John Schwinghamer spoke in a Friday, September 20, 2019 afternoon session. His talk was called “Why You Need to Own Purple-Chip Stocks: The Best of the Blue-Chip Stocks”. He is Managing Director of Purple Chips. His company’s site is here.
What are purple chips? These are stocks with stable and predictable earnings for 7 years and rising profitability. They have market capitalization of greater than $1B. These are companies with consistent growth. They are the best 4% of stocks. These stocks have low risk and low volatility and good returns. They also have no commodity exposure.
You want the management to have control over growth and cash flow. The problem with a stock like Cenovus Energy Inc (TSX-CVE) is volatile earnings. Harley-Davidson Inc (NYSE-HOG) used to be a PC but had an earnings breakdown. Dollarama (TSX-DOL) has smooth and predictable earnings and so is a PC stock. If earnings keep rising, then a stock will do better.
Amgen Inc (NASDAQ-AMGN) had a credit crisis, but earnings kept going up and so was fine. FactSet Research Systems Inc (NYSE-FDS) also had a credit crisis but earnings kept going up so eventually did the stock price. It also had a consistently rising dividend. Buy a stock with 7 years of consistent growth in EPS.
In their Purple Chip universe, they have 20 US stocks (but I did not get the last 2) and 8 Canadian Stocks.
US Stocks
Ecolab Inc (NYSE-ECL)
Fiserv Inc (NASDAQ-FISV)
Euronet Worldwide Inc (NASDAQ-EEFT)
AutoZone, Inc (NYSE-AZO)
Church & Dwight Co Inc (NYSE- CHD)
Mastercard Inc (NYSE-MA)
Medtronic PLC (NYSE-MDT)
Amgen Inc (NASDAQ-AMGN)
McCormick & Co (NYSE-MKC)
FactSet Research Systems Inc (NYSE-FDS)
Stryker Corporation (NYSE-SYK)
TJX Companies Inc (NYSE-TJX)
Mettler-Toledo International Inc (NYSE-MTD)
Rollins Inc (NYSE-ROL)
Globe Life Inc (NYSE-GL)
Johnson & Johnson (NYSE-JNJ)
Henry Schein Inc (NASDAQ- HSIC)
Alphabet Cl A (NASDAQ-GOOGL)
Canadian Stocks
CGI Group (TSX-GIB.A)
Constellation Software Inc (TSX-CSU)
National Bank (TSX-NA
TD Bank (TSX-TD)
Royal Bank (TX-RY)
Alimentation Couche-Tard Inc Cl B (TSX- ATD-B)
Dollarama Inc (TSX-DOL)
Richelieu Hardware Ltd (TSX-RCH)
For these stocks, they go from underweight (when price is high) to regular-weight to overweight when price is low. They do better than the Dow Jones Index. The TSX is not good to use as a base comparison because it is a resource index and it has volatility. It is better to make money on high quality stocks.
The benefits of a PC subscription are alerts when they buy or sell, they let everyone know. They produce a video. They have educational webinars. They focus on the best stocks. It is a disciplined process. They sell on strength and buy on weakness. Their money is in PC stocks.
Some factors they look at are P/E, Enterprise Value, Intangibles to total assets Return on Capital (ROC), Return on Invested Capital (ROIC), earnings yield, Free Cash Flow, Net Operating Cash Flow per Share, and FCF to Sales. When FedEx misses the earnings consensus, it is a bad sign for the economy.
All the Canadian Banks are good, but they did not want to have a Canadian List with 6 banks. CGI has been expensive for years. So has Constellation. They never completely sell a stock, but they do sell and go to an underweight position on a stock. They go between regular-weight, underweight and overweight positions. They trade 2 to 3 times a month, but some opportunities lend to clusters. They compare the P/E with the growth rate.
Their companies must have little debt. Down the road, companies with big debt are going to get killed. They look at the pedigree of their companies (history). They know that estimates are not assured. They follow 40 Canadian stocks and 240 US Stocks, but their 8 Canadian and 20 US stocks are the best.
