Nick Bontis spoke in the opening remarks. His talk was called “Investing in High-Tech Achievement”. He is a Director at Harvest Portfolio Group. His site is here and his company’s site is here.
He said that first, the family is important, but we have no work/family balance. He said that most Canadians only have a 3.5% exposure to high tech in their portfolios. The Internet Usage in 1995 was 5%, in 1998 it was 25% and today it is 91%. In 1999 the internet had 30M users. In 2019 the figure is 4.2B. According to ICANN there is 2128 IP addresses.
Scandinavian counties have the highest internet penetration because they have 100% literacy rates. In Canada we have 3.5 TV per household and 8.1 IP enabled devises. There are approximately 7.5B people in the world and there are 4.2B online. The average person gets 84 emails each day. He said we in Canada and in the English speaking world suffer from Anglophonic arrogance.
The internet of things is coming. Soon you will get an email from your car that says you need gas and where the closes one is. You frig will email you and say you are out of milk and I heard from your car you are getting gas near an A&P store, so you can stop for milk on the way and cc to your car. Then you get an email from Holt Renfrew says that the jacket you liked in your size is in the store. You have enough points to get it and I have just heard from your car that you will be passing our store so if you stop and roll down your window, the concierge will hand you the jacket. This is the future.
The future is all Apple, Amazon, Microsoft, and Google. The Tesla car is going to be self-driving. Amazon will be into fresh food. There will be a blimp in the sky with fresh food and it will be delivered from the blimp to you via a drone.
Microsoft is creating a smart house. Your smart toilet will send emails to you. Your watch, by Samsung or Apple will know everything about you.
Harvest has Tech Achievers Growth and Income ETFs which are on the TSX with symbols of HTA and HTA.U.
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 September 27, 2019 around 5 pm..
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, September 26, 2019
Tuesday, September 24, 2019
Money Show 2019
I just spend two days at the Toronto Money Show. I found it enjoyable as always. The opening ceremonies I have found to sometimes have the best speakers and this year’s opening ceremonies did not disappoint. I really liked David Rosenberg’s speech. I know people think of him as a perma-bear, but I look at him as a man who always has something interesting to say. He did not disappoint.
I picked and chose the other speakers to hear. I found them all good speakers and interesting speakers. An interesting thing was that at the Contra the Heard session, Benj Gallander the speaker had his young son open and close the session. I am sure that it was a great learning experience for him. Benj Gallander is interviewed at the Money Show by Small Cap Power. This is like Derek Foster who always has his kids there helping him. He is also interviewed at the Money Show by Small Cap Power.
Horizons ETFs Management at the Money Show had popcorn and spin wheel. The prizes from the spinning wheel was toy bull or bear, a green leaf, a hat, an umbrella, and another prize I could not figure out. Their web site is here. I won an umbrella. Thanks Horizons.
You have to wonder if marijuana is at a peak for investment, because this show had a whole section devoted to investing in marijuana. Lastly, Big Picture Trading was kind enough to invite some show participants for a drink at the Rec Room.
On my other blog I wrote yesterday about Alcanna Inc (TSX-CLIQ, OTC-LQSIF) ... learn more. Next, I will write about Granite REIT (TSX-GRT.UN, NYSE-GRP.U) ... learn more on September 25, 2019 around 5 pm..
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I picked and chose the other speakers to hear. I found them all good speakers and interesting speakers. An interesting thing was that at the Contra the Heard session, Benj Gallander the speaker had his young son open and close the session. I am sure that it was a great learning experience for him. Benj Gallander is interviewed at the Money Show by Small Cap Power. This is like Derek Foster who always has his kids there helping him. He is also interviewed at the Money Show by Small Cap Power.
Horizons ETFs Management at the Money Show had popcorn and spin wheel. The prizes from the spinning wheel was toy bull or bear, a green leaf, a hat, an umbrella, and another prize I could not figure out. Their web site is here. I won an umbrella. Thanks Horizons.
