What I was looking at with this spreadsheet was how would the original stock price affect how much of the original stock price is covered by dividends and yield on original stock price. I looked at two stocks of Canadian Utilities Ltd. (TSX-CU, OTC-CDUAF) and Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF).
So let's start with Canadian Utilities Ltd. If you had bought this stock 5 years ago at the high, low or median price, the dividends paid to date would cover 18%, 23% and 20% of the cost of the stock of 5 years ago. So if you paid the highest price, the stock cost coverage would be 11% less than if you paid the median price. If you paid the lowest price, the stock cost coverage would be 14.5% higher than if you paid the median price.
Taking figures from my Canadian Utilities Ltd. spreadsheet, if you paid a median price 5 years ago, that price would be $24.19. The dividends collected would be $0.81, $0.89, $0.97, $1.07 and $1.18. This would add up to $4.91. If you dividend $24.19 into $4.91 the answer is 20%. The high price was $27.25 and the low price was $21.13.
Now suppose you bought this company 15 years ago. If you paid the high, low or median price at that time, the dividends paid to date would cover 85%, 141% and 106% of your original stock price. So if you paid the highest price, the stock cost coverage would be 20% less than if you paid the median price. If you paid the lowest price, the stock cost coverage would be 33% higher than if you paid the median price.
With Great-West Lifeco Inc., if you had bought this stock 5 years ago at the high, low or median price, the dividends paid to date would cover 21%, 26% and 23% of the cost of the stock 5 years ago. So if you paid the highest price, the stock cost coverage would be 9% less than if you paid the median price. If you paid the lowest price, the stock cost coverage would be 11% higher than if you paid the median price.
Now suppose you bought this company 15 years ago. If you paid the high, low or median price at that time, the dividends paid to date would cover 80%, 176% and 110% of your original stock price. So if you paid the highest price, the stock cost coverage would be 27% less than if you paid the median price. If you paid the lowest price, the stock cost coverage would be 60% higher than if you paid the median price.
There is a similar effect on the dividend yield on your original purchase price. The longer you have a stock, the more the effect of paying a relatively high price. It is often difficult to get a stock at the low end of a price range, but it is often possible to get a stock at a relative median and below the relative median price.
See the spreadsheet here.
On my other blog I am today writing about Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF) ... 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, October 28, 2015
Monday, October 26, 2015
Update Index, Dividend Spreadsheets
I am today republishing my Index Spreadsheets. This spreadsheet contains some key ratios and other information on the stocks that I follow. This spreadsheet shows when I last updated my individual stock spreadsheet by financial year month and year and Blog update month and year. See the spreadsheet here.
I am also republishing my Dividend Index Spreadsheet. This spreadsheet shows the dividend changes for the years of 2007 to 2016 inclusive. I have color coded increases in green and decreases in red. Other years might be affected by such changes and those years are in black. See the spreadsheet here.
In actual fact these spreadsheets and the month spreadsheets on relative dividend yields are all one spreadsheet. So, if you want a copy of the master spreadsheet, just let me know.
On my other blog I am today writing about Medtronic Inc. (NYSE-MDT) ... learn more...
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 am also republishing my Dividend Index Spreadsheet. This spreadsheet shows the dividend changes for the years of 2007 to 2016 inclusive. I have color coded increases in green and decreases in red. Other years might be affected by such changes and those years are in black. See the spreadsheet here.
In actual fact these spreadsheets and the month spreadsheets on relative dividend yields are all one spreadsheet. So, if you want a copy of the master spreadsheet, just let me know.
On my other blog I am today writing about Medtronic Inc. (NYSE-MDT) ... learn more...
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, October 21, 2015
Dividend Paying Small Caps
I have bought and I follow a number of dividend paying small cap stocks. Small caps have a greater opportunity to grow than large cap stocks. For example when I bought Computer Modelling Group Ltd. (TSX-CMG) in 2008, the market cap was 155M. Today its market cap is $956.5M.
