This is the last entry I will do for the Money Show of 2019. I only went to one more session and it was by Tom Sosnoff of Tasty Trade. I think it is time to move on. In the new year, I will start to review some of mine stocks and the ones with September and October year-ends
Donald Vialoux and John Vialoux spoke in a Saturday, September 21, 2019 afternoon session. Their talk was called “Quantitative Portfolio Management Strategies: Growth and Income Focus”. Donald Vialoux is Founder, Tech Talk. His company’s site is here. Jon Vialoux is Founder, Equity Clock. His company’s site is here.
We can improve our investment returns by combining Seasonable, Fundamental and Technical analysis. The consumers spending on gas rises in the summer. It is the trend that is important. Spending on clothing rises in the Spring and the Fall. Retail does well at Christmas time. The equity market has seasonality.
What is Seasonal Investing? The markets are influence by seasonally recurring tendencies including those pertaining to economic indicators, corporation earnings, consumer and business spending patterns, recurring announcements, and recurring and planned events.
Mostly he does fundamentals first, then looks at seasonality and then technical analysis on when to buy. Seasonable investing focuses on the entry point and the exit point.
Sell in May did not work in 2019. And it does not always work. Often you see high markets after May. Lately there has sometimes been a lot of volatility and the fundamentals say caution.
Where do we stand? Opening job growth is slowing. We have above average growth in jobs. There are enough jobs for all the unemployed. Consumers spending is the best in over 15 years. Consumers are benefiting from job growth. The risk of a recession is currently low because of this. There is some caution needed here.
Manufacturing and industrials are trending below average in the US. If industrial trending is below average the President does not get re-elected. Trending below average in shipments rising a flag but consumers are still in good shape. It is the trade war that is making shipping activities below average.
In tech, the consumer electronics show in January does not affect technology like it used to. There is above average spending on tech by companies and consumers. It is still trending with higher highs and higher lows. Semiconductors benefit from higher spending by consumers and companies.
Home building is doing well. This peaks in February and May. We are trending above average in home sales and new homes. Rates are coming down. ITF is the ETF for home building. Heavy construction in the summer months. Both the Democrats and Republicans agree on infrastructure spending.
For retail and people spending use the widely traded XRT Retail ETF. Amazon has been driving things. In the US spending peaks in the US Thanksgiving weekend.
Stay away from energy in the fourth quarter except for refining oil. The ETF for refiners is CREK. Access Equity Clock here for seasonality. It is also on StockTwits @equityclock.
Possible recession? Business is staining now but everything is still fine with consumers. He is not seeing problems that happened at the end of last year. The economic data is still coming in good. Long term traders should look at the 200 day moving average. You should look at the trends. Do you have higher highs or lower lows?
He is worried about the CDN$ and it might go lower. People are fleeing the US. In Canada manufacturing is not straining as in the US. The market is oversupplied with oil. There is lots of stock piling of oil. Buy on the rumor and sell on the news. There are dark pools and dark indexes. There is activity going on behind the scene. Big investors trade in the dark pool.
On my other blog I wrote yesterday about Element Fleet Management Corp (TSX-ENF, OTC-ELEEF) ... learn more. Next, I will write about Metro Inc (TSX-MRU, OTC-MTRAF) ... learn more on January 2, 2020 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, December 31, 2019
Tuesday, December 24, 2019
Money Show 2019 – Innovation and Disruption
Clara O’Hara, Wealth Management Reporter Globe and Mail was the moderator for this panel in a Saturday afternoon session. The panel subject was “Innovation and Disruption: The next 10 Years in 45 minutes”. The panel included Robert Hudyma, Professor Ryerson University, Elliot Johnson, Chief Officer and Chief Operation Officer of Evolve ETFs, Raj Lala, President and CEO, Evolve ETFs and Stuart Sherman, CEO IMC.
Clara: This is about innovation over the next 10 years in 45 minutes which coverage innovation, cyber security, E-Gaming, E-Sports, Future Cars, Gender Diversity, and Industrial Revolution.
Rob: 100 years ago, a robber would rob a bank with a machine gun. Today, they use a computer. There has been a huge growth in Bad Guys with cybercrime.
Stuart: Breaches can lead to extinction. A credit union got hacked and it crushed the company. Hacks can combine insiders and outsiders. They can do big damage.
Raj: Equifax had loss of records and they loss consumer trust. This is the number one concern of CEOs and a big priority with banks.
Stuart: Breaching and hacking is a service. Countries rent out ransom ware and take a cut of the profits.
Raj: There are 3M jobs in cyber security. There is 3M to 5M attempts to hack banks each day. We have high growth in Cyber Security.
Stuart: Quantum computers will hack a password in seconds. Countries are trying to destabilized other countries.
