I am basically of a value investor, liking particularly dividend growth companies. I have almost stayed away from resource stocks. I am a buy and hold type investor. But I do have some fooling around money because doing other types of investments is more fun. I currently have around 44% in my RRPS accounts, some 52% in my trading account, around 3% in my TFSA and under 1% in my US$ account.
I am some 99% invested in Canadian Stock and 1% in international stock. Actually I have less than 1% international. I tried investing in the US and International stock, but did not do well so I am back into Canadian Stocks only. I wrote about this in two posts of investing on US Stocks. International Stocks.
When I stopped working in 1999, I had 50% in registered and non-registered accounts. If I had to do that over again, I would put no money in an RRSP. I never got much tax relief and I am paying a high price for what I got.
I sold my last bond in 2007 and have not invested in any since. However, I do have some GICs. This is because I taking money from my RRSP accounts and I feel that I need to 5 years of future dividends and cash or near cash to be able to survive well any future bear markets.
On my other blog I wrote yesterday about Sun Life Financial Inc. (TSX-SLF, NYSE-SLF)... learn more. Tomorrow, I will write about DH Corp (TSX-DH, OTC-DHIFF)... learn more on Friday, March 31, 2017around 5 pm
Also, on my book blog I have put a review of the book The Upright Thinkers by Leonard Mlodinow 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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
Thursday, March 30, 2017
Tuesday, March 28, 2017
Sectors I Invest In
I thought I would show the sectors I have invested in. The first one is in table format. As you can see my main investments are in Consumer, Financial, Industrial and Utilities type stock.
| Sector | Investment |
|---|---|
| Cash | 4.11% |
| Consumer | 13.41% |
| Real Estate | 4.60% |
| Financials | 32.06% |
| Industrial | 16.62% |
| Materials | 0.19% |
| Energy | 0.75% |
| Tech | 2.33% |
| Utilities | 25.84% |
| US MF | 0.08% |
This is a chart of the same information. Here you can visually see the larger investments in Consumer (red), Financial (purple), Industrial (light blue) and Utilities (light green) type stock
Below the sector are broken down further. From this you can see that my biggest investments is in Banks, then Infrastructure Utilities (like pipelines), then Insurance companies and then Power type Utilities (like Emera).
| Sector | Sub-sector | Investment |
|---|---|---|
| Cash | Cash | 4.11% |
| Consumer | Consumer Discretionary | 6.32% |
| Consumer | Consumer Staple | 7.09% |
| Real Estate | Real Estate | 4.60% |
| Financials | Bank | 20.64% |
| Financials | Financial Services | 1.76% |
| Financials | Insurance | 9.66% |
| Industrial | Construction | 7.35% |
| Industrial | Industrial | 0.98% |
| Industrial | Manufacturing | 1.82% |
| Industrial | Services | 6.46% |
| Materials | Materials | 0.19% |
| Resources | Energy | 0.75% |
| Tech | Tech | 2.33% |
| Utilities | Infrastructure | 14.62% |
| Utilities | Power | 9.44% |
| Utilities | Telecom Services | 1.79% |
| US MF | US MF | 0.08% |
This is a chart of the same information. Here you can visually see the larger investments in Banks (blue-green on the right hand side), Infrastructure, Utilities (the light green on the left side), Power, Utilities (purple on the right side), Insurance (the med-blue at the bottom), Consumer Discretionary and Consumer Staples (the right and dark green on the top right).
On my other blog I wrote yesterday BCE Inc. (TSX-BCE, NYSE-BCE)... learn more. Tomorrow, I will write about Sun Life Financial Inc. (TSX-SLF, NYSE-SLF)... learn more on Wednesday, March 29, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
Thursday, March 23, 2017
Have Banks Learned Nothing
First there was the scandal at Wells Fargo. Employees felt so much pressure to make sales targets that in the end they set up millions of fake accounts. Wells Fargo ended up firing over 5,000 employees. There is a story about this on CNN.
You have to wonder how much of the fault should be placed on these employees. Yes, it was the wrong thing to do, but it seems like they felt they had no choice. It seems that they felt they were between a rock and a hard place. I have some sympathy for them. I do not have much sympathy for the CEO John Stumpf and I am glad that he had to resign.
Now we are having similar problems at our Canadian Banks. There is a similar type of story about TD Bank on CBC. Do the people that run our banks not listen to the news? Did they learn nothing from the Wells Fargo scandal? The market seems to recognize the problem with the recent drop in TD Bank's stock.
Losing a job is serious business for employees. For TD Bank to say that they have a code of ethics for employees to follow does not help employees. Large organizations need whistle blowers. Employees need an ombudsman that they can talk to without retribution. This is how you solve such problems and do not development problems in the future.
There are different opinions. Matt Smith of Motley Fool thinks investors should ignore the scandal and buy this stock because of the dip. He does not think it will do long term harm to the bank. There are different views even on Motley Fool where in a recent post Ryan Goldsman says that the stock has not declined enough for it to be a buy. You might also be interested in this blog entry by Million Dollar Journey about how to deal with banks.
On my other blog I wrote yesterday about AltaGas Ltd (TSX-ALA, OTC-ATGFF)... learn more. Tomorrow, I will write about Melcor Developments Inc. (TSX-MRD, OTC-MODVF)... learn more on Friday, March 24, 2017 around 5 pm.