You have to wonder if marijuana is at a peak for investment, because this show had a whole section devoted to investing in marijuana. Lastly, Big Picture Trading was kind enough to invite some show participants for a drink at the Rec Room.
On my other blog I wrote yesterday about Alcanna Inc (TSX-CLIQ, OTC-LQSIF) ... learn more. Next, I will write about Granite REIT (TSX-GRT.UN, NYSE-GRP.U) ... learn more on September 25, 2019 around 5 pm..
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, September 19, 2019
Barrick Gold
Vivian Lewis on Money Show site talks about Barrick Gold.
I have a small investment in this company which I originally invested in in 2013. To the end of August my total return is 11.18 per year. Total return contains both dividends and capital gains.
On my other blog I wrote yesterday about Trican Well Service Ltd (TSX-TCW, OTC-TOLWF) ... learn more. Next, I will write about Great-West Lifeco Inc (TSX-GWO, OTC-GWLIF) ... learn more on Friday, September 20, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I have a small investment in this company which I originally invested in in 2013. To the end of August my total return is 11.18 per year. Total return contains both dividends and capital gains.
On my other blog I wrote yesterday about Trican Well Service Ltd (TSX-TCW, OTC-TOLWF) ... learn more. Next, I will write about Great-West Lifeco Inc (TSX-GWO, OTC-GWLIF) ... learn more on Friday, September 20, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, September 17, 2019
SNC-Lavalin
I have now sold my stock in SNC-Lavalin (TSX-SNC, OTC-SNCAF). I have given up hope that there will be any sort of resolution for this company anytime soon. However, I must admit that it is current perking up. I live off my dividends and they have cut the dividends twice this year.
For my trading account I replaced it with Evertz Technologies (TSX-ET, OTC-EVTZF) and for my RIF account, I have replaced it with Canadian Utilities Ltd (TSX-CU, OTC-CDUAF).
When I was looking for something to replace SNC, I looked at both Chartwell Retirement Residences (TSX- CSH.UN, OTC- CWSRF) and Sienna Senior Living Inc (TSX-SIA, OTC- LWSCF). People have been talking about these stocks because they cater to seniors. Companies that cater to seniors should be a growing industry.
After analyzing these companies, I could not get excited about them as investments. However, they do have good dividends. I will write about these companies when I get the chance as I have finished the spreadsheets. In some ways the talking about investing in such companies make them sounds like the next big thing to invest in. That often does not end well
On my other blog I wrote yesterday about Wajax Corp (TSX-WJX, OTC-WJXFF) ... learn more. Next, I will write about Trican Well Service Ltd (TSX-TCW, OTC-TOLWF) ... learn more on Wednesday, September 18, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
For my trading account I replaced it with Evertz Technologies (TSX-ET, OTC-EVTZF) and for my RIF account, I have replaced it with Canadian Utilities Ltd (TSX-CU, OTC-CDUAF).
When I was looking for something to replace SNC, I looked at both Chartwell Retirement Residences (TSX- CSH.UN, OTC- CWSRF) and Sienna Senior Living Inc (TSX-SIA, OTC- LWSCF). People have been talking about these stocks because they cater to seniors. Companies that cater to seniors should be a growing industry.
After analyzing these companies, I could not get excited about them as investments. However, they do have good dividends. I will write about these companies when I get the chance as I have finished the spreadsheets. In some ways the talking about investing in such companies make them sounds like the next big thing to invest in. That often does not end well
On my other blog I wrote yesterday about Wajax Corp (TSX-WJX, OTC-WJXFF) ... learn more. Next, I will write about Trican Well Service Ltd (TSX-TCW, OTC-TOLWF) ... learn more on Wednesday, September 18, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, September 12, 2019
Best Canadian Stocks
List from different sources about good Canadian Stocks can give you a place to start to look for the next stock you might want to invest in.
