year median dividend yield.
I follow 10 Consumer Staples stocks. None are showing as cheap by the historically high dividend yield. Two stocks (or 20%) are showing cheap by the historical average dividend yield, 2 (or 20%) are showing cheap by historical median dividend yield and 1 (or 10%) is showing cheap by 5 year median dividend yield.
I only follow two Health Care stocks and both are US stocks. They are both only cheap by the historical average dividend yield and the historical median dividend yield.
I follow 11 Real Estate stocks. None are showing as cheap by the historically high dividend yield. Two stocks (or 18%) are showing cheap by the historical average dividend yield, 3 (or 27%) are showing cheap by historical median dividend yield and 4 (or 36%) are showing cheap by 5 year median dividend yield.
I follow 4 Bank stocks. None are showing as cheap by the historically high dividend yield. Two stocks (or 33%) are showing cheap by the historical average dividend yield, 3 (or 50%) are showing cheap by historical median dividend yield and 4 (or 67%) are showing cheap by 5 year median dividend yield.
I follow 12 Financial Service stocks. None are showing as cheap by the historically high dividend yield. Four stocks (or 33%) are showing cheap by the historical average dividend yield, 7 (or 58%) are showing cheap by historical median dividend yield and 5 (or 42%) are showing cheap by 5 year median dividend yield.
I follow 12 Insurance stocks. None are showing as cheap by the historically high dividend yield. One stock (or 20%) is showing cheap by the historical average dividend yield, 4 (or 80%) are showing cheap by historical median dividend yield and none are showing cheap by 5 year median dividend yield.
I follow 34 Industrial stocks. None are showing as cheap by the historically high dividend yield. Nine stocks (or 26%) are showing cheap by the historical average dividend yield, 12 (or 35%) are showing cheap by historical median dividend yield and 14 (or 41%) are showing cheap by 5 year median dividend yield.
I follow 7 Tech stocks. None are showing as cheap by the historically high dividend yield. Two stocks (or 29%) are showing cheap by the historical average dividend yield, cheap by historical median dividend yield and cheap by 5 year median dividend yield.
I follow 10 Energy stocks. Four Stocks or (40) are showing as cheap by the historical high dividend yield, 5 stocks (or 50%) are showing cheap by the historical average dividend yield, 7 (or 70%) are showing cheap by historical median dividend yield and 7 (or 70%) are showing cheap by 5 year median dividend yield.
I follow 2 Material stocks. None are showing as cheap by the historically high dividend yield. Both stocks are showing cheap by the historical average dividend yield, 1 is showing cheap by historical median dividend yield and 1 is showing cheap by 5 year median dividend yield.
I follow 8 of the infrastructure type utility companies. Only 2 stocks (or 38%) are showing cheap by 5 year median dividend yield and that is it.
I follow 12 of the power type utility companies. Two stocks (or 17%) are showing cheap by the historical average dividend yield, 2 (or 17%) are showing cheap by historical median dividend yield and 4 (or 33%) are showing cheap by 5 year median dividend yield.
I follow 5 of the Telecom Service type utility companies. Three stocks (or 50%) are showing cheap by the historical average dividend yield, 4 (or 67%) are showing cheap by historical median dividend yield and 2 (or 33%) are showing cheap by 5 year median dividend yield.
On my other blog I am today writing about Ag Growth International (TSX-AFN, OTC-AGGZF) ... 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.
Monday, June 1, 2015
Dividend Stocks June 2015
The theory is that you should use the dividend yield to see if a dividend stock is selling at a stock price that is relatively cheap. A stock price is considered cheap if it is selling at a dividend yield higher than the historical high yield or higher than the historical average yield or historical median yield. See my spreadsheet at dividend growth stocks that I just updated for June 2015.
On this list,
Algonquin Power & Utilities Corp. (TSX-AQN)
CI Financial (TSX-CIX)
Equitable Group Inc. (TSX-EQB)
Finning International Inc. (TSX-FTT)
High Liner Foods (TSX-HLF)
Lassonde Industries (-TSX-LAS.A)
Loblaw Companies (TSX-L)
Manulife Financial Corp (TSX-MFC)
National Bank of Canada (TSX-NA)
Onex Corp (TSX-OCX)
Pembina Pipelines Corp (TSX-PPL)
Power Corp (TSX-POW)
Sun Life Financial (TSX-SLF)
Telus (TSX-T)
Of the stock that I follow 1 stock has decreased their dividends since last month. Dividends decreased are denoted in red. The stock is Manitoba Telecom (TSX-MBT). Also Brookfield Asset Mgt. (TSX-BAM.A) did a stock split of 3 to 2. This is denoted in blue.
I am showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). See these fields on the right side of the file. You can highlight a particular stock using your cursor to highlight the appropriate line.
There are always some stocks to buy because they are priced reasonably. There are always stocks to currently avoid because they are overpriced. Looking at dividend growth stocks that are selling at stock prices that give them a dividend yield above the historical average dividend yield are probably the best bet.