He looks for predictability in earnings and cash flow. They do forensic accounting and watch out for skeletons in the closet for a lot of companies.
On my other blog I wrote yesterday about Quarterhill Inc (TSX-QTRH, NASDAQ-QTRH) ... learn more. Next, I will write about Chesswood Group Ltd (TSX-CHW, OTC-CHWWF) ... learn more on Friday, November 29, 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, November 28, 2019
Tuesday, November 26, 2019
Money Show 2019 – Ziad Jasani
Ziad Jasani spoke in a Friday, September 20, 2019 afternoon session. His talk was called “Swing-Trading into Election 2020: A Global-Macro Approach to High-Probability Swing Trading”. He is Managing Director and Partner of Independent Investors Institute. His company’s site is here.
First admit you do not know the future. Humans need rules for investing. It is bad to buy on emotion or on trust. You need a plan, not excess.
We tend to regress under pressure. QE$ (printing money) by Powell and the market has moved up. The market is at an all-time high. To buy, hold or sell is a leap into the unknowable. Fight, Flight, and freeze is the worse response we can have. When we trade, we move into the unknown.
We must know when to add risk (investing) and when to reduce risk (sell). We need to know when to step on the pas and when to step on the brake. No one knows what will happen next. Active trading is a game. Investing is a game of probabilities. An active trader makes mistakes. Making a mistake is not bad but staying there is bad.
You should use common sense. Step away from what the crowd is doing. Become an analyst of crowd behaviour. Swing trading is understanding people. You become an analyst of crowd behaviour. You have to accept that you do not know the future. You can click on the charts to make them larger and then click on the X in the top right corner to go back to the blog.
You need to know what is normal and what is not normal. Use standard deviations to do this.
Ziad Jasani talked about the parts of candle for candle charts. For the green candle, the entry stock price point is at the bottom of the green candle and exit is at the top of the green candle. For the red candle, the entry stock price point is at the top of the red candle and the exit is at the bottom of the red candle.
If you have series of green candles going higher and they are getting shorter then the bulls are weaker. The market is slowing down and there are less people interested in the stock. It may be time to sell or to do a stop loss. If there is a gap with a higher green candle, that is a break out. If there is a gap after a green candle with a lower red candle, that is a reversal as is a red candle and a gap and higher green candle.
On my other blog I wrote yesterday about Finning International Inc (TSX-FTT, OTC-FINGF) ... learn more. Next, I will write about Quarterhill Inc (TSX-QTRH, NASDAQ-QTRH) ... learn more on Wednesday, November 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.
First admit you do not know the future. Humans need rules for investing. It is bad to buy on emotion or on trust. You need a plan, not excess.
We tend to regress under pressure. QE$ (printing money) by Powell and the market has moved up. The market is at an all-time high. To buy, hold or sell is a leap into the unknowable. Fight, Flight, and freeze is the worse response we can have. When we trade, we move into the unknown.
We must know when to add risk (investing) and when to reduce risk (sell). We need to know when to step on the pas and when to step on the brake. No one knows what will happen next. Active trading is a game. Investing is a game of probabilities. An active trader makes mistakes. Making a mistake is not bad but staying there is bad.
You should use common sense. Step away from what the crowd is doing. Become an analyst of crowd behaviour. Swing trading is understanding people. You become an analyst of crowd behaviour. You have to accept that you do not know the future. You can click on the charts to make them larger and then click on the X in the top right corner to go back to the blog.
You need to know what is normal and what is not normal. Use standard deviations to do this.
Ziad Jasani talked about the parts of candle for candle charts. For the green candle, the entry stock price point is at the bottom of the green candle and exit is at the top of the green candle. For the red candle, the entry stock price point is at the top of the red candle and the exit is at the bottom of the red candle.
If you have series of green candles going higher and they are getting shorter then the bulls are weaker. The market is slowing down and there are less people interested in the stock. It may be time to sell or to do a stop loss. If there is a gap with a higher green candle, that is a break out. If there is a gap after a green candle with a lower red candle, that is a reversal as is a red candle and a gap and higher green candle.
