Gordon Page on Money Show picks a value portfolio. See why he picks Emera, TC Energy Corp, and Royal Bank.
On my other blog I wrote yesterday about Genworth MI Canada Inc (TSX-MIC, OTC- GMICF) ... learn more. Next, I will write about Exchange Income Corp (TSX-EIF, OTC-EIFZF) ... learn more on Friday, August 28, 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.
Thursday, August 27, 2020
Tuesday, August 25, 2020
Enbridge Inc
Fluidsdoc on Seeking Alpha reviews Enbridge Inc. He thinks that the 8% yield will not last long. You will have to sign up to Seeking Alpha to see this entry, but you can sign up for their free version.
The Summary of what he says is:
On my other blog I wrote yesterday about Alimentation Couche-Tard Inc (TSX-ATD.B, OTC-ANCUF) ... learn more. Next, I will write about Genworth MI Canada Inc (TSX-MIC, OTC- GMICF) ... learn more on Wednesday, August 26, 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.
The Summary of what he says is:
- Enbridge is selling at a substantial discount to recent highs thanks to COVID-19 fears.
- The company has affirmed adjusted guidance and should see strong cash flows for the rest of the year.
- There are a few warts on a mostly squeaky clean image in the regulatory bin.
- All things considered: the company is strong buy at current levels.
On my other blog I wrote yesterday about Alimentation Couche-Tard Inc (TSX-ATD.B, OTC-ANCUF) ... learn more. Next, I will write about Genworth MI Canada Inc (TSX-MIC, OTC- GMICF) ... learn more on Wednesday, August 26, 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.
Thursday, August 20, 2020
Stantec Inc
Mike Larson on The Money Show site says that Stantec Inc is one of the world’s top 10 project design, management, and consulting firms. This is one of the stocks that I follow.
On my other blog I wrote yesterday about Aecon Group Inc (TSX-ARE, OTC-AEGXF) ... learn more. Next, I will write about Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF) ... learn more on Friday, August 21, 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.
On my other blog I wrote yesterday about Aecon Group Inc (TSX-ARE, OTC-AEGXF) ... learn more. Next, I will write about Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF) ... learn more on Friday, August 21, 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, August 18, 2020
Women’s Earning Power
I found this Visual Capitalist very interesting. Maybe because I am a woman, but it does point out the contributions that women are making to the economy.
With me and my husband, I was in the category of We’re in This Together. I made more than my husband because I worked in IT and he was a white-goods salesman. However, my husband had worked at many jobs and if there was a bad recession and we lost our jobs, he could do a lot of different jobs. However, my job, which was well paid in IT might not have been easy to replace. Of course, this is would be the worse picture scenario.
What happen was my husband died early and I was a single mom. I never had problems with my job and stopped working in 1999 whenI was laid off and discovered that if I stopped working my net income would be the same as before (however, my gross income was lower). In 1999, I had two interviews for a job, but cancelled the third interview as I decided not to work. There did not seem a problem with getting IT jobs at that point.
On my other blog I wrote yesterday about Badger Daylighting Ltd (TSX-BAD, OTC-BADFF) ... learn more. Next, I will write about Aecon Group Inc (TSX-ARE, OTC-AEGXF) ... learn more on Wednesday, August 19, 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.
With me and my husband, I was in the category of We’re in This Together. I made more than my husband because I worked in IT and he was a white-goods salesman. However, my husband had worked at many jobs and if there was a bad recession and we lost our jobs, he could do a lot of different jobs. However, my job, which was well paid in IT might not have been easy to replace. Of course, this is would be the worse picture scenario.
What happen was my husband died early and I was a single mom. I never had problems with my job and stopped working in 1999 whenI was laid off and discovered that if I stopped working my net income would be the same as before (however, my gross income was lower). In 1999, I had two interviews for a job, but cancelled the third interview as I decided not to work. There did not seem a problem with getting IT jobs at that point.
On my other blog I wrote yesterday about Badger Daylighting Ltd (TSX-BAD, OTC-BADFF) ... learn more. Next, I will write about Aecon Group Inc (TSX-ARE, OTC-AEGXF) ... learn more on Wednesday, August 19, 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.
Thursday, August 13, 2020
Dividend Growth Stock
Nicholas Ward Seeking Alpha talks about high quality dividend growth stock and what he means by that. He uses Apple (NASDAQ-AAPL) to illustrate his points.
I agree with most of what he says. However, I personally am not keen on stocks that do share buybacks.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
I agree with most of what he says. However, I personally am not keen on stocks that do share buybacks.
- Does the company have a history of reliable and generous dividend growth?
- Has the company shown the ability to reliably increase its dividend throughout a wide variety of economic environments?
