Recently Howard Marks of Oaktree put out a memo on what he thinks might be the effect of passive investing. He discusses both Index Investing and ETFs. It is a long but very interesting memo. See the memo on Oaktree site.
I thought a very interesting point was that we have never been through a bear market with such a large portion of passive investment. Will there be liquidity problems?
On my other blog I wrote yesterday about Parkland Fuel Corp (TSX-PKI, OTC-PKIUF)... learn more. Next, I will write about Saputo Inc. (TSX-SAP, OTC-SAPIF)... learn more on Wednesday, June 27, 2018 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, June 26, 2018
Tuesday, June 19, 2018
New Computer
I am getting a new computer and moving to Windows 10. The new computer I bought is an Acer Aspire GX Desktop. I currently get gamer computers as they are the only ones with the speed and RAM I feel I need. This one is at 3.6 GHz with 16MB of RAM.
I have resisted upgrading from my computer than is running Windows 7 to Windows 10. It is hard to get used to a new operating system. I will have to get used to new versions of Microsoft Office. It is getting easier in some ways now because you can just google a question and someone will have already put up on the internet what to do.
I bought this new computer at Best Buy. They promised for $150 to set up my computer. They wanted me to bring in my old computer to use to set up and transfer data. However, I do not want to let go of it as I use my computer all the time. I am taking in an external hard drive with my data and strict instructions on how I want it set up. I will let you know how this works out.
On my other blog I wrote yesterday about Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN)... learn more. Next, I will write about CI Financial Corp (TSX-CIX, OTC- CIFAF)... learn more on Wednesday, June 20, 2018 around 5 pm or perhaps Thursday, June 21, 2018 around 5 pm. I am getting my new computer tomorrow, so I doubt if I will be able to blog then. I will skip a blog to my Investing Economics Mostly site.
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 have resisted upgrading from my computer than is running Windows 7 to Windows 10. It is hard to get used to a new operating system. I will have to get used to new versions of Microsoft Office. It is getting easier in some ways now because you can just google a question and someone will have already put up on the internet what to do.
I bought this new computer at Best Buy. They promised for $150 to set up my computer. They wanted me to bring in my old computer to use to set up and transfer data. However, I do not want to let go of it as I use my computer all the time. I am taking in an external hard drive with my data and strict instructions on how I want it set up. I will let you know how this works out.
On my other blog I wrote yesterday about Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN)... learn more. Next, I will write about CI Financial Corp (TSX-CIX, OTC- CIFAF)... learn more on Wednesday, June 20, 2018 around 5 pm or perhaps Thursday, June 21, 2018 around 5 pm. I am getting my new computer tomorrow, so I doubt if I will be able to blog then. I will skip a blog to my Investing Economics Mostly site.
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.
Friday, June 15, 2018
Canadian Banks
If you want a technical look at Canadian Banks, you should look at this article by Greg Schnell on The Canadian Technician. He likes National Bank (TSX-NA, OTC-NTIOF), CIBC (TSX-CM, NYSE-CM), and Bank of Montreal (TSX-BMO, NYSE-BMO) best.
On my other blog I wrote yesterday about Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF)... learn more. Next, I will write about Alcanna Inc. (TSX-CLIQ, OTC-LQSIF)... learn more on Friday, June 15, 2018 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.
On my other blog I wrote yesterday about Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF)... learn more. Next, I will write about Alcanna Inc. (TSX-CLIQ, OTC-LQSIF)... learn more on Friday, June 15, 2018 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, June 14, 2018
Next Recession
I got my computer back from the shop and my power came on late last night. So I will try to catch up with my blogging.
Michael Pento writing in Town Hall Finance thinks that the next recession will be caused by defaults by companies with high debts. This is because of interest rates rising and some companies will have to pay a lot more for their debt.
I think that he might be right and maybe with current investing we need to stay away from companies with high debt levels. I realize he is talking about the American market, but this could apply to Canada too. Interest rates are rising here too. In bad times companies with high debt levels can get into problems. It could certainly be worse the next time because of rising interest rates.
On my other blog I wrote yesterday about Waste Connections Inc. (TSX-WCN, NYSE-WCN)... learn more. Next, I will write about Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF)... learn more on Wednesday, June 13, 2018 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.
