If I was starting over investing, I would not put money into an RRSP. I was supposed to be paying less tax on money taken from my RRSP accounts. That is not how things worked out. I am paying more tax on my withdrawals than the tax I saved putting money into it.
The main problem was that I did very well investing and now I am buying a penalty for it. I am certainly glad that only half my money was in RRSP accounts and the other half in a trading account when I stopped working. Now I have to take money out of my RRIF and a big chuck goes directly to pay income tax. I do not get any OAS.
I wished I never opened an RRSP account. I have talked to other seniors who feel the same way.
On my other blog I wrote today about Methanex Corp. (TSX-MX, NASDAQ-MEOH)... learn more. Next, I will write about Magna International Inc. (TSX-MG, NYSE-MGA)... learn more on Thursday, December 28, 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.
Wednesday, December 27, 2017
Thursday, December 21, 2017
Start Investing
Most people have no idea how to invest in stocks. It is a learning process. To start investing a good idea is to go to you bank and start investing in a fund with a name like Canadian Equity. Most banks have such funds, they are cheap and you can generally invest a minimum of $100.
I bank with TD and their fund is called TD Canadian Blue Chip Dividend D (TDB3105) or TD Dividend Growth - D (TDB3088). You have to open a TD Trading Account to buy funds and you would buy online.
What you need to do is to pay attention to what they are investing in. Especially pay attention to their top 10 stocks. These are the companies which when you are ready that you want to invest in. You should google these companies to get an idea what they are up to. Stay away from any stock where analysts are worried about debt load.
Start off with 3 stocks in different sectors. For example get a stock from Financial Services, Utilities and Consumer sectors to start. You do not need to get more than 3 stocks until your portfolio is at $20,000 or $30,000. If you are trying to pick between stocks in the same sector, pick the one with the highest yield or the highest growth in dividends.
One good site to look for this companies is Stock Chase. For most Canadian companies you can find out here what analysts think of a stock. An entry on Dividend Earner talks about how to use this site effectively.
If you do not have one the first account you should open is a TFSA account. If you have one and it is not filled with all you can invest in this account, this is still the account to use for investing. I think it is rather pointless to open an RRSP unless you are in the top tax bracket.
On my other blog I wrote yesterday about FirstService Corp (TSX-FSV, NASDAQ-FSV)... learn more. Next, I will write about Stantec Inc. (TSX-STN, NYSE-STN)... learn more on Friday, December 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.
I bank with TD and their fund is called TD Canadian Blue Chip Dividend D (TDB3105) or TD Dividend Growth - D (TDB3088). You have to open a TD Trading Account to buy funds and you would buy online.
What you need to do is to pay attention to what they are investing in. Especially pay attention to their top 10 stocks. These are the companies which when you are ready that you want to invest in. You should google these companies to get an idea what they are up to. Stay away from any stock where analysts are worried about debt load.
Start off with 3 stocks in different sectors. For example get a stock from Financial Services, Utilities and Consumer sectors to start. You do not need to get more than 3 stocks until your portfolio is at $20,000 or $30,000. If you are trying to pick between stocks in the same sector, pick the one with the highest yield or the highest growth in dividends.
One good site to look for this companies is Stock Chase. For most Canadian companies you can find out here what analysts think of a stock. An entry on Dividend Earner talks about how to use this site effectively.
If you do not have one the first account you should open is a TFSA account. If you have one and it is not filled with all you can invest in this account, this is still the account to use for investing. I think it is rather pointless to open an RRSP unless you are in the top tax bracket.
On my other blog I wrote yesterday about FirstService Corp (TSX-FSV, NASDAQ-FSV)... learn more. Next, I will write about Stantec Inc. (TSX-STN, NYSE-STN)... learn more on Friday, December 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, December 19, 2017
How I Survived Layoff at 54
I got laid off from work when I was 54. What saved me was that I had stock investments. When I reviewed my financial position, I found that my net income (income after taxes) would be the same as my employment income. In the end I stopped looking for another job and decided to live off my investments. So I was lucky I had stated investing in stocks some years before.
When you are in your 50’s it is very difficult to find another job, especially of the same caliber has you have left. I do not think anyone can currently assume that they will have a job for life. It just does not happen anymore. The older you get the harder it seems to be to pick up another job.