Also, on my book blog I have put a review of the book Russia by Martin Sixsmith 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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
You have to wonder how much of the fault should be placed on these employees. Yes, it was the wrong thing to do, but it seems like they felt they had no choice. It seems that they felt they were between a rock and a hard place. I have some sympathy for them. I do not have much sympathy for the CEO John Stumpf and I am glad that he had to resign.
Now we are having similar problems at our Canadian Banks. There is a similar type of story about TD Bank on CBC. Do the people that run our banks not listen to the news? Did they learn nothing from the Wells Fargo scandal? The market seems to recognize the problem with the recent drop in TD Bank's stock.
Losing a job is serious business for employees. For TD Bank to say that they have a code of ethics for employees to follow does not help employees. Large organizations need whistle blowers. Employees need an ombudsman that they can talk to without retribution. This is how you solve such problems and do not development problems in the future.
There are different opinions. Matt Smith of Motley Fool thinks investors should ignore the scandal and buy this stock because of the dip. He does not think it will do long term harm to the bank. There are different views even on Motley Fool where in a recent post Ryan Goldsman says that the stock has not declined enough for it to be a buy. You might also be interested in this blog entry by Million Dollar Journey about how to deal with banks.
On my other blog I wrote yesterday about AltaGas Ltd (TSX-ALA, OTC-ATGFF)... learn more. Tomorrow, I will write about Melcor Developments Inc. (TSX-MRD, OTC-MODVF)... learn more on Friday, March 24, 2017 around 5 pm.
Also, on my book blog I have put a review of the book Russia by Martin Sixsmith 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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
Tuesday, March 21, 2017
Turning to Religion
The Arab world, China and India at a point in their history turn to the study of religion and away from science and inventiveness. Well in China it more the study literature and morals, but the point is the turning away from questioning the universe and how it works. Are we going the same way in North America?
We are making everything into a religion being lead there by environmentalists and atheists. They seem like religions to be me as they have their dogma and theirs is the only true way. They are dismissive of everyone who does not think or feel the way that they do. They feel people that think differently are either stupid or evil.
We are not producing enough university graduates in courses of science and engineering. That is why we must import people from other countries, like India. Our kids in university do not seem much interested in the sciences. They get decrees say in history and wonder why there are no jobs for them.
Kids in universities do not want to be presented with any new ideas and any idea that might upset them. They want the universities to be safe places. They want universities to be so safe that they will never hear any word that might possibly unset them.
No one today seems to want free speech. They seem to only believe in free speech for themselves but not for anyone that might think or heaven forbid say some that is not deemed to be absolutely and totally politically correct.
Is the election of Donald Trump a protest of all this and the start of change or just another form of groupthink?
Can this end well?
On my other blog I wrote yesterday about TransCanada Corp. (TSX-TRP, NYSE-TRP)... learn more. Tomorrow, I will write about AltaGas Ltd (TSX-ALA, OTC-ATGFF)... learn more on Wednesday, March 22, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
We are making everything into a religion being lead there by environmentalists and atheists. They seem like religions to be me as they have their dogma and theirs is the only true way. They are dismissive of everyone who does not think or feel the way that they do. They feel people that think differently are either stupid or evil.
We are not producing enough university graduates in courses of science and engineering. That is why we must import people from other countries, like India. Our kids in university do not seem much interested in the sciences. They get decrees say in history and wonder why there are no jobs for them.
Kids in universities do not want to be presented with any new ideas and any idea that might upset them. They want the universities to be safe places. They want universities to be so safe that they will never hear any word that might possibly unset them.
No one today seems to want free speech. They seem to only believe in free speech for themselves but not for anyone that might think or heaven forbid say some that is not deemed to be absolutely and totally politically correct.
Is the election of Donald Trump a protest of all this and the start of change or just another form of groupthink?
Can this end well?
On my other blog I wrote yesterday about TransCanada Corp. (TSX-TRP, NYSE-TRP)... learn more. Tomorrow, I will write about AltaGas Ltd (TSX-ALA, OTC-ATGFF)... learn more on Wednesday, March 22, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
Thursday, March 16, 2017
Million Dollar Journey
I thought I would point out this blog entry by the blogger called Million Dollar Journey. He gives good advice on what to buy for dividend income.
He also recently had an entry on Canadian Dividend Growth Stocks. I follow most of these expect for Imperial Oil. His entry on Dividend Kings is also worth a read.
On my other blog I wrote yesterday about Enbridge Inc. (TSX-ENB, NYSE-ENB)... learn more. Tomorrow, I will write about TransAlta Corp. (TSX-TA, NSYE-TAC)... learn more on Friday, March 17, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
He also recently had an entry on Canadian Dividend Growth Stocks. I follow most of these expect for Imperial Oil. His entry on Dividend Kings is also worth a read.
On my other blog I wrote yesterday about Enbridge Inc. (TSX-ENB, NYSE-ENB)... learn more. Tomorrow, I will write about TransAlta Corp. (TSX-TA, NSYE-TAC)... learn more on Friday, March 17, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
Tuesday, March 14, 2017
Buying Bonds
I thought I had published this item, but I cannot find it on blogger, so I am republishing it today.
