Stephen Moore spoke in the opening ceremonies on "Let's call it Trumponomics: Can it work for Investors and Workers". Stephen Moore is Distinguished Visiting Fellow of the Heritage Foundation. Their site is www.heritage.org. The Heritage Foundation is a conservative think tank.
He thinks that America will regain prosperity. He is optimistic of the US economy because of Trumponomics. Most politicians are charismatic in public and jerks in private. Trump is a jerk in public and charismatic in private.
He is pro-Trump. He thought the odds of him winning were 20 to one. Even on the election night at 6:30 pm Hillary's pollsters said she had a 95% chance of winning.
The single biggest story currently is shale oil and gas. The oil and gas boom has outpaced the US economy. It is a good news story. The US, Canada and Mexico will out-produce the Middle East. We will not need to buy oil from the Middle East (a terrorist region).
The falling cost of energy is great for the consumers who can now spend what they would have spent on energy on other things. The future is $50 barrels of oil. It will never go back up to $100 a barrel again. We are not running out of oil and gas. So far green industries cannot survive without massive Government subsidies.
We are in the start of a bull market. We have had the worse recovery since WWII. It has been a long and shallow recovery. In an average recovery the economy grows 29%. In the current one it has grown by 14.9%. Obama raised taxes and he raised spending. With Reaganomics, Regan said that the government is not the solution, it is the problem. Reagan grew the economy 36%. Obama grew the economy 14.9%.
Last year the economy under Obama the GDP growth was 1.6%. With Trump the economy grew 3%. It is now growing at 3.4%. The 1970's were not that flat in growth. If you take inflation into account, it went down.
Kennedy said that the tax rates were too high and the revenues were too low. This is surprising for a democrat. Current US corporate rates are high at 40% with the rest of the world having rates of 20 to 25%. Canada has corporate tax rates of 20 to 25% and US companies are moving to Canada. Ireland has rates of 12.5%. He would like to see US rates cut to 20% to make the US more competitive.
If rates were cut it would be good for the US market. There is a healthy debate going on about whether or not a tax cut is priced into the market. There is a 50-50 change of a tax cut to 20%.
We have had years of risk aversion even with low interest rates. The war on business is over with Obama gone. This is positive for the markets. Education and Health care costs have gone up a lot. They are government control but are a third party payer system. Education in Northwestern is $63,000 a year.
The years for tech to get into homes at the rate of 50% have changed. It took the phone 71 years for 50% penetration. It took the iPod 4 years. In 1987 the cell phone was like a brick and it cost $4,000. Tech will liberate people.
There is a new engine without spark plugs that will increase the gas engines efficiency by 30 to 40%. He will bet on it against the electric cars. He bets that a natural gas car will make the electric cars look like a bad idea.
If growth goes up to 3.5% to 4% then the debt problem goes down. Health case is a mess, but republicans are not good at this. There needs to be tax cuts for the republicans to retain power. He does not think that Trump will get impeached. He thinks there is only a 2 to 3% chance of that happening.
In Illinois 1 out of every 4 tax dollars go to pensioners. California is also in financial trouble.
On my other blog I wrote yesterday about Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF)... learn more. Next, I will write about Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF)... learn more on Friday, September 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, September 28, 2017
Tuesday, September 26, 2017
Money Show 2017 - Edward Yardeni
Edward Yardeni spoke in the opening ceremonies on "Trump World". Edward Yardeni is President of Yardeni research Inc. Their site is yardeni.com.
Ever since Trump was elected we have been in a reality show. However, 8 years of deal makers might be good for the economy. Under Obama the economy did well despite the government.
Trump had promised to the drain the swamp that is the government in D. C. However, Trumps has been sucked into the swamp.
The way things are going it seems that Trump may not get anything done. He seems to be his own worst enemy. The US founders founded a system not to work and it does not work.
The only solution to the problem in North Korea is for China to swat this guy. China wants the South China Sea and trade in exchange for denuclearizing North Korea.
We are in a long Term bull market. It is expensive to get into the market. However, if you are in the market you should stay in it. Globalization is not new. We had that also before WWI. Free trades are good for consumers, but it is the only class that it is good for.