- Are the company's profit related metrics growing?
- Are the company's sales growing?
- Are margins headed in the right direction?
- Is the payout ratio acceptable?
- Does the company benefit from secular growth tailwinds?
- Is the company's balance sheet sound?
- Is management conservative with the debt load?
- Does the company have a history of reducing its share count?
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, August 11, 2020
Why Dividend Stocks
This is my kind of blog entry. It give 5 Reasons Why Dividend Investing Beats Capital Gains Investing. This is on Seeking Alpha.
On my other blog I wrote yesterday about Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF) ... learn more. Next, I will write about Evertz Technologies (TSX-ET, OTC-EVTZF) ... learn more on Wednesday, August 12, 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.
On my other blog I wrote yesterday about Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF) ... learn more. Next, I will write about Evertz Technologies (TSX-ET, OTC-EVTZF) ... learn more on Wednesday, August 12, 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.
Thursday, August 6, 2020
Something to Buy August 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 August 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. Four of these stocks (17%) are showing as cheap by the historically high dividend yield and they are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
Six (26%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), and Stingray Digital Group Inc (TSX-RAY.A). Goodfellow Inc (TSX-GDL, OTC-GFELF), and Savaria Corporation (TSX-SIS, OTC-SISXF) has been removed from this list.
I follow 10 Consumer Staples stocks. No stocks are showing as cheap by the historically high dividend yield. There is no change from last month.
Five stocks (50%) 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), and Saputo Inc. (TSX-SAP, OTC-SAPIF). There is no change from last month.
I follow Five Health Care stocks. One stock (20%) is showing as cheap by the historically high dividend yield. It is Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF). There is no change from last month.
Four stocks (80%) are cheap by the historical median dividend yield. The stocks are 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). There is no change from last month.
I follow 10 Energy stocks. One stock (10%) is showing as cheap by the historical high dividend yield. It is Canadian Natural Resources (TSX-CNQ, NYSE-CNQ). There is no change from last month.
There are three stocks (30%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Ovintiv Inc (TSX-OVV, OTC-OVV), and Suncor Energy (TSX-SU, NYSE-SU). Mullen Group (TSX-MTL, OTC-MLLGF) has been removed from this list.
I follow 8 Bank stocks. One stock (13%) is showing as cheap by the historically high dividend yield and it is and Toronto Dominion Bank (TSX-TD, NYSE-TD). There is no change from last month.
Six stocks (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), 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. Two stocks (7%) are showing as cheap by the historically high dividend yield. They are Power Corp (TSX-POW, OTC-PWCDF), and Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF). There is no change from last month.
Nine stocks (64%) are showing as 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), 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). There is no change from last month.
I follow 5 Insurance stocks. Two stocks (40%) are showing as cheap by the historically high dividend yield. They are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC). There is no change from last month.
Four stocks (83%) are showing as 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). 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 stock (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), and Toromont Industries Ltd (TSX-TIH, OTC-TMTNF) have been removed from this list.
I have 3 stocks I have left with the sub-index of Industrial. One stock (33%) is showing as cheap by the historically high dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). Russel Metals (TSX-RUS, OTC-RUSMF) has been removed from this list.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). Exchange Income Corp (TSX-EIF, OTC-EIFZF), and Russel Metals (TSX-RUS, OTC-RUSMF) have been removed from this list.
I have 7 Manufacturing stocks. Two stocks (29%) are showing as cheap by the historically high dividend yield. They are Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), and Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF). Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF) has been removed from this list.
Three stocks (43%) 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). PFB Corp (TSX-PFB, OTC-PFBOF) has been removed from this list.
I follow 16 Services stocks. One stocks (6%) is showing as cheap by the historically high dividend yield. It is Pason Systems Inc. (TSX-PSI, OTC-PSYTF). There is no change from last month.
Four stocks (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). Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) have been removed from this list.
I follow 10 Material stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Kirkland Lake Gold (TSX-KL, NYSE-KL). There is no change from last month.
Three stock (30%) are showing as cheap by historical median dividend yield. The stocks are Chemtrade Logistics Inc. Fund (TSX-CHE.UN, OTC-CGIFF), Kirkland Lake Gold (TSX-KL, NYSE-KL), and Stella-Jones (TSX-SJ, OTC-STLJF). Barrick Gold Corp (TSX-ABX, NYSE-ABX), and Hardwoods Distribution Inc. (TSX-HDI, OTC-HDIUF) have been removed from this list.
I follow 10 Real Estate stocks. No stocks are showing as cheap by historically high dividend yield. There is no change from last month.
Five stocks (50%) 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), H & R REIT (TSX-HR.UN, OTC-HRUFF), Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). There is no change from last month.
