Paul Philip talked in one of the Investing Strategies sessions His talk was called “The 5 Mistakes Every Investor Makes and How to Avoid Them”. He is an Investment Advisor for Financial Wealth Builders Securities Worldsource Securities.
Risk comes from not knowing what you are doing (Warren Buffet). You need more information than ever and also experience. You need to live within your means. There is a difference between cheap and conservative in spending. The S&P500 compounded 10% per year between 1926 and 2017 but you had to have stick with it.
Mistake #1 is market timing. Do not do this. There is a difference between earnings that is available and actual. Over the past 20 years the average equity fund investor made 4.25%, but the equity funds made 8.22%. Life is not linear, it is volatile. There is no great rate of return if you not take risks. It is really not risk tolerance, but pain tolerance.
There are 3 types of market timers. There are the dreamers who believe that they can do it. There are the gamers and then there are the 0.1% of people who can actual market time. In 2016 there were 82.7M traders per day with $346.4B traded. There is why it is hard to beat the market. Also, advisor make money by helping to made trades.
Why do people market time? Part of this is TV shows. These are shows like BNN Blomberg. However, the media want eye balls, they do not want to educate you. John Bogle, founder of Vanguard said that it is great to get out at the top and get back in at the low, but he does not know anyone who has done this. People market time because they are afraid to lose what they have. They also want wealth and power.
Mistake #2 is believing there is a quick way to make wealth. If you have real estate for 40 years, you will make money. Get rich quick does not work. More money is lost in preparing for a correction or trying to anticipate the correction than is lost in a correction (Peter Lynch).
A correction is when the market goes down 10% or more. It does this most years. The average correction is 13.5%. Do not be afraid of them. There will be lots of them. Only 1 in 5 becomes a bear market. A bear market is when the market goes down 20% or more. These happen about every 3 to 5 years. The average decline is 33%. They generally last a year and they happen for different reasons. The economy finds a way to move on. Bear markets can move quickly.
Missing a few days can reduce your gain. If you are out of the market the best 10 days your return would be 4.5%, if you are out the best 20 days the return would be 2% and if you are out the best 40 days you would have lost money. If you had stayed in the market you would have earned 8.22% over 20 years.
There are choices for investing. Choice one for investing is to be active investing in stock and stock picking. Here the buying thinks the stock is going up and the seller thinks it is going down. Choice two is indexing. Do not look for a needle in a hay stack, just buy the hay stack (John Boyle). Choice three is Strategic Indexing. You build on what Vanguard did. Barron’s Market Beaters are spread over 8,000 stock. This is why Strategic Indexing wins. Nobel prize winner picked the 8,000 companies.
Mistake #3 is to misunderstand financial information. TV is for entertainment, not education. Leads you to believe an all-time high means that the market is due for a pullback. However, the market reaches all time highs more than once per month. It is normal and do not panic. What determines investment outcomes? It is determined in the long-term by the mixture of asses in your portfolio.
Mistake #4 is letting yourself get in the way. Predictably Irrational is a book by Dan Ariely. (This is on Amazon.) Problems are overconfidence, confirmation bias, anchoring (the loss of money in 2008 and you cannot get that out of your head) and loss aversion. The investors worse enemy is the investor himself (Benjamin Graham).
Mistake #5 is doing it on your own and being skeptical about the value of the right advisor. The wrong advisor is detrimental to your financial health. The right advisor is worth their weight in gold. You need to work with the right advisor. Find the one that is the right fit for you. You need to be on the same page. You need to be comfortable with your advisor and you need to spend time getting the right advisor.
On my other blog I wrote yesterday about Molson Coors Canada (TSX-TPX.B, NYSE-TAP) ... learn more. Next, I will write about Brookfield Asset Management Inc. (TSX-BAM.A, NYSE-BAM) ... learn more on Wednesday, October 31, 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, October 30, 2018
Thursday, October 25, 2018
Money Show 2018 – Susan Mallin
Susan Mallin talked in one of the Strategies sessions Her talk was called “10 Personal Financial Planning Strategies People are Often Missing”. She is Vice President, Financial Planning & Associates Portfolio Manager, Lorne Steinberg Wealth Management. Her company’s site is here.