Rob: Bad guys need only find one way in. You have to protect all ways in. You need to protect your phone. There is a problem with big data. Amazon and Facebook are really data companies. For Facebook, the product is you. They are monetizing big data.
Raj: You provide lots of data. But in some cases, it can help, like in health care where you can get better treatment. Because of data aggregation, police can see when and where crime takes pace and lower crime rates.
Stuart: What is privacy? We believe in personal sovereignty. We have data concerns and we do not want to provide data, but we want our health to be better from big data. Data is personalization. That is why Facebook likes data and it can benefit us. If you like it, it is good. If you do not, it is bad. With AI and big data, we can look for patterns and that can help us in cyber security. Looking for patterns AI can make suggestions to radiologists.
Rob: Israel is the leader is cyber security. China, Russia, North Korea are the bad guys.
Raj: With 5G or fifth generation, the internet can explode. 45% of the world is not yet connected to the internet. This will have an effect when they do. 5G is good for car operations. Huawei is ahead in 5G.
Stuart: Current cell towers can handle 1,000 cell phones. With 5G they can handle 100,000. The cost of connecting goes down. 5G will be great for connectivity.
Raj: We want more connectivity. Note only for our phones and computers, but for our thermostats etc.
Rob: The fear about Huawei is that there is spyware on it. There is a genuine fear of China spying.
Stuart: There is no product that is sold in the US that does not have a backdoor. Now China will have this. The fight is going to be between US tech and China tech. Both are guilty of the same thing. When the US attached Iraq, they went in and turned off the governments systems.
Raj: In 12 to 18 months we will have 5G in Canada.
Rob: 5G will be in the cities first before in the country side. Rural areas will get satellites. In 10 to 12 years we will get 6G.
Raj: We need level 5. We are at 3 or 3.5 level for driverless cars. We need the Federal, Provincial and Municipal governments signing on.
Rob: There can be a mixed environment with autonomous cars and others. They will have special lanes for autonomous cars. Competing technologies will be like the Beta and VHS competition or like iPhone and Samsung in same markets. We will have 3D printing of human genomes and other innovations.
On my other blog I wrote yesterday about Richards Packaging Income Fund (TSX-RPI.UN, OTC-RPKIF) ... learn more. Next, I will write about Bird Construction Inc (TSX-BDT, OTC-BIRDF) ... learn more on Friday, December 27, 2019 around 5 pm.
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.
Clara: This is about innovation over the next 10 years in 45 minutes which coverage innovation, cyber security, E-Gaming, E-Sports, Future Cars, Gender Diversity, and Industrial Revolution.
Rob: 100 years ago, a robber would rob a bank with a machine gun. Today, they use a computer. There has been a huge growth in Bad Guys with cybercrime.
Stuart: Breaches can lead to extinction. A credit union got hacked and it crushed the company. Hacks can combine insiders and outsiders. They can do big damage.
Raj: Equifax had loss of records and they loss consumer trust. This is the number one concern of CEOs and a big priority with banks.
Stuart: Breaching and hacking is a service. Countries rent out ransom ware and take a cut of the profits.
Raj: There are 3M jobs in cyber security. There is 3M to 5M attempts to hack banks each day. We have high growth in Cyber Security.
Stuart: Quantum computers will hack a password in seconds. Countries are trying to destabilized other countries.
Rob: Bad guys need only find one way in. You have to protect all ways in. You need to protect your phone. There is a problem with big data. Amazon and Facebook are really data companies. For Facebook, the product is you. They are monetizing big data.
Raj: You provide lots of data. But in some cases, it can help, like in health care where you can get better treatment. Because of data aggregation, police can see when and where crime takes pace and lower crime rates.
Stuart: What is privacy? We believe in personal sovereignty. We have data concerns and we do not want to provide data, but we want our health to be better from big data. Data is personalization. That is why Facebook likes data and it can benefit us. If you like it, it is good. If you do not, it is bad. With AI and big data, we can look for patterns and that can help us in cyber security. Looking for patterns AI can make suggestions to radiologists.
Rob: Israel is the leader is cyber security. China, Russia, North Korea are the bad guys.
Raj: With 5G or fifth generation, the internet can explode. 45% of the world is not yet connected to the internet. This will have an effect when they do. 5G is good for car operations. Huawei is ahead in 5G.
Stuart: Current cell towers can handle 1,000 cell phones. With 5G they can handle 100,000. The cost of connecting goes down. 5G will be great for connectivity.
Raj: We want more connectivity. Note only for our phones and computers, but for our thermostats etc.
Rob: The fear about Huawei is that there is spyware on it. There is a genuine fear of China spying.
Stuart: There is no product that is sold in the US that does not have a backdoor. Now China will have this. The fight is going to be between US tech and China tech. Both are guilty of the same thing. When the US attached Iraq, they went in and turned off the governments systems.