Our demographics are deflationary. All over the world we are not growing population except for India and Africa. Since 2011 Japan had more people dying than being born. We are all going down the same road. China is going that way. China could go the way of japan. It will run out of steam instead of crashing.
He favors dividend stocks.
On my other blog I wrote yesterday about Trican Well Service Ltd (TSX-TCS, OTC-TOLWF)... learn more. Tomorrow, I will write about Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF)... learn more on Wednesday, September 27, 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Ever since Trump was elected we have been in a reality show. However, 8 years of deal makers might be good for the economy. Under Obama the economy did well despite the government.
Trump had promised to the drain the swamp that is the government in D. C. However, Trumps has been sucked into the swamp.
The way things are going it seems that Trump may not get anything done. He seems to be his own worst enemy. The US founders founded a system not to work and it does not work.
The only solution to the problem in North Korea is for China to swat this guy. China wants the South China Sea and trade in exchange for denuclearizing North Korea.
We are in a long Term bull market. It is expensive to get into the market. However, if you are in the market you should stay in it. Globalization is not new. We had that also before WWI. Free trades are good for consumers, but it is the only class that it is good for.
Our demographics are deflationary. All over the world we are not growing population except for India and Africa. Since 2011 Japan had more people dying than being born. We are all going down the same road. China is going that way. China could go the way of japan. It will run out of steam instead of crashing.
He favors dividend stocks.
On my other blog I wrote yesterday about Trican Well Service Ltd (TSX-TCS, OTC-TOLWF)... learn more. Tomorrow, I will write about Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF)... learn more on Wednesday, September 27, 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, September 21, 2017
Money Show 2017 - Benjamin Tal
Benjamin Tal spoke in the opening ceremonies on "Where in the World Are We". Benjamin Tal is Deputy Chief Economist at CIBC Capital Markets. Their site is CIBC.ca.
Should you be trading Trump? No you should not. Trump is but a blip. Trump has not changed the markets at all. Prior to Trump the US economy had a GDP growing at 2.1% and today the GDP is 2.1%. The global economy is doing well. The Trump market is up but so is Japan and France. Something is going on, but it is not Trump.
The global economy is responding to the Central Banks. The global economy's potential is slowing down. We are all turning into Japanese. The Japanese economy has been trying to move for the past 20 years. Part of this is due to demographics. Benjamin Tal believes that China is slowing and it is not growing at 6.5%.
In Europe, all have survived the elections in Netherlands and France and will survive the German election. You cannot put Germany and Italy together and expect good things to happen. Brexit was the big story for 6 to 7 months, but Teresa May does not know what to do. Nothing is happening in the UK, but Brexit is not positive for the UK.
Trump is a blip, but his message is not. Long term employment in the US is lower than prior to 2008. US wages are low for many workers so there are a lot of people on disability. The reality is that Trump does not have a solution. When Trump cannot get jobs back, his voters will vote for the extreme left.
Canada has the most educated in the OECD, but this has not translated into jobs. People are not educated for the jobs of today. This is the number one issue facing our society. Trump is the messenger for people crying for jobs. We have jobs without people and people without jobs. This is the Japanese problem. Canada and the US are becoming the North American version of Japan.
In the US the companies' earnings will not match expectations. So the US market will fall. Trump may lower taxes and this will help small caps. However, Trump needs China more than China needs the US. China must be part of the solution. The taxing of China's goods will impact badly poor people.
It is the consumer markets in developing countries that will be the future. If the US tax on China cuts off selling goods to China this will hurt US manufacturing. Canada and Mexico are now friends, but if NAFA changes then Trudeau will change sides to the US side. The Bank of Canada will slow down rate increases. Financials are a good bet for the future and they will do better. Canada has the best economy but the lowest market results.
