Something to Buy November 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. See my Spreadsheet .

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 price 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 November 2020 Spreadsheet above 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. One of these stocks (4%) is showing as cheap by the historically high dividend yield and it is Stingray Digital Group Inc (TSX-RAY.A). Stingray Digital Group Inc (TSX-RAY.A) has been added to this list. Magna International Inc. (TSX-MG, NYSE-MGA) has been removed from this list.

Five (22%) 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), 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.

I follow 10 Consumer Staples stocks. No stocks are showing as cheap by the historically high dividend yield. There is no change from last month.

Three stocks (30%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Loblaw Companies (TSX-L, OTC-LBLCF), and Saputo Inc. (TSX-SAP, OTC-SAPIF. Lassonde Industries (TSX-LAS.A, OTC-LSDAF) has been removed from this list.

I follow Five Health Care stocks. One stocks (20%) is showing as cheap by the historically high dividend yield. It is HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF).

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. Two stock (210%) is showing as cheap by the historical high dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ) and Suncor Energy (TSX-SU, NYSE-SU). 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). There is no change from last month.

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 as 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 13 Financial Service stocks. Three stocks (23%) are showing as cheap by the historically high dividend yield. They are Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). IGM Financial (TSX-IGM, OTC-IGIFF) has been added to this list.

Eight stocks (62%) 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 Equity Partners Income Trust (TSX-AD.UN, 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), and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.

I follow 6 Insurance stocks. Two stocks (33%) 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.

Five stocks (83%) are showing as cheap by historical median dividend yield. These stocks are Genworth MI Canada Inc (TSX-MIC, OTC-GMICF), 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 33 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 7 Construction stocks. One stock (14%) is showing as cheap by the historically high dividend yield. This stock is Aecon Group Inc (TSX-ARE, OTC-AEGXF). There is no change from last month.

Three stocks (43%) are showing as cheap by historical median dividend yield. They are Aecon Group Inc (TSX-ARE, OTC-AEGXF), Bird Construction Inc (TSX-BDT, OTC-BIRDF) and Stantec Inc. (TSX-STN, NYSE-STN). There is no change from last month.

I have 3 stocks I have left with the sub-index of Industrial . No stock (0%) is showing as cheap by the historically high dividend yield. Finning International Inc. (TSX-FTT, OTC-FINGF) has been removed from this list.

Two stock (66%) 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. Two stocks (29%) are showing as cheap by the historically high dividend yield. They are Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) and Intertape Polymer Group Inc (TSX-ITP, OTC-ITPOF). Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF) has been removed to 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). There is no change from last month.

I follow 16 Services stocks. No stocks (0%) are showing as cheap by the historically high dividend yield. Pason Systems Inc. (TSX-PSI, OTC-PSYTF) has been removed from this list.

Five stocks (31%) are showing as cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR, NYSE-CNI), Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), 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) has been added to 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.

Four stock (40%) 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), Kirkland Lake Gold (TSX-KL, NYSE-KL), and Stella-Jones (TSX-SJ, OTC-STLJF). There is no change from last month

I follow 10 Real Estate stocks. No stocks (0%) 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. One stocks (33%) is showing as cheap by historically high dividend yield. It is Shaw Communications Inc (TSX-SJR.B, NYSE-SJR). Shaw Communications Inc (TSX-SJR.B, NYSE-SJR) has been added to 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 10 Tech stocks . Pivot Technology Solutions (TSX-PTG, OTC-PVVTF) has been added to this last as I am now following this stock. No stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month.

Two stocks (20%) 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). Quarterhaill Inc (TSX-QTRH), NASDAQ-QTRH) has been removed from this list.

I follow 8 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.

Five stocks (63%) are showing cheap by historical median dividend yield. They are Capital Power Corp. (TSX-CPX, OTC-CPRHF), 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). There is no change from last month.

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.

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

On my other blog I wrote yesterday about Pivot Technology Solutions (TSX-PTG, OTC- PVVTF) ... learn more. Next, I will write about Keyera Corp (TSX-KEY, OTC-KEYUF) ... learn more on November 06, 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.