This post from stock traders post some 31 Canadian stocks that they think are the best in Canada. This next list is from a blogger called Dividend Earner.
You can find the TSX index of Canadian Aristocrats here. However, a better place to look for information on the Canadian Aristocrats is here. This is the website of another blogger called Dividend Growth Investing and Retirement. He gives out a great spreadsheet called the Canadian All-Star List.
Money Sense has produced a number of good stock lists. This post from Money Sense posts some 50 great Canadian Stocks. In 2018 Money Sense posted a list of 15 stocks to help investors ride market swings. Each year Money Sense produces a list of 100 Top Dividend stocks for the year. For 2019 see their list here.
On my other blog I wrote yesterday about Accord Financial Corp (TSX-ACD, OTC-ACCFF) ... learn more. Next, I will write about Telus Corp (TSX-T, NYSE-TU)... learn more on Friday, September 13, 2019 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 post from stock traders post some 31 Canadian stocks that they think are the best in Canada. This next list is from a blogger called Dividend Earner.
You can find the TSX index of Canadian Aristocrats here. However, a better place to look for information on the Canadian Aristocrats is here. This is the website of another blogger called Dividend Growth Investing and Retirement. He gives out a great spreadsheet called the Canadian All-Star List.
Money Sense has produced a number of good stock lists. This post from Money Sense posts some 50 great Canadian Stocks. In 2018 Money Sense posted a list of 15 stocks to help investors ride market swings. Each year Money Sense produces a list of 100 Top Dividend stocks for the year. For 2019 see their list here.
On my other blog I wrote yesterday about Accord Financial Corp (TSX-ACD, OTC-ACCFF) ... learn more. Next, I will write about Telus Corp (TSX-T, NYSE-TU)... learn more on Friday, September 13, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, September 10, 2019
Brookfield Renewable Energy Partners
The choice of Roger Conrad for 2019 Top Picks Mid-year was Brookfield Renewable Energy Partners. See his report here. I have read recently a number of reports on Brookfield spin offs. Analysts really seem to like them.
I started to take a look at this stock and started a spreadsheet. I found the company’s set up to be quite complex and the financial statements to be quite complex, so I did not continue with the spreadsheet once I had completed it for the 2018 financial year. I do not know if I will follow this stock or not yet. I do not like companies that are complex as it is easy to make a mistake in assessing them.
On my other blog I wrote yesterday about Just Energy Group Inc. (TSX-JE, NYSE-JE) ... learn more. Next, I will write about Accord Financial Corp (TSX-ACD, OTC-ACCFF) ... learn more on Wednesday, September 11, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I started to take a look at this stock and started a spreadsheet. I found the company’s set up to be quite complex and the financial statements to be quite complex, so I did not continue with the spreadsheet once I had completed it for the 2018 financial year. I do not know if I will follow this stock or not yet. I do not like companies that are complex as it is easy to make a mistake in assessing them.
On my other blog I wrote yesterday about Just Energy Group Inc. (TSX-JE, NYSE-JE) ... learn more. Next, I will write about Accord Financial Corp (TSX-ACD, OTC-ACCFF) ... learn more on Wednesday, September 11, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, September 5, 2019
Something to Buy September 2019
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 September 2019 Spreadsheet to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 23 stocks in the Consumer Discretionary category. BRP Inc (TSX-DOO, NYSE-DOOO) has been added to this list. Three of these stocks (13%) are showing as cheap by the historically high dividend yield and they are Leon's Furniture (TSX-LNF, OTC-LEFUF), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), and Stingray Digital Group Inc (TSX-RAY.A). Dorel Industries (TSX-DII.B, OTC-DIIBF) has been removed from the list.
Eleven (or 48%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are BRP Inc (TSX-DOO, NYSE-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Dorel Industries (TSX-DII.B, OTC-DIIBF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), 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), Savaria Corporation (TSX-SIS, OTC-SISXF), and Stingray Digital Group Inc (TSX-RAY.A). Savaria Corporation (TSX-SIS, OTC-SISXF), and BRP Inc (TSX-DOO, NYSE-DOOO) has been added to the list.