She has been in investment business for 25 and owns her own Financial Planning Business. All the following has to do with Financial Planning:
You need to create a vision. Money is emotional. You will make emotional decisions. You cannot ignore things. Review, plan, and update variables each year. You can reinvent yourself when changing jobs or at divorce. All business can run into walls.
Rule of thumb for CPP. If you take it at 60, it will be reduced and if you take it at 70, the pension will be higher. What you do depends on your and your vision. If you take it early and reinvest the money at 5%, you can have more money.
There is a 70% rule that your income needs in retirement is 70% of working income needs. This can differ by person. You have to figure out what you really need.
Spending rules say that you will spend more in active retirement than in inactive retirement. However, long term care is expensive. You do not want to have a plan where you run out of money at 90. The rate of return that Ms. Mallin uses is 5% and it is conservative.
You should not pay down your mortgage by sacrificing RRSP and TFSA investments. You might later have to sell your house or take out a mortgage in retirement. You might want to meltdown your RRSP because of tax on RRSPs at death. However, RRSP meltdowns do not always work. You should not do this as you can end up with higher net estate taxes.
Make taxes less by bypassing your Will. Only the main Will money is charged estate tax. If you have a business do two Wills. RRSP are taxed as a lump sum of income. Capital gain can be offset with any losses. Old unclaimed losses can go against tax in final tax after death.
Telecommunications Services is getting its own index section that will contain Telecom Services, Media, and Entertainment. The Tech index is losing google etc. and some Consumer Discretionary stocks are also moving to this new index.
The first trade idea is for Canadian REITs. They have been overdone and the current valuations and yields are attractive.
The second trade idea is US banks. US banks are still a great long term play. With a strong US economy and lower unemployment there is a greater need for bank services. BMO thinks that long term yields are going to go up.
The third trade idea is Tech. Tech is 25% of the market cap, but generates 50% of Cash Flow.
The fourth trade idea is Consumer Staples and Consumer Discretionary with May to October dates. Here risk is down and total return is up.
Trade idea 5 is Canadian Banks. Keep holding Canadian Banks. They are the best place to be. They have low P/E and P/B and high ROE.
On my other blog I wrote yesterday about North West Company (TSX-NWC, OTC-NWTUF) ... learn more. Next, I will write about Pason Systems Inc. (TSX-PSI, OTC-PSYTF) ... learn more on Friday, October 26, 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.
She has been in investment business for 25 and owns her own Financial Planning Business. All the following has to do with Financial Planning:
- Soar High
- Vision
- Commitment
- Tenacious Fearlessness
- Nurturing
- Reinvention
You need to create a vision. Money is emotional. You will make emotional decisions. You cannot ignore things. Review, plan, and update variables each year. You can reinvent yourself when changing jobs or at divorce. All business can run into walls.
Rule of thumb for CPP. If you take it at 60, it will be reduced and if you take it at 70, the pension will be higher. What you do depends on your and your vision. If you take it early and reinvest the money at 5%, you can have more money.
There is a 70% rule that your income needs in retirement is 70% of working income needs. This can differ by person. You have to figure out what you really need.
Spending rules say that you will spend more in active retirement than in inactive retirement. However, long term care is expensive. You do not want to have a plan where you run out of money at 90. The rate of return that Ms. Mallin uses is 5% and it is conservative.
You should not pay down your mortgage by sacrificing RRSP and TFSA investments. You might later have to sell your house or take out a mortgage in retirement. You might want to meltdown your RRSP because of tax on RRSPs at death. However, RRSP meltdowns do not always work. You should not do this as you can end up with higher net estate taxes.
Make taxes less by bypassing your Will. Only the main Will money is charged estate tax. If you have a business do two Wills. RRSP are taxed as a lump sum of income. Capital gain can be offset with any losses. Old unclaimed losses can go against tax in final tax after death.
Telecommunications Services is getting its own index section that will contain Telecom Services, Media, and Entertainment. The Tech index is losing google etc. and some Consumer Discretionary stocks are also moving to this new index.
The first trade idea is for Canadian REITs. They have been overdone and the current valuations and yields are attractive.