On my other blog I wrote yesterday about Finning International Inc (TSX-FTT, OTC-FINGF) ... learn more. Next, I will write about Quarterhill Inc (TSX-QTRH, NASDAQ-QTRH) ... learn more on Wednesday, November 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, November 21, 2019
Money Show 2019 – Patrick Ceresna
Patrick Ceresna spoke in the afternoon of Friday, September 20, 2019 in the Bull Pen of the Exhibit Hall. His talk was called “Discover the Strategy We’ve Used to Catch the Last Two Market Tops”. He is Founder and Chief Derivative Market Strategist of Big Picture Trading Inc. His company’s site is here.
The big picture is that there are macro cycles of Business Cycle, Debt Cycle and Market Cycle. Non are consistent in duration or magnitude. We are in the longest Business Cycle in History. The average is 11 months.
The option contracts have counterparties of buyer and seller. With rights and obligations. The Call Option is a Buyer having the right to buy and the Seller has the obligation to sell. It covers a specific time and price. A Put Option is with the Buyer having the right to sell and the Seller has the obligation is to buy at a specific time and price.
A straddle is a simultaneous call and put. You need a big move in the market for this to work. A calendar Straddle has different expirations of the call and put. It is a shorter call and a longer put. This is insurance in timing in case we have not reached the top. There is a believe that the market will decline and a believe that a large move is coming and is imminent. He believes we are at risk of this now.
We need low volatility for options are they are more expensive if there is high volatility.
On my other blog I wrote yesterday about Innergex Renewable Energy (TSX-INE, OTC-INGXF) ... learn more. Next, I will write about Crescent Point Energy Corp (TSX-CPG, NYSE-CPG) ... learn more on Friday, November 22, 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.
The big picture is that there are macro cycles of Business Cycle, Debt Cycle and Market Cycle. Non are consistent in duration or magnitude. We are in the longest Business Cycle in History. The average is 11 months.
The option contracts have counterparties of buyer and seller. With rights and obligations. The Call Option is a Buyer having the right to buy and the Seller has the obligation to sell. It covers a specific time and price. A Put Option is with the Buyer having the right to sell and the Seller has the obligation is to buy at a specific time and price.
A straddle is a simultaneous call and put. You need a big move in the market for this to work. A calendar Straddle has different expirations of the call and put. It is a shorter call and a longer put. This is insurance in timing in case we have not reached the top. There is a believe that the market will decline and a believe that a large move is coming and is imminent. He believes we are at risk of this now.
We need low volatility for options are they are more expensive if there is high volatility.
On my other blog I wrote yesterday about Innergex Renewable Energy (TSX-INE, OTC-INGXF) ... learn more. Next, I will write about Crescent Point Energy Corp (TSX-CPG, NYSE-CPG) ... learn more on Friday, November 22, 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, November 19, 2019
Money Show 2019 - Money Talks
Peter Hodson was the moderator for this panel in the opening remarks. The panel subject was The Best Sectors to Invest in Now for the Long Term. The panel included Ryan Irvin of KeyStone Financial , Michael Cooke of Mackenzie Investments , and Jon Najarian of Market Rebellion .
Jon: The banks are doing well, like US Bank Corp. Tech is a good area with Apple and Microsoft.
Ryan: Microsoft is great. He hates sectorial investing. The best performing stock is Boyd Group (TSX: BYD-UN, OTC-BFGIF) which fixes cars. He bought into this stock at $2 something and it is now over $100. It has great cash flow over time. He likes Health Care – Home and Health care solutions. He likes Viemed Healthcare Inc (TSX-VMD, NASDAQ-VMD). A product helps lungs grow organically. Good cash flow, no debt. It is around $6 but a fair value is $12.
Michael: The internet has made more information available to more people. A risk is that more things can happen than will happen. His favourite investment is long bonds.
Peter: Entry point if very important. In next recession go into utilities and telecom.