Not all small cap stocks are successful. For example I bought Automodular Corp (TSXV-AM.H) in 2012. Then it was worth $45.8M. Now it is worth $34.4M and it has cut it dividends.
Below are the stocks I have and follow that are dividend paying small caps. They are all under $200M market cap.
From my Portfolio:
Calian Technologies Ltd. (TSX-CTY) $118M
Goodfellow Inc. (TSX-GDL) $75.4M
Hammond Power Solutions Inc. (TSX-HPS.A) $58.3M
McCoy Global (TSX-MCB) $83.7M
TECSYS Inc. (TSX-TCS) $111M
From Stocks I follow:
Chesswood Group (TSX-CHW) $78M
IBI Group Inc. (TSX-IBG) $33M
PFB Corp (TSX-PFB) $61M
Savaria Corporation (TSX-SIS) $163M
I also have and follow another 19 dividend paying stocks that are under $500M in market cap. Reitmans is here because it is in financial trouble and I am having some fun with it.
From my Portfolio:
Ag Growth International (TSX-AFN) $471M
Melcor Developments Inc. (TSX-MRD) $490M
Reitmans (Canada) Ltd. (TSX-RET.A) $278M
From Stocks I follow:
Absolute Software Corporation (TSX-ABT) $344M
AGF Management Ltd (TSX-AGF.B) $429M
Andrew Peller Ltd (TSX-ADW.A) $258M
Atlantic Power Corp (TSX-ATP) $308M
Canexus Corporation (TSX-CUS) $208M
Canyon Services Group (TSX-FRC) $334M
DirectCash Payments Inc. (TSX-DCI) $223M
High Liner Foods (TSX-HLF) $413M
HNZ Group Inc. (TSX-HNZ.A) $206M
K-Bro Linen Inc. (TSX-KBL) $378M
Keg Royalties Income Fund (TSX-KEG.UN) $201M
Newfoundland Capital Corp (TSX-NCC.A) $304M
Penn West Petroleum (TSX-PWT) $423M
Rogers' Sugar (TSX-RSI) $379
Wajax Corp (TSX-WJX) $360
WiLan Inc. (TSX-WIN) $294
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. 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.
Not all small cap stocks are successful. For example I bought Automodular Corp (TSXV-AM.H) in 2012. Then it was worth $45.8M. Now it is worth $34.4M and it has cut it dividends.
Below are the stocks I have and follow that are dividend paying small caps. They are all under $200M market cap.
From my Portfolio:
Calian Technologies Ltd. (TSX-CTY) $118M
Goodfellow Inc. (TSX-GDL) $75.4M
Hammond Power Solutions Inc. (TSX-HPS.A) $58.3M
McCoy Global (TSX-MCB) $83.7M
TECSYS Inc. (TSX-TCS) $111M
From Stocks I follow:
Chesswood Group (TSX-CHW) $78M
IBI Group Inc. (TSX-IBG) $33M
PFB Corp (TSX-PFB) $61M
Savaria Corporation (TSX-SIS) $163M
I also have and follow another 19 dividend paying stocks that are under $500M in market cap. Reitmans is here because it is in financial trouble and I am having some fun with it.
From my Portfolio:
Ag Growth International (TSX-AFN) $471M
Melcor Developments Inc. (TSX-MRD) $490M
Reitmans (Canada) Ltd. (TSX-RET.A) $278M
From Stocks I follow:
Absolute Software Corporation (TSX-ABT) $344M
AGF Management Ltd (TSX-AGF.B) $429M
Andrew Peller Ltd (TSX-ADW.A) $258M
Atlantic Power Corp (TSX-ATP) $308M
Canexus Corporation (TSX-CUS) $208M
Canyon Services Group (TSX-FRC) $334M
DirectCash Payments Inc. (TSX-DCI) $223M
High Liner Foods (TSX-HLF) $413M
HNZ Group Inc. (TSX-HNZ.A) $206M
K-Bro Linen Inc. (TSX-KBL) $378M
Keg Royalties Income Fund (TSX-KEG.UN) $201M
Newfoundland Capital Corp (TSX-NCC.A) $304M
Penn West Petroleum (TSX-PWT) $423M
Rogers' Sugar (TSX-RSI) $379
Wajax Corp (TSX-WJX) $360
WiLan Inc. (TSX-WIN) $294
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. 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, October 19, 2015
Kathleen's Art Show, Toronto
My friend Kathleen with her friends Ethel Christensen, Tom Crane and Ulla Djelweh is having an art show called Transformations 2015 stating on October 30, 2015.