On my other blog I wrote yesterday about Telus Corp. (TSX-T, NYSE-TU)... learn more. Tomorrow, I will write about Wajax Corp. (TSX-WJX, OTC- WJXFF)... learn more on Friday, September 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Should you be trading Trump? No you should not. Trump is but a blip. Trump has not changed the markets at all. Prior to Trump the US economy had a GDP growing at 2.1% and today the GDP is 2.1%. The global economy is doing well. The Trump market is up but so is Japan and France. Something is going on, but it is not Trump.
The global economy is responding to the Central Banks. The global economy's potential is slowing down. We are all turning into Japanese. The Japanese economy has been trying to move for the past 20 years. Part of this is due to demographics. Benjamin Tal believes that China is slowing and it is not growing at 6.5%.
In Europe, all have survived the elections in Netherlands and France and will survive the German election. You cannot put Germany and Italy together and expect good things to happen. Brexit was the big story for 6 to 7 months, but Teresa May does not know what to do. Nothing is happening in the UK, but Brexit is not positive for the UK.
Trump is a blip, but his message is not. Long term employment in the US is lower than prior to 2008. US wages are low for many workers so there are a lot of people on disability. The reality is that Trump does not have a solution. When Trump cannot get jobs back, his voters will vote for the extreme left.
Canada has the most educated in the OECD, but this has not translated into jobs. People are not educated for the jobs of today. This is the number one issue facing our society. Trump is the messenger for people crying for jobs. We have jobs without people and people without jobs. This is the Japanese problem. Canada and the US are becoming the North American version of Japan.
In the US the companies' earnings will not match expectations. So the US market will fall. Trump may lower taxes and this will help small caps. However, Trump needs China more than China needs the US. China must be part of the solution. The taxing of China's goods will impact badly poor people.
It is the consumer markets in developing countries that will be the future. If the US tax on China cuts off selling goods to China this will hurt US manufacturing. Canada and Mexico are now friends, but if NAFA changes then Trudeau will change sides to the US side. The Bank of Canada will slow down rate increases. Financials are a good bet for the future and they will do better. Canada has the best economy but the lowest market results.
On my other blog I wrote yesterday about Telus Corp. (TSX-T, NYSE-TU)... learn more. Tomorrow, I will write about Wajax Corp. (TSX-WJX, OTC- WJXFF)... learn more on Friday, September 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, September 19, 2017
Money Show 2017 - Jaime Purvis
Jaime Purvis spoke in the opening ceremonies on "The Canadian ETF Outlook: What's in Store for ETFs in the New Year". Jaime Purvis is Executive Vice President of Horizons ETFs. Their site is Horizonsetfs.com.
Currently Horizon has Benchmark ETFs, Active ETFs and Beta Pro ETFs. There are new classes of ETFs coming on the market such as new Tech ETFs as well as Marijuana ETFs, Robotics ETFs and Cyber Securities ETFs. ETF companies have a tendency to grow and then consolidate, then grow then consolidate. The Mutual Fund companies will probably also grow and then consolidate. Also US companies are moving into Canada.
Mutual Fund companies are now moving into ETFs. There was the Client Relationship Model 2 (CRM2) where investments firms are required to report all fees that their clients are paying. ETFs are noted for their low fees.
The Mutual Fund companies are still growing but their growth is slower than for ETF companies. ETFs funds have grown by 21% since 2016. The growth in actively managed funds is about 30% of ETFs.
Mutual Fund companies going into ETFs include Mackenzie, CI Investments, Franklin Templeton, AGF, Desjardins and Manulife Investments. They all are known for actively management but they do track the indexes. Funds that track an index are quasi ETFs.
It is interesting that in Colorado when they legalized marijuana, beer sales fell.
There are a lot of indexes in the US. In fact there are more indexes in the US than stocks. A lot of the indexes are flawed. What is working for stocks does not necessarily work for fixed income. The innovation in Canada is the growth of actively managed ETFs. There are some 157 of these ETFs in Canada.
People are now doing covered calls and options using ETFs.