Jon: No one should be freaking about a recession. A good think is that consumers are 70% of the US economy and they are doing well. They are buying houses. You should follow the 70% of the economy not the 30%.
Ryan: Timing the market is a foolish thing. We have been hearing for the past 5 years that a recession is coming, but it hasn’t. We will come out of a recession. You should focus on individual quality business. You should always look at cash flow.
Michael: The basic economy is softening. Large companies are priced for perfection. You should trim the stocks that have done well. The entry point is important. Long term focus is important.
Peter: Half the number of companies are buying back stock.
Jon: The cannabis party is just starting. US cannabis stocks have a problem that they cannot bank in the US.
Ryan: This is a touchy subject in the US. He has problems with this sector. There is a problem with cash flow. He cannot recommend any. There is an overcapacity now. There is a lack of cash flow in this sector still.
Michael: He is not a cannabis guy. In the onshore Chinese market, they have 3% of their foreign investment in it. Something interesting is happening. The domestic market is a great economic market.
Peter: What about momentum versus value.
Jon: He likes growth not value. He likes Lennar Corp (NYSE-LEN).
Ryan: He likes growth at a reasonable price. The sectors he likes are health care and missed priced small cap.
Michael: He likes growth (but at a reasonable price). He likes gold. This is an asset class that is undervalued and under invested by individual investors.
On my other blog I wrote yesterday about PFB Corp (TSX-PFB, OTC-PFBOF) ... learn more. Next, I will write about Innergex Renewable Energy (TSX-INE, OTC-INGXF) ... learn more on Wednesday, November 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.
Jon: The banks are doing well, like US Bank Corp. Tech is a good area with Apple and Microsoft.
Ryan: Microsoft is great. He hates sectorial investing. The best performing stock is Boyd Group (TSX: BYD-UN, OTC-BFGIF) which fixes cars. He bought into this stock at $2 something and it is now over $100. It has great cash flow over time. He likes Health Care – Home and Health care solutions. He likes Viemed Healthcare Inc (TSX-VMD, NASDAQ-VMD). A product helps lungs grow organically. Good cash flow, no debt. It is around $6 but a fair value is $12.
Michael: The internet has made more information available to more people. A risk is that more things can happen than will happen. His favourite investment is long bonds.
Peter: Entry point if very important. In next recession go into utilities and telecom.
Jon: No one should be freaking about a recession. A good think is that consumers are 70% of the US economy and they are doing well. They are buying houses. You should follow the 70% of the economy not the 30%.
Ryan: Timing the market is a foolish thing. We have been hearing for the past 5 years that a recession is coming, but it hasn’t. We will come out of a recession. You should focus on individual quality business. You should always look at cash flow.
Michael: The basic economy is softening. Large companies are priced for perfection. You should trim the stocks that have done well. The entry point is important. Long term focus is important.
Peter: Half the number of companies are buying back stock.
Jon: The cannabis party is just starting. US cannabis stocks have a problem that they cannot bank in the US.
Ryan: This is a touchy subject in the US. He has problems with this sector. There is a problem with cash flow. He cannot recommend any. There is an overcapacity now. There is a lack of cash flow in this sector still.
Michael: He is not a cannabis guy. In the onshore Chinese market, they have 3% of their foreign investment in it. Something interesting is happening. The domestic market is a great economic market.
Peter: What about momentum versus value.
Jon: He likes growth not value. He likes Lennar Corp (NYSE-LEN).
Ryan: He likes growth at a reasonable price. The sectors he likes are health care and missed priced small cap.
Michael: He likes growth (but at a reasonable price). He likes gold. This is an asset class that is undervalued and under invested by individual investors.
On my other blog I wrote yesterday about PFB Corp (TSX-PFB, OTC-PFBOF) ... learn more. Next, I will write about Innergex Renewable Energy (TSX-INE, OTC-INGXF) ... learn more on Wednesday, November 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.