The second trade idea is US banks. US banks are still a great long term play. With a strong US economy and lower unemployment there is a greater need for bank services. BMO thinks that long term yields are going to go up.
The third trade idea is Tech. Tech is 25% of the market cap, but generates 50% of Cash Flow.
The fourth trade idea is Consumer Staples and Consumer Discretionary with May to October dates. Here risk is down and total return is up.
Trade idea 5 is Canadian Banks. Keep holding Canadian Banks. They are the best place to be. They have low P/E and P/B and high ROE.
On my other blog I wrote yesterday about North West Company (TSX-NWC, OTC-NWTUF) ... learn more. Next, I will write about Pason Systems Inc. (TSX-PSI, OTC-PSYTF) ... learn more on Friday, October 26, 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, October 23, 2018
Money Show 2018 – Fireside Chat
There was Gene Simmons and Canadian Money Savers’ Editor Peter Hodson in a Fireside Chat at the end of the opening remarks. The chat was to be about Gene Simmons’ rage-to-riches story and his new role as chief evangelist officer for Invictus. Invictus MD is a cannabis company. Peter Hodson magazine’s site is here.
This seemed to be a very short chat. Gene Simmons said one thing about cannabis that I had not heard before was the it helps opioids abusers get off opioids. He said when buy and selling you should not depend on any one person. Do you own research. In the Wall Street versus monkey with darts contest, the monkey only won over the short term.
Investors should buy low and sell high. Things to currently invest in are biotech, health, and food. You should buy stuff in a down market, that is when to be bullish on stocks. Do your own research and do your due diligence. The more you know the better the chance of making a good investment. Do not throw away your money on stupid things.
On my other blog I wrote yesterday about Equitable Group Inc. (TSX-EQB, OTC-EQGPF) ... learn more. Next, I will write about North West Company (TSX-NWC, OTC-NWTUF) ... learn more on Wednesday, October 24, 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.
This seemed to be a very short chat. Gene Simmons said one thing about cannabis that I had not heard before was the it helps opioids abusers get off opioids. He said when buy and selling you should not depend on any one person. Do you own research. In the Wall Street versus monkey with darts contest, the monkey only won over the short term.
Investors should buy low and sell high. Things to currently invest in are biotech, health, and food. You should buy stuff in a down market, that is when to be bullish on stocks. Do your own research and do your due diligence. The more you know the better the chance of making a good investment. Do not throw away your money on stupid things.
On my other blog I wrote yesterday about Equitable Group Inc. (TSX-EQB, OTC-EQGPF) ... learn more. Next, I will write about North West Company (TSX-NWC, OTC-NWTUF) ... learn more on Wednesday, October 24, 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, October 18, 2018
Money Show 2018 – David Rosenberg
David Rosenberg spoke in the opening remarks. His talk was called “Paradigm Shift”. He is Chief Economist and Strategist at Gluskin, Sheff + Associates Inc. His company’s site here.
Most presidents do little of what they promise because of checks and balances in US parliament. Trump has done more than anyone else. Rosenberg likes economist John Kenneth Galbraith. People do not learn from history is what Warren Buffet said. He also said that you need a sense of history to invest. He also likes Bob Fennel and Merrill Lynch.
There are secular inflection points and the market gets a set of new rules. However, most market participates invest by the old rules. The US currency is breaking out again. Rising US$ rates pushes up the US market. BRIC countries are built on debt. Emerging markets are vulnerable too. There is also a problem with lots of debt in the US.
Turkey’s rates are rising and are at 24%. Russian interest rates are also rising. China is trying to deleverage their debt. Their market is down by 21% since the January peak. No one is talking about this. China consumes half of the world’s resources.
There is a reversal of fortune. All the markets were up last year, but lots are down this year. The US is 30% of the global market and it is up. The US is different as it has lots of vitality. However, there is lower volume and low breath. Six stocks are up 51%, for 494 stocks are only up by 4%.
There was a massive tax cut. US companies are using this money to rebuy shares. Profits are up by 25%. Without the Buy Backs, they would be up 16%. If we strip out the tax cut, profits are up 6.7%. He thinks earnings will be flat next year.