So if you are young, now is the time to start putting something away to cover future employment losses. Jobs do not last forever and you need a plan to handle things if you lose your job.
On my other blog I wrote yesterday about Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF)... learn more. Next, I will write about FirstService Corp (TSX-FSV, NASDAQ-FSV)... learn more on Wednesday, December 20, 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.
When you are in your 50’s it is very difficult to find another job, especially of the same caliber has you have left. I do not think anyone can currently assume that they will have a job for life. It just does not happen anymore. The older you get the harder it seems to be to pick up another job.
So if you are young, now is the time to start putting something away to cover future employment losses. Jobs do not last forever and you need a plan to handle things if you lose your job.
On my other blog I wrote yesterday about Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF)... learn more. Next, I will write about FirstService Corp (TSX-FSV, NASDAQ-FSV)... learn more on Wednesday, December 20, 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, December 14, 2017
Dividends
I do not know how many people have said to me that they think that dividends a company pays will go up and down with the price of a stock. This is NOT how dividends work. What goes up and down with the price of a stock is the dividend yield.
For example, if you are getting a $1.00 of dividends yearly on a stock that cost $20, you have a yield of 5%. If the price of the stock goes up to $22, then your current yield goes down to 4.55% yield. If the stock's price goes up to $25, then your yield will go down to 4%. If the stock's price goes down to $15, then your yield would go up to 6.67%.
When the dividend rate ($1.00 in the above example) changes, a company usually puts out a press release talking about the change. Dividends can go down, but it is generally not a good sign if a company lowers dividends. When a company raises its dividend it is a generally considered a sign that a company feels that future earnings can cover the new increased dividend.
The best dividend stocks are those that raise their dividends consistently over time.
Please note this discussion is for stocks in Canada and the US. Other countries may do things differently. For example I have Barclay’s bank and they would give out a dividend in the early part of the year depending on how well they did in the past year and then a much smaller dividend near the end of the year. For example in 2003 I received a $336.76 US$ dividend on April 28 2003 and then $187.00 US$ on October 1, 2003.
Things changed for this bank after 2009 and they got into some difficulties. They started to give out 4 dividends a year, one bigger on at the beginning of the year and then 3 equal ones in the remaining part of the year.
On my other blog I wrote yesterday about First Capital Realty (TSX-FCR, OTC-FCRGF)... learn more. Tomorrow, I will write about Stella-Jones Inc. (TSX-SJ, OTC- STLJF)... learn more on December 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
For example, if you are getting a $1.00 of dividends yearly on a stock that cost $20, you have a yield of 5%. If the price of the stock goes up to $22, then your current yield goes down to 4.55% yield. If the stock's price goes up to $25, then your yield will go down to 4%. If the stock's price goes down to $15, then your yield would go up to 6.67%.
When the dividend rate ($1.00 in the above example) changes, a company usually puts out a press release talking about the change. Dividends can go down, but it is generally not a good sign if a company lowers dividends. When a company raises its dividend it is a generally considered a sign that a company feels that future earnings can cover the new increased dividend.
The best dividend stocks are those that raise their dividends consistently over time.
Please note this discussion is for stocks in Canada and the US. Other countries may do things differently. For example I have Barclay’s bank and they would give out a dividend in the early part of the year depending on how well they did in the past year and then a much smaller dividend near the end of the year. For example in 2003 I received a $336.76 US$ dividend on April 28 2003 and then $187.00 US$ on October 1, 2003.
Things changed for this bank after 2009 and they got into some difficulties. They started to give out 4 dividends a year, one bigger on at the beginning of the year and then 3 equal ones in the remaining part of the year.
On my other blog I wrote yesterday about First Capital Realty (TSX-FCR, OTC-FCRGF)... learn more. Tomorrow, I will write about Stella-Jones Inc. (TSX-SJ, OTC- STLJF)... learn more on December 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. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, December 12, 2017
Dividend Growth 2017
First of all I would like to say that I have taken out money I need to from my RRIF accounts and I have bought some more shares in Canadian Utilities Ltd (TSX-CU, OTC-CDUAF).