Bonds are easy to buy and if you have good quality bonds like government bonds or good corporate bonds, then risk is slight and you will get back your capital if you hold the bond to maturity. People do not realize that the bond market is a lot riskier than the stock market. Bonds are only a safe investment if you buy and hold them until maturity.
What you do is phone your broker and ask for what they have in bonds. You are quoted a price per $100 of bond values. If you are buying a new issue, the asking price will be $100. However, if you buy a bond that is already issued, you will price a price per $100 of bond. If the bond has an interest rate above the current interest rate, then you will be quoted a price above $100 of the bond's amount. If the bond has an interest rate above the below interest rate, then you will be quoted a price below $100 of the bond's amount.
There is no commission paid on bonds. How the banks make money is the difference between the buying price and the selling price of the bond.
At maturity a bond will pay $100 per $100 of face amount. So if you paid a price below $100 of face amount, then you will end up with a capital gain between what you paid and the $100 of face amount. If you paid a price above $100 of face amount, then you will end up with a capital loss between what you paid the $100 of face amount.
When you buy a bond, the interest rate you will get is the current one for the type and duration of that bond. If you are getting a higher interest rate that the bond has then you will be quoted a price lower than $100. If you are getting lower interest rate than the bond has then you will be quoted a price higher than $100.
Say you were quoted $106.38 and were buying a bond with a face of $1000. You would be paying $1063.80 for the bond. What you will get by the maturity of the bond is the interest rate promised and the return of the money you paid. The interest payments you receive will be more than those quoted, but you will have a capital loss.
In this example the capital loss would be $63.80. The net amount you will receive is $24.81. You will pay tax on the $88.61 you actually receive in Interest and have a capital loss of $63.80 to be used against any capital gains you have. If you subtract the 63.80 capital loss from $88.61, you get $24.81, the amount you really received.
When you buy the bond you will also paid interest due between the last interest payment and the date you buy the bond. In this example, that would be $5.14.
In another example, say you were quoted $99.796 and were buying a bond with a face of $1000. You would be paying $$997.96 for the bond. What you will get by the maturity of the bond is the interest rate promised and the return of the money you paid. The interest payments you receive will be less than those quoted, but this will be made up for the fact that you will receive back $1000 or $2.04 more than the $997.96 you paid for the bond.
In this example the capital gain would be $2.04. The net amount you will receive is $14.79. You will pay tax on the $12.75 you actually receive in Interest and the capital gain of $2.40. If you add $12.75 and $2.40 you get $14.79.
When you buy the bond you will also paid interest due between the last interest payment and the date you buy the bond. In this example, that would be $0.55.
The thing is that it is not risky in buying a bond on the open market and holding it until maturity. The risk is that if interest rates go up, the value of your bond will go down and people can panic and sell a bond on the open market. The bond market is risky when you buy and sell on the open market. However, if you hold that bond until maturity and ignore the current market price, you will get your money back.
On my other blog I wrote yesterday about Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF)... learn more. Tomorrow, I will write Enbridge Inc. (TSX-ENB, NYSE-ENB)... learn more on Wednesday, March 15, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
Bonds are easy to buy and if you have good quality bonds like government bonds or good corporate bonds, then risk is slight and you will get back your capital if you hold the bond to maturity. People do not realize that the bond market is a lot riskier than the stock market. Bonds are only a safe investment if you buy and hold them until maturity.
What you do is phone your broker and ask for what they have in bonds. You are quoted a price per $100 of bond values. If you are buying a new issue, the asking price will be $100. However, if you buy a bond that is already issued, you will price a price per $100 of bond. If the bond has an interest rate above the current interest rate, then you will be quoted a price above $100 of the bond's amount. If the bond has an interest rate above the below interest rate, then you will be quoted a price below $100 of the bond's amount.
There is no commission paid on bonds. How the banks make money is the difference between the buying price and the selling price of the bond.
At maturity a bond will pay $100 per $100 of face amount. So if you paid a price below $100 of face amount, then you will end up with a capital gain between what you paid and the $100 of face amount. If you paid a price above $100 of face amount, then you will end up with a capital loss between what you paid the $100 of face amount.
When you buy a bond, the interest rate you will get is the current one for the type and duration of that bond. If you are getting a higher interest rate that the bond has then you will be quoted a price lower than $100. If you are getting lower interest rate than the bond has then you will be quoted a price higher than $100.
Say you were quoted $106.38 and were buying a bond with a face of $1000. You would be paying $1063.80 for the bond. What you will get by the maturity of the bond is the interest rate promised and the return of the money you paid. The interest payments you receive will be more than those quoted, but you will have a capital loss.
In this example the capital loss would be $63.80. The net amount you will receive is $24.81. You will pay tax on the $88.61 you actually receive in Interest and have a capital loss of $63.80 to be used against any capital gains you have. If you subtract the 63.80 capital loss from $88.61, you get $24.81, the amount you really received.