Raj: In 12 to 18 months we will have 5G in Canada.
Rob: 5G will be in the cities first before in the country side. Rural areas will get satellites. In 10 to 12 years we will get 6G.
Raj: We need level 5. We are at 3 or 3.5 level for driverless cars. We need the Federal, Provincial and Municipal governments signing on.
Rob: There can be a mixed environment with autonomous cars and others. They will have special lanes for autonomous cars. Competing technologies will be like the Beta and VHS competition or like iPhone and Samsung in same markets. We will have 3D printing of human genomes and other innovations.
On my other blog I wrote yesterday about Richards Packaging Income Fund (TSX-RPI.UN, OTC-RPKIF) ... learn more. Next, I will write about Bird Construction Inc (TSX-BDT, OTC-BIRDF) ... learn more on Friday, December 27, 2019 around 5 pm.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, December 19, 2019
Money Show 2019 – Rob Carrick
Rob Carrick spoke in a Saturday, September 21, 2019 morning session. His talk was called “10 Things You Absolutely Must Know if You’re Going to Invest in ETFs”. He is a columnist with the Globe and Mail. His company’s site is here.
Rob Carrick says he is a huge believer in ETFs. There are new ETFs being introduced each day. There are things you need to know about ETS.
Most products are just noise (and not for long term investing.) Core ETFs are recognized indexes like the S&P 500 and lesser known ones like FTSE. Invest in the broad market index ETS. Look at how the index ETFs did in the last bear market. Do not make bets on sectors or type.
ETFs free of cost investing is a gimmick. ETFs are cheap so we do not need them to go there. With fundamental ETFs, some are sensible but not all are. He is pro ROBO advisors. However, you do not need many ETFs.
With ETFs you should cover assets (Bonds, US Stocks, CDN Stocks, International Stocks). Some of the International Stock Index ETFs are rest of the world outside N.A. You can have a portfolio of 2 to 3 ETFs using asset allocation ETFs. Vanguard was the first to have these ETFs. These are like Balanced Funds and they are cheap. They mix stocks and bonds. These balance ETFs are rebalanced. They could be a simply solution with 1 ETF.
Look at the track record for your ETF. Only look at ETFs that have been around for 5 years. It might be reasonable to look at ones that have been around for 12 years because of the last crash. Buy only an established product. It must be clear what is in the product. Go for the ETFs with websites. If the ETF has an income, see how it is taxes. Look at the Management Report of Fund Performance (MRFP) to see how a fund is doing. Globe and Mail is building a website for ETFs.
Look at a fund’s stats. The TER is cost of brokerage fees. Some new ETFs are doing a lot of trading and that is a cost to you. The TER and MER is all you pay in fees. Some ETFs are more transparent than others. The Management Fee is not all the fees you pay.
Some advisors hate ETFs for no good reason. ETFs are changing investing. ETFs have 10% of what Mutual Funds have. If an advisor sells ETFs, they will have to charge the client a fee. The investment industry makes negative remarks about ETFs.
He thinks that ETFs will not crash in a bear market, but will just reflect the down market and the up market. The downs will be overwhelmed by the ups. ETFs are not going to crash the market. This is not going to happen. ETFs were tested in 2008/9 and people who bought ETFs took comfort in them.
Most people should stay away from leveraged ETFs. Few people can use them. They can be used for managing Pensions etc. The index funds do not drive the market. No product will work well in all markets. Balanced ETFs are built properly and are currently good ETFs. The government does not like the Total Return ETFs because of tax efficiency and they are changing the law.
If you have a 5% weighting on a sector or country you have faith in, that is fine, but no more. How much to have in stocks and bonds have changed. Now use 110 year minus your age or 120 years minus your age because we are living longer. In stocks, you need US, Canadian and International stocks.
If you want income, dividends are the way to go. Do not do covered call ETFs. Go with what you understand only.
Here are some trading tips. Use only limited orders. This is a good idea because market may be off 5 to 6%. Stop losses are a good idea. Stay away from trading at the beginning (9:30 to 9:45 am) and the end of the day (3:45 to 4:00 pm). Look at the market depth and the size of the ETF. Determine when there is a sizable bid or offer and that is when you should do your transaction.
On my other blog I wrote yesterday about Methanex Corp (TSX-MX, NASDAQ-MEOH) ... learn more. Next, I will write about Magna International Inc. (TSX-MG, NYSE-MGA) ... learn more on Wednesday, December 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.
Rob Carrick says he is a huge believer in ETFs. There are new ETFs being introduced each day. There are things you need to know about ETS.