What I noticed in updating my spreadsheets on my portfolio is that I already have dividends up 6.99% compared to 2016 where dividends increased by 5.08% and for 2015 where dividends 7.58% and 2014 where they increased by 3.83%. So I decided to look at increases over time and looked back to 2003. This is a chart for dividend increases each year and the 5 year median to that year.
I have certainly done better in the past than I have done recently. Certainly the increases in 2014 seem to be a low point and relatively speaking so was 2010 and 2005.
On my other blog I wrote yesterday about DHX Media Ltd (TSX-DHX.B, OTC-DHXMF)... learn more. Tomorrow, I will write about First Capital Realty (TSX-FCR, OTC-FCRGF)... learn more on Wednesday, December13, 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.
What I noticed in updating my spreadsheets on my portfolio is that I already have dividends up 6.99% compared to 2016 where dividends increased by 5.08% and for 2015 where dividends 7.58% and 2014 where they increased by 3.83%. So I decided to look at increases over time and looked back to 2003. This is a chart for dividend increases each year and the 5 year median to that year.
I have certainly done better in the past than I have done recently. Certainly the increases in 2014 seem to be a low point and relatively speaking so was 2010 and 2005.
| Year | Increase | 5 year med |
|---|---|---|
| 2017 | 6.99% | 6.99% |
| 2016 | 5.08% | 7.58% |
| 2015 | 7.58% | 9.23% |
| 2014 | 3.83% | 9.23% |
| 2013 | 10.53% | 9.63% |
| 2012 | 9.63% | 9.63% |
| 2011 | 9.23% | 11.35% |
| 2010 | 5.29% | 14.94% |
| 2009 | 14.94% | 14.94% |
| 2008 | 11.35% | 11.64% |
| 2007 | 23.21% | |
| 2006 | 23.96% | |
| 2005 | 7.77% | |
| 2004 | 11.64% | |
| 2003 | 12.91% |
On my other blog I wrote yesterday about DHX Media Ltd (TSX-DHX.B, OTC-DHXMF)... learn more. Tomorrow, I will write about First Capital Realty (TSX-FCR, OTC-FCRGF)... learn more on Wednesday, December13, 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, December 7, 2017
Something to Buy December 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 December 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). Five (or 22%) are showing cheap by historical median dividend yield. They are DHX Media Ltd. (TSX-DHX.A, OTC-DHXMF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF); Newfoundland Capital Corp (TSX-NCC.A) and Reitmans (Canada) Ltd. (TSX-RET.A). Dorel Industries (TSX-DII.B), Magna International Inc. (TSX-MG) and Molson Coors Canada (TSX-TPX.B, NYSE-TAP) have being removed from cheap by historically median dividend yield.
I follow 12 Consumer Staples stocks. No companies are showing as cheap by the historically high dividend yield. 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). Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF has being removed from cheap by historically median dividend yield list.
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 11 Real Estate stocks. None of these stocks are showing as cheap by the historically high dividend yield. Five stocks (or 45%) are showing cheap by historical median dividend yield. They are Artis REIT (TSX-AX.UN, OTC- ARESF); Granite Real Estate (TSX-GRT.UN, NYSE-GRP.U), H & R REIT (TSX-HR.UN, OTC-HRUFF), Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) has been added to cheap by historically median dividend yield list.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. One stock (or 12.5%) is showing cheap by the historical median dividend yield. This stock is CIBC (TSX-CM, NYSE-CM). This is the same as for last month.
I follow 13 Financial Service stocks. None are showing as cheap by the historically high dividend yield. Eight (or 62%) 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). Sun Life Financial (TSX-SLF, NYSE-SLF has been added to cheap by historically median dividend yield list.
I follow 32 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 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). There is no change from last month.
I have 16 Services stocks. None are showing as cheap by the historically high dividend yield. Three stocks or 19% 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). Wajax Corp (TSX-WJX, OTC-WJXFF) has been deleted from cheap by historically median dividend yield list. .
I follow 8 Material stocks. None are showing as cheap by the historically high dividend yield. None are showing as cheap by historical median dividend yield. Methanex Corp (TSX-MX, NASDAQ-MEOH) has been deleted from cheap by historically median dividend yield list..