When you buy the bond you will also paid interest due between the last interest payment and the date you buy the bond. In this example, that would be $5.14.
| Issuer | Amount | Coupon | Maturity | Paid | Int Rate | Paid |
|---|---|---|---|---|---|---|
| Gov of CDN | $1,000.00 | 3.75% | 1-Jun-19 | $106.38 | 0.99647% | $1,063.80 |
| Int pd yrly | $37.50 | -$63.80 | Cap Loss | |||
| Mths paid | Jun/Dec | Jun/Dec | ||||
| Net Rec | Int Inc | |||||
| 1-Dec-16 | ||||||
| 20-Jan-17 | -$1,063.80 | |||||
| 50 Days | -$5.14 | -$5.14 | ||||
| 1-Jun-17 | $18.75 | $18.75 | ||||
| 1-Dec-17 | $18.75 | $18.75 | ||||
| 1-Jun-18 | $18.75 | $18.75 | ||||
| 1-Dec-18 | $18.75 | $18.75 | ||||
| 1-Jun-19 | $18.75 | $18.75 | ||||
| $1,000.00 | ||||||
| Sum | $24.81 | $88.61 | Int. Inc. |
In another example, say you were quoted $99.796 and were buying a bond with a face of $1000. You would be paying $$997.96 for the bond. What you will get by the maturity of the bond is the interest rate promised and the return of the money you paid. The interest payments you receive will be less than those quoted, but this will be made up for the fact that you will receive back $1000 or $2.04 more than the $997.96 you paid for the bond.
In this example the capital gain would be $2.04. The net amount you will receive is $14.79. You will pay tax on the $12.75 you actually receive in Interest and the capital gain of $2.40. If you add $12.75 and $2.40 you get $14.79.
When you buy the bond you will also paid interest due between the last interest payment and the date you buy the bond. In this example, that would be $0.55.
| Issuer | Amount | Coupon | Maturity | Paid | Int Rate | Paid |
|---|---|---|---|---|---|---|
| BNS | $1,000.00 | 1.33% | 5-Jan-18 | $99.796 | 1.49323% | $997.96 |
| Int pd yrly | $13.30 | $2.04 | Cap Gain | |||
| Mths paid | Jan/Jul | |||||
| Net Rec | Int Inc | |||||
| 5-Jan-17 | ||||||
| 20-Jan-17 | -$997.96 | |||||
| 15 | -$0.55 | -$0.55 | ||||
| 5-Jul-17 | $6.65 | $6.65 | ||||
| 5-Jan-18 | $6.65 | $6.65 | ||||
| 5-Jan-18 | $1,000.00 | |||||
| $14.79 | $12.75 | Int. Inc. |
The thing is that it is not risky in buying a bond on the open market and holding it until maturity. The risk is that if interest rates go up, the value of your bond will go down and people can panic and sell a bond on the open market. The bond market is risky when you buy and sell on the open market. However, if you hold that bond until maturity and ignore the current market price, you will get your money back.
On my other blog I wrote yesterday about Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF)... learn more. Tomorrow, I will write Enbridge Inc. (TSX-ENB, NYSE-ENB)... learn more on Wednesday, March 15, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
Thursday, March 9, 2017
Something to Buy March 2017
There is always something to buy in the stock market. On Tuesday, 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.
This system does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If not a valid test I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 5 year median dividend yield.
However, no system is perfect. But if you are interested in buying 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 Something to Buy March 2017 Spreadsheet 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 21 stocks in the Consumer Discretionary category. None of these stocks are showing as cheap by the historically high dividend yield. Eleven (or 52%) are showing cheap by historical median dividend yield. They are Canadian Tire Corporation (TSX-CTC.A, OTC-CDNAF), DHX Media Ltd. (TSX-DHX.A, OTC-DHXMF), Dorel Industries (TSX-DII.B), Goeasy Ltd. (TSX-GSY, OTC-EHMEF), Goodfellow Inc. (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF); Magna International Inc. (TSX-MG), Newfoundland Capital Corp (TSX-NCC.A), Reitmans (Canada) Ltd. (TSX-RET.A) and Thomson Reuters Corp (TSX-TRI, NYSE-TRI) Both Goeasy Ltd. (TSX-GSY, OTC-EHMEF) and Thomson Reuters Corp (TSX-TRI, NYSE-TRI) are new to this list.
I follow 12 Consumer Staples stocks. There is one company showing as cheap by the historically high dividend yield and that is Empire Company Ltd. (TSX-EMP.A, OTC-EMLAF). Four stocks (or 33%) are showing cheap by historical median dividend yield. These are Empire Company Ltd. (TSX-EMP.A, OTC-EMLAF), Jean Coutu Group Inc. (TSX-PJC.A, OTC-JCOUF), Loblaw Companies (TSX-L, OTC-LBLCF) and Metro Inc. (TSX-MRU, OTC-MTRAF). There is no change from last month.
I only follow two Health Care stocks and both are US stocks. None of these stocks are showing as cheap by the historically high dividend yield. They are both cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ) and Medtronic Inc. (NYSE-MDT). This is the same as for last month.
I follow 12 Real Estate stocks. None of these stocks are showing as cheap by the historically high dividend yield. Three stocks (or 25%) are showing cheap by historical median dividend yield. They are Artis REIT (TSX-AX.UN); Granite Real Estate (TSX-GRT.UN) and Melcor Developments Inc. (TSX-MRD. This is the same as last month.