The show is at the Women's Art Association, Dignam Gallery at 23 Prince Arthur Avenue. Phone is 416-922-2060. This Gallery is near the St. George Subway Station, Bedford Exit.
The Opening Reception is on Friday October30, 2013 between the hours of 6 and 9 pm. The show will close on November 5, 2015.
The show is open to the public on Saturday October 31, 2015 between the hours of 6 to 9 pm. Otherwise, viewing is by appointment.
On my other blog I am today writing about Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more...
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, October 14, 2015
Color Coding
As I have mentioned before, I color code a number of things on my spreadsheet. I am changing one color. For things like negative growth I will still use red, but for low growth I will use a dark purple. This will show a difference between low and negative growth.
I mostly color code things like growth in Revenue, EPS, Cash Flow, Book Value and Net Income on my spreadsheet. Red is for negative growth. Purple is for growth lower than 3%. Blue is for moderate growth which for me is from 3% to below 8%. Green is for good growth which I define at 8% and above. This is so I can easily get a sense on how good or bad growth is for a company.
Other color coding can be for dividend growth where red is generally used for dividend declines. I use blue for caution when dividend growth is very low. For dividends you want dividend growth to be at least at the rate of inflation.
I sometimes use red as a "red flag", blue for caution and green for good on other ratios or calculations. I will still use mauve for estimates or things I am not sure of. Also, for growth I will use mauve to show that I do not have a Total Growth or IRR growth for a standard 5 or 10 years.
On my other blog I am today writing about Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF) ... learn more...
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 mostly color code things like growth in Revenue, EPS, Cash Flow, Book Value and Net Income on my spreadsheet. Red is for negative growth. Purple is for growth lower than 3%. Blue is for moderate growth which for me is from 3% to below 8%. Green is for good growth which I define at 8% and above. This is so I can easily get a sense on how good or bad growth is for a company.
Other color coding can be for dividend growth where red is generally used for dividend declines. I use blue for caution when dividend growth is very low. For dividends you want dividend growth to be at least at the rate of inflation.
I sometimes use red as a "red flag", blue for caution and green for good on other ratios or calculations. I will still use mauve for estimates or things I am not sure of. Also, for growth I will use mauve to show that I do not have a Total Growth or IRR growth for a standard 5 or 10 years.
On my other blog I am today writing about Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF) ... learn more...
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.
Tuesday, October 13, 2015
Update Notes
When I review stock price and dividends each month, I also take the opportunity to look at a bit closer at some of the stocks I cover. These some of the stocks I looked at more closely.
Automodular Corp. (TSX-AM.H, OTC-AMZKF)
This company is now listed on NEX Exchange with Symbol of AM.H. There was an offer from the company in which they offer to buy shares worth up to $15M at a price of $2.55 to $2.65 per share. More people took them up on their offer than they wanted to buy. Price was $2.65 per share.
Looking up the price and dividend information this month I was curious as stock was given a dividend payout of $0.24. However, for tax purposes $2.07 of the offer was deem a dividend. There is a news release on this on Automodular's site.
Bombardier Inc. (TSX-BBD.B, OTC-BDRBF)
This stock has fallen a lot. I paid an average of $.60 a share in 1987 and 1988 for this stock. My ACB is $2.47 because of the tax law of taxing capital gains in February 1994. Today it is worth Bombardier is worth $1.55 a share.