I follow 3 of the Telecom Service stocks. No stock (0%) is showing as cheap by historically high dividend yield. Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) has been removed from this list.
Three stocks (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). There is no change from last month.
I follow 9 Tech stocks. No stock (0%) is showing as cheap by historical high dividend yield. Evertz Technologies (TSX-ET, OTC-EVTZF) has been removed from this list.
Two stocks (22%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Evertz Technologies (TSX-ET, OTC-EVTZF) has been removed from this list.
I follow 7 of the Infrastructure type utility companies. One stock (14%) is showing as cheap by historical high dividend yield. It is Enbridge Inc. (TSX-ENB, NYSE-ENB). This is no change from last month.
Four stocks (57%) are showing cheap by historical median dividend yield. They are 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), have been removed from this list.
I follow 10 of the Power type utility companies. One stock (10%) is showing as cheap by historical high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
Two stocks (20%) 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). There is no change from last month.
On my other blog I wrote yesterday about Stingray Digital Group Inc (TSX-RAY.A, OTC-NONE) ... learn more. Next, I will write about BlackBerry Ltd (TSX-BB, NASDAQ-BBRY) ... learn more on Friday, August 7, 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.
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 August 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. Four of these stocks (17%) are showing as cheap by the historically high dividend yield and they are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
Six (26%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), and Stingray Digital Group Inc (TSX-RAY.A). Goodfellow Inc (TSX-GDL, OTC-GFELF), and Savaria Corporation (TSX-SIS, OTC-SISXF) has been removed from this list.
I follow 10 Consumer Staples stocks. No stocks are showing as cheap by the historically high dividend yield. There is no change from last month.
Five stocks (50%) 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), and Saputo Inc. (TSX-SAP, OTC-SAPIF). There is no change from last month.
I follow Five Health Care stocks. One stock (20%) is showing as cheap by the historically high dividend yield. It is Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF). There is no change from last month.
Four stocks (80%) are cheap by the historical median dividend yield. The stocks are 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). There is no change from last month.
I follow 10 Energy stocks. One stock (10%) is showing as cheap by the historical high dividend yield. It is Canadian Natural Resources (TSX-CNQ, NYSE-CNQ). There is no change from last month.
There are three stocks (30%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Ovintiv Inc (TSX-OVV, OTC-OVV), and Suncor Energy (TSX-SU, NYSE-SU). Mullen Group (TSX-MTL, OTC-MLLGF) has been removed from this list.
I follow 8 Bank stocks. One stock (13%) is showing as cheap by the historically high dividend yield and it is and Toronto Dominion Bank (TSX-TD, NYSE-TD). There is no change from last month.
Six stocks (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), 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. Two stocks (7%) are showing as cheap by the historically high dividend yield. They are Power Corp (TSX-POW, OTC-PWCDF), and Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF). There is no change from last month.
Nine stocks (64%) are showing as 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), 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). There is no change from last month.
I follow 5 Insurance stocks. Two stocks (40%) are showing as cheap by the historically high dividend yield. They are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC). There is no change from last month.
Four stocks (83%) are showing as 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). 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 stock (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), and Toromont Industries Ltd (TSX-TIH, OTC-TMTNF) have been removed from this list.
I have 3 stocks I have left with the sub-index of Industrial. One stock (33%) is showing as cheap by the historically high dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). Russel Metals (TSX-RUS, OTC-RUSMF) has been removed from this list.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). Exchange Income Corp (TSX-EIF, OTC-EIFZF), and Russel Metals (TSX-RUS, OTC-RUSMF) have been removed from this list.
I have 7 Manufacturing stocks. Two stocks (29%) are showing as cheap by the historically high dividend yield. They are Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), and Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF). Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF) has been removed from this list.
Three stocks (43%) 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). PFB Corp (TSX-PFB, OTC-PFBOF) has been removed from this list.
I follow 16 Services stocks. One stocks (6%) is showing as cheap by the historically high dividend yield. It is Pason Systems Inc. (TSX-PSI, OTC-PSYTF). There is no change from last month.
Four stocks (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). Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), Ritchie Bros Auctioneers Inc (TSX-RBA, NYSE-RBA) have been removed from this list.
I follow 10 Material stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Kirkland Lake Gold (TSX-KL, NYSE-KL). There is no change from last month.
Three stock (30%) are showing as cheap by historical median dividend yield. The stocks are Chemtrade Logistics Inc. Fund (TSX-CHE.UN, OTC-CGIFF), Kirkland Lake Gold (TSX-KL, NYSE-KL), and Stella-Jones (TSX-SJ, OTC-STLJF). Barrick Gold Corp (TSX-ABX, NYSE-ABX), and Hardwoods Distribution Inc. (TSX-HDI, OTC-HDIUF) have been removed from this list.