I follow 10 Energy stocks. Ensign Energy Services (TSX-ESI, OTC-ESVIF) is showing as cheap by the historical high dividend yield. 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 Cenovus Energy Inc. (TSX-CVE, NYSE-CVE) has been added to cheap by historically median dividend yield list.
I follow 8 Tech stocks. None are showing as cheap by historical high dividend yield. Four stocks (or 50%) 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), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR) has been deleted from cheap by historically median dividend yield list.
I follow 7 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. Two stocks (or 29%) are showing cheap by historical median dividend yield. They are AltaGas Ltd (TSX-ALA, OTC-ATGFF) and Enbridge Inc. (TSX-ENB, NYSE-ENB). Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF) has been deleted from cheap by historically median dividend yield list.
I follow 12 of the Power type utility companies. None are showing as cheap by the historically high dividend yield. Four stock (or 33%) are showing cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) and Emera Inc. (TSX-EMA, OTC-EMRAF) and Just Energy Group Inc. (TSX-JE, NYSE-JE). Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN) has been deleted from cheap by historically median dividend yield list and Just Energy Group Inc. (TSX-JE, NYSE-JE) has been added to cheap by historically median dividend yield list.
I follow 4 of the Telecom Service type utility companies. No stock is showing cheap by the historical high dividend yield. Three stocks (or 75%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). Quarterhill Inc. (TSX-QTRH, NASDAQ-QTRH) has been deleted from cheap by historically median dividend yield list.
On my other blog I wrote yesterday about Chesswood Group Ltd. (TSX-CHW, OTC-CHWWF)... learn more. Next, I will write about Northland Power Inc. (TSX-NPI, OTC-NPIFF)... learn more on Friday, December 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 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 December 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). Five (or 22%) are showing cheap by historical median dividend yield. They are DHX Media Ltd. (TSX-DHX.A, OTC-DHXMF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF); Newfoundland Capital Corp (TSX-NCC.A) and Reitmans (Canada) Ltd. (TSX-RET.A). Dorel Industries (TSX-DII.B), Magna International Inc. (TSX-MG) and Molson Coors Canada (TSX-TPX.B, NYSE-TAP) have being removed from cheap by historically median dividend yield.
I follow 12 Consumer Staples stocks. No companies are showing as cheap by the historically high dividend yield. 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). Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF has being removed from cheap by historically median dividend yield list.
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 11 Real Estate stocks. None of these stocks are showing as cheap by the historically high dividend yield. Five stocks (or 45%) are showing cheap by historical median dividend yield. They are Artis REIT (TSX-AX.UN, OTC- ARESF); Granite Real Estate (TSX-GRT.UN, NYSE-GRP.U), H & R REIT (TSX-HR.UN, OTC-HRUFF), Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) has been added to cheap by historically median dividend yield list.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. One stock (or 12.5%) is showing cheap by the historical median dividend yield. This stock is CIBC (TSX-CM, NYSE-CM). This is the same as for last month.
I follow 13 Financial Service stocks. None are showing as cheap by the historically high dividend yield. Eight (or 62%) 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). Sun Life Financial (TSX-SLF, NYSE-SLF has been added to cheap by historically median dividend yield list.
I follow 32 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 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). There is no change from last month.
I have 16 Services stocks. None are showing as cheap by the historically high dividend yield. Three stocks or 19% 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). Wajax Corp (TSX-WJX, OTC-WJXFF) has been deleted from cheap by historically median dividend yield list. .
I follow 8 Material stocks. None are showing as cheap by the historically high dividend yield. None are showing as cheap by historical median dividend yield. Methanex Corp (TSX-MX, NASDAQ-MEOH) has been deleted from cheap by historically median dividend yield list..
I follow 10 Energy stocks. Ensign Energy Services (TSX-ESI, OTC-ESVIF) is showing as cheap by the historical high dividend yield. 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 Cenovus Energy Inc. (TSX-CVE, NYSE-CVE) has been added to cheap by historically median dividend yield list.
I follow 8 Tech stocks. None are showing as cheap by historical high dividend yield. Four stocks (or 50%) 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), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Maxar Technologies Ltd (TSX-MAXR, NYSE-MAXR) has been deleted from cheap by historically median dividend yield list.