He thinks stocks and bonds are in the same place. The bond market is predicting slower growth. We should be going from cyclical stocks to defensive stocks. There are market indicators that are turning negative. The US and global economies are slowing down.
The US economy is shifting to excess demand and this is inflationary and like to the 1970’s. Powel has said he needs to normalize interest rates. He will put them up 100 basis points. Bernanke now thinks there are market bubbles. (He should know as he has created them.)
Corporate balance sheets are not in good shape. This happened to commercial real estate in 1980, then to real estate in 1990 and now to corporate balance sheets. Half investment bonds are rated BBB.
We are very late in the cycle. Cycles to not die by old age but by the Fed. The yield curve, which is his favourite indicator is flattening. He says of 15 indicators, 14 says we are very late in the cycle. We need to have quality stocks and get defensive.
On my other blog I wrote yesterday about Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more. Next, I will write about Medtronic PLC (NYSE-MDT) ... learn more on Friday, October 19, 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.
Most presidents do little of what they promise because of checks and balances in US parliament. Trump has done more than anyone else. Rosenberg likes economist John Kenneth Galbraith. People do not learn from history is what Warren Buffet said. He also said that you need a sense of history to invest. He also likes Bob Fennel and Merrill Lynch.
There are secular inflection points and the market gets a set of new rules. However, most market participates invest by the old rules. The US currency is breaking out again. Rising US$ rates pushes up the US market. BRIC countries are built on debt. Emerging markets are vulnerable too. There is also a problem with lots of debt in the US.
Turkey’s rates are rising and are at 24%. Russian interest rates are also rising. China is trying to deleverage their debt. Their market is down by 21% since the January peak. No one is talking about this. China consumes half of the world’s resources.
There is a reversal of fortune. All the markets were up last year, but lots are down this year. The US is 30% of the global market and it is up. The US is different as it has lots of vitality. However, there is lower volume and low breath. Six stocks are up 51%, for 494 stocks are only up by 4%.
There was a massive tax cut. US companies are using this money to rebuy shares. Profits are up by 25%. Without the Buy Backs, they would be up 16%. If we strip out the tax cut, profits are up 6.7%. He thinks earnings will be flat next year.
He thinks stocks and bonds are in the same place. The bond market is predicting slower growth. We should be going from cyclical stocks to defensive stocks. There are market indicators that are turning negative. The US and global economies are slowing down.
The US economy is shifting to excess demand and this is inflationary and like to the 1970’s. Powel has said he needs to normalize interest rates. He will put them up 100 basis points. Bernanke now thinks there are market bubbles. (He should know as he has created them.)
Corporate balance sheets are not in good shape. This happened to commercial real estate in 1980, then to real estate in 1990 and now to corporate balance sheets. Half investment bonds are rated BBB.
We are very late in the cycle. Cycles to not die by old age but by the Fed. The yield curve, which is his favourite indicator is flattening. He says of 15 indicators, 14 says we are very late in the cycle. We need to have quality stocks and get defensive.
On my other blog I wrote yesterday about Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more. Next, I will write about Medtronic PLC (NYSE-MDT) ... learn more on Friday, October 19, 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, October 16, 2018
Money Show 2018 – Kevin Prins
Kevin Prins spoke in the opening remarks. His talk was called “Simple Rules to Make You a Better ETF Investor”. He is managing director, Head of Distributions, ETFs, and Managed Accounts at BMO Global Asset Management. His company’s site here.
BMO had 30% of the ETF business. The advantage of an ETF is the liquidity. They are easy to get into and out of. ETFs are diversified and cost efficient. They have Portfolio Transparency which helps you understand what you are holding.
ETFs are like a stock. They have buyers and sellers like a stock, so they have secondary liquidity. Their volumes are not on the TSX and spread is a better indictor of volume. When buying and selling ETFs avoid the first 15 minutes of trading and the last 15 minutes of trading. When the market is close in other countries, the ETFs for those countries are less liquid.
Make sure that the yields are all being earned by the ETF. Know about taxes for your ETF. Also, make sure that the ETF really is tracking what you want to invest in.
