Something to Buy April 2020

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 dividend yield test in this note is a quick way of finding possible stock buys.

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. However, this is just a place to start. It is a good idea to check the stock with other tests, especially the P/S Ratio test.

For other testing, like P/E Ratios, P/S Ratios, P/CF Ratios, P/BV Ratios and Price/Graham Price Ratios, you use estimates or data from the last reported financial quarter.

If a stock is showing as a buy using the dividend yield test, I usually like to verify it is a buy by doing a P/S Ratio test. Here you compare the current P/S Ratio to the 10 year median P/S Ratio. If the current P/S Ratio is lower than the 10 year median, then the stock is a buy. I note that Morningstar gives a current P/S Ratio. The 10 year median ratio is shown in my review of a stock. The 10 year median ratio in a review is good for one year from the date of review.

This historical dividend yield test 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 10 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 April 2020 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. Six of these stocks (26%) are showing as cheap by the historically high dividend yield and they are BRP Inc (TSX-DOO, NASDAQ-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), and Stingray Digital Group Inc (TSX-RAY.A).

Dorel Industries (TSX-DII.B, OTC-DIIBF) Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF), has been deleted from this list. Both these stocks have suspended their dividends. BRP Inc (TSX-DOO, NASDAQ-DOOO) has been added to this list.

Fifteen (or 65%) 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), Dollarama Inc (TSX-DOL, OTC-DLMF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), Goodfellow Inc (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Linamar Corporation (TSX-LNR, OTC-LIMAF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF), Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF), Savaria Corporation (TSX-SIS, OTC-SISXF), and Stingray Digital Group Inc (TSX-RAY.A).

Dollarama Inc (TSX-DOL, OTC-DLMA), and Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) has been added to this list. Dorel Industries (TSX-DII.B, OTC-DIIBF), and Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF) has been deleted from this list. Both Dorel and Reitmans have suspended their dividends.

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.

Six stocks (or 60%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Loblaw Companies (TSX-L, OTC-LBLCF), Metro Inc (TSX-MRU, OTC-MTRAF), North West Company (TSX-NWC, OTC-NWTUF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). There is no change from last month.

I follow Five Health Care stocks. Two stocks (or 40%) of these stocks are showing as cheap by the historically high dividend yield. They are HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), and Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF). Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF) has been added to this list.

Five or 100% are cheap by the historical median dividend yield. The stocks are Chartwell Retirement Residences (TSX-CSH.UN, NYSE-CWSRF), HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT), and Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF). Chartwell Retirement Residences (TSX-CSH.UN, NYSE-CWSRF), and Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF) have been added to this list.

I follow 10 Energy stocks. Seven stocks or 70% are showing as cheap by the historical high 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), Ovintiv Inc (TSX-OVV, OTC-OVV),and Suncor Energy (TSX-SU, NYSE-SU).

Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), Husky Energy (TSX-HSE, OTC-HUSKF), Mullen Group (TSX-MTL, OTC-MLLGF), and Ovintiv Inc (TSX-OVV, OTC-OVV) have been added to the list.

There are Seven stocks (or 70%) 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), Ovintiv Inc (TSX-OVV, OTC-OVV), and Suncor Energy (TSX-SU, NYSE-SU). ARC Resources Ltd (TSX-ARX, OTC-AETUF) has been deleted from this list.

I follow 8 Bank stocks. Two (25%) is showing as cheap by the historically high dividend yield and it is Barclays PLC (LSE-BARC, NYSE-BCS), and CIBC (TSX-CM, NYSE-CM). CIBC (TSX-CM, NYSE-CM) have been added to this list.

Seven stocks (or 88%) are showing cheap by historical median dividend yield. They are Bank of Montreal (TSX-BMO, NYSE-BMO), Bank of Nova Scotia (TSX-BNS, NYSE-BNS), Barclays PLC (LSE-BARC, NYSE-BCS), CIBC (TSX-CM, NYSE-CM), National Bank of Canada (TSX-NA, OTC-NTIOF), Royal Bank (TSX-RY, NYSE-RY), and Toronto Dominion Bank (TSX-TD, NYSE-TD). There is no change from last month.

I follow 14 Financial Service stocks. Five stocks (36%) are showing as cheap by the historically high dividend yield. They are Accord Financial Corp (TSX-ACD, OTC-ACCFF), Alaris Royalty Corp (TSX-AD, OTC-ALARF), Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). All 5 have been added to this list.

Ten (or 71%) 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), Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), Chesswood Group (TSX-CHW, OTC-CHWWF), CI Financial (TSX-CIX, OTC-CIFAF), Equitable Group Inc (TSX-EQB, OTC-EQGPF), IGM Financial (TSX-IGM, OTC-IGIFF), Onex Corp (TSX-ONEX, OTC-ONEXF) and Power Corp (TSX-POW, OTC-PWCDF).

Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), and CI Financial (TSX-CIX, OTC-CIFAF) have been added to this list.

I follow 5 Insurance stocks. Power Financial is no longer separate from Power Corp so I have one less insurance stock. Three stocks (60%) are showing as cheap by the historically high dividend yield. They are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), Manulife Financial Corp (TSX-MFC, NYSE-MFC). All 3 have been added to this list.