On my other blog I wrote yesterday about Accord Financial Corp (TSX-ACD, OTC- ACCFF)... learn more. Tomorrow, I will write about Telus Corp. (TSX-T, NYSE-TU)... learn more on Wednesday, September 20, 2017around 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Currently Horizon has Benchmark ETFs, Active ETFs and Beta Pro ETFs. There are new classes of ETFs coming on the market such as new Tech ETFs as well as Marijuana ETFs, Robotics ETFs and Cyber Securities ETFs. ETF companies have a tendency to grow and then consolidate, then grow then consolidate. The Mutual Fund companies will probably also grow and then consolidate. Also US companies are moving into Canada.
Mutual Fund companies are now moving into ETFs. There was the Client Relationship Model 2 (CRM2) where investments firms are required to report all fees that their clients are paying. ETFs are noted for their low fees.
The Mutual Fund companies are still growing but their growth is slower than for ETF companies. ETFs funds have grown by 21% since 2016. The growth in actively managed funds is about 30% of ETFs.
Mutual Fund companies going into ETFs include Mackenzie, CI Investments, Franklin Templeton, AGF, Desjardins and Manulife Investments. They all are known for actively management but they do track the indexes. Funds that track an index are quasi ETFs.
It is interesting that in Colorado when they legalized marijuana, beer sales fell.
There are a lot of indexes in the US. In fact there are more indexes in the US than stocks. A lot of the indexes are flawed. What is working for stocks does not necessarily work for fixed income. The innovation in Canada is the growth of actively managed ETFs. There are some 157 of these ETFs in Canada.
People are now doing covered calls and options using ETFs.
On my other blog I wrote yesterday about Accord Financial Corp (TSX-ACD, OTC- ACCFF)... learn more. Tomorrow, I will write about Telus Corp. (TSX-T, NYSE-TU)... learn more on Wednesday, September 20, 2017around 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, September 14, 2017
Money Show 2017 - Gordon Pape
Gordon Pape spoke in the opening ceremonies on "Where Next? The Outlook for Canada in 2018". He said that for the economy we had
There is trouble ahead as strong growth is wanted. In Canada, energy is still in trouble. Our housing market will slow. The NAFTA renegotiation creates uncertainty. Our higher interest rates will hit the Loonie. The overvaluation of the NY market will trigger a sell off.
He thinks that there will be more interest rates rises in Canada this year. He worries about the NY market being really over valued with a P/E Ratio of 24. There is a 10 to 15% correction coming and the TSX will follow.
He says that we should not overweight our portfolio with Canadian stock. We need to diversity internationally. He thinks we should take profits as appropriate and have some cash on hand. It might be good to invest in the EU as their stock markets are undervalues. We could also invest in the Far East. He would stay out of the US market for now.
He would not advise us to bail out of the market entirely. This is never a good idea. No one knows where the markets will go. He has a web site of www.buildingwealth.ca.
On my other blog I wrote yesterday about Smart REIT (TSX-SRU.UN, OTC-CWYUF)... learn more. Tomorrow, I will write about Just Energy Group Inc. (TSX-JE, NYSE-JE)... learn more on Friday, September 15, 2017 befor 8 am.
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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
- 1.1% Growth in GDP in the second quarter of 2017
- 0.9% First quarter of 2017
- 1.9% Increase in Household spending
- 2.3% increase in exports of goods and services
- 65,700 increase in manufacturing jobs, and
- 6.3% unemployment, which is the lowest since 2008
- Hong Kong up by 27.1%
- India up by 21.2%
- France up by 14.16%
- NASDAQ up by 19.4%
- Dow Jones up by 11.1%
- S&P500 up by 10.4%, but
- TSX is down by 0.5%.
There is trouble ahead as strong growth is wanted. In Canada, energy is still in trouble. Our housing market will slow. The NAFTA renegotiation creates uncertainty. Our higher interest rates will hit the Loonie. The overvaluation of the NY market will trigger a sell off.
He thinks that there will be more interest rates rises in Canada this year. He worries about the NY market being really over valued with a P/E Ratio of 24. There is a 10 to 15% correction coming and the TSX will follow.
He says that we should not overweight our portfolio with Canadian stock. We need to diversity internationally. He thinks we should take profits as appropriate and have some cash on hand. It might be good to invest in the EU as their stock markets are undervalues. We could also invest in the Far East. He would stay out of the US market for now.