Most products are just noise (and not for long term investing.) Core ETFs are recognized indexes like the S&P 500 and lesser known ones like FTSE. Invest in the broad market index ETS. Look at how the index ETFs did in the last bear market. Do not make bets on sectors or type.
ETFs free of cost investing is a gimmick. ETFs are cheap so we do not need them to go there. With fundamental ETFs, some are sensible but not all are. He is pro ROBO advisors. However, you do not need many ETFs.
With ETFs you should cover assets (Bonds, US Stocks, CDN Stocks, International Stocks). Some of the International Stock Index ETFs are rest of the world outside N.A. You can have a portfolio of 2 to 3 ETFs using asset allocation ETFs. Vanguard was the first to have these ETFs. These are like Balanced Funds and they are cheap. They mix stocks and bonds. These balance ETFs are rebalanced. They could be a simply solution with 1 ETF.
Look at the track record for your ETF. Only look at ETFs that have been around for 5 years. It might be reasonable to look at ones that have been around for 12 years because of the last crash. Buy only an established product. It must be clear what is in the product. Go for the ETFs with websites. If the ETF has an income, see how it is taxes. Look at the Management Report of Fund Performance (MRFP) to see how a fund is doing. Globe and Mail is building a website for ETFs.
Look at a fund’s stats. The TER is cost of brokerage fees. Some new ETFs are doing a lot of trading and that is a cost to you. The TER and MER is all you pay in fees. Some ETFs are more transparent than others. The Management Fee is not all the fees you pay.
Some advisors hate ETFs for no good reason. ETFs are changing investing. ETFs have 10% of what Mutual Funds have. If an advisor sells ETFs, they will have to charge the client a fee. The investment industry makes negative remarks about ETFs.
He thinks that ETFs will not crash in a bear market, but will just reflect the down market and the up market. The downs will be overwhelmed by the ups. ETFs are not going to crash the market. This is not going to happen. ETFs were tested in 2008/9 and people who bought ETFs took comfort in them.
Most people should stay away from leveraged ETFs. Few people can use them. They can be used for managing Pensions etc. The index funds do not drive the market. No product will work well in all markets. Balanced ETFs are built properly and are currently good ETFs. The government does not like the Total Return ETFs because of tax efficiency and they are changing the law.
If you have a 5% weighting on a sector or country you have faith in, that is fine, but no more. How much to have in stocks and bonds have changed. Now use 110 year minus your age or 120 years minus your age because we are living longer. In stocks, you need US, Canadian and International stocks.
If you want income, dividends are the way to go. Do not do covered call ETFs. Go with what you understand only.
Here are some trading tips. Use only limited orders. This is a good idea because market may be off 5 to 6%. Stop losses are a good idea. Stay away from trading at the beginning (9:30 to 9:45 am) and the end of the day (3:45 to 4:00 pm). Look at the market depth and the size of the ETF. Determine when there is a sizable bid or offer and that is when you should do your transaction.
On my other blog I wrote yesterday about Methanex Corp (TSX-MX, NASDAQ-MEOH) ... learn more. Next, I will write about Magna International Inc. (TSX-MG, NYSE-MGA) ... learn more on Wednesday, December 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, December 17, 2019
Money Show 2019 – Kevin Bidner
Kevin Bidner spoke in a Saturday, September 21, 2019 morning session. His talk was called “Profiting from the Coming Disruption in One of the World’s Largest Industries: Travel”. He is CEO and Founding Partner of The Hotel Communications Network. His company’s site is here.
HCN – The Hotel com network is digital communications. The web site is here. There are 17M hotel rooms worldwide with 20% of them with a tablet in the guest room. Global Network has a market plan to have a tablet in each room. They are Amazon for travel. The Hotel operation creates big data to meet the needs of clients. It is all about personalizing the client’s business.
Travel is the biggest industry in the world. There is a vacuum and hoteliers need a tech update. The travel industry needs to change. Hotels are way behind in tech. The hotel download APPs are not being used. There needs to be retooling for Millennials with the oldest of them being 35. Hotels have books and telephone books. Where there are tablets, 85% of guest picks up the tablets. The Millennials are the largest group in history.
They have short-term profit and long term strategies. They are pre-IPO at $0.35 a share. It will be 12 to 14 months for the IPO from the end of next year.
On my other blog I wrote yesterday about Stantec Inc (TSX-STN, NYSE-STN) ... learn more. Next, I will write about Methanex Corp (TSX-MX, NASDAQ-MEOH) ... learn more on Wednesday, December 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.
HCN – The Hotel com network is digital communications. The web site is here. There are 17M hotel rooms worldwide with 20% of them with a tablet in the guest room. Global Network has a market plan to have a tablet in each room. They are Amazon for travel. The Hotel operation creates big data to meet the needs of clients. It is all about personalizing the client’s business.