The stocks that are selling at prices that give them a dividend yield above the historical high yield could be good stocks to buy. However, these stocks may be selling so cheap because of current troubles, especially financial troubles and should be treated with caution. Do not forget that I have all the stocks I follow on this spreadsheet and some are much better investments than others.
However, you should always investigate a stock before you buy. Sometimes different stocks in certain sectors are just out of favour or the stock market is just in one of its declines. However, a stock may be relatively cheap because it has problems. That is why you should always investigate a stock before buying.
Looking at stock this way is equivalent to a stock filter. A main problem I know of is for the old income trusts. These companies have generally lowered their dividend yields forever and they will probably never get back to the old dividend yield highs they made as an income trust company. For these stocks, you might be better comparing the current dividend yield to the 5 year median dividend yield.
Also, on some stocks I have a lot more information years in my spreadsheets than for other stocks. So, finding a stock on the list as "cheap"is only the first step in finding a stock to buy. This is the same with any other sort of stock filters that you can use.
The last thing to remember is that I have entering figures into a spreadsheet. I could put them in incorrectly, I can transpose figures and I can misread figures. This is another great reason why you should check a stock out before investing. As this is just a filter, it works better on some stocks than on others.
See my entry on my methodology in establishing the historical dividend yield highs and lows for the stocks that I cover. I have an entry on my introduction to Dividend Growth. You might want to look at my original entry on Dividend Growth Stocks. I have also written about why I like Dividend Growth companies.
On my other blog I am today writing about Husky Energy Inc. (TSX-HSE, OTC-HUSKF) ... 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.
On this list,
- I have 7 stocks with a dividend yield higher than the historical high dividend yield,
- I have 40 stocks with a dividend yield higher than the historical average dividend yield
- I have 55 stocks with a dividend yield higher than the historical median dividend yield and
- 50 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 6 stocks with a dividend yield higher than the historical high dividend yield,
- I have 34 stocks with a dividend yield higher than the historical average dividend yield
- I have 52 stocks with a dividend yield higher than the historical median dividend yield and
- 38 stocks with a dividend yield higher than the 5 year average dividend yield.
- I had 9 stocks with a dividend yield higher than the historical high dividend yield,
- I had 45 stocks with a dividend yield higher than the historical average dividend yield and
- 39 stocks with a dividend yield higher than the 5 year average dividend yield.
Algonquin Power & Utilities Corp. (TSX-AQN)
CI Financial (TSX-CIX)
Equitable Group Inc. (TSX-EQB)
Finning International Inc. (TSX-FTT)
High Liner Foods (TSX-HLF)
Lassonde Industries (-TSX-LAS.A)
Loblaw Companies (TSX-L)
Manulife Financial Corp (TSX-MFC)
National Bank of Canada (TSX-NA)
Onex Corp (TSX-OCX)
Pembina Pipelines Corp (TSX-PPL)
Power Corp (TSX-POW)
Sun Life Financial (TSX-SLF)
Telus (TSX-T)
Of the stock that I follow 1 stock has decreased their dividends since last month. Dividends decreased are denoted in red. The stock is Manitoba Telecom (TSX-MBT). Also Brookfield Asset Mgt. (TSX-BAM.A) did a stock split of 3 to 2. This is denoted in blue.
I am showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). See these fields on the right side of the file. You can highlight a particular stock using your cursor to highlight the appropriate line.
There are always some stocks to buy because they are priced reasonably. There are always stocks to currently avoid because they are overpriced. Looking at dividend growth stocks that are selling at stock prices that give them a dividend yield above the historical average dividend yield are probably the best bet.
The stocks that are selling at prices that give them a dividend yield above the historical high yield could be good stocks to buy. However, these stocks may be selling so cheap because of current troubles, especially financial troubles and should be treated with caution. Do not forget that I have all the stocks I follow on this spreadsheet and some are much better investments than others.
However, you should always investigate a stock before you buy. Sometimes different stocks in certain sectors are just out of favour or the stock market is just in one of its declines. However, a stock may be relatively cheap because it has problems. That is why you should always investigate a stock before buying.
Looking at stock this way is equivalent to a stock filter. A main problem I know of is for the old income trusts. These companies have generally lowered their dividend yields forever and they will probably never get back to the old dividend yield highs they made as an income trust company. For these stocks, you might be better comparing the current dividend yield to the 5 year median dividend yield.
Also, on some stocks I have a lot more information years in my spreadsheets than for other stocks. So, finding a stock on the list as "cheap"is only the first step in finding a stock to buy. This is the same with any other sort of stock filters that you can use.
The last thing to remember is that I have entering figures into a spreadsheet. I could put them in incorrectly, I can transpose figures and I can misread figures. This is another great reason why you should check a stock out before investing. As this is just a filter, it works better on some stocks than on others.
See my entry on my methodology in establishing the historical dividend yield highs and lows for the stocks that I cover. I have an entry on my introduction to Dividend Growth. You might want to look at my original entry on Dividend Growth Stocks. I have also written about why I like Dividend Growth companies.
On my other blog I am today writing about Husky Energy Inc. (TSX-HSE, OTC-HUSKF) ... 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.
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