Thursday, November 14, 2019
Frontiers North and Polar Bears
I went on a trip to see the Polar Bears on the Tundra outside Churchill Manitoba. The trip was run by Frontiers North Adventures. It was a wonderful trip. They were well organized and meals they provided were great. The breakfasts were buffet style, with lovely sandwiches and great soup for lunch on the Tundra Buggies.
The only problems I had was the early rising. I am not a morning person, but we had to get up at 6 to have breakfast and get going. Fortunately, I was traveling with a couple of friends and someone else set a phone alarm. It took me until the third morning to set the alarm on my phone so that it rang. But we were good and we all got up and got our showers and got to breakfast in an hour.
And, we saw lots of bears:
Frontiers North used Tundra buggies to go out on the Tundra to see the bears. Seeing the polar bears in their natural habitat gives you an experience that truly defines the word "awesome."
These are great vehicles that could go anywhere. The Tundra is dotted with lots and lots of lakes. None of these lakes are deep because of the permafrost. The deepest can only be 3 feet. The so called trails looked more like creek beds. They had long areas filled with water. However, these buggies could go through it all very easily.
I had talked to a couple of people before I left who had been on Polar Bear trips to Churchill. They both said it was the best trip that they have ever been on. I must agree. This was a great trip.
Melissa at the Flight Center at 55 Yonge Street booked this trip for us. This is a third trip she has booked for us and they all went off very well.
On my other blog I wrote yesterday about Johnson and Johnson (NYSE-JNJ) ... learn more. Next, I will write about IBI Group Inc (TSX-IBG, OTC-IBIBF) ... learn more on Friday, November 15, 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.
The only problems I had was the early rising. I am not a morning person, but we had to get up at 6 to have breakfast and get going. Fortunately, I was traveling with a couple of friends and someone else set a phone alarm. It took me until the third morning to set the alarm on my phone so that it rang. But we were good and we all got up and got our showers and got to breakfast in an hour.
And, we saw lots of bears:
Frontiers North used Tundra buggies to go out on the Tundra to see the bears. Seeing the polar bears in their natural habitat gives you an experience that truly defines the word "awesome."
These are great vehicles that could go anywhere. The Tundra is dotted with lots and lots of lakes. None of these lakes are deep because of the permafrost. The deepest can only be 3 feet. The so called trails looked more like creek beds. They had long areas filled with water. However, these buggies could go through it all very easily.
I had talked to a couple of people before I left who had been on Polar Bear trips to Churchill. They both said it was the best trip that they have ever been on. I must agree. This was a great trip.
Melissa at the Flight Center at 55 Yonge Street booked this trip for us. This is a third trip she has booked for us and they all went off very well.
On my other blog I wrote yesterday about Johnson and Johnson (NYSE-JNJ) ... learn more. Next, I will write about IBI Group Inc (TSX-IBG, OTC-IBIBF) ... learn more on Friday, November 15, 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, November 12, 2019
Steinberg Wealth Management
Peter, the leader of one of my investment clubs gets us some interesting meetings. The other week he got us a meeting at Steinberg Wealth Management. I always find these meeting interesting and I always learn something. Their web site is here.
They first talked about the investment, geopolitical and political climate of today and their concerns. They are worried about debt levels, global growth, interest rates and current investment valuations. They are concerned about fixed income returns no longer covering inflation. They are concerned that being fully invested is not a sound investment approach.
They have a Value Equity Fund that has produced a 5 year annualized return of 6.9% and a 7 year annualized return of 10.2%. They talked about the entry price being critical. They like to pay a price lower than the 5 year high. They feel that Free Cash Flow is important.
They also have a fixed income fund that has a current yield of 6.31%. Their portfolio has high yield corporate bonds rated at BB or B. They said that 80% of the bond market is callable bonds. However, with callable bonds, you get a nice cash bonus when they are recalled.
I find their bond strategy rather intriguing. I have not held any bonds since 2007. Most articles I have read about bond buying in a time of low or negative interest rates talk about making money in capital gains. When interest rates go lower your bond value goes up so you can make capital gains. I personally do not invest for capital gains so this sort of investing is not for me.
There is an interview with Lorne Steinberg by Bob Scully.