Travel is the biggest industry in the world. There is a vacuum and hoteliers need a tech update. The travel industry needs to change. Hotels are way behind in tech. The hotel download APPs are not being used. There needs to be retooling for Millennials with the oldest of them being 35. Hotels have books and telephone books. Where there are tablets, 85% of guest picks up the tablets. The Millennials are the largest group in history.
They have short-term profit and long term strategies. They are pre-IPO at $0.35 a share. It will be 12 to 14 months for the IPO from the end of next year.
On my other blog I wrote yesterday about Stantec Inc (TSX-STN, NYSE-STN) ... learn more. Next, I will write about Methanex Corp (TSX-MX, NASDAQ-MEOH) ... learn more on Wednesday, December 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, December 12, 2019
Money Show 2019 – Benj Gallander
Benj Gallander spoke in a Saturday, September 21, 2019 morning session. His talk was called “How to Increase Financial Returns by Doing Almost Nothing”. He is President of Contra the Heard. His company’s site is here.
There is going to be a recession and a stock blow-off. There is lots of debt. Canadian personal debt is at the highest level. The amount of Canadian debt is awful. People will pull back on spending and this will cause a recession. Other problems are Trump’s trade wars and Brexit.
Negative interest rates make no sense. We are seeing things that make no sense. Passive investing is better than active investing. People who trade a lot earn less. It is good to buy in December because of tax loss selling. You increase the supply and stocks go down in price. To buy on sale is the key.
Hedge funds charge too much money. They charge 2% and also over a certain amount, 20%. ETFs cost less than Mutual Fund and savings can add up. ETFs charge .5% and on $100,00 it is $500 each year. Instead buy their top 10 stocks. It is bar better to chose your own stocks. Buying stock is simple. You should read a lot and you will get a better return.
You need to look at the after tax results. Invest in a tax efficient way. Using TFSAs and RSPs is more tax efficient. How many max out their RSPs? About 20%. It is great for people with lots of money. If there is too much money in TFSA’s this will cause a bubble.
You need to diversity, but do not over diversity, especially with too many EFTs or Mutual Funds. ETFs are doing well but now is the wrong time to buy because they will be a reversion to the mean. The bloom has come off of Marijuana stocks. They are talked about every few weeks on BNN.
Dividends are a great way of making money. You make money by not buying crap. Think about what you want to buy. Do not practice dollar cost averaging. He likes companies that have been around at least 10 years. With Bitcoin, what is interesting is block-chain technology. Bitcoin will continue to be around because people want currency not controlled by any government.
Real Estate, pictures and antiques are a great way to diversify, but only buy what you love.
You should look at the management of your stock company. You want management that tell it like it is. You do not what ones with rose coloured glasses. He likes companies where the management stays around for a while.
Fracking has benefited consumers but the industry has not figured out how to do this in a profitable manner. They do not take a realistic value of all the costs of fracking. Like their machines wearing out quickly.
On my other blog I wrote yesterday about Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF) ... learn more. Next, I will write about FirstService Corp (TSX-FSV, NASDAQ-FSV) ... learn more on Friday, December 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.
There is going to be a recession and a stock blow-off. There is lots of debt. Canadian personal debt is at the highest level. The amount of Canadian debt is awful. People will pull back on spending and this will cause a recession. Other problems are Trump’s trade wars and Brexit.
Negative interest rates make no sense. We are seeing things that make no sense. Passive investing is better than active investing. People who trade a lot earn less. It is good to buy in December because of tax loss selling. You increase the supply and stocks go down in price. To buy on sale is the key.
Hedge funds charge too much money. They charge 2% and also over a certain amount, 20%. ETFs cost less than Mutual Fund and savings can add up. ETFs charge .5% and on $100,00 it is $500 each year. Instead buy their top 10 stocks. It is bar better to chose your own stocks. Buying stock is simple. You should read a lot and you will get a better return.
You need to look at the after tax results. Invest in a tax efficient way. Using TFSAs and RSPs is more tax efficient. How many max out their RSPs? About 20%. It is great for people with lots of money. If there is too much money in TFSA’s this will cause a bubble.
You need to diversity, but do not over diversity, especially with too many EFTs or Mutual Funds. ETFs are doing well but now is the wrong time to buy because they will be a reversion to the mean. The bloom has come off of Marijuana stocks. They are talked about every few weeks on BNN.
Dividends are a great way of making money. You make money by not buying crap. Think about what you want to buy. Do not practice dollar cost averaging. He likes companies that have been around at least 10 years. With Bitcoin, what is interesting is block-chain technology. Bitcoin will continue to be around because people want currency not controlled by any government.
Real Estate, pictures and antiques are a great way to diversify, but only buy what you love.