Michael Pento writing in Town Hall Finance thinks that the next recession will be caused by defaults by companies with high debts. This is because of interest rates rising and some companies will have to pay a lot more for their debt.
I think that he might be right and maybe with current investing we need to stay away from companies with high debt levels. I realize he is talking about the American market, but this could apply to Canada too. Interest rates are rising here too. In bad times companies with high debt levels can get into problems. It could certainly be worse the next time because of rising interest rates.
On my other blog I wrote yesterday about Waste Connections Inc. (TSX-WCN, NYSE-WCN)... learn more. Next, I will write about Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF)... learn more on Wednesday, June 13, 2018 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, June 12, 2018
Thursday, June 7, 2018
Something to Buy June 2018
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 June 2018 Spreadsheet to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 21 stocks in the Consumer Discretionary category. Four of these stocks (19%) are showing as cheap by the historically high dividend yield and they are DHX Media Ltd. (TSX-DHX, OTC-DHXMF), Dorel Industries (TSX-DII.B, OTC-DIIBF), High Liner Foods (TSX-HLF, OTC-HLNFF) and Newfoundland Capital Corp (TSX-NCC.A). Dorel Industries (TSX-DII.B, OTC-DIIBF) has been added to this list.
Eleven (or 52%) of Consumer Discretionary 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, OTC-DIIBF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF); Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Newfoundland Capital Corp (TSX-NCC.A), Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF), Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF), Thomson Reuters Corp (TSX-TRI, NYSE-TRI), Goeasy Ltd. (TSX-GSY, OTC-EHMEF) has been deleted from this list. Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF), has been added to this list.
I follow 11 Consumer Staples stocks. Jean Coutu Group Inc. (TSX-PJC.A, OTC-JCOUF) has been amalgamated with Metro. No companies are showing as cheap by the historically high dividend yield. Five stocks (or 42%) are showing cheap by historical median dividend yield. These are AGT Food and Ingredients Inc. (TSX-AGT, OTC-AGXXF), Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Loblaw Companies (TSX-L, OTC-LBLCF) and Metro Inc. (TSX-MRU, OTC-MTRAF). Jean Coutu Group Inc. (TSX-PJC.A, OTC-JCOUF) has been deleted from this list.
I only follow three Health Care stocks. None of these stocks are showing as cheap by the historically high dividend yield. Two or 67% are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ) and Medtronic Inc. (NYSE-MDT). There is no change from last month.
I follow 10 Real Estate stocks. Canadian Real Estate (TSX-REF.UN, OTC-CRXIF) has been bought out by Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF). One of these stocks is showing as cheap by the historically high dividend yield and it is Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF). Five stocks (or 50%) are showing cheap by historical median dividend yield. They are Artis REIT (TSX-AX.UN, OTC- ARESF), Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF), Granite Real Estate (TSX-GRT.UN, NYSE-GRP.U), H & R REIT (TSX-HR.UN, OTC-HRUFF) and Melcor Developments Inc. (TSX-MRD, OTC-MODVF). SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) has been deleted from this list and Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF) has been added.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. Four stock (or 50%) are showing cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), CIBC (TSX-CM, NYSE-CM) National Bank of Canada (TSX-NA, OTC-NTIOF) and Toronto Dominion Bank (TSX-TD, NYSE-TD). National Bank of Canada (TSX-NA, OTC-NTIOF) has been added to this list.
I follow 14 Financial Service stocks. None are showing as cheap by the historically high dividend yield. Eight (or 57%) 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, OTC-AGFMF), Alaris Royalty Corp (TSX-AD, OTC-ALARF), CI Financial (TSX-CIX, OTC-CIFAF), Equitable Group Inc. (TSX-EQB, OTC-EQGPF), Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF), IGM Financial (TSX-IGM, OTC-IGIFF) and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
I follow 6 Insurance stocks. None are showing as cheap by the historically high dividend yield. Five stocks (or 83%) are showing cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), Industrial Alliance Ins. and Fin. (TSX-IAG, OTC-IDLLF), Intact Financial Corp. (TSX-IFC, OTC-IFCZF), Manulife Financial Corp (TSX-MFC, NYSE-MFC) and Power Financial Corp (TSX-PWF, OTC-POFNF). There is no change from last month.
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). Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF) has been added to this list.