I follow 8 Bank stocks. There is one company showing as cheap by the historically high dividend yield and that is Home Capital Group (TSX-HCG, OTC-HMCBF). Two stocks (or 25%) are showing cheap by the historical median dividend yield. These stocks are CIBC (TSX-CM, NYSE-CM) and Home Capital Group (TSX-HCG, OTC-HMCBF). National Bank of Canada (TSX-NA, OTC-NTIOF) has been taken off this list.
I follow 13 Financial Service stocks. None are showing as cheap by the historically high dividend yield. Seven (or 54%) stocks are showing cheap by the historical median dividend yield. These stocks are Accord Financial Corp (TSX-ACD, OTC-ACCFF), AGF Management Ltd (TSX-AGF.B), Alaris Royalty Corp (TSX-AD, OTC-ALARF), CI Financial (TSX-CIX), Gluskin Sheff + Associates Inc. (TSX-GS), IGM Financial (TSX-IGM) and Power Corp (TSX-POW). Equitable Group Inc. (TSX-EQB, OTC-EQGPF) has been taken off this list.
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). There is no change from last month.
I follow 33 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 6 Construction stocks. None are cheap by the historically high dividend yield. Two stocks or 33% are showing as cheap by historical median dividend yield. They are and SNC-Lavalin (TSX-SNC, OTC-SNCAF) and Stantec Inc. (TSX-STN, NYSE-STN). There is no change from last month.
I have 3 stocks I have left with the sub-index of Industrial. None are cheap by the historically high dividend yield. Two stocks or 67% are showing as cheap by historical median dividend yield. They are Finning International Inc. (TSX-FTT, OTC-FINGF), and Russel Metals (TSX-RUS, OTC-RUSMF). There is no change.
I have 9 Manufacturing stocks. There is one company showing as cheap by the historically high dividend yield. Five stocks or 56% are showing as cheap by historical median dividend yield. They are Canam Group Inc. (TSX-CAM, OTC-CNMGA), Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), Hammond Power Solutions Inc. (TSX-HPS.A, OTC-HMDPF), Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF) and PFB Corp (TSX-PFB, OTC-PFBOF). Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF) has been added back to from this list.
I have 15 Services stocks. None are showing as cheap by the historically high dividend yield. Three stocks or 20% are showing as cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc. (TSX-PSI, OTC-PSYTF) and Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF). There is no change from last month.
I follow 7 Material stocks. None are showing as cheap by the historically high dividend yield. No stock is showing as cheap by historical median dividend yield. There is no change from last month.
I follow 10 Energy stocks. Mullen Group (TSX, MT, OTC-MLLGF) has been reclassified to this group from Industrial Services. One Stock or (10%) is showing as cheap by the historical high dividend yield. It is Ensign Energy Services (TSX-ESI, OTC-ESVIF). There are three stocks (or 30%) showing cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Ensign Energy Services (TSX-ESI, OTC-ESVIF); and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
I follow 8 Tech stocks. None are showing as cheap by historical high dividend yield. Five stocks (or 63%) are showing cheap by historical median dividend yield. They are Absolute Software Corporation (TSX-ABT, OTC-ALSWF) Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF), Evertz Technologies (TSX-ET, OTC-EVTZF), MacDonald Dettwiler & Assoc. (TSX-MDA, OTC-MDDWF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Sylogist Ltd (TSXV-SYZ, OTC-SYZLF) has been added to this list.
I follow 8 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. Two stocks (or 25%) are showing cheap by historical median dividend yield. They are AltaGas Ltd (TSX-ALA, OTC-ATGFF) and Enbridge Inc. (TSX-ENB, NYSE-ENB). This is the same as last month.
I follow 12 of the Power type utility companies. None are showing as cheap by the historically high dividend yield. Four stock (or 33%) is showing cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), Emera Inc. (TSX-EMA, OTC-EMRAF), and Fortis Inc. (TSX-FTS, OTC-FRTSF). Emera Inc. (TSX-EMA, OTC-EMRAF) has been added to this list.
I follow 5 of the Telecom Service type utility companies. No stock is showing cheap by the historical high dividend yield. Two stocks (or 40%) are showing cheap by historical median dividend yield. These stocks are Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU) WiLan Inc. (TSX-WIN, NASDAQ-WILN) has been deleted from this list.
On my other blog I wrote yesterday about Canadian Tire Corp. (TSX-CTC.A, OTC-CDNAF)... learn more Tomorrow, I will write about Goodfellow Inc. (TSX-GDL, OTC-GFELF)... learn more on Friday, March 10, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. 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.
This system does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If not a valid test I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 5 year median dividend yield.
However, no system is perfect. But if you are interested in buying 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 Something to Buy March 2017 Spreadsheet 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 21 stocks in the Consumer Discretionary category. None of these stocks are showing as cheap by the historically high dividend yield. Eleven (or 52%) are showing cheap by historical median dividend yield. They are Canadian Tire Corporation (TSX-CTC.A, OTC-CDNAF), DHX Media Ltd. (TSX-DHX.A, OTC-DHXMF), Dorel Industries (TSX-DII.B), Goeasy Ltd. (TSX-GSY, OTC-EHMEF), Goodfellow Inc. (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF); Magna International Inc. (TSX-MG), Newfoundland Capital Corp (TSX-NCC.A), Reitmans (Canada) Ltd. (TSX-RET.A) and Thomson Reuters Corp (TSX-TRI, NYSE-TRI) Both Goeasy Ltd. (TSX-GSY, OTC-EHMEF) and Thomson Reuters Corp (TSX-TRI, NYSE-TRI) are new to this list.