You should look at the management of your stock company. You want management that tell it like it is. You do not what ones with rose coloured glasses. He likes companies where the management stays around for a while.
Fracking has benefited consumers but the industry has not figured out how to do this in a profitable manner. They do not take a realistic value of all the costs of fracking. Like their machines wearing out quickly.
On my other blog I wrote yesterday about Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF) ... learn more. Next, I will write about FirstService Corp (TSX-FSV, NASDAQ-FSV) ... learn more on Friday, December 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, December 10, 2019
Money Show 2019 – Kanwal Sarai
Kanwal Sarai spoke in a Friday, September 20, 2019 afternoon session. His talk was called “How Do You Find the Best Canadian Stocks to Invest In?”. He is the Founder of Simply Investing Inc. His company’s site is here.
You can earn more with less risk and spend less time investing. Don’t invest without knowledge. You should learn from the best, people like Benjamin Graham and Warren Buffett. So, you should (1) find good role models, (2) study their strategies and (3) copy their strategies.
If you invest by yourself, you should do value investing. Buy stocks that are undervalued (priced low). However, Nortel was undervalued before going bankrupt. So, what you need is good quality stocks that have dividends. Most stocks are undervalued or overvalued.
How do you know when they are priced low? You can look at the dividend and the dividend yield (dividend divided share price). It is better to buy at a high yield. When the price drops, the yield goes up. Yield and share price go in the opposite direction.
The 10 year average yield is 3%. If yield is 5%, stocks are undervalued. If yield is 1%, they would be overvalued. You can find the 10 year average yield on Morningstar. For example, for POW the current yield is 5.62% and the 10 year average is 3.42% so it is undervalued. PB has a current yield of 2.17% with a 10 year average of 6.30%, so it is overvalued.
Dividends are significant, but they are not guaranteed. What happens when the price goes down? Yield goes up. Why dividends are significant is because of dividend increases. He bought TC Energy in 2000and yield on original cost is 22% today. He invested $2,479 and dividends to date are $6,134.60. This lowers your risk. You can grow your passive income. CIBC, NA, POW and SLF have paid more in dividends than the cost of the stock.
It is true that dividends are not guaranteed. However, you can look at a stock’s history. CU had paid dividends for 47 years. BMO has paid dividends for 190 years. CNR has paid dividends for 23 years. Dividends are not paid from stock price but from earnings. So, if a company is profitable, dividends are paid.
Three awesome things about dividends are (1) they increase your return on your investment, (2) they are cash in your pocket, and (3) once given out they cannot be taken back. He has 12 rules of investing on his website.
He has a list of 92 Canadian stocks and 124 US stocks that he follows.
On my other blog I wrote yesterday about Stella-Jones Inc (TSX-SJ, OTC-STLJF) ... learn more. Next, I will write about Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF) ... learn more on Wednesday, December 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.
You can earn more with less risk and spend less time investing. Don’t invest without knowledge. You should learn from the best, people like Benjamin Graham and Warren Buffett. So, you should (1) find good role models, (2) study their strategies and (3) copy their strategies.
If you invest by yourself, you should do value investing. Buy stocks that are undervalued (priced low). However, Nortel was undervalued before going bankrupt. So, what you need is good quality stocks that have dividends. Most stocks are undervalued or overvalued.
How do you know when they are priced low? You can look at the dividend and the dividend yield (dividend divided share price). It is better to buy at a high yield. When the price drops, the yield goes up. Yield and share price go in the opposite direction.
The 10 year average yield is 3%. If yield is 5%, stocks are undervalued. If yield is 1%, they would be overvalued. You can find the 10 year average yield on Morningstar. For example, for POW the current yield is 5.62% and the 10 year average is 3.42% so it is undervalued. PB has a current yield of 2.17% with a 10 year average of 6.30%, so it is overvalued.
Dividends are significant, but they are not guaranteed. What happens when the price goes down? Yield goes up. Why dividends are significant is because of dividend increases. He bought TC Energy in 2000and yield on original cost is 22% today. He invested $2,479 and dividends to date are $6,134.60. This lowers your risk. You can grow your passive income. CIBC, NA, POW and SLF have paid more in dividends than the cost of the stock.
It is true that dividends are not guaranteed. However, you can look at a stock’s history. CU had paid dividends for 47 years. BMO has paid dividends for 190 years. CNR has paid dividends for 23 years. Dividends are not paid from stock price but from earnings. So, if a company is profitable, dividends are paid.
Three awesome things about dividends are (1) they increase your return on your investment, (2) they are cash in your pocket, and (3) once given out they cannot be taken back. He has 12 rules of investing on his website.
He has a list of 92 Canadian stocks and 124 US stocks that he follows.