I follow 16 Services stocks. None are showing as cheap by the historically high dividend yield. Four stocks or 25% 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), Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA) and Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF). Wajax Corp (TSX-WJX, OTC-WJXFF) has been deleted from this list and Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA) has been added.
I follow 8 Material stocks. None are showing as cheap by the historically high dividend yield. No stocks are showing as cheap by historical median dividend yield. This is the same as last month.
I follow 10 Energy stocks. Two stocks or 20% are showing as cheap by the historical high dividend yield. They are Ensign Energy Services (TSX-ESI, OTC-ESVIF) and Mullen Group (TSX-MTL, OTC-MLLGF). There is no change from last month.
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 last list has not changed from last month.
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 Maxar Technologies Ltd (TSX-MAXR-NYSE-MAXR). There is no change from last month.
I follow 7 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. Four stocks (or 57%) are showing cheap by historical median dividend yield. They are AltaGas Ltd (TSX-ALA, OTC-ATGFF), Enbridge Inc. (TSX-ENB, NYSE-ENB), Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF) and TransCanada Corp (TSX-TRP, NYSE-TRP). This has not changed from last month.
I follow 12 of the Power type utility companies. Only ATCO Ltd (TSX-ACO.X, OTC-ACLLF) is showing as cheap by the historically high dividend yield. This has not changed from last month.
Six stock (or 50%) 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), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) and Emera Inc. (TSX-EMA, OTC-EMRAF), Fortis Inc. (TSX-FTS, OTC-FRTSF) and Just Energy Group Inc. (TSX-JE, NYSE-JE). Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN) has been added.
I follow 4 of the Telecom Service type utility companies. No stocks are showing as cheap by historically 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). There is no change on this last list from last month.
On my other blog I wrote yesterday about Lassonde Industries (TSX-LAS.A, OTC-LSDAF)... learn more. Next, I will write about Power Corp of Canada (TSX-POW, OTC-PWCDF)... learn more on Friday, June 8, 2018 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 June 2018 Spreadsheet to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 21 stocks in the Consumer Discretionary category. Four of these stocks (19%) are showing as cheap by the historically high dividend yield and they are DHX Media Ltd. (TSX-DHX, OTC-DHXMF), Dorel Industries (TSX-DII.B, OTC-DIIBF), High Liner Foods (TSX-HLF, OTC-HLNFF) and Newfoundland Capital Corp (TSX-NCC.A). Dorel Industries (TSX-DII.B, OTC-DIIBF) has been added to this list.
Eleven (or 52%) of Consumer Discretionary 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, OTC-DIIBF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF); Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Newfoundland Capital Corp (TSX-NCC.A), Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF), Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF), Thomson Reuters Corp (TSX-TRI, NYSE-TRI), Goeasy Ltd. (TSX-GSY, OTC-EHMEF) has been deleted from this list. Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF), has been added to this list.
I follow 11 Consumer Staples stocks. Jean Coutu Group Inc. (TSX-PJC.A, OTC-JCOUF) has been amalgamated with Metro. No companies are showing as cheap by the historically high dividend yield. Five stocks (or 42%) are showing cheap by historical median dividend yield. These are AGT Food and Ingredients Inc. (TSX-AGT, OTC-AGXXF), Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Loblaw Companies (TSX-L, OTC-LBLCF) and Metro Inc. (TSX-MRU, OTC-MTRAF). Jean Coutu Group Inc. (TSX-PJC.A, OTC-JCOUF) has been deleted from this list.
I only follow three Health Care stocks. None of these stocks are showing as cheap by the historically high dividend yield. Two or 67% are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ) and Medtronic Inc. (NYSE-MDT). There is no change from last month.
I follow 10 Real Estate stocks. Canadian Real Estate (TSX-REF.UN, OTC-CRXIF) has been bought out by Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF). One of these stocks is showing as cheap by the historically high dividend yield and it is Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF). Five stocks (or 50%) are showing cheap by historical median dividend yield. They are Artis REIT (TSX-AX.UN, OTC- ARESF), Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF), Granite Real Estate (TSX-GRT.UN, NYSE-GRP.U), H & R REIT (TSX-HR.UN, OTC-HRUFF) and Melcor Developments Inc. (TSX-MRD, OTC-MODVF). SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) has been deleted from this list and Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF) has been added.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. Four stock (or 50%) are showing cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), CIBC (TSX-CM, NYSE-CM) National Bank of Canada (TSX-NA, OTC-NTIOF) and Toronto Dominion Bank (TSX-TD, NYSE-TD). National Bank of Canada (TSX-NA, OTC-NTIOF) has been added to this list.