Four stocks (or 83%) 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 Sun Life Financial (TSX-SLF, NYSE-SLF). Power Financial Corp (TSX-PWF, OTC-POFNF), has been deleted from this list.

I follow 32 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.

I have 6 Construction stocks. None are showing as cheap by the historically high dividend yield. There is no change from last month.

Three stocks or 50% is showing as cheap by historical median dividend yield. They are Bird Construction Inc (TSX-BDT, OTC-BIRDF), Stantec Inc. (TSX-STN, NYSE-STN), and Toromont Industries Ltd (TSX-TIH, OTC-TMTNF). There is no change from last month.

I have 3 stocks I have left with the sub-index of Industrial. Two stocks (67%) are cheap by the historically high dividend yield. They are Finning International Inc. (TSX-FTT, OTC-FINGF), and Russel Metals (TSX-RUS, OTC-RUSMF). Both these stocks have been added to this list.

Three stocks or 100% are showing as cheap by historical median dividend yield. They are Exchange Income Corp (TSX-EIF, OTC-EIFZF), Finning International Inc. (TSX-FTT, OTC-FINGF), and Russel Metals (TSX-RUS, OTC-RUSMF). Exchange Income Corp (TSX-EIF, OTC-EIFZF) has been added to this list.

I have 7 Manufacturing stocks. Four stocks (57%) is showing as cheap by the historically high dividend yield. They are Ag Growth International (TSX-AFN, OTC-AGGZF), Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF), Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF).

Ag Growth International (TSX-AFN, OTC-AGGZF), Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF) and Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) have been added to this list.

Five stocks or 71% are showing as cheap by historical median dividend yield. They are Ag Growth International (TSX-AFN, OTC-AGGZF), 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). Ag Growth International (TSX-AFN, OTC-AGGZF), and PFB Corp (TSX-PFB, OTC-PFBOF) have been added to this list.

I follow 16 Services stocks. Three stocks are showing as cheap by the historically high dividend yield. They are Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc. (TSX-PSI, OTC-PSYTF), and Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA). Canadian National Railway (TSX-CNR, NYSE-CNI), and Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) have been added to this list.

Six stocks or 37.5% are showing as cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc. (TSX-PSI, OTC-PSYTF), Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA), TFI International (TSX-TFII, OTC-TFIFF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). TFI International (TSX-TFII, OTC-TFIFF) has been added to this list.

I follow 10 Material stocks. One stock (10%) is showing as cheap by the historically high dividend yield. This stock is Methanex Corp (TSX-MX, NASDAQ-MEOH). Methanex Corp (TSX-MX, NASDAQ-MEOH) has been added to this list.

Seven stock or 70% 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), Supremex Inc (TSX-SXP, OTC-SUMXF), and Teck Resources Ltd (TSX-TECK.B, NYSE-TECK . Teck Resources Ltd (TSX-TECK.B, NYSE-TECK) has been added to this list.

I follow 10 Real Estate stocks. One stock (10%) is showing as cheap by historically high dividend yield. That stock is H & R REIT (TSX-HR.UN, OTC-HRUFF). H & R REIT (TSX-HR.UN, OTC-HRUFF) has been added to this list.

Siv stocks (or 60%) are showing as cheap by historical median dividend yield. They are Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF), First Capital Realty (TSX-FCR.UN, OTC-FCXXF), Granite REIT (TSX-GRT.UN, NYSE-GRP.U), H & R REIT (TSX-HR.UN, OTC-HRUFF), Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF).

Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF), First Capital Realty (TSX-FCR.UN, OTC-FCXXF), and Granite REIT (TSX-GRT.UN, NYSE-GRP.U), have been added to this list.

I follow 3 of the Telecom Service stocks. One (33%) stocks is showing as cheap by historically high dividend yield and it is Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR). There is no change 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. Two stocks (22%) are showing as cheap by historical high dividend yield. They are Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF), and Evertz Technologies (TSX-ET, OTC-EVTZF). Both these stocks have been added to this list.

Four stocks (or 44%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF), Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF), Evertz Technologies (TSX-ET, OTC-EVTZF), Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF) has been added to this list.

I follow 7 of the Infrastructure type utility companies. Two stocks (29%) are showing as cheap by historical high dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), and Keyera Corp (TSX-KEY, OTC-KEYUF). Both these stocks have been added to this list.

Siv stocks (or 86%) are showing cheap by historical median dividend yield. They are AltaGas Ltd (TSX-ALA, OTC-ATGFF), Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP), Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF), Pembina Pipeline Corp (TSX-PPL, NYSE-PBA) and TC Energy Corp (TSX-TRP, NYSE-TRP).

AltaGas Ltd (TSX-ALA, OTC-ATGFF), Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP) and Pembina Pipeline Corp (TSX-PPL, NYSE-PBA) have been added to this list.

I follow 10 of the Power type utility companies. One stock is showing as cheap by historical high dividend yield. This is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no changed from last month.

Three stocks (or 30%) are showing cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), and Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), and Fortis Inc (TSX-FTS, OTC-FRTSF). Fortis Inc (TSX-FTS, OTC-FRTSF) has been added to this list.

On my other blog I wrote yesterday about Supremex Inc (TSX-SXP, OTC-SUMXF) ... learn more. Next, I will write about Leon's Furniture Ltd (TSX-LNF, OTC-LEFUF) ... learn more on Friday, April 10, 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.

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