I follow 10 Consumer Staples stocks. No stocks are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stocks (or 20%) are showing cheap by historical median dividend yield. These are Loblaw Companies (TSX-L, OTC-LBLCF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). Metro Inc. (TSX-MRU, OTC-MTRAF) has been removed from the list.
I follow Five Health Care stocks. Chartwell Retirement Residences (TSX-CSH.UN, NYSE-CWSRF) and Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF) has been added to this list. One stock (or 20%) of these stocks is showing as cheap by the historically high dividend yield. That stock is HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). There is no change from last month.
Three or 60% are cheap by the historical median dividend yield. The stocks are HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), and Medtronic Inc. (NYSE-MDT). There is no change from last month.
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), Ensign Energy Services (TSX-ESI, OTC-ESVIF), and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
There are seven stocks (or 70%) showing cheap by historical median dividend yield. They are ARC Resources Ltd (TSX-ARX, OTC-AETUF), Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), Ensign Energy Services (TSX-ESI, OTC-ESVIF), Husky Energy (TSX-HSE, OTC-HUSKF), Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). ARC Resources Ltd (TSX-ARX, OTC-AETUF) has been added to the list.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Seven stocks (or 75%) are showing cheap by historical median dividend yield. They are Bank of Montreal (TSX-BMO, NYSE-BMO), Bank of Nova Scotia (TSX-BNS, NYSE-BNS), Barclays PLC (LSE-BARC, NYSE-BCS), 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). Bank of Montreal (TSX-BMO, NYSE-BMO) has been added to the list.
I follow 14 Financial Servicestocks. One stock is showing as cheap by the historically high dividend yield and that is Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
Nine (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), Chesswood Group (TSX-CHW, OTC-CHWWF), CI Financial (TSX-CIX, OTC-CIFAF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), IGM Financial (TSX-IGM, OTC-IGIFF), Onex Corp (TSX-ONEX, OTC-ONEXF) and Power Corp (TSX-POW, OTC-PWCDF). Onex Corp (TSX-ONEX, OTC-ONEXF) have been added to the list.
I follow 6 Insurance stocks. One stock (or 17%) is showing as cheap by the historically high dividend yield and that is Power Financial Corp (TSX-PWF, OTC-POFNF). Power Financial Corp (TSX-PWF, OTC-POFNF) has been added.
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). There is no change from last month.
I follow 32 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 6 Construction stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stocks or 33% are showing as cheap by historical median dividend yield. They are Bird Construction Inc (TSX-BDT, OTC-BIRDF), and Stantec Inc. (TSX-STN, NYSE-STN). SNC-Lavalin (TSX-SNC, OTC-SNCAF) has been taken off this list.
I have 3 stocks I have left with the sub-index of Industrial. None are cheap by the historically high dividend yield. There is no change from last month.
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. This has not changed from last month.
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. Two stocks are showing as cheap by the historically high dividend yield. They are Pason Systems Inc. (TSX-PSI, OTC-PSYTF), and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). Both Pason Systems Inc. (TSX-PSI, OTC-PSYTF), and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) have been added to this list.
Six stocks or 38% 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), TECSYS Inc (TSX-TCS, OTC-TCYSF), Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). There is no change from last month.
I follow 9 Material stocks. None are showing as cheap by the historically high dividend yield. This has not changed from last month.
Five stock or 56% 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), Stella-Jones (TSX-SJ, OTC-STLJF), and Supremex Inc (TSX-SXP, OTC-SUMXF). There is no change from last month.
I follow 10 Real Estate stocks. No stock is showing as cheap by historically high dividend yield. There is no change from last month.
Two stocks (or 20%) are showing cheap by historical median dividend yield. They are Granite Real Estate (TSX-GRT.UN, NYSE-GRP.U) 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. This has not changed from last month.