I follow 12 Consumer Staples stocks. There is one company showing as cheap by the historically high dividend yield and that is Empire Company Ltd. (TSX-EMP.A, OTC-EMLAF). Four stocks (or 33%) are showing cheap by historical median dividend yield. These are Empire Company Ltd. (TSX-EMP.A, OTC-EMLAF), Jean Coutu Group Inc. (TSX-PJC.A, OTC-JCOUF), Loblaw Companies (TSX-L, OTC-LBLCF) and Metro Inc. (TSX-MRU, OTC-MTRAF). There is no change from last month.
I only follow two Health Care stocks and both are US stocks. None of these stocks are showing as cheap by the historically high dividend yield. They are both cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ) and Medtronic Inc. (NYSE-MDT). This is the same as for last month.
I follow 12 Real Estate stocks. None of these stocks are showing as cheap by the historically high dividend yield. Three stocks (or 25%) are showing cheap by historical median dividend yield. They are Artis REIT (TSX-AX.UN); Granite Real Estate (TSX-GRT.UN) and Melcor Developments Inc. (TSX-MRD. This is the same as last month.
I follow 8 Bank stocks. There is one company showing as cheap by the historically high dividend yield and that is Home Capital Group (TSX-HCG, OTC-HMCBF). Two stocks (or 25%) are showing cheap by the historical median dividend yield. These stocks are CIBC (TSX-CM, NYSE-CM) and Home Capital Group (TSX-HCG, OTC-HMCBF). National Bank of Canada (TSX-NA, OTC-NTIOF) has been taken off this list.
I follow 13 Financial Service stocks. None are showing as cheap by the historically high dividend yield. Seven (or 54%) stocks are showing cheap by the historical median dividend yield. These stocks are Accord Financial Corp (TSX-ACD, OTC-ACCFF), AGF Management Ltd (TSX-AGF.B), Alaris Royalty Corp (TSX-AD, OTC-ALARF), CI Financial (TSX-CIX), Gluskin Sheff + Associates Inc. (TSX-GS), IGM Financial (TSX-IGM) and Power Corp (TSX-POW). Equitable Group Inc. (TSX-EQB, OTC-EQGPF) has been taken off this list.
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). There is no change from last month.
I follow 33 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 6 Construction stocks. None are cheap by the historically high dividend yield. Two stocks or 33% are showing as cheap by historical median dividend yield. They are and SNC-Lavalin (TSX-SNC, OTC-SNCAF) and Stantec Inc. (TSX-STN, NYSE-STN). There is no change from last month.
I have 3 stocks I have left with the sub-index of Industrial. None are cheap by the historically high dividend yield. Two stocks or 67% are showing as cheap by historical median dividend yield. They are Finning International Inc. (TSX-FTT, OTC-FINGF), and Russel Metals (TSX-RUS, OTC-RUSMF). There is no change.
I have 9 Manufacturing stocks. There is one company showing as cheap by the historically high dividend yield. Five stocks or 56% are showing as cheap by historical median dividend yield. They are Canam Group Inc. (TSX-CAM, OTC-CNMGA), Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), Hammond Power Solutions Inc. (TSX-HPS.A, OTC-HMDPF), Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF) and PFB Corp (TSX-PFB, OTC-PFBOF). Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF) has been added back to from this list.
I have 15 Services stocks. None are showing as cheap by the historically high dividend yield. Three stocks or 20% are showing as cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc. (TSX-PSI, OTC-PSYTF) and Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF). There is no change from last month.
I follow 7 Material stocks. None are showing as cheap by the historically high dividend yield. No stock is showing as cheap by historical median dividend yield. There is no change from last month.
I follow 10 Energy stocks. Mullen Group (TSX, MT, OTC-MLLGF) has been reclassified to this group from Industrial Services. One Stock or (10%) is showing as cheap by the historical high dividend yield. It is Ensign Energy Services (TSX-ESI, OTC-ESVIF). There are three stocks (or 30%) showing cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Ensign Energy Services (TSX-ESI, OTC-ESVIF); and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
I follow 8 Tech stocks. None are showing as cheap by historical high dividend yield. Five stocks (or 63%) are showing cheap by historical median dividend yield. They are Absolute Software Corporation (TSX-ABT, OTC-ALSWF) Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF), Evertz Technologies (TSX-ET, OTC-EVTZF), MacDonald Dettwiler & Assoc. (TSX-MDA, OTC-MDDWF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Sylogist Ltd (TSXV-SYZ, OTC-SYZLF) has been added to this list.
I follow 8 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. Two stocks (or 25%) are showing cheap by historical median dividend yield. They are AltaGas Ltd (TSX-ALA, OTC-ATGFF) and Enbridge Inc. (TSX-ENB, NYSE-ENB). This is the same as last month.
I follow 12 of the Power type utility companies. None are showing as cheap by the historically high dividend yield. Four stock (or 33%) is showing cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), Emera Inc. (TSX-EMA, OTC-EMRAF), and Fortis Inc. (TSX-FTS, OTC-FRTSF). Emera Inc. (TSX-EMA, OTC-EMRAF) has been added to this list.