I follow 7 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. Two stocks (or 29%) are showing cheap by historical median dividend yield. They are AltaGas Ltd (TSX-ALA, OTC-ATGFF) and Enbridge Inc. (TSX-ENB, NYSE-ENB). Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF) has been deleted from cheap by historically median dividend yield list.
I follow 12 of the Power type utility companies. None are showing as cheap by the historically high dividend yield. Four stock (or 33%) are showing cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) and Emera Inc. (TSX-EMA, OTC-EMRAF) and Just Energy Group Inc. (TSX-JE, NYSE-JE). Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN) has been deleted from cheap by historically median dividend yield list and Just Energy Group Inc. (TSX-JE, NYSE-JE) has been added to cheap by historically median dividend yield list.
I follow 4 of the Telecom Service type utility companies. No stock is showing cheap by the historical high dividend yield. Three stocks (or 75%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). Quarterhill Inc. (TSX-QTRH, NASDAQ-QTRH) has been deleted from cheap by historically median dividend yield list.
On my other blog I wrote yesterday about Chesswood Group Ltd. (TSX-CHW, OTC-CHWWF)... learn more. Next, I will write about Northland Power Inc. (TSX-NPI, OTC-NPIFF)... learn more on Friday, December 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 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, December 5, 2017
Dividend Stocks December 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 December 2017. On this list,
Enbridge Inc. (TSX-ENB, NYSE-ENB)
Equitable Group Inc. (TSX-EQB, OTC-EQGPF)
High Liner Foods (TSX-HLF, OTC-HLNFF)
Inter Pipeline Ltd. (TSX-IPL, OTC-IPPLF)
Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF)
National Bank of Canada (TSX-NA, OTC-NTIOF)
Northland Power Inc. (TSX-NPI, OTC-NPIFF)
SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF)
Sun Life Financial (TSX-SLF, NYSE-SLF)
Sylogist Ltd. (TSXV-SYZ, OTC-SYZLF)
TECSYS Inc. (TSX-TCS, OTC-TCYSF)
Telus Corp. (TSX-T, NYSE-TU)
Also, of the stocks that I follow, 0 stocks decreased or suspended their dividends.
Most of my stocks started out as Dividend Payers. Currently 16 stocks are not paying any dividends and this would be some 10.4% of the stocks that I follow. Three of these stocks never had dividends, so 8.44% 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.
On my other blog I wrote yesterday about Quarterhill Inc. (TSX-QTRH, NASDAQ-QTRH)... learn more. Next, I will write about Chesswood Group Ltd. (TSX-CHW, OTC-CHWWF)... learn more on Wednesday, December 06, 2017 before 10 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 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 December 2017. On this list,
- I have 2 stocks with a dividend yield higher than the historical high dividend yield,
- I have 30 stocks with a dividend yield higher than the historical average dividend yield
- I have 57 stocks with a dividend yield higher than the historical median dividend yield and
- 57 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 32 stocks with a dividend yield higher than the historical average dividend yield
- I have 62 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 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.
Enbridge Inc. (TSX-ENB, NYSE-ENB)
Equitable Group Inc. (TSX-EQB, OTC-EQGPF)
High Liner Foods (TSX-HLF, OTC-HLNFF)
Inter Pipeline Ltd. (TSX-IPL, OTC-IPPLF)
Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF)
National Bank of Canada (TSX-NA, OTC-NTIOF)
Northland Power Inc. (TSX-NPI, OTC-NPIFF)
SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF)
Sun Life Financial (TSX-SLF, NYSE-SLF)
Sylogist Ltd. (TSXV-SYZ, OTC-SYZLF)
TECSYS Inc. (TSX-TCS, OTC-TCYSF)
Telus Corp. (TSX-T, NYSE-TU)
Also, of the stocks that I follow, 0 stocks decreased or suspended their dividends.
Most of my stocks started out as Dividend Payers. Currently 16 stocks are not paying any dividends and this would be some 10.4% of the stocks that I follow. Three of these stocks never had dividends, so 8.44% 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.
On my other blog I wrote yesterday about Quarterhill Inc. (TSX-QTRH, NASDAQ-QTRH)... learn more. Next, I will write about Chesswood Group Ltd. (TSX-CHW, OTC-CHWWF)... learn more on Wednesday, December 06, 2017 before 10 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 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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