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). This has not changed from last month.
I follow 8 Info Tech stocks. None are showing as cheap by historical high dividend yield. 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 Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Evertz Technologies (TSX-ET, OTC-EVTZF) has been added to this list.
I follow 7 of the Infrastructure type utility companies. Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP) has been added to my list. None are showing as cheap by historical high dividend yield. This has not changed from last month.
Three stocks (or 43%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF) and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 11 of the Power type utility companies. Two stocks (or 18%) ae showing as cheap by the historically high dividend yield. They are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), and Just Energy Group Inc (TSX-JE, NYSE-JE). Just Energy Group Inc (TSX-JE, NYSE-JE) has been added to this list.
Three stocks (or 27%) 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 Just Energy Group Inc. (TSX-JE, NYSE-JE). There is no change from last month.
On my other blog I wrote yesterday about High Liner Foods (TSX-HLF, OTC-HLNFF) ... learn more. Next, I will write about SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) ... learn more on Friday, September 06, 2019 around 9 am.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield.
For other testing, like using P/E Ratios and Price/Graham Price Ratios, you use EPS estimates or from the last reported financial quarter. When using P/S Ratios, P/CF Ratios or P/BV Ratios you are using data from the last reported financial quarter.
This system does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If 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 September 2019 Spreadsheet to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 23 stocks in the Consumer Discretionary category. BRP Inc (TSX-DOO, NYSE-DOOO) has been added to this list. Three of these stocks (13%) are showing as cheap by the historically high dividend yield and they are Leon's Furniture (TSX-LNF, OTC-LEFUF), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), and Stingray Digital Group Inc (TSX-RAY.A). Dorel Industries (TSX-DII.B, OTC-DIIBF) has been removed from the list.
Eleven (or 48%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are BRP Inc (TSX-DOO, NYSE-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Dorel Industries (TSX-DII.B, OTC-DIIBF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), 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), Savaria Corporation (TSX-SIS, OTC-SISXF), and Stingray Digital Group Inc (TSX-RAY.A). Savaria Corporation (TSX-SIS, OTC-SISXF), and BRP Inc (TSX-DOO, NYSE-DOOO) has been added to the list.
I follow 10 Consumer Staples stocks. No stocks are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stocks (or 20%) are showing cheap by historical median dividend yield. These are Loblaw Companies (TSX-L, OTC-LBLCF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). Metro Inc. (TSX-MRU, OTC-MTRAF) has been removed from the list.
I follow Five Health Care stocks. Chartwell Retirement Residences (TSX-CSH.UN, NYSE-CWSRF) and Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF) has been added to this list. One stock (or 20%) of these stocks is showing as cheap by the historically high dividend yield. That stock is HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF). There is no change from last month.
Three or 60% are cheap by the historical median dividend yield. The stocks are HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), and Medtronic Inc. (NYSE-MDT). There is no change from last month.
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), Ensign Energy Services (TSX-ESI, OTC-ESVIF), and Suncor Energy (TSX-SU, NYSE-SU). There is no change from last month.
There are seven stocks (or 70%) showing cheap by historical median dividend yield. They are ARC Resources Ltd (TSX-ARX, OTC-AETUF), Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), Ensign Energy Services (TSX-ESI, OTC-ESVIF), Husky Energy (TSX-HSE, OTC-HUSKF), Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). ARC Resources Ltd (TSX-ARX, OTC-AETUF) has been added to the list.
I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Seven stocks (or 75%) are showing cheap by historical median dividend yield. They are Bank of Montreal (TSX-BMO, NYSE-BMO), Bank of Nova Scotia (TSX-BNS, NYSE-BNS), Barclays PLC (LSE-BARC, NYSE-BCS), 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). Bank of Montreal (TSX-BMO, NYSE-BMO) has been added to the list.