Dividends for this company has been an on and off affair. However, to date I have earned dividends of $2.34 per share.
This is an interesting note saying that Caisse de depot et placement du Quebec will be injecting cash into Bombardier by taking on a larger share of the company.
TransAlta Corp. (TSX-TA, NSYE-TAC)
This stock has also fallen a lot. I paid $14.49 per share in 1987. It is worth $6.45 today. Of course I have collected dividends and these dividends equal $26.30 a share. On their web site, the TransAlta's Chief Financial Officer talks about how they are changing TransAlta.
High Liner Foods (TSX-HLF, NSYE-TAC)
This stock's price has fallen just over 40% so far this year. An article by Spy Hill Research on Seeking Alpha suggests that this would be a good time to buy this stock. They put the recent decline down to a disappointing second quarter. Joseph Solitro of Motley Fool thinks it is a screaming buy.
There are also a couple of articles about insider buying at High Liner Foods. In May 2015 Ted Dixon of the Globe and Mail talks about insider buying. In September of 2015, there is an article on Dakota Financial News of insider buying by a director.
There are some analysts' comments on Stock Chase. James Telfser does not like the balance sheet. The Liquidity Ratio is good at 2.52. The Debt Ratio is a little low at 1.41 where I would like for safety sake to be 1.50 or higher. The Leverage and Debt/Equity Ratios are a little high at 3.45 and 2.45. Well the balance sheet is not great; it is not that bad either. Barry Schwartz says that the company has had one bad quarter and it seemed like to whole world was going to end. He thinks that this makes no sense.
On my other blog I am today writing about K-Bro Linen Inc. (TSX-KBL, OTC-KBRLF) ... available learn more...
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.
Automodular Corp. (TSX-AM.H, OTC-AMZKF)
This company is now listed on NEX Exchange with Symbol of AM.H. There was an offer from the company in which they offer to buy shares worth up to $15M at a price of $2.55 to $2.65 per share. More people took them up on their offer than they wanted to buy. Price was $2.65 per share.
Looking up the price and dividend information this month I was curious as stock was given a dividend payout of $0.24. However, for tax purposes $2.07 of the offer was deem a dividend. There is a news release on this on Automodular's site.
Bombardier Inc. (TSX-BBD.B, OTC-BDRBF)
This stock has fallen a lot. I paid an average of $.60 a share in 1987 and 1988 for this stock. My ACB is $2.47 because of the tax law of taxing capital gains in February 1994. Today it is worth Bombardier is worth $1.55 a share.
Dividends for this company has been an on and off affair. However, to date I have earned dividends of $2.34 per share.
This is an interesting note saying that Caisse de depot et placement du Quebec will be injecting cash into Bombardier by taking on a larger share of the company.
TransAlta Corp. (TSX-TA, NSYE-TAC)
This stock has also fallen a lot. I paid $14.49 per share in 1987. It is worth $6.45 today. Of course I have collected dividends and these dividends equal $26.30 a share. On their web site, the TransAlta's Chief Financial Officer talks about how they are changing TransAlta.
High Liner Foods (TSX-HLF, NSYE-TAC)
This stock's price has fallen just over 40% so far this year. An article by Spy Hill Research on Seeking Alpha suggests that this would be a good time to buy this stock. They put the recent decline down to a disappointing second quarter. Joseph Solitro of Motley Fool thinks it is a screaming buy.
There are also a couple of articles about insider buying at High Liner Foods. In May 2015 Ted Dixon of the Globe and Mail talks about insider buying. In September of 2015, there is an article on Dakota Financial News of insider buying by a director.
There are some analysts' comments on Stock Chase. James Telfser does not like the balance sheet. The Liquidity Ratio is good at 2.52. The Debt Ratio is a little low at 1.41 where I would like for safety sake to be 1.50 or higher. The Leverage and Debt/Equity Ratios are a little high at 3.45 and 2.45. Well the balance sheet is not great; it is not that bad either. Barry Schwartz says that the company has had one bad quarter and it seemed like to whole world was going to end. He thinks that this makes no sense.