He would not advise us to bail out of the market entirely. This is never a good idea. No one knows where the markets will go. He has a web site of www.buildingwealth.ca.
On my other blog I wrote yesterday about Smart REIT (TSX-SRU.UN, OTC-CWYUF)... learn more. Tomorrow, I will write about Just Energy Group Inc. (TSX-JE, NYSE-JE)... learn more on Friday, September 15, 2017 befor 8 am.
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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, September 12, 2017
Money Show 2017
I want to start blogging about this show with my overall impression. As usual, they had some very good speakers in the opening ceremonies. Also the speaker line up for Canadian Money Saver magazine was again very good. This series of talks on Saturday is aimed at a general audience and would be fine for investors at all levels.
What I like is that Canadian Banks are returning to this conference. They all left a few years ago. This year CIBC and BMO were there. I miss the TD bank and especially their economic talks. One surprise was the difference in the CIBC speakers. In the opening Benjamin Tal was very, very good. This contrasted with the very boring talk by Si Mokhtari. I would normally found Sid's subject of interest, but the presentation left much to be desired.
Another surprise was the Friday evening talk put on my Keystone Financial Publishing Corp and Ryan Irvine. This was great talk and very informative. Because of this I went to the Saturday talk by Ryan Irvine but this was a mistake. It was just a repeat of the part of the Friday night talk and so I left.
On my other blog I wrote yesterday about High Liner Foods (TSX-HLF, OTC-HLNFF)... learn more. Tomorrow, I will write about Smart REIT (TSX-SRU.UN, OTC-CWYUF)... learn more on Wednesday, September 13, 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
What I like is that Canadian Banks are returning to this conference. They all left a few years ago. This year CIBC and BMO were there. I miss the TD bank and especially their economic talks. One surprise was the difference in the CIBC speakers. In the opening Benjamin Tal was very, very good. This contrasted with the very boring talk by Si Mokhtari. I would normally found Sid's subject of interest, but the presentation left much to be desired.
Another surprise was the Friday evening talk put on my Keystone Financial Publishing Corp and Ryan Irvine. This was great talk and very informative. Because of this I went to the Saturday talk by Ryan Irvine but this was a mistake. It was just a repeat of the part of the Friday night talk and so I left.
On my other blog I wrote yesterday about High Liner Foods (TSX-HLF, OTC-HLNFF)... learn more. Tomorrow, I will write about Smart REIT (TSX-SRU.UN, OTC-CWYUF)... learn more on Wednesday, September 13, 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, September 7, 2017
Something to Buy September 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 September 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 22 stocks in the Consumer Discretionary category. One of these stocks is showing as cheap by the historically high dividend yield and that is Newfoundland Capital Corp (TSX-NCC.A). Nine (or 41%) are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), DHX Media Ltd. (TSX-DHX.A, OTC-DHXMF), Dorel Industries (TSX-DII.B), Goeasy Ltd. (TSX-GSY, OTC-EHMEF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF); Magna International Inc. (TSX-MG), Newfoundland Capital Corp (TSX-NCC.A) and Reitmans (Canada) Ltd. (TSX-RET.A). Newfoundland Capital Corp (TSX-NCC.A) being cheap by historically high dividend is new.
I follow 12 Consumer Staples stocks. One company is showing as cheap by the historically high dividend yield and that company is Empire Company Ltd (TSX-EMP.A, OTC-EMLAF). Five stocks (or 42%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), 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. Four stocks (or 33%) 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. H & R Real Estate Inv. Trust (TSX-HR.UN, OTC-HRUFF) has been deleted from the list.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. Five stocks (or 63%) are showing cheap by the historical median dividend yield. These stocks are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), CIBC (TSX-CM, NYSE-CM), National Bank of Canada (TSX-NA, OTC-NTIOF), Royal Bank of Canada (TSX-RY, NYSE-RY) and Toronto Dominion Bank (TSX-TD, NYSE-TD). Royal Bank of Canada (TSX-RY, NYSE-RY) has been added to this list as cheap by historical median dividend yield.
