Ned Piplovic on Dividend Investor Site gives a list of important definitions that he feels people should know about. Any dividend investor should be familiar with these terms.
On my other blog I wrote yesterday about Richards Packaging Income Fund (TSX-RPI.UN, OTC- RPKIF) ... learn more. Next, I will write Bird Construction Inc. (TSX-BDT, OTC- BIRDF)... learn more on December 28, 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, December 27, 2018
Thursday, December 20, 2018
Understanding Financial Statements
Visual Capitalist blog can give out good and useful information. This blog is about Financial Statements. If you going to invest it is not a bad idea to know something about these statements. This is a nice overview.
On my other blog I wrote yesterday about Stantec Inc. (TSX-STN, NYSE-STN) ... learn more. Next, I will write about Methanex Corp. (TSX-MX, NASDAQ-MEOH) ... learn more on Friday, December 21, 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 Stantec Inc. (TSX-STN, NYSE-STN) ... learn more. Next, I will write about Methanex Corp. (TSX-MX, NASDAQ-MEOH) ... learn more on Friday, December 21, 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, December 18, 2018
How to Make Money in Value Stocks
To get the Stockopedia’s PDF on “How to Make Money in Value Stocks” click here. For the Kindle version from Amazon or to see a write up on this booklet you can click here.
This booklet is directed to US Investors, but the same rules apply to Canadian Investors.
On my other blog I wrote yesterday about FirstService Corp (TSX-FSV, NASDAQ-FSV) ... learn more. Next, I will write about Stantec Inc. (TSX-STN, NYSE-STN) ... learn more on Wednesday, December 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.
This booklet is directed to US Investors, but the same rules apply to Canadian Investors.
On my other blog I wrote yesterday about FirstService Corp (TSX-FSV, NASDAQ-FSV) ... learn more. Next, I will write about Stantec Inc. (TSX-STN, NYSE-STN) ... learn more on Wednesday, December 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.
Thursday, December 13, 2018
Market Down, Dividends Up
What I love about dividend growth stocks is the growth in dividends in a lot of different circumstances. For the stocks that I follow for year of 2018, the stock prices maybe down, but we seem to be doing fine with dividend increases.
In 2018 there has been only 2 dividend decreases or suspensions and 94 increases in dividends. See the chart below for increases and decreases in dividends for 2016 and 2017. (Note that not all the stock that I follow are good dividend stocks by the way.)
I also have statistics for 2014 and 2015. In 2014 I had 99 stocks with increases and 4 with decrease. In 2015 I had 95 stocks with increases and 18 with decreases. Note that when I publish my month article on Dividend stocks, the dividend increases and decreases are for the next dividend due for a stock.
I am personally done well this year as far as dividends go. My dividend income is up 11.1% even though my portfolio is down year to date. I only measure my portfolio at the end of each month. To the end of November 2018 my portfolio is down my 1.35% and the TSX is down by 8.72%. My portfolio tends not to go as low the TSX, but on the other hand it also does not go as high. It is less volatile than the TSX.
On my other blog I wrote yesterday about Stella-Jones Inc. (TSX-SJ, OTC- STLJF) ... learn more. Next, I will write about Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF) ... learn more on Friday, December 14, 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.
In 2018 there has been only 2 dividend decreases or suspensions and 94 increases in dividends. See the chart below for increases and decreases in dividends for 2016 and 2017. (Note that not all the stock that I follow are good dividend stocks by the way.)
| Mths | 2018 | 2018 | 2017 | 2017 | 2016 | 2016 | ||
|---|---|---|---|---|---|---|---|---|
| Action | Incr | Decr | Incr | Decr | Incr | Decr | ||
| Jan | 7 | 0 | 6 | 2 | 4 | 0 | ||
| Feb | 7 | 0 | 10 | 0 | 5 | 2 | ||
| Mar | 22 | 0 | 23 | 0 | 18 | 5 | ||
| Apr | 8 | 0 | 10 | 1 | 8 | 4 | ||
| May | 3 | 0 | 5 | 0 | 3 | 2 | ||
| Jun | 13 | 0 | 13 | 0 | 18 | 0 | ||
| Jul | 4 | 0 | 4 | 1 | 3 | 1 | ||
| Aug | 4 | 0 | 0 | 0 | 4 | 0 | ||
| Sep | 11 | 0 | 10 | 0 | 7 | 1 | ||
| Oct | 1 | 0 | 0 | 0 | ||||
| Nov | 5 | 1 | 5 | 0 | 6 | 0 | ||
| Dec | 9 | 1 | 12 | 0 | 12 | 0 | ||
| Tot | 94 | 2 | 98 | 4 | 88 | 15 | ||
| % | 62% | 1% | 64% | 3% | 56% | 10% | ||
| 152 | 154 | 156 |
I also have statistics for 2014 and 2015. In 2014 I had 99 stocks with increases and 4 with decrease. In 2015 I had 95 stocks with increases and 18 with decreases. Note that when I publish my month article on Dividend stocks, the dividend increases and decreases are for the next dividend due for a stock.