On my other blog I am today writing about K-Bro Linen Inc. (TSX-KBL, OTC-KBRLF) ... available learn more...
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, October 7, 2015
Something to Buy October 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 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.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
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. Nine (or 47%) are showing cheap by historical median dividend yield. They are the two stock names previously and Canadian Tire Corporation (TSX-CTC.A); Goodfellow Inc. (TSX-GDL); High Liner Foods (TSX-HLF); Leon's Furniture (TSX-LNF); Molson Coors Canada (TSX-TPX.B); Reitmans (Canada) Ltd. (TSX-RET.A) and Thomson Reuters Corp (TSX-TRI).
I follow 10 Consumer Staples stocks. None are showing as cheap by the historically high dividend yield. Three stocks (or 30%) are showing cheap by historical median dividend yield. These are Jean Coutu Group Inc. (TSX-PJC.A); Loblaw Companies (TSX-L) and Saputo Inc. (TSX-SAP).
I only follow two Health Care stocks and both are US stocks. They are both cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ) and Medtronic Inc. (NYSE-MDT).
I follow 12 Real Estate stocks. One is showing as cheap by the historically high dividend yield. That stock is Melcor Developments Inc. (TSX-MRD). Four stocks (or 33%) including the above mention stock are showing cheap historical median dividend yield. The other stocks are Artis REIT (TSX-AX.UN); FirstService Corp (TSX-FSV) and Granite Real Estate (TSX-GRT.UN),
I follow 6 Bank stocks. None are showing as cheap by the historically high dividend yield. Four stocks (or 67%) are showing cheap by the historical median dividend yield. These stocks are Bank of Nova Scotia (TSX-BNS); National Bank of Canada (TSX-NA); Royal Bank (TSX-RY) and Toronto Dominion Bank (TSX-TD).
I follow 12 Financial Service stocks. One is showing as cheap by the historically high dividend yield and that is Home Capital Group. Eight (or 67%) stocks are showing cheap by the historical median dividend yield. These stocks are AGF Management Ltd (TSX-AGF.B); CI Financial (TSX-CIX); DirectCash Payments Inc. (TSX-DCI); Gluskin Sheff + Associates Inc. (TSX-GS); Home Capital Group (TSX-HCG); IGM Financial (TSX-IGM); Power Corp (TSX-POW) and TMX Group Ltd. (TSX-X).
I follow 5 Insurance stocks. None are showing as cheap by the historically high dividend yield. Four stocks (or 80%) are showing cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO); Manulife Financial Corp (TSX-MFC); Power Financial Corp (TSX-PWF) and Sun Life Financial (TSX-SLF).
I follow 34 Industrial stocks. Three are now showing as cheap by the historically high dividend yield (or 09%). These stocks are Finning International Inc. (TSX-FTT); Pason Systems Inc. (TSX-PSI) and SNC-Lavalin (TSX-SNC). Eleven stocks (or 32%) are showing cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR); Finning International Inc. (TSX-FTT); Hammond Power Solutions Inc. (TSX-HPS.A); McCoy Global Inc. (TSX-MCB); Methanex Corp. (TSX-MX); Mullen Group (TSX-MTL); Pason Systems Inc. (TSX-PSI); Russel Metals (TSX-RUS); SNC-Lavalin (TSX-SNC); Toromont Industries Ltd. (TSX-TIH) and Transcontinental Inc. (TSX-TCL.A).
I follow 8 Tech stocks. Two are showing as cheap by the historically high dividend yield and they are Calian Technologies Ltd. (TSX-CTY) and Evertz Technologies (TSX-ET). Five stocks (or 63%) are showing cheap by historical median dividend yield. They are Absolute Software Corporation (TSX-ABT); Calian Technologies Ltd (TSX-CTY); Computer Modelling Group Ltd. (TSX-CMG); Evertz Technologies (TSX-ET) and MacDonald Dettwiler & Assoc. (TSX-MDA).