I follow 12 Financial Service stocks. None are showing as cheap by the historically high dividend yield. Eight (or 67%) 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), Equitable Group Inc. (TSX-EQB, OTC-EQGPF), Gluskin Sheff + Associates Inc. (TSX-GS), IGM Financial (TSX-IGM) and Power Corp (TSX-POW). This is the same as last month.
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, NYSE-SLF). There is no change from last month.
I follow 31 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 from last month.
I have 7 Manufacturing stocks. None are showing as cheap by the historically high dividend yield. Four stocks or 57% are showing as cheap by historical median dividend yield. They are 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) is new to 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 8 Material stocks. None are showing as cheap by the historically high dividend yield. One stock or 14% is showing as cheap by historical median dividend yield and that stock is Methanex Corp (TSX-MX, NASDAQ-MEOH). This is the same as for last month.
I follow 10 Energy stocks. 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 five stocks (or 50%) showing cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), Ensign Energy Services (TSX-ESI, OTC-ESVIF); Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). This is the same as for 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). There is no change from last month.
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. Three stock (or 25%) are showing cheap by historical median dividend yield. Those stocks are Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN), ATCO Ltd (TSX-ACO.X, OTC-ACLLF) and Emera Inc. (TSX-EMA, OTC-EMRAF). There is no change from last month.
I follow 4 of the Telecom Service type utility companies. No stock is showing cheap by the historical high dividend yield. Four stocks (or 100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Quarterhaill Inc. (TSX-QTRH, NASDAQ-QTRH), Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
The last stock I wrote about was about was Exchange Income Corp. (TSX-EIF, OTC-EIFZF)... learn more. The next stock I will write about will be ATCO Ltd. (TSX-ACO.X, OTC- ACLLF)... learn more on Friday, September 8, 2017 before 8:30 am.
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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
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 September 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 22 stocks in the Consumer Discretionary category. One of these stocks is showing as cheap by the historically high dividend yield and that is Newfoundland Capital Corp (TSX-NCC.A). Nine (or 41%) are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), DHX Media Ltd. (TSX-DHX.A, OTC-DHXMF), Dorel Industries (TSX-DII.B), Goeasy Ltd. (TSX-GSY, OTC-EHMEF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF); Magna International Inc. (TSX-MG), Newfoundland Capital Corp (TSX-NCC.A) and Reitmans (Canada) Ltd. (TSX-RET.A). Newfoundland Capital Corp (TSX-NCC.A) being cheap by historically high dividend is new.
I follow 12 Consumer Staples stocks. One company is showing as cheap by the historically high dividend yield and that company is Empire Company Ltd (TSX-EMP.A, OTC-EMLAF). Five stocks (or 42%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), 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. Four stocks (or 33%) 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. H & R Real Estate Inv. Trust (TSX-HR.UN, OTC-HRUFF) has been deleted from the list.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. Five stocks (or 63%) are showing cheap by the historical median dividend yield. These stocks are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), CIBC (TSX-CM, NYSE-CM), National Bank of Canada (TSX-NA, OTC-NTIOF), Royal Bank of Canada (TSX-RY, NYSE-RY) and Toronto Dominion Bank (TSX-TD, NYSE-TD). Royal Bank of Canada (TSX-RY, NYSE-RY) has been added to this list as cheap by historical median dividend yield.
I follow 12 Financial Service stocks. None are showing as cheap by the historically high dividend yield. Eight (or 67%) 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), Equitable Group Inc. (TSX-EQB, OTC-EQGPF), Gluskin Sheff + Associates Inc. (TSX-GS), IGM Financial (TSX-IGM) and Power Corp (TSX-POW). This is the same as last month.
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, NYSE-SLF). There is no change from last month.
I follow 31 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 from last month.
I have 7 Manufacturing stocks. None are showing as cheap by the historically high dividend yield. Four stocks or 57% are showing as cheap by historical median dividend yield. They are 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) is new to 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 8 Material stocks. None are showing as cheap by the historically high dividend yield. One stock or 14% is showing as cheap by historical median dividend yield and that stock is Methanex Corp (TSX-MX, NASDAQ-MEOH). This is the same as for last month.