I am personally done well this year as far as dividends go. My dividend income is up 11.1% even though my portfolio is down year to date. I only measure my portfolio at the end of each month. To the end of November 2018 my portfolio is down my 1.35% and the TSX is down by 8.72%. My portfolio tends not to go as low the TSX, but on the other hand it also does not go as high. It is less volatile than the TSX.
On my other blog I wrote yesterday about Stella-Jones Inc. (TSX-SJ, OTC- STLJF) ... learn more. Next, I will write about Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF) ... learn more on Friday, December 14, 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, December 11, 2018
Your Own Enemy when Investing
Anna-Louise Jackson on the Financial Post talks about how we hurt ourselves in investing by some of our very human habits. We human are not always rational about money.
There are lots of studies detailing how we hate to lose more than we like to win. See an article by Colin Shaw on Beyond Philosophy. Also see the article by Morgan House on Motley Fool together with a video.
On my other blog I wrote yesterday about First Capital Realty (TSX-FCR, OTC-FCRGF) ... learn more. Next, I will write Stella-Jones Inc. (TSX-SJ, OTC- STLJF) ... learn more on Wednesday, December 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.
There are lots of studies detailing how we hate to lose more than we like to win. See an article by Colin Shaw on Beyond Philosophy. Also see the article by Morgan House on Motley Fool together with a video.
On my other blog I wrote yesterday about First Capital Realty (TSX-FCR, OTC-FCRGF) ... learn more. Next, I will write Stella-Jones Inc. (TSX-SJ, OTC- STLJF) ... learn more on Wednesday, December 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.
Thursday, December 6, 2018
Something to Buy December 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 December 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 now 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 Dorel Industries (TSX-DII.B, OTC-DIIBF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF, OTC-LEFUF), and Stingray Digital Group Inc (TSX-RAY.A). Leon's Furniture (TSX-LNF, OTC-LEFUF) has been added to this list.
Nine (or 43%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), 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), Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF), Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF) and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
I follow 11 Consumer Staples stocks. No companies are showing as cheap by the historically high dividend yield. There is no change from last month.
Four stocks (or 36%) 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), and Metro Inc. (TSX-MRU, OTC-MTRAF). Saputo Inc. (TSX-SAP, OTC-SAPIF) 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. Three or 100% are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT) and HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) has been added to this list.
I follow 10 Energy stocks. Three stock or 30% are showing as cheap by the historical high dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Mullen Group (TSX-MTL, OTC-MLLGF) and Ensign Energy Services (TSX-ESI, OTC-ESVIF). Canadian Natural Resources (TSX-CNQ, NYSE-CNQ) has been added to this list.
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), Crescent Point Energy Corp (TSX-CPG, NYSE-CPG), Ensign Energy Services (TSX-ESI, OTC-ESVIF), and Mullen Group (TSX-MTL, OTC-MLLGF). Crescent Point Energy Corp (TSX-CPG, NYSE-CPG) has been added to this list.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. Five stocks (or 63%) are showing cheap by 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), Royal Bank (TSX-RY, NYSE-RY), and Toronto Dominion Bank (TSX-TD, NYSE-TD). There is no change from last month.
I follow 14 Financial Service stocks. Two or 14% are showing as cheap by the historically high dividend yield. These are Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF) and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
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). Chesswood Group (TSX-CHW, OTC-CHWWF) has been removed from this list.
I follow 6 Insurance stocks. One (or 17%) is showing as cheap by the historically high dividend yield. That stock is Power Financial Corp (TSX-PWF, OTC-POFNF). There is no change from last month.
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), 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). There is no change from last month.
I follow 16 Services stocks. None are showing as cheap by the historically high dividend yield. Five stocks or 31% 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), Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). There is no change from last month.