I follow 10 Energy stocks. Four Stocks or (40%) are showing as cheap by the historical high dividend yield. They are Canadian Natural Resources (TSX-CNQ); Ensign Energy Services (TSX-ESI); Husky Energy (TSX-HSE) and Suncor Energy (TSX-SU). There are Six (or 60%) are showing cheap by historical median dividend yield. They are the four above and Cenovus Energy Inc. (TSX-CVE) and Encana Corp (TSX-ECA).
I follow 2 Material stocks. One is showing as cheap by the historically high dividend yield and that is Teck Resources Ltd. It is also the only one that is cheap by historical median dividend yield.
I follow 8 of the infrastructure type utility companies. Four stocks (or 50%) are showing cheap by historical median dividend yield. They are AltaGas Ltd (TSX-ALA); Enbridge Inc. (TSX-ENB); TransCanada Corp (TSX-TRP) and Veresen Inc. (TSX-VSN).
I follow 12 of the power type utility companies. One is now showing as cheap by the historically high dividend yield and that is TransAlta Corp. Two stock (or 17%) are showing cheap by historical median dividend yield. These stocks are the one above and ATCO Ltd (TSX-ACO.X).
I follow 5 of the Telecom Service type utility companies. One stock (or 20%) is showing cheap by the historical high dividend yield and that stock is WiLan Inc. (TSX-WIN). Four stocks (or 80%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE); Shaw Communications Inc. (TSX-SJR.B); Telus (TSX-T) and WiLan Inc. (TSX-WIN).
On my other blog I am today writing about Granite REIT (TSX-GRT.UN, NYSE-GRP.U) ... learn more...
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 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.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
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. Nine (or 47%) are showing cheap by historical median dividend yield. They are the two stock names previously and Canadian Tire Corporation (TSX-CTC.A); Goodfellow Inc. (TSX-GDL); High Liner Foods (TSX-HLF); Leon's Furniture (TSX-LNF); Molson Coors Canada (TSX-TPX.B); Reitmans (Canada) Ltd. (TSX-RET.A) and Thomson Reuters Corp (TSX-TRI).
I follow 10 Consumer Staples stocks. None are showing as cheap by the historically high dividend yield. Three stocks (or 30%) are showing cheap by historical median dividend yield. These are Jean Coutu Group Inc. (TSX-PJC.A); Loblaw Companies (TSX-L) and Saputo Inc. (TSX-SAP).
I only follow two Health Care stocks and both are US stocks. They are both cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ) and Medtronic Inc. (NYSE-MDT).
I follow 12 Real Estate stocks. One is showing as cheap by the historically high dividend yield. That stock is Melcor Developments Inc. (TSX-MRD). Four stocks (or 33%) including the above mention stock are showing cheap historical median dividend yield. The other stocks are Artis REIT (TSX-AX.UN); FirstService Corp (TSX-FSV) and Granite Real Estate (TSX-GRT.UN),
I follow 6 Bank stocks. None are showing as cheap by the historically high dividend yield. Four stocks (or 67%) are showing cheap by the historical median dividend yield. These stocks are Bank of Nova Scotia (TSX-BNS); National Bank of Canada (TSX-NA); Royal Bank (TSX-RY) and Toronto Dominion Bank (TSX-TD).
I follow 12 Financial Service stocks. One is showing as cheap by the historically high dividend yield and that is Home Capital Group. Eight (or 67%) stocks are showing cheap by the historical median dividend yield. These stocks are AGF Management Ltd (TSX-AGF.B); CI Financial (TSX-CIX); DirectCash Payments Inc. (TSX-DCI); Gluskin Sheff + Associates Inc. (TSX-GS); Home Capital Group (TSX-HCG); IGM Financial (TSX-IGM); Power Corp (TSX-POW) and TMX Group Ltd. (TSX-X).