On my other blog I wrote yesterday about Cenovus Energy Inc. (TSX-CVE, NYSE-CVE) ... learn more. Next, I will write about Johnson and Johnson (NYSE-JNJ) ... learn more on Wednesday, November 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.
They first talked about the investment, geopolitical and political climate of today and their concerns. They are worried about debt levels, global growth, interest rates and current investment valuations. They are concerned about fixed income returns no longer covering inflation. They are concerned that being fully invested is not a sound investment approach.
They have a Value Equity Fund that has produced a 5 year annualized return of 6.9% and a 7 year annualized return of 10.2%. They talked about the entry price being critical. They like to pay a price lower than the 5 year high. They feel that Free Cash Flow is important.
They also have a fixed income fund that has a current yield of 6.31%. Their portfolio has high yield corporate bonds rated at BB or B. They said that 80% of the bond market is callable bonds. However, with callable bonds, you get a nice cash bonus when they are recalled.
I find their bond strategy rather intriguing. I have not held any bonds since 2007. Most articles I have read about bond buying in a time of low or negative interest rates talk about making money in capital gains. When interest rates go lower your bond value goes up so you can make capital gains. I personally do not invest for capital gains so this sort of investing is not for me.
There is an interview with Lorne Steinberg by Bob Scully.
On my other blog I wrote yesterday about Cenovus Energy Inc. (TSX-CVE, NYSE-CVE) ... learn more. Next, I will write about Johnson and Johnson (NYSE-JNJ) ... learn more on Wednesday, November 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.
Thursday, November 7, 2019
Something to Buy November 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 November 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. Five of these stocks (22%) are showing as cheap by the historically high dividend yield and they are Dorel Industries (TSX-DII.B, OTC-DIIBF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF), and Stingray Digital Group Inc (TSX-RAY.A). Dorel Industries (TSX-DII.B, OTC-DIIBF), and Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF) have been added to this list.
Nine (or 39%) 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), 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). Savaria Corporation (TSX-SIS, OTC-SISXF) has been removed from this 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.
Three stocks (or 30%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Loblaw Companies (TSX-L, OTC-LBLCF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). There is no change from last month.
I follow Five Health Care stocks. 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 back 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.
Six stocks (or 75%) are showing cheap by historical median dividend yield. They are 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). Royal Bank (TSX-RY, NYSE-RY) have been added back to the list.
I follow 14 Financial Service stocks. No stock is showing as cheap by the historically high dividend yield. Power Corp (TSX-POW, OTC-PWCDF) has been removed from the list.
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), 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). Chesswood Group (TSX-CHW, OTC-CHWWF) and been removed from this list.
I follow 6 Insurance stocks. No stock is showing as cheap by the historically high dividend yield. Power Financial Corp (TSX-PWF, OTC-POFNF) has been removed from the list.
Four stocks (or 67%) are showing cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), Manulife Financial Corp (TSX-MFC, NYSE-MFC), and Power Financial Corp (TSX-PWF, OTC-POFNF). There is no change from last month.
I follow 32 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 6 Construction stocks. None are 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). 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. 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. One stock is showing as cheap by the historically high dividend yield. That stock is Pason Systems Inc. (TSX-PSI, OTC-PSYTF). There is no change from last month.
Four stocks or 25% are showing as cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc. (TSX-PSI, OTC-PSYTF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) has been removed from this list.
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. One stock (or 10%) are showing as cheap by historical median dividend yield. It is 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). There is no change from last month.
I follow 7 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. 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. One stock is showing as cheap by the historically high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
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 Dollarama Inc. (TSX-DOL, OTC-DLMAF) ... learn more. Next, I will write about Keyera Corp (TSX-KEY, OTC-KEYUF) ... learn more on November 8, 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.
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 November 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. Five of these stocks (22%) are showing as cheap by the historically high dividend yield and they are Dorel Industries (TSX-DII.B, OTC-DIIBF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF), and Stingray Digital Group Inc (TSX-RAY.A). Dorel Industries (TSX-DII.B, OTC-DIIBF), and Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF) have been added to this list.