On my other blog I wrote yesterday about Stella-Jones Inc (TSX-SJ, OTC-STLJF) ... learn more. Next, I will write about Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF) ... learn more on Wednesday, December 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, December 5, 2019
Something to Buy December 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 December 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. Four of these stocks (22%) are showing as cheap by the historically high dividend yield and they are Dorel Industries (TSX-DII.B, OTC-DIIBF), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF), and Stingray Digital Group Inc (TSX-RAY.A).
Nine (or 39%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Dorel Industries (TSX-DII.B, OTC-DIIBF), Goodfellow Inc (TSX-GDL, OTC-GFELF), 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). BRP Inc (TSX-DOO, NYSE-DOOO) has been removed from the list. Goodfellow Inc (TSX-GDL, OTC-GFELF) 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). Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF) has been removed from the list.
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. Two stock or 20% are showing as cheap by the historical high dividend yield. They are Ensign Energy Services (TSX-ESI, OTC-ESVIF), and Suncor Energy (TSX-SU, NYSE-SU). Canadian Natural Resources (TSX-CNQ, NYSE-CNQ) has been removed from the list.
There are Six stocks (or 60%) showing cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), Ensign Energy Services (TSX-ESI, OTC-ESVIF), 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 deleted from the list. Canadian Natural Resources (TSX-CNQ, NYSE-CNQ) 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.
Four stocks (or 50%) 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), and Toronto Dominion Bank (TSX-TD, NYSE-TD). National Bank of Canada (TSX-NA, OTC-NTIOF) and Royal Bank (TSX-RY, NYSE-RY) have been deleted from the list
I follow 14 Financial Service stocks. No stock is showing as cheap by the historically high dividend yield. There is no change from last month.
Seven (or 50%) 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), 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). CI Financial (TSX-CIX, OTC-CIFAF) and been removed from this list.
I follow 6 Insurance stocks. No stock is showing as cheap by the historically high dividend yield. There is no change from last month.
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.
One stocks or 17% is showing as cheap by historical median dividend yield. It is Stantec Inc. (TSX-STN, NYSE-STN). Bird Construction Inc (TSX-BDT, OTC-BIRDF) has been removed from 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. One stocks 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). 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.
Six stock or 67% are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), 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). Barrick Gold Corp (TSX-ABX, NYSE-ABX) has been added to this list.
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 3 of the Telecom Service stocks. Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH) has been move to the Tech sector. No stocks are showing as cheap by historically high dividend yield. This has not changed from last month.
Three stocks (or 100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). This has not changed from last month.
I follow 9 Tech stocks. Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH) has been move to the Tech sector. None are showing as cheap by historical high dividend yield. There is no change from last month.
Five stocks (or 56%) 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), Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH) was showing last month as cheap by historical median dividend yield.
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 10 of the Power type utility companies. Valener Inc (TSX-VNR, OTC VNRCF) has been bought and delisted. None are showing as cheap by historical high dividend yield. ATCO Ltd (TSX-ACO.X, OTC-ACLLF) deleted from this list.
Four stocks (or 40%) 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), Fortis Inc (TSX-FTS, OTC-FRTSF) and Just Energy Group Inc. (TSX-JE, NYSE-JE). Fortis Inc (TSX-FTS, OTC-FRTSF) has been added to this list.
On my other blog I wrote yesterday about DHX Media Ltd (TSX-DHX, OTC-DHXMF) ... learn more. Next, I will write about First Capital Realty (TSX-FCR, OTC-FCRGF) ... learn more on Friday, December 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 site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield.
For other testing, like using P/E Ratios and Price/Graham Price Ratios, you use EPS estimates or from the last reported financial quarter. When using P/S Ratios, P/CF Ratios or P/BV Ratios you are using data from the last reported financial quarter.
This system does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 5 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy December 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. Four of these stocks (22%) are showing as cheap by the historically high dividend yield and they are Dorel Industries (TSX-DII.B, OTC-DIIBF), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF), and Stingray Digital Group Inc (TSX-RAY.A).
Nine (or 39%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Dorel Industries (TSX-DII.B, OTC-DIIBF), Goodfellow Inc (TSX-GDL, OTC-GFELF), 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). BRP Inc (TSX-DOO, NYSE-DOOO) has been removed from the list. Goodfellow Inc (TSX-GDL, OTC-GFELF) 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). Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF) has been removed from the list.
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. Two stock or 20% are showing as cheap by the historical high dividend yield. They are Ensign Energy Services (TSX-ESI, OTC-ESVIF), and Suncor Energy (TSX-SU, NYSE-SU). Canadian Natural Resources (TSX-CNQ, NYSE-CNQ) has been removed from the list.
There are Six stocks (or 60%) showing cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), Ensign Energy Services (TSX-ESI, OTC-ESVIF), 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 deleted from the list. Canadian Natural Resources (TSX-CNQ, NYSE-CNQ) 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.