On my other blog I wrote yesterday about Trigon Metals Inc. (TSX-TM, OTC-PNTZF) ... learn more. Next, I will write about Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more on Wednesday, October 17, 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.
BMO had 30% of the ETF business. The advantage of an ETF is the liquidity. They are easy to get into and out of. ETFs are diversified and cost efficient. They have Portfolio Transparency which helps you understand what you are holding.
ETFs are like a stock. They have buyers and sellers like a stock, so they have secondary liquidity. Their volumes are not on the TSX and spread is a better indictor of volume. When buying and selling ETFs avoid the first 15 minutes of trading and the last 15 minutes of trading. When the market is close in other countries, the ETFs for those countries are less liquid.
Make sure that the yields are all being earned by the ETF. Know about taxes for your ETF. Also, make sure that the ETF really is tracking what you want to invest in.
On my other blog I wrote yesterday about Trigon Metals Inc. (TSX-TM, OTC-PNTZF) ... learn more. Next, I will write about Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more on Wednesday, October 17, 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, October 11, 2018
Money Show 2018 – Deborah Fuhr
Deborah Fuhr spoke in the opening remarks. Her talk was called “Review of the Mega Trends Influencing the ETF Industry”. She is a managing partner and co-founder of ETFFGI. Her company’s site here.
ETFs were started in Canada in March of 1990. The US got them 3 year later. The US now has the largest pool of ETF assets with 5.2B in assets. The US has 71%, Canada 2.5% and EU 16% of the EFT market. The future for ETFs is positive. Pension funds, Hedge Funds and individuals have access at the same price. Half the institutions hold ETFs for at least 2 years.
There is often a home country basis in stocks and holding of outside country in ETFs. ETFs have lower cost and produce better results. ETFs have driven costs down for other products. Financial advisors have embraced ETFs. ETFs can deliver interesting products. For example, the growth in Robo investing via ETFs.
Seven out of ten active Mutual Funds do not beat the market. Hedge funds have now been around for 68 years, but ETFs have more money. Hedge funds are performing below the S&P500. ETFs provide Hedge Fund type of investments. It is easy to get into and out of ETFs, but it takes time to get into and out of Mutual Funds.
The majority of ETFs money is in market investments. There has been 55 months of positive inflows into ETFs. Money is now going into Ethical ETFs. Money is going into market ETFs of US and China, into dividend products ETFs and Bonds ETFs. Some ETFs rebalance every day and are for short term investing. The industry will grow and there will be new products.
On my other blog I wrote yesterday about Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK) ... learn more. Next, I will write about Logistec Corp (TSX-LGT.B, OTC-LTKBF) ... learn more on Friday, October 12, 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.
ETFs were started in Canada in March of 1990. The US got them 3 year later. The US now has the largest pool of ETF assets with 5.2B in assets. The US has 71%, Canada 2.5% and EU 16% of the EFT market. The future for ETFs is positive. Pension funds, Hedge Funds and individuals have access at the same price. Half the institutions hold ETFs for at least 2 years.
There is often a home country basis in stocks and holding of outside country in ETFs. ETFs have lower cost and produce better results. ETFs have driven costs down for other products. Financial advisors have embraced ETFs. ETFs can deliver interesting products. For example, the growth in Robo investing via ETFs.
Seven out of ten active Mutual Funds do not beat the market. Hedge funds have now been around for 68 years, but ETFs have more money. Hedge funds are performing below the S&P500. ETFs provide Hedge Fund type of investments. It is easy to get into and out of ETFs, but it takes time to get into and out of Mutual Funds.
The majority of ETFs money is in market investments. There has been 55 months of positive inflows into ETFs. Money is now going into Ethical ETFs. Money is going into market ETFs of US and China, into dividend products ETFs and Bonds ETFs. Some ETFs rebalance every day and are for short term investing. The industry will grow and there will be new products.
On my other blog I wrote yesterday about Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK) ... learn more. Next, I will write about Logistec Corp (TSX-LGT.B, OTC-LTKBF) ... learn more on Friday, October 12, 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, October 9, 2018
Money Show 2018 – Nick Bontis
Nick Bontis spoke in the opening remarks. His talk was called “Disruptive Technology”. He is a Director at Harvest Portfolio Group. His site is here and his company’s sitehere.