I follow 14 Financial Servicestocks. One stock is showing as cheap by the historically high dividend yield and that is Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
Nine (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), Chesswood Group (TSX-CHW, OTC-CHWWF), CI Financial (TSX-CIX, OTC-CIFAF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), IGM Financial (TSX-IGM, OTC-IGIFF), Onex Corp (TSX-ONEX, OTC-ONEXF) and Power Corp (TSX-POW, OTC-PWCDF). Onex Corp (TSX-ONEX, OTC-ONEXF) have been added to the list.
I follow 6 Insurance stocks. One stock (or 17%) is showing as cheap by the historically high dividend yield and that is Power Financial Corp (TSX-PWF, OTC-POFNF). Power Financial Corp (TSX-PWF, OTC-POFNF) has been added.
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). There is no change from last month.
I follow 32 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 6 Construction stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stocks or 33% are showing as cheap by historical median dividend yield. They are Bird Construction Inc (TSX-BDT, OTC-BIRDF), and Stantec Inc. (TSX-STN, NYSE-STN). SNC-Lavalin (TSX-SNC, OTC-SNCAF) has been taken off this list.
I have 3 stocks I have left with the sub-index of Industrial. None are cheap by the historically high dividend yield. There is no change from last month.
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. This has not changed from last month.
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. Two stocks are showing as cheap by the historically high dividend yield. They are Pason Systems Inc. (TSX-PSI, OTC-PSYTF), and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). Both Pason Systems Inc. (TSX-PSI, OTC-PSYTF), and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) have been added to this list.
Six stocks or 38% 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), TECSYS Inc (TSX-TCS, OTC-TCYSF), Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). There is no change from last month.
I follow 9 Material stocks. None are showing as cheap by the historically high dividend yield. This has not changed from last month.
Five stock or 56% 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), Stella-Jones (TSX-SJ, OTC-STLJF), and Supremex Inc (TSX-SXP, OTC-SUMXF). There is no change from last month.
I follow 10 Real Estate stocks. No stock is showing as cheap by historically high dividend yield. There is no change from last month.
Two stocks (or 20%) are showing cheap by historical median dividend yield. They are Granite Real Estate (TSX-GRT.UN, NYSE-GRP.U) 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. This has not changed from last month.
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). This has not changed from last month.
I follow 8 Info Tech stocks. None are showing as cheap by historical high dividend yield. 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 Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Evertz Technologies (TSX-ET, OTC-EVTZF) has been added to this list.
I follow 7 of the Infrastructure type utility companies. Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP) has been added to my list. None are showing as cheap by historical high dividend yield. This has not changed from last month.
Three stocks (or 43%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF) and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 11 of the Power type utility companies. Two stocks (or 18%) ae showing as cheap by the historically high dividend yield. They are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), and Just Energy Group Inc (TSX-JE, NYSE-JE). Just Energy Group Inc (TSX-JE, NYSE-JE) has been added to this list.
Three stocks (or 27%) 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 Just Energy Group Inc. (TSX-JE, NYSE-JE). There is no change from last month.
On my other blog I wrote yesterday about High Liner Foods (TSX-HLF, OTC-HLNFF) ... learn more. Next, I will write about SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) ... learn more on Friday, September 06, 2019 around 9 am.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, September 3, 2019
Dividend Stocks September 2019
First, I want to point out that not all of the stocks I follow are great investments. I follow a diverse selection of stocks. There are some that I would never invest in personally. I follow a number of resource stocks even though I personally have little invested in this area. I follow what I find interesting and with resource stocks, I think it is important for Canadians to know what is happening in the resource area. On the other hand, I do follow of good number of great dividend growth stocks.