I follow 10 Real Estate stocks. No stocks are showing as cheap by historically high dividend yield. There is no change from last month.
Five stocks (50%) 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), H & R REIT (TSX-HR.UN, OTC-HRUFF), Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). There is no change from last month.
I follow 3 of the Telecom Service stocks. No stock (0%) is showing as cheap by historically high dividend yield. Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) has been removed from this list.
Three stocks (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). There is no change from last month.
I follow 9 Tech stocks. No stock (0%) is showing as cheap by historical high dividend yield. Evertz Technologies (TSX-ET, OTC-EVTZF) has been removed from this list.
Two stocks (22%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Evertz Technologies (TSX-ET, OTC-EVTZF) has been removed from this list.
I follow 7 of the Infrastructure type utility companies. One stock (14%) is showing as cheap by historical high dividend yield. It is Enbridge Inc. (TSX-ENB, NYSE-ENB). This is no change from last month.
Four stocks (57%) are showing cheap by historical median dividend yield. They are 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), have been removed from this list.
I follow 10 of the Power type utility companies. One stock (10%) is showing as cheap by historical high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
Two stocks (20%) 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). There is no change from last month.
On my other blog I wrote yesterday about Stingray Digital Group Inc (TSX-RAY.A, OTC-NONE) ... learn more. Next, I will write about BlackBerry Ltd (TSX-BB, NASDAQ-BBRY) ... learn more on Friday, August 7, 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, August 4, 2020
Dividend Stocks August 2020
The Blogger Stock Trades Canada has on his site a list of Canadian stocks that have cut their dividends. If you want to stay update on dividend cuts, this seems to a good place to keep an eye on. Also. My Own Advisor Blogger has done a recent blog on Top Canadian stocks to weather COVID-19. You might also want to get the free weekly newsletter from Canadian Stock Channel which says what might be the best Canadian Dividend Stocks to buy at the present time.
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. Some use the 10 year average or median yield rather than the historical ones. I use median yields, always. See my spreadsheet at dividend growth stocks that I just updated for August 2020.
On this list,
Alaris Royalty Corp (TSX-AD, OTC-ALARF)
Canadian Pacific Railway (TSX-CP, NYSE-CP)
Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) is reinstating their dividend at the same rate.
Sylogist Ltd (TSXV-SYZ, OTC-SYZLF)
Of the stocks I follow, 2 have cut their dividends.
Evertz Technologies (TSX-ET, OTC-EVTZF)
Mullen Group (TSX-MTL, OTC-MLLGF) is reinstating their dividend at a lower rate.
Of the stocks I follow, 0 stock has suspended or terminated their dividend.
Most of my stocks started out as Dividend Payers. Currently 20 stocks are not paying any dividends and this would be some 14.8% of the stocks that I follow. Three of these stocks never had dividends, so 12.2% 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 10 year median dividend yields (P/10Y). 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 Loblaw Companies Ltd (TSX-L, OTC-LBLCF) ... learn more. Next, I will write about Stingray Digital Group Inc (TSX-RAY.A, OTC-NONE) ... learn more on Wednesday, August 05, 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 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.
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. Some use the 10 year average or median yield rather than the historical ones. I use median yields, always. See my spreadsheet at dividend growth stocks that I just updated for August 2020.
On this list,
- I have 18 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 67 stocks with a dividend yield higher than the historical median dividend yield and
- 82 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 21 stocks with a dividend yield higher than the historical high dividend yield,
- I have 52 stocks with a dividend yield higher than the historical average dividend yield
- I have 79 stocks with a dividend yield higher than the historical median dividend yield and
- 91 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.
Alaris Royalty Corp (TSX-AD, OTC-ALARF)
Canadian Pacific Railway (TSX-CP, NYSE-CP)
Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) is reinstating their dividend at the same rate.
Sylogist Ltd (TSXV-SYZ, OTC-SYZLF)
Of the stocks I follow, 2 have cut their dividends.
Evertz Technologies (TSX-ET, OTC-EVTZF)
Mullen Group (TSX-MTL, OTC-MLLGF) is reinstating their dividend at a lower rate.
Of the stocks I follow, 0 stock has suspended or terminated their dividend.
Most of my stocks started out as Dividend Payers. Currently 20 stocks are not paying any dividends and this would be some 14.8% of the stocks that I follow. Three of these stocks never had dividends, so 12.2% 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 10 year median dividend yields (P/10Y). 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 Loblaw Companies Ltd (TSX-L, OTC-LBLCF) ... learn more. Next, I will write about Stingray Digital Group Inc (TSX-RAY.A, OTC-NONE) ... learn more on Wednesday, August 05, 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 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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