Four stocks (or 50%) 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), and Toronto Dominion Bank (TSX-TD, NYSE-TD). National Bank of Canada (TSX-NA, OTC-NTIOF) and Royal Bank (TSX-RY, NYSE-RY) have been deleted from the list
I follow 14 Financial Service stocks. No stock is showing as cheap by the historically high dividend yield. There is no change from last month.
Seven (or 50%) 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), 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). CI Financial (TSX-CIX, OTC-CIFAF) and been removed from this list.
I follow 6 Insurance stocks. No stock is showing as cheap by the historically high dividend yield. There is no change from last month.
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.
One stocks or 17% is showing as cheap by historical median dividend yield. It is Stantec Inc. (TSX-STN, NYSE-STN). Bird Construction Inc (TSX-BDT, OTC-BIRDF) has been removed from 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. One stocks 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). 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.
Six stock or 67% are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), 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). Barrick Gold Corp (TSX-ABX, NYSE-ABX) has been added to this list.
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 3 of the Telecom Service stocks. Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH) has been move to the Tech sector. No stocks are showing as cheap by historically high dividend yield. This has not changed from last month.
Three stocks (or 100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). This has not changed from last month.
I follow 9 Tech stocks. Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH) has been move to the Tech sector. None are showing as cheap by historical high dividend yield. There is no change from last month.
Five stocks (or 56%) 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), Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH) was showing last month as cheap by historical median dividend yield.
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 10 of the Power type utility companies. Valener Inc (TSX-VNR, OTC VNRCF) has been bought and delisted. None are showing as cheap by historical high dividend yield. ATCO Ltd (TSX-ACO.X, OTC-ACLLF) deleted from this list.
Four stocks (or 40%) 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), Fortis Inc (TSX-FTS, OTC-FRTSF) and Just Energy Group Inc. (TSX-JE, NYSE-JE). Fortis Inc (TSX-FTS, OTC-FRTSF) has been added to this list.
On my other blog I wrote yesterday about DHX Media Ltd (TSX-DHX, OTC-DHXMF) ... learn more. Next, I will write about First Capital Realty (TSX-FCR, OTC-FCRGF) ... learn more on Friday, December 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 site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, December 3, 2019
Dividend Stocks December 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 December 2019. On this list,
Barrick Gold Corp (TSX-ABX, NYSE-ABX)
Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF)
Equitable Group Inc (TSX-EQB, OTC-EQGPF)
Goodfellow Inc (TSX-GDL, OTC-GFELF)
Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF)
Sun Life Financial (TSX-SLF, NYSE-SLF)
Telus Corp (TSX-T, NYSE-TU)
TMX Group Ltd (TSX-X, OTC-TMXXF)
Of the stocks I follow, one stock has cut their dividends. Of the stocks I follow, no stock has suspended or terminated their dividends. There is a tension between needing money for investing in growth and paying dividends.
Ensign Energy Services (TSX-ESI, OTC-ESVIF)
Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH) is now being classified by TSX as a Tech stock. It used to be classified as a Telecom Service stock.
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 Northland Power Inc (TSX-NPI, OTC-NPIFF) ... learn more. Next, I will write about DHX Media Ltd (TSX-DHX, OTC-DHXMF) ... learn more on Wednesday, December 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 December 2019. On this list,
- I have 09 stocks with a dividend yield higher than the historical high dividend yield,
- I have 45 stocks with a dividend yield higher than the historical average dividend yield
- I have 69 stocks with a dividend yield higher than the historical median dividend yield and
- 89 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 11 stocks with a dividend yield higher than the historical high dividend yield,
- I have 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 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.
Barrick Gold Corp (TSX-ABX, NYSE-ABX)
Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF)
Equitable Group Inc (TSX-EQB, OTC-EQGPF)
Goodfellow Inc (TSX-GDL, OTC-GFELF)
Hardwoods Distribution Inc (TSX-HDI, OTC-HDIUF)
Sun Life Financial (TSX-SLF, NYSE-SLF)
Telus Corp (TSX-T, NYSE-TU)
TMX Group Ltd (TSX-X, OTC-TMXXF)
Of the stocks I follow, one stock has cut their dividends. Of the stocks I follow, no stock has suspended or terminated their dividends. There is a tension between needing money for investing in growth and paying dividends.
Ensign Energy Services (TSX-ESI, OTC-ESVIF)
Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH) is now being classified by TSX as a Tech stock. It used to be classified as a Telecom Service stock.
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 Northland Power Inc (TSX-NPI, OTC-NPIFF) ... learn more. Next, I will write about DHX Media Ltd (TSX-DHX, OTC-DHXMF) ... learn more on Wednesday, December 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.
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