I follow 14 Financial Service stocks. None are showing as cheap by the historically high dividend yield. Eight (or 57%) 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, OTC-AGFMF), Alaris Royalty Corp (TSX-AD, OTC-ALARF), CI Financial (TSX-CIX, OTC-CIFAF), Equitable Group Inc. (TSX-EQB, OTC-EQGPF), Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF), IGM Financial (TSX-IGM, OTC-IGIFF) and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
I follow 6 Insurance stocks. None are showing as cheap by the historically high dividend yield. Five stocks (or 83%) are showing cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), Industrial Alliance Ins. and Fin. (TSX-IAG, OTC-IDLLF), Intact Financial Corp. (TSX-IFC, OTC-IFCZF), Manulife Financial Corp (TSX-MFC, NYSE-MFC) and Power Financial Corp (TSX-PWF, OTC-POFNF). There is no change from last month.
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). Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF) has been added to this list.
I follow 16 Services stocks. None are showing as cheap by the historically high dividend yield. Four stocks or 25% 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), Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA) and Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF). Wajax Corp (TSX-WJX, OTC-WJXFF) has been deleted from this list and Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA) has been added.
I follow 8 Material stocks. None are showing as cheap by the historically high dividend yield. No stocks are showing as cheap by historical median dividend yield. This is the same as last month.
I follow 10 Energy stocks. Two stocks or 20% are showing as cheap by the historical high dividend yield. They are Ensign Energy Services (TSX-ESI, OTC-ESVIF) and Mullen Group (TSX-MTL, OTC-MLLGF). There is no change from last month.
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 last list has not changed from last month.
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 Maxar Technologies Ltd (TSX-MAXR-NYSE-MAXR). There is no change from last month.
I follow 7 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. Four stocks (or 57%) are showing cheap by historical median dividend yield. They are AltaGas Ltd (TSX-ALA, OTC-ATGFF), Enbridge Inc. (TSX-ENB, NYSE-ENB), Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF) and TransCanada Corp (TSX-TRP, NYSE-TRP). This has not changed from last month.
I follow 12 of the Power type utility companies. Only ATCO Ltd (TSX-ACO.X, OTC-ACLLF) is showing as cheap by the historically high dividend yield. This has not changed from last month.
Six stock (or 50%) 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), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF) and Emera Inc. (TSX-EMA, OTC-EMRAF), Fortis Inc. (TSX-FTS, OTC-FRTSF) and Just Energy Group Inc. (TSX-JE, NYSE-JE). Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN) has been added.
I follow 4 of the Telecom Service type utility companies. No stocks are showing as cheap by historically 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). There is no change on this last list from last month.
On my other blog I wrote yesterday about Lassonde Industries (TSX-LAS.A, OTC-LSDAF)... learn more. Next, I will write about Power Corp of Canada (TSX-POW, OTC-PWCDF)... learn more on Friday, June 8, 2018 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, June 5, 2018
Dividend Stocks June 2018
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 June 2018. On this list,
Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN)
Bank of Montreal (TSX-BMO, NYSE-BMO)
Canadian Pacific Railway (TSX-CP, NYSE-CP)
Finning International Inc. (TSX-FTT, OTC-FINGF) Lassonde Industries (TSX-LAS.A, OTC-LSDAF)
Loblaw Companies (TSX-L, OTC-LBLCF)
National Bank of Canada (TSX-NA, OTC-NTIOF) Onex Corp (TSX-ONEX, OTC-ONEXF)
Pembina Pipelines Corp (TSX-PPL, NYSE-PBA)
Power Corp (TSX-POW, OTC-PWCDF)
Sun Life Financial (TSX-SLF, NYSE-SLF) Telus Corp. (TSX-T, NYSE-TU)
TMX Group Ltd. (TSX-X, OTC-TMXXF)
On May 8, 2018, Choice Properties REIT (TSX-CHP.UN-OTC-PPRQF) bought out Canadian Real Estate Trust (TSX-REF.UN-OTC-CRXIF) using shares and cash. I must admit, I too the shares. I will start to follow Choice Properties. On May 31, 2018 DHX Media Ltd (TSX-DHX, OTC-DMQHF) started trading under one symbol of DHX. There used to be two of DHX.A and DHX.B for multiple voting shares and common shares. Also the over the counter shares used to be DHXMF and they are now DMQHF.