Gretzky said that you do not go where the puck is but where it will be.
The larges companies are Apple, Amazon, Microsoft, and Alphabet. Apple is getting into cars, Amazon is looking at blimps for home delivery and Alphabet is getting into phones and contact lenses.
Canadian usage of the internet has gone from 4% to 91%. The highest usage is 100% by Scandinavia and South Korea. You need high literacy rates for internet penetration. The internet had 30M users in 1999 and 3.9B users in 2018. There are 2128 IP addresses. Most houses have 8.1 internet active apps in their homes.
With 3.9B on the interest, which is just over 50% of the population, there will be explosion of use in the future.
Harvest has a Blockchain Technologies EFT with a symbol of TSX-HBLK. There will be lots of uses in blockchain in the future. They could have a system to validate CVs.
Nick Bontis wrote book called Information Bombardment: Rising Above the Digital Onslaught.
On my other blog I wrote today about Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more. Next, I will write about Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK) ... learn more on Wednesday, October 10, 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.
Gretzky said that you do not go where the puck is but where it will be.
The larges companies are Apple, Amazon, Microsoft, and Alphabet. Apple is getting into cars, Amazon is looking at blimps for home delivery and Alphabet is getting into phones and contact lenses.
Canadian usage of the internet has gone from 4% to 91%. The highest usage is 100% by Scandinavia and South Korea. You need high literacy rates for internet penetration. The internet had 30M users in 1999 and 3.9B users in 2018. There are 2128 IP addresses. Most houses have 8.1 internet active apps in their homes.
With 3.9B on the interest, which is just over 50% of the population, there will be explosion of use in the future.
Harvest has a Blockchain Technologies EFT with a symbol of TSX-HBLK. There will be lots of uses in blockchain in the future. They could have a system to validate CVs.
Nick Bontis wrote book called Information Bombardment: Rising Above the Digital Onslaught.
On my other blog I wrote today about Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more. Next, I will write about Teck Resources Ltd. (TSX-TCK.B, NYSE-TCK) ... learn more on Wednesday, October 10, 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, October 4, 2018
Something to Buy October 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 it is 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 October 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). Note that my spreadsheet was having problems with stocks that had US dividends and therefore underestimated cheap stocks.
I follow 22 stocks in the Consumer Discretionary category. Five of these stocks (23%) 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), Newfoundland Capital Corp (TSX-NCC.A) and Stingray Digital Group Inc (TSX-RAY.A). Dorel Industries (TSX-DII.B, OTC-DIIBF) has been added to this list.
There was a big drop in price on DHX Media Ltd and analysts think it is in trouble. See Stock Chase.
Eleven (or 50%) 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, OTC-LEFUF), 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) and Stingray Digital Group Inc (TSX-RAY.A).
Dorel Industries (TSX-DII.B, OTC-DIIBF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP) has been added to this list. However, they should not have been taken off the list. This is a problem with my spreadsheet and stocks with Dividends Paid in US$.
I follow 11 Consumer Staples stocks. No companies are showing as cheap by the historically high dividend yield. Five stocks (or 46%) are showing cheap by historical median dividend yield. These are AGT Food and Ingredients Inc. (TSX-AGT, OTC-AGXXF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Loblaw Companies (TSX-L, OTC-LBLCF), Metro Inc. (TSX-MRU, OTC-MTRAF) and Saputo Inc. (TSX-SAP, OTC-SAPIF). Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF) has been removed 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 Energy stocks. One stock or 10% are showing as cheap by the historical high dividend yield. It is Mullen Group (TSX-MTL, OTC-MLLGF). This is the same as last month.
There are four stocks (or 40%) 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), and Mullen Group (TSX-MTL, OTC-MLLGF). There is no change from last month.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. Two stocks (or 25%) are showing cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), and CIBC (TSX-CM, NYSE-CM). There is no change from last month.
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). CI Financial (TSX-CIX, OTC-CIFAF) has been added back to this list.
