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.

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