On May 11, 2018 Jean Coutu Group Inc. (TSX-PJC.A, OTC-JCOUF) was amalgamated with Metro Inc. (TSX-MRU, OTC-MTRAF). This company is being dropped from my list. Liquor Stores N.A. (TSX-LIQ, OTC-LQSIF) changed its name and symbol to Alcanna Inc. (TSX-CLIQ, OTC-LQSIF). Note that the OTC symbol does not seem to have changed.
Also, of the stocks that I follow, 0 stocks decreased or suspended their dividends.
Most of my stocks started out as Dividend Payers. Currently 14 stocks are not paying any dividends and this would be some 9.03% of the stocks that I follow. Four of these stocks never had dividends, so 7.74% 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 Goeasy Ltd (TSX-GSY, OTC-EHMEF)... learn more. Next, I will write about Lassonde Industries (TSX-LAS.A, OTC-LSDAF)... learn more on Wednesday, June 6, 2018 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 June 2018. On this list,
- I have 8 stocks with a dividend yield higher than the historical high dividend yield,
- I have 49 stocks with a dividend yield higher than the historical average dividend yield
- I have 74 stocks with a dividend yield higher than the historical median dividend yield and
- 79 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 6 stocks with a dividend yield higher than the historical high dividend yield,
- I have 40 stocks with a dividend yield higher than the historical average dividend yield
- I have 68 stocks with a dividend yield higher than the historical median dividend yield and
- 69 stocks with a dividend yield higher than the 5 year average dividend yield.
- I had 9 stocks with a dividend yield higher than the historical high dividend yield,
- I had 45 stocks with a dividend yield higher than the historical average dividend yield and
- 39 stocks with a dividend yield higher than the 5 year average dividend yield.
Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN)
Bank of Montreal (TSX-BMO, NYSE-BMO)
Canadian Pacific Railway (TSX-CP, NYSE-CP)
Finning International Inc. (TSX-FTT, OTC-FINGF) Lassonde Industries (TSX-LAS.A, OTC-LSDAF)
Loblaw Companies (TSX-L, OTC-LBLCF)
National Bank of Canada (TSX-NA, OTC-NTIOF) Onex Corp (TSX-ONEX, OTC-ONEXF)
Pembina Pipelines Corp (TSX-PPL, NYSE-PBA)
Power Corp (TSX-POW, OTC-PWCDF)
Sun Life Financial (TSX-SLF, NYSE-SLF) Telus Corp. (TSX-T, NYSE-TU)
TMX Group Ltd. (TSX-X, OTC-TMXXF)
On May 8, 2018, Choice Properties REIT (TSX-CHP.UN-OTC-PPRQF) bought out Canadian Real Estate Trust (TSX-REF.UN-OTC-CRXIF) using shares and cash. I must admit, I too the shares. I will start to follow Choice Properties. On May 31, 2018 DHX Media Ltd (TSX-DHX, OTC-DMQHF) started trading under one symbol of DHX. There used to be two of DHX.A and DHX.B for multiple voting shares and common shares. Also the over the counter shares used to be DHXMF and they are now DMQHF.
On May 11, 2018 Jean Coutu Group Inc. (TSX-PJC.A, OTC-JCOUF) was amalgamated with Metro Inc. (TSX-MRU, OTC-MTRAF). This company is being dropped from my list. Liquor Stores N.A. (TSX-LIQ, OTC-LQSIF) changed its name and symbol to Alcanna Inc. (TSX-CLIQ, OTC-LQSIF). Note that the OTC symbol does not seem to have changed.
Also, of the stocks that I follow, 0 stocks decreased or suspended their dividends.
Most of my stocks started out as Dividend Payers. Currently 14 stocks are not paying any dividends and this would be some 9.03% of the stocks that I follow. Four of these stocks never had dividends, so 7.74% 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 Goeasy Ltd (TSX-GSY, OTC-EHMEF)... learn more. Next, I will write about Lassonde Industries (TSX-LAS.A, OTC-LSDAF)... learn more on Wednesday, June 6, 2018 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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