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), Power Financial Corp (TSX-PWF, OTC-POFNF) and Sun Life Financial (TSX-SLF, NYSE-SLF). Intact Financial Corp. (TSX-IFC, OTC-IFCZF) has been removed from this 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). Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF) has been added to this list. However, it should not have been taken off the list. This is a problem with my spreadsheet and stocks with Dividends Paid in US$.
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). Canadian National Railway (TSX-CNR, NYSE-CNI) and Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA) has been added to this list. Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA) should have been on this before, but it was not due to it US$ dividend.
There was a big drop in price with Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF), the company missed some numbers and market over reacted. See Stock Chase.
I follow 8 Material stocks. None are showing as cheap by the historically high dividend yield. Two stock or 25% are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), Hardwoods Distribution Inc. (TSX-HDI, OTC-HDIUF). Barrick Gold Corp (TSX-ABX, NYSE-ABX), has been added to this list. However, it should not have been taken off the list. This is a problem with my spreadsheet and stocks with Dividends Paid in US$.
I follow 10 Real Estate stocks. None of these stocks is showing as cheap by the historically high dividend yield. This is the same as for last month.
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). There is no change from last month.
I follow 4 of the Telecom Service stocks. 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 from last month. Telecom Services is a new category for TSX and these companies are no longer under Utilities.
I follow 8 Tech stocks. One is showing as cheap by historical high dividend yield and that is Maxar Technologies Ltd (TSX-MAXR-NYSE-MAXR). There is no change from last month.
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 43%) 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). Enbridge Income Fund Holdings Inc (TSX-ENF, OTC-EBGUF) has been added to this list.
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.
Five stocks (or 57%) 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), Fortis Inc. (TSX-FTS, OTC-FRTSF) and Just Energy Group Inc. (TSX-JE, NYSE-JE). This has not changed from last month.
On my other blog I wrote yesterday about Le Chateau Inc. (TSX-CTU, OTC-LCUAF)... learn more. Next, I will write about K-Bro Linen Inc. (TSX-KBL, OTC-KBRLF) ... learn more on Friday, October 5, 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 it is 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 October 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). Note that my spreadsheet was having problems with stocks that had US dividends and therefore underestimated cheap stocks.
I follow 22 stocks in the Consumer Discretionary category. Five of these stocks (23%) 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), Newfoundland Capital Corp (TSX-NCC.A) and Stingray Digital Group Inc (TSX-RAY.A). Dorel Industries (TSX-DII.B, OTC-DIIBF) has been added to this list.
There was a big drop in price on DHX Media Ltd and analysts think it is in trouble. See Stock Chase.
Eleven (or 50%) 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, OTC-LEFUF), 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) and Stingray Digital Group Inc (TSX-RAY.A).
Dorel Industries (TSX-DII.B, OTC-DIIBF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP) has been added to this list. However, they should not have been taken off the list. This is a problem with my spreadsheet and stocks with Dividends Paid in US$.
I follow 11 Consumer Staples stocks. No companies are showing as cheap by the historically high dividend yield. Five stocks (or 46%) are showing cheap by historical median dividend yield. These are AGT Food and Ingredients Inc. (TSX-AGT, OTC-AGXXF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Loblaw Companies (TSX-L, OTC-LBLCF), Metro Inc. (TSX-MRU, OTC-MTRAF) and Saputo Inc. (TSX-SAP, OTC-SAPIF). Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF) has been removed 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 Energy stocks. One stock or 10% are showing as cheap by the historical high dividend yield. It is Mullen Group (TSX-MTL, OTC-MLLGF). This is the same as last month.
There are four stocks (or 40%) 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), and Mullen Group (TSX-MTL, OTC-MLLGF). There is no change from last month.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. Two stocks (or 25%) are showing cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), and CIBC (TSX-CM, NYSE-CM). There is no change from last month.
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). CI Financial (TSX-CIX, OTC-CIFAF) has been added back to this list.
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), Power Financial Corp (TSX-PWF, OTC-POFNF) and Sun Life Financial (TSX-SLF, NYSE-SLF). Intact Financial Corp. (TSX-IFC, OTC-IFCZF) has been removed from this 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). Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF) has been added to this list. However, it should not have been taken off the list. This is a problem with my spreadsheet and stocks with Dividends Paid in US$.