I follow 8 Material stocks. None are showing as cheap by the historically high dividend yield. Four stock or 50% are showing as cheap by historical median dividend yield. The stocks are Chemtrade Logistics Inc. Fund (TSX-CHE.UN, OTC-CGIFF), Hardwoods Distribution Inc. (TSX-HDI, OTC-HDIUF), Methanex Corp (TSX-MX, NASDAQ- MEOH) and Stella-Jones (TSX-SJ, OTC-STLJF). Barrick Gold Corp (TSX-ABX, NYSE-ABX) has been removed and Methanex Corp (TSX-MX, NASDAQ- MEOH) has been added.
I follow 10 Real Estate stocks. None of these stocks is showing as cheap by the historically high dividend yield. Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF) has been removed from this list. Four stocks (or 40%) are showing cheap by historical median dividend yield. They are 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). Artis REIT (TSX-AX.UN, OTC-ARESF) and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF).have been removed from this list.
I follow 4 of the Telecom Service stocks. No stocks are showing as cheap by historically high dividend yield. Four stocks (or 100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH), Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH) has been added to this list.
I follow 8 Info 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. There is no change from last month.
I follow 6 of the Infrastructure type utility companies. Enbridge Income Fund Holdings Inc (TSX-ENF, OTC-EBGUF) has been removed from this list as it has been bought out by Enbridge Inc. None are showing as cheap by historical high dividend yield.
Four stocks (or 67%) are showing cheap by historical median dividend yield. They are AltaGas Ltd (TSX-ALA, OTC-ATGFF), Enbridge Inc. (TSX-ENB, NYSE-ENB), OTC-EBGUF), Keyera Corp (TSX-KEY, OTC-KEYUF) and TransCanada Corp (TSX-TRP, NYSE-TRP). Enbridge Income Fund Holdings Inc (TSX-ENF, OTC-EBGUF) has been removed from this list as it has been bought out by Enbridge Inc.
I follow 11 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 45%) 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 Northland Power Inc. (TSX-NPI, OTC-NPIFF) ... learn more. Next, I will write about DHX Media Ltd (TSX-DHX, OTC-DHXMF) ... learn more on December 7, 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 December 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 now 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 Dorel Industries (TSX-DII.B, OTC-DIIBF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF, OTC-LEFUF), and Stingray Digital Group Inc (TSX-RAY.A). Leon's Furniture (TSX-LNF, OTC-LEFUF) has been added to this list.
Nine (or 43%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), 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), Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF), Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF) and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
I follow 11 Consumer Staples stocks. No companies are showing as cheap by the historically high dividend yield. There is no change from last month.
Four stocks (or 36%) 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), and Metro Inc. (TSX-MRU, OTC-MTRAF). Saputo Inc. (TSX-SAP, OTC-SAPIF) 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. Three or 100% are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT) and HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) has been added to this list.
I follow 10 Energy stocks. Three stock or 30% are showing as cheap by the historical high dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Mullen Group (TSX-MTL, OTC-MLLGF) and Ensign Energy Services (TSX-ESI, OTC-ESVIF). Canadian Natural Resources (TSX-CNQ, NYSE-CNQ) has been added to this list.
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), Crescent Point Energy Corp (TSX-CPG, NYSE-CPG), Ensign Energy Services (TSX-ESI, OTC-ESVIF), and Mullen Group (TSX-MTL, OTC-MLLGF). Crescent Point Energy Corp (TSX-CPG, NYSE-CPG) has been added to this list.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. Five stocks (or 63%) are showing cheap by 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), Royal Bank (TSX-RY, NYSE-RY), and Toronto Dominion Bank (TSX-TD, NYSE-TD). There is no change from last month.
I follow 14 Financial Service stocks. Two or 14% are showing as cheap by the historically high dividend yield. These are Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF) and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
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). Chesswood Group (TSX-CHW, OTC-CHWWF) has been removed from this list.
I follow 6 Insurance stocks. One (or 17%) is showing as cheap by the historically high dividend yield. That stock is Power Financial Corp (TSX-PWF, OTC-POFNF). There is no change from last month.
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), 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). There is no change from last month.
I follow 16 Services stocks. None are showing as cheap by the historically high dividend yield. Five stocks or 31% 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), Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). There is no change from last month.
I follow 8 Material stocks. None are showing as cheap by the historically high dividend yield. Four stock or 50% are showing as cheap by historical median dividend yield. The stocks are Chemtrade Logistics Inc. Fund (TSX-CHE.UN, OTC-CGIFF), Hardwoods Distribution Inc. (TSX-HDI, OTC-HDIUF), Methanex Corp (TSX-MX, NASDAQ- MEOH) and Stella-Jones (TSX-SJ, OTC-STLJF). Barrick Gold Corp (TSX-ABX, NYSE-ABX) has been removed and Methanex Corp (TSX-MX, NASDAQ- MEOH) has been added.