I follow 5 Insurance stocks. None are showing as cheap by the historically high dividend yield. Four stocks (or 80%) are showing cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO); Manulife Financial Corp (TSX-MFC); Power Financial Corp (TSX-PWF) and Sun Life Financial (TSX-SLF).
I follow 34 Industrial stocks. Three are now showing as cheap by the historically high dividend yield (or 09%). These stocks are Finning International Inc. (TSX-FTT); Pason Systems Inc. (TSX-PSI) and SNC-Lavalin (TSX-SNC). Eleven stocks (or 32%) are showing cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR); Finning International Inc. (TSX-FTT); Hammond Power Solutions Inc. (TSX-HPS.A); McCoy Global Inc. (TSX-MCB); Methanex Corp. (TSX-MX); Mullen Group (TSX-MTL); Pason Systems Inc. (TSX-PSI); Russel Metals (TSX-RUS); SNC-Lavalin (TSX-SNC); Toromont Industries Ltd. (TSX-TIH) and Transcontinental Inc. (TSX-TCL.A).
I follow 8 Tech stocks. Two are showing as cheap by the historically high dividend yield and they are Calian Technologies Ltd. (TSX-CTY) and Evertz Technologies (TSX-ET). Five stocks (or 63%) are showing cheap by historical median dividend yield. They are Absolute Software Corporation (TSX-ABT); Calian Technologies Ltd (TSX-CTY); Computer Modelling Group Ltd. (TSX-CMG); Evertz Technologies (TSX-ET) and MacDonald Dettwiler & Assoc. (TSX-MDA).
I follow 10 Energy stocks. Four Stocks or (40%) are showing as cheap by the historical high dividend yield. They are Canadian Natural Resources (TSX-CNQ); Ensign Energy Services (TSX-ESI); Husky Energy (TSX-HSE) and Suncor Energy (TSX-SU). There are Six (or 60%) are showing cheap by historical median dividend yield. They are the four above and Cenovus Energy Inc. (TSX-CVE) and Encana Corp (TSX-ECA).
I follow 2 Material stocks. One is showing as cheap by the historically high dividend yield and that is Teck Resources Ltd. It is also the only one that is cheap by historical median dividend yield.
I follow 8 of the infrastructure type utility companies. Four stocks (or 50%) are showing cheap by historical median dividend yield. They are AltaGas Ltd (TSX-ALA); Enbridge Inc. (TSX-ENB); TransCanada Corp (TSX-TRP) and Veresen Inc. (TSX-VSN).
I follow 12 of the power type utility companies. One is now showing as cheap by the historically high dividend yield and that is TransAlta Corp. Two stock (or 17%) are showing cheap by historical median dividend yield. These stocks are the one above and ATCO Ltd (TSX-ACO.X).
I follow 5 of the Telecom Service type utility companies. One stock (or 20%) is showing cheap by the historical high dividend yield and that stock is WiLan Inc. (TSX-WIN). Four stocks (or 80%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE); Shaw Communications Inc. (TSX-SJR.B); Telus (TSX-T) and WiLan Inc. (TSX-WIN).
On my other blog I am today writing about Granite REIT (TSX-GRT.UN, NYSE-GRP.U) ... learn more...
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, October 5, 2015
Dividend Stocks October 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 October 2015.
On this list,
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 median 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.
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 Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF)... learn more...
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 16 stocks with a dividend yield higher than the historical high dividend yield,
- I have 54 stocks with a dividend yield higher than the historical average dividend yield
- I have 67 stocks with a dividend yield higher than the historical median dividend yield and
- 70 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 13 stocks with a dividend yield higher than the historical high dividend yield,
- I have 51 stocks with a dividend yield higher than the historical average dividend yield
- I have 65 stocks with a dividend yield higher than the historical median dividend yield and
- 67 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.
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 median 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.
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 Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF)... learn more...
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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