I follow 16 Services stocks. None are showing as cheap by the historically high dividend yield. Four stocks or 25% are showing as cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc. (TSX-PSI, OTC-PSYTF), Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA) and Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF). Canadian National Railway (TSX-CNR, NYSE-CNI) and Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA) has been added to this list. Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA) should have been on this before, but it was not due to it US$ dividend.
There was a big drop in price with Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF), the company missed some numbers and market over reacted. See Stock Chase.
I follow 8 Material stocks. None are showing as cheap by the historically high dividend yield. Two stock or 25% are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), Hardwoods Distribution Inc. (TSX-HDI, OTC-HDIUF). Barrick Gold Corp (TSX-ABX, NYSE-ABX), has been added to this list. However, it should not have been taken off the list. This is a problem with my spreadsheet and stocks with Dividends Paid in US$.
I follow 10 Real Estate stocks. None of these stocks is showing as cheap by the historically high dividend yield. This is the same as for last month.
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). There is no change from last month.
I follow 4 of the Telecom Service stocks. 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 from last month. Telecom Services is a new category for TSX and these companies are no longer under Utilities.
I follow 8 Tech stocks. One is showing as cheap by historical high dividend yield and that is Maxar Technologies Ltd (TSX-MAXR-NYSE-MAXR). There is no change from last month.
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 43%) 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). Enbridge Income Fund Holdings Inc (TSX-ENF, OTC-EBGUF) has been added to this list.
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.
Five stocks (or 57%) 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), Fortis Inc. (TSX-FTS, OTC-FRTSF) and Just Energy Group Inc. (TSX-JE, NYSE-JE). This has not changed from last month.
On my other blog I wrote yesterday about Le Chateau Inc. (TSX-CTU, OTC-LCUAF)... learn more. Next, I will write about K-Bro Linen Inc. (TSX-KBL, OTC-KBRLF) ... learn more on Friday, October 5, 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, October 2, 2018
Dividend Stocks October 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 October 2018.
Note: My Spreadsheet was having problems with US$ dividends and did not include them properly in the following lists. I have updated the September list information to what it should have been.
On this list,
Power Corp (TSX-POW, OTC-PWCDF)
Savaria Corporation (TSX-SIS, OTC-SISXF)
Most of my stocks started out as Dividend Payers. Currently 13 stocks are not paying any dividends and this would be some 8.39% of the stocks that I follow. Four of these stocks never had dividends, so 5.81% of the stocks I follow have suspended their dividends. The three stocks that never paid dividends are Ballard Power Systems Inc. (TSX-BLD, NASDAQ-BLDP), 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 it is 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 Granite REIT (TSX-GRT.UN, NYSE-GRP.U) ... learn more. Next, I will write about Le Chateau Inc. (TSX-CTU, OTC-LCUAF)... learn more on Wednesday, October 03, 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 October 2018.
Note: My Spreadsheet was having problems with US$ dividends and did not include them properly in the following lists. I have updated the September list information to what it should have been.
On this list,
- I have 9 stocks with a dividend yield higher than the historical high dividend yield,
- I have 51 stocks with a dividend yield higher than the historical average dividend yield
- I have 72 stocks with a dividend yield higher than the historical median dividend yield and
- 77 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 7 stocks with a dividend yield higher than the historical high dividend yield,
- I have 48 stocks with a dividend yield higher than the historical average dividend yield
- I have 70 stocks with a dividend yield higher than the historical median dividend yield and
- 75 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.
Power Corp (TSX-POW, OTC-PWCDF)
Savaria Corporation (TSX-SIS, OTC-SISXF)
Most of my stocks started out as Dividend Payers. Currently 13 stocks are not paying any dividends and this would be some 8.39% of the stocks that I follow. Four of these stocks never had dividends, so 5.81% of the stocks I follow have suspended their dividends. The three stocks that never paid dividends are Ballard Power Systems Inc. (TSX-BLD, NASDAQ-BLDP), 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 it is 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 Granite REIT (TSX-GRT.UN, NYSE-GRP.U) ... learn more. Next, I will write about Le Chateau Inc. (TSX-CTU, OTC-LCUAF)... learn more on Wednesday, October 03, 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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