I follow 5 of the Telecom Service type utility companies. No stock is showing cheap by the historical high dividend yield. Two stocks (or 40%) are showing cheap by historical median dividend yield. These stocks are Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU) WiLan Inc. (TSX-WIN, NASDAQ-WILN) has been deleted from this list.
On my other blog I wrote yesterday about Canadian Tire Corp. (TSX-CTC.A, OTC-CDNAF)... learn more Tomorrow, I will write about Goodfellow Inc. (TSX-GDL, OTC-GFELF)... learn more on Friday, March 10, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
Tuesday, March 7, 2017
Dividend Stocks March 2017
First I want to point out that not all of the stocks I follow are great investments. I follow a diverse selection of stocks. There are some that I would never invest in personally. I follow a number of resource stocks even though I personally have little invested in this area. I follow what I find interesting and with resource stocks, I think it is important for Canadians to know what is happening in the resource area. On the other hand I do follow of good number of great dividend growth stocks.
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 March 2017.
Barrick Gold Corp. (TSX-ABX, NYSE-ABX)
Bank of Nova Scotia (TSX-BNS, NYSE-BNS)
Brookfield Asset Management (TSX-BAM.A, NYSE-BAM)
Canadian Natural Resources (TSX-CNQ, NYSE-CNQ)
CCL Industries (TSX-CCL.B, OTC-CCDBF)
CIBC (TSX-CM, NYSE-CM)
DHX Media Ltd. (TSX-DHX.A, OTC-DHXMF)
Equitable Group Inc. (TSX-EQB, OTC-EQGPF)
FirstService Corp. (TSX-FSV, NASDAQ-FSV)
Goeasy Ltd. (TSX-GSY, OTC-EHMEF)
Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF)
Leon's Furniture (TSX-LNF, OTC-LEFUF)
Innergex Renewable Energy (TSX-INE, OTC-INGXF)
Intact Financial Corp. (TSX-IFC, OTC-IFCZF)
Magna International Inc. (TSX-MG, NYSE-MGA)
Manulife Financial Corp (TSX-MFC, NYSE-MFC)
Royal Bank (TSX-RY, NYSE-RY)
SNC-Lavalin (TSX-SNC, OTC-SNCAF)
Stantec Inc. (TSX-STN, NYSE-STN)
Thomson Reuters Corp (TSX-TRI, NYSE-TRI)
Toromont Industries Ltd. (TSX-TIH, OTC-TMTNF)
Toronto Dominion Bank (TSX-TD, NYSE-TD)
TransCanada Corp (TSX-TRP, NYSE-TRP)
Of the stocks that I follow 0 companies has decreased their dividends.
Most of my stocks started out as Dividend Payers. Currently 15 stocks are not paying any dividends and this would be some 10.14% of the stocks that I follow. Three of these stocks never had dividends, so 8.11% of the stocks I follow have suspended their dividends. The three stocks that never paid dividends are Ballard Power Systems Inc. (TSX-BLD, NASDAQ-BLDP0, Blackberry Ltd. (TSX-BB, NASDAQ-BBRY) and Kombat Copper Inc. (TSX-KBT, OTC-PNTZF).
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. I also started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If not a valid test I use N to show this.
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 wrote yesterday about H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF)... learn more. Tomorrow, I will write about Canadian Tire Corp. (TSX-CTC.A, OTC-CDNAF)... learn more on Wednesday, March 8, 2017 around 5 pm.
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 website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
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 March 2017.
- I have 3 stocks with a dividend yield higher than the historical high dividend yield,
- I have 36 stocks with a dividend yield higher than the historical average dividend yield
- I have 61 stocks with a dividend yield higher than the historical median dividend yield and
- 60 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 3 stocks with a dividend yield higher than the historical high dividend yield,
- I have 33 stocks with a dividend yield higher than the historical average dividend yield
- I have 59 stocks with a dividend yield higher than the historical median dividend yield and
- 61 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.
Barrick Gold Corp. (TSX-ABX, NYSE-ABX)
Bank of Nova Scotia (TSX-BNS, NYSE-BNS)
Brookfield Asset Management (TSX-BAM.A, NYSE-BAM)
Canadian Natural Resources (TSX-CNQ, NYSE-CNQ)
CCL Industries (TSX-CCL.B, OTC-CCDBF)
CIBC (TSX-CM, NYSE-CM)
DHX Media Ltd. (TSX-DHX.A, OTC-DHXMF)
Equitable Group Inc. (TSX-EQB, OTC-EQGPF)
FirstService Corp. (TSX-FSV, NASDAQ-FSV)
Goeasy Ltd. (TSX-GSY, OTC-EHMEF)
Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF)
Leon's Furniture (TSX-LNF, OTC-LEFUF)
Innergex Renewable Energy (TSX-INE, OTC-INGXF)
Intact Financial Corp. (TSX-IFC, OTC-IFCZF)
Magna International Inc. (TSX-MG, NYSE-MGA)
Manulife Financial Corp (TSX-MFC, NYSE-MFC)
Royal Bank (TSX-RY, NYSE-RY)
SNC-Lavalin (TSX-SNC, OTC-SNCAF)
Stantec Inc. (TSX-STN, NYSE-STN)
Thomson Reuters Corp (TSX-TRI, NYSE-TRI)
Toromont Industries Ltd. (TSX-TIH, OTC-TMTNF)
Toronto Dominion Bank (TSX-TD, NYSE-TD)
TransCanada Corp (TSX-TRP, NYSE-TRP)
Of the stocks that I follow 0 companies has decreased their dividends.