I follow 10 Real Estate stocks. None of these stocks is showing as cheap by the historically high dividend yield. Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF) has been removed from this list. Four stocks (or 40%) are showing cheap by historical median dividend yield. They are 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). Artis REIT (TSX-AX.UN, OTC-ARESF) and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF).have been removed from this list.
I follow 4 of the Telecom Service stocks. No stocks are showing as cheap by historically high dividend yield. Four stocks (or 100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH), Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH) has been added to this list.
I follow 8 Info 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. There is no change from last month.
I follow 6 of the Infrastructure type utility companies. Enbridge Income Fund Holdings Inc (TSX-ENF, OTC-EBGUF) has been removed from this list as it has been bought out by Enbridge Inc. None are showing as cheap by historical high dividend yield.
Four stocks (or 67%) are showing cheap by historical median dividend yield. They are AltaGas Ltd (TSX-ALA, OTC-ATGFF), Enbridge Inc. (TSX-ENB, NYSE-ENB), OTC-EBGUF), Keyera Corp (TSX-KEY, OTC-KEYUF) and TransCanada Corp (TSX-TRP, NYSE-TRP). Enbridge Income Fund Holdings Inc (TSX-ENF, OTC-EBGUF) has been removed from this list as it has been bought out by Enbridge Inc.
I follow 11 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 45%) 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 Northland Power Inc. (TSX-NPI, OTC-NPIFF) ... learn more. Next, I will write about DHX Media Ltd (TSX-DHX, OTC-DHXMF) ... learn more on December 7, 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, December 4, 2018
Dividend Stocks December 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 December 2018.
On this list,
Alaris Royalty Corp (TSX-AD, OTC-ALARF)
Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF)
Equitable Group Inc. (TSX-EQB, OTC-EQGPF)
Inter Pipeline Ltd (TSX-IPL, OTC-IPPLF)
Manulife Financial Corp (TSX-MFC, NYSE-MFC)
Sun Life Financial (TSX-SLF, NYSE-SLF) Sylogist Ltd (TSXV-SYZ, OTC-SYZLF)
Telus Corp (TSX-T, NYSE-TU)
Valener Inc (TSX-VNR, OTC-VNRCF)
Of the stocks I follow, one stock has cut their dividends. See discussion on Artis REIT on BNN. Their problem is their Alberta exposure.
Artis REIT (TSX-AX.UN, OTC-ARESF)
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 Chesswood Group Ltd. (TSX-CHW, OTC-CHWWF) ... learn more. Next, I will write about Northland Power Inc. (TSX-NPI, OTC-NPIFF) ... learn more on Wednesday, December 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 website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram with #walktoronto.
The theory is that you should use the dividend yield to see if a dividend stock is selling at a stock price that is relatively cheap. A stock price is considered cheap if it is selling at a dividend yield higher than the historical high yield or higher than the historical average yield or historical median yield. See my spreadsheet at dividend growth stocks that I just updated for December 2018.
On this list,
- I have 13 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 77 stocks with a dividend yield higher than the historical median dividend yield and
- 89 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 11 stocks with a dividend yield higher than the historical high dividend yield,
- I have 54 stocks with a dividend yield higher than the historical average dividend yield
- I have 79 stocks with a dividend yield higher than the historical median dividend yield and
- 87 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.
Alaris Royalty Corp (TSX-AD, OTC-ALARF)
Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF)
Equitable Group Inc. (TSX-EQB, OTC-EQGPF)
Inter Pipeline Ltd (TSX-IPL, OTC-IPPLF)
Manulife Financial Corp (TSX-MFC, NYSE-MFC)
Sun Life Financial (TSX-SLF, NYSE-SLF) Sylogist Ltd (TSXV-SYZ, OTC-SYZLF)
Telus Corp (TSX-T, NYSE-TU)
Valener Inc (TSX-VNR, OTC-VNRCF)
Of the stocks I follow, one stock has cut their dividends. See discussion on Artis REIT on BNN. Their problem is their Alberta exposure.
Artis REIT (TSX-AX.UN, OTC-ARESF)
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 Chesswood Group Ltd. (TSX-CHW, OTC-CHWWF) ... learn more. Next, I will write about Northland Power Inc. (TSX-NPI, OTC-NPIFF) ... learn more on Wednesday, December 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 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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