The theory is that you should use the dividend yield to see if a dividend stock is selling at a stock price that is relatively cheap. A stock price is considered cheap if it is selling at a dividend yield higher than the historical high yield or higher than the historical average yield or historical median yield. See my spreadsheet at dividend growth stocks that I just updated for September 2019. On this list,
Bank of Nova Scotia (TSX-BNS, NYSE-BNS)
CIBC (TSX-CM, NYSE-CM)
Exchange Income Corp. (TSX-EIF, OTC-EIFZF)
Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF)
Keyera Corp (TSX-KEY, OTC-KEYUF)
Logistics Inc. Fund (TSX-CHE.UN, OTC-CGIFF)
Ritchie Bros Auction (TSX-RBA, NYSE-RBA)
Royal Bank (TSX-RY, NYSE-RY)
Saputo Inc. (TSX-SAP, OTC-SAPIF)
Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF)
Stingray Digital Group Inc (TSX-RAY.A)
Sylogist Ltd (TSXV-SYZ, OTC-SYZLF)
Of the stocks I follow, two stocks have cut their dividend. They are:
Melcor Developments Inc. (TSX-MRD, OTC-MODVF)
SNC-Lavalin (TSX-SNC, OTC-SNCAF)
Of the stocks I follow, no stock has cut or suspended or terminated their dividends. There is a tension between needing money for investing in growth and paying dividends.
I added 4 more stocks to my list for this month. I will blog about them when I get the time to. They are:
Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP)
BRP Inc (TSX-DOO, NYSE-DOOO)
Chartwell Retirement Residences (TSX-CSH.UN, NYSE-CWSRF)
Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF)
Most of my stocks started out as Dividend Payers. Currently 14 stocks are not paying any dividends and this would be some 9.03% of the stocks that I follow. Four of these stocks never had dividends, so 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 today about ATCO Ltd (TSX-ACO.X, OTC-ACLLF) ... learn more. Next, I will write about High Liner Foods (TSX-HLF, OTC-HLNFF) ... learn more on Wednesday, September 04, 2019 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram with #walktoronto.
The theory is that you should use the dividend yield to see if a dividend stock is selling at a stock price that is relatively cheap. A stock price is considered cheap if it is selling at a dividend yield higher than the historical high yield or higher than the historical average yield or historical median yield. See my spreadsheet at dividend growth stocks that I just updated for September 2019. On this list,
- I have 14 stocks with a dividend yield higher than the historical high dividend yield,
- I have 52 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
- 89 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 10 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 75 stocks with a dividend yield higher than the historical median dividend yield and
- 88 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.
Bank of Nova Scotia (TSX-BNS, NYSE-BNS)
CIBC (TSX-CM, NYSE-CM)
Exchange Income Corp. (TSX-EIF, OTC-EIFZF)
Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF)
Keyera Corp (TSX-KEY, OTC-KEYUF)
Logistics Inc. Fund (TSX-CHE.UN, OTC-CGIFF)
Ritchie Bros Auction (TSX-RBA, NYSE-RBA)
Royal Bank (TSX-RY, NYSE-RY)
Saputo Inc. (TSX-SAP, OTC-SAPIF)
Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF)
Stingray Digital Group Inc (TSX-RAY.A)
Sylogist Ltd (TSXV-SYZ, OTC-SYZLF)
Of the stocks I follow, two stocks have cut their dividend. They are:
Melcor Developments Inc. (TSX-MRD, OTC-MODVF)
SNC-Lavalin (TSX-SNC, OTC-SNCAF)
Of the stocks I follow, no stock has cut or suspended or terminated their dividends. There is a tension between needing money for investing in growth and paying dividends.
I added 4 more stocks to my list for this month. I will blog about them when I get the time to. They are:
Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP)
BRP Inc (TSX-DOO, NYSE-DOOO)
Chartwell Retirement Residences (TSX-CSH.UN, NYSE-CWSRF)
Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF)
Most of my stocks started out as Dividend Payers. Currently 14 stocks are not paying any dividends and this would be some 9.03% of the stocks that I follow. Four of these stocks never had dividends, so 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 today about ATCO Ltd (TSX-ACO.X, OTC-ACLLF) ... learn more. Next, I will write about High Liner Foods (TSX-HLF, OTC-HLNFF) ... learn more on Wednesday, September 04, 2019 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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