Nine (or 39%) 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), 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). Savaria Corporation (TSX-SIS, OTC-SISXF) has been removed from this 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.
Three stocks (or 30%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Loblaw Companies (TSX-L, OTC-LBLCF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). There is no change from last month.
I follow Five Health Care stocks. 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 back 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.
Six stocks (or 75%) are showing cheap by historical median dividend yield. They are 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). Royal Bank (TSX-RY, NYSE-RY) have been added back to the list.
I follow 14 Financial Service stocks. No stock is showing as cheap by the historically high dividend yield. Power Corp (TSX-POW, OTC-PWCDF) has been removed from the list.
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), 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). Chesswood Group (TSX-CHW, OTC-CHWWF) and been removed from this list.
I follow 6 Insurance stocks. No stock is showing as cheap by the historically high dividend yield. Power Financial Corp (TSX-PWF, OTC-POFNF) has been removed from the list.
Four stocks (or 67%) are showing cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), Manulife Financial Corp (TSX-MFC, NYSE-MFC), and Power Financial Corp (TSX-PWF, OTC-POFNF). There is no change from last month.
I follow 32 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 6 Construction stocks. None are 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). 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. 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. One stock is showing as cheap by the historically high dividend yield. That stock is Pason Systems Inc. (TSX-PSI, OTC-PSYTF). There is no change from last month.
Four stocks or 25% are showing as cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc. (TSX-PSI, OTC-PSYTF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) has been removed from this list.
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. One stock (or 10%) are showing as cheap by historical median dividend yield. It is 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). There is no change from last month.
I follow 7 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. 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. One stock is showing as cheap by the historically high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
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 Dollarama Inc. (TSX-DOL, OTC-DLMAF) ... learn more. Next, I will write about Keyera Corp (TSX-KEY, OTC-KEYUF) ... learn more on November 8, 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, November 5, 2019
Dividend Stocks November 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 November 2019. On this list,
Cenovus Energy Inc (TSX-CVE, NYSE-CVE)
Emera Inc (TSX-EMA, OTC-EMRAF)
Fortis Inc (TSX-FTS, OTC-FRTSF)
SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF)
Waste Connections Inc (TSX-WCN, NYSE-WCN)
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.
Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF) did a 2 for 1 split since I last updated my spreadsheet. The Canadian Press has an article on City News. Valener Inc (TSX-VNR, OTC-VNRCF) has been bought my Noverco Inc. See the announcement on Global Newswire.
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 yesterday about Encana Corp (TSX-ECA, NYSE-ECA) ... learn more. Next, I will write about be Dollarama Inc. (TSX-DOL, OTC-DLMAF) ... learn more on Wednesday, November 06, 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 November 2019. On this list,
- I have 11 stocks with a dividend yield higher than the historical high dividend yield,
- I have 47 stocks with a dividend yield higher than the historical average dividend yield
- I have 72 stocks with a dividend yield higher than the historical median dividend yield and
- 89 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 09 stocks with a dividend yield higher than the historical high dividend yield,
- I have 49 stocks with a dividend yield higher than the historical average dividend yield
- I have 73 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.
Cenovus Energy Inc (TSX-CVE, NYSE-CVE)
Emera Inc (TSX-EMA, OTC-EMRAF)
Fortis Inc (TSX-FTS, OTC-FRTSF)
SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF)
Waste Connections Inc (TSX-WCN, NYSE-WCN)
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.
Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF) did a 2 for 1 split since I last updated my spreadsheet. The Canadian Press has an article on City News. Valener Inc (TSX-VNR, OTC-VNRCF) has been bought my Noverco Inc. See the announcement on Global Newswire.
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 yesterday about Encana Corp (TSX-ECA, NYSE-ECA) ... learn more. Next, I will write about be Dollarama Inc. (TSX-DOL, OTC-DLMAF) ... learn more on Wednesday, November 06, 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.
Subscribe to:
Posts (Atom)