I follow 10 Energy stocks. 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 five stocks (or 50%) showing cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), Ensign Energy Services (TSX-ESI, OTC-ESVIF); Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). This is the same as for 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). There is no change from last month.
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. Three stock (or 25%) are showing cheap by historical median dividend yield. Those stocks are Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN), ATCO Ltd (TSX-ACO.X, OTC-ACLLF) and Emera Inc. (TSX-EMA, OTC-EMRAF). There is no change from last month.
I follow 4 of the Telecom Service type utility companies. No stock is showing cheap by the historical high dividend yield. Four stocks (or 100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Quarterhaill Inc. (TSX-QTRH, NASDAQ-QTRH), Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
The last stock I wrote about was about was Exchange Income Corp. (TSX-EIF, OTC-EIFZF)... learn more. The next stock I will write about will be ATCO Ltd. (TSX-ACO.X, OTC- ACLLF)... learn more on Friday, September 8, 2017 before 8:30 am.
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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, September 5, 2017
Dividend Stocks September 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 September 2017.
On this list,
Badger Daylighting Ltd (TSX-BAD, OTC-BADFF)
Bank of Nova Scotia (TSX-BNS, NYSE-BNS)
Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM)
Equitable Group Inc. (TSX-EQB, OTC-EQGPF)
Finning International Inc. (TSX-FTT, OTC-FINGF)
Hardwoods Distribution Inc. (TSX-HWD, OTC-HDIUF)
Newfoundland Capital Corp (TSX-NCC.A, TSX-NCC.B)
Royal Bank of Canada (TSX-RY, NYSE-RY)
Saputo Inc. (TSX-SAP; OTC-SAPIF)
Valener Inc. (TSX-VNR, OTC-VNRCF)
Also, of the stocks that I follow, xx stocks decreased or suspended their dividends.
Most of my stocks started out as Dividend Payers. Currently 13 stocks are not paying any dividends and this would be some 10.3% of the stocks that I follow. Three of these stocks never had dividends, so 8.39% 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 Trigon Metals Inc. (TSX-TM, 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.
The last stock I wrote about was about was Alimentation Couche-Tard Inc. (TSX-ATD.B, OTC-ANCUF)... learn more. The next stock I will write about will be Exchange Income Corp. (TSX-EIF, OTC-EIFZF)... learn more on Wednesday, September 06, 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. I am on Instagram with #walktoronto.
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 September 2017.
On this list,
- I have 3 stocks with a dividend yield higher than the historical high dividend yield,
- I have 38 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
- 63 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 2 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 66 stocks with a dividend yield higher than the historical median dividend yield and
- 64 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.
Badger Daylighting Ltd (TSX-BAD, OTC-BADFF)
Bank of Nova Scotia (TSX-BNS, NYSE-BNS)
Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM)
Equitable Group Inc. (TSX-EQB, OTC-EQGPF)
Finning International Inc. (TSX-FTT, OTC-FINGF)
Hardwoods Distribution Inc. (TSX-HWD, OTC-HDIUF)
Newfoundland Capital Corp (TSX-NCC.A, TSX-NCC.B)
Royal Bank of Canada (TSX-RY, NYSE-RY)
Saputo Inc. (TSX-SAP; OTC-SAPIF)
Valener Inc. (TSX-VNR, OTC-VNRCF)
Also, of the stocks that I follow, xx stocks decreased or suspended their dividends.
Most of my stocks started out as Dividend Payers. Currently 13 stocks are not paying any dividends and this would be some 10.3% of the stocks that I follow. Three of these stocks never had dividends, so 8.39% 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 Trigon Metals Inc. (TSX-TM, 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.
The last stock I wrote about was about was Alimentation Couche-Tard Inc. (TSX-ATD.B, OTC-ANCUF)... learn more. The next stock I will write about will be Exchange Income Corp. (TSX-EIF, OTC-EIFZF)... learn more on Wednesday, September 06, 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. I am on Instagram with #walktoronto.
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