Most of my stocks started out as Dividend Payers. Currently 15 stocks are not paying any dividends and this would be some 10.14% of the stocks that I follow. Three of these stocks never had dividends, so 8.11% of the stocks I follow have suspended their dividends. The three stocks that never paid dividends are Ballard Power Systems Inc. (TSX-BLD, NASDAQ-BLDP0, Blackberry Ltd. (TSX-BB, NASDAQ-BBRY) and Kombat Copper Inc. (TSX-KBT, OTC-PNTZF).
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. I also started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If not a valid test I use N to show this.
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 wrote yesterday about H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF)... learn more. Tomorrow, I will write about Canadian Tire Corp. (TSX-CTC.A, OTC-CDNAF)... learn more on Wednesday, March 8, 2017 around 5 pm.
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 website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits.
Thursday, March 2, 2017
If I Knew Then 3
As I said in my first post, that if I knew then what I know now, I would just invest in Canadian Dividend Growth Stocks. I did try investing in the US, in International Stocks and in Mutual Funds. In this post I want to talk about my adventures in International stocks.
Telefonica SA was a Spanish multinational broadband and telecommunications provider with operations in Europe, Asia, and North, Central and South America I invested some $10,570 in this company in 2000. I decided to sell this stock in June 2005. I sold for $6,842 and a 35% loss. I ended up with odd number of shares because the company decided after I bought it to force shareholders to take shares rather than dividends.
S&P in 2005 recommend this stock as a hold and said it was fully and fairly valued at present time. Most analysts rated it as a hold. I thought it was going nowhere. I could not find any cash flow statement with their recent annual report. I sold my shares for $59.88 a share. This company is now worth $10.13 a share.
I did make a 67% profit (or just under ($8,000) on Cable & Wireless HKT which was the Hong Kong operations of British-based telecom firm Cable & Wireless. I bought this stock in 1998 and was force to sell in 2000. The company was acquired by Pacific Century Cyberworks. I paid $11,343 for this company and got back $18,842. This was a gain of 66% over a period of less than 2 years.
Nokia is a Finnish multinational communications and information technology company that I held from 1999 to 2008 and made 2.23% per year. That was 16% profit or just under $2000 over a more than an 8 year period. I paid $26.27 for the shares and sold them at $27.92. The current price for these shares is $5.14.
I still have Barclay's Bank which I bought in 2000 and have made 1.63% per year in total returns. My total returns consist of a capital loss of 4.54% per year and dividends of 6.17% per year. My capital loss is 54.4% but I have gained a total of 18.9% because of dividends. Dividends have now paid for some 73% of my stock's cost. I probably should sell this.
This bank was doing fine until 2008. It seems like our banks did much better coming out of the 2008 problems than European and indeed a lot of US banks.
On my other blog I wrote yesterday about RioCan Real Estate (TSX-REI.UN, OTC- RIOCF)... learn more. Tomorrow, I will write about Allied Properties Real Estate Investment Trust (TSX-AP.UN, OTC- APYRF)... learn more on Friday, March 3, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
Telefonica SA was a Spanish multinational broadband and telecommunications provider with operations in Europe, Asia, and North, Central and South America I invested some $10,570 in this company in 2000. I decided to sell this stock in June 2005. I sold for $6,842 and a 35% loss. I ended up with odd number of shares because the company decided after I bought it to force shareholders to take shares rather than dividends.
S&P in 2005 recommend this stock as a hold and said it was fully and fairly valued at present time. Most analysts rated it as a hold. I thought it was going nowhere. I could not find any cash flow statement with their recent annual report. I sold my shares for $59.88 a share. This company is now worth $10.13 a share.
I did make a 67% profit (or just under ($8,000) on Cable & Wireless HKT which was the Hong Kong operations of British-based telecom firm Cable & Wireless. I bought this stock in 1998 and was force to sell in 2000. The company was acquired by Pacific Century Cyberworks. I paid $11,343 for this company and got back $18,842. This was a gain of 66% over a period of less than 2 years.
Nokia is a Finnish multinational communications and information technology company that I held from 1999 to 2008 and made 2.23% per year. That was 16% profit or just under $2000 over a more than an 8 year period. I paid $26.27 for the shares and sold them at $27.92. The current price for these shares is $5.14.
I still have Barclay's Bank which I bought in 2000 and have made 1.63% per year in total returns. My total returns consist of a capital loss of 4.54% per year and dividends of 6.17% per year. My capital loss is 54.4% but I have gained a total of 18.9% because of dividends. Dividends have now paid for some 73% of my stock's cost. I probably should sell this.
This bank was doing fine until 2008. It seems like our banks did much better coming out of the 2008 problems than European and indeed a lot of US banks.
On my other blog I wrote yesterday about RioCan Real Estate (TSX-REI.UN, OTC- RIOCF)... learn more. Tomorrow, I will write about Allied Properties Real Estate Investment Trust (TSX-AP.UN, OTC- APYRF)... learn more on Friday, March 3, 2017 around 5 pm.
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. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter.
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