Preferred Shares

I do not buy preferred shares. I like stocks with growing dividends. I first invested to have a second source of income. I also wanted a second growing source of income. I ended up living off this second source of income and still like dividend growth stocks because I want a growing income. I feel you need a growing income because of inflation. However, there are all sorts of investors and some people do like preferred shares and that is why there is a market for them.

Preferred shares come in all sorts of flavours. You can usually find the rules that the preferred shares were issued under in the annual statement. In theory, in bankruptcy, the preferred shareholders are in line ahead of common shareholders. However, bankruptcy occurs because a company cannot pay their debts, so creditor are the winners of any value. So, I do not see any value in being head of common shareholders, but behind creditors.

One advantage to preferred shares is that all due or overdue dividends must be paid on preferred shares before common shareholder dividends are paid.

Preferred shares can be callable or perpetual. The callable ones can be redeemed by the company at a certain time or sometimes at the convenience of the issuer. When they are recalled, you will end up with a capital gain or loss depending on what you paid for the preferred shares and the callable price. Perpetual go on in theory forever, but they can be callable also.

Usually when a preferred is a perpetual, the dividend rate is reset, generally every 5 years. However, reset feature can apply to any preferred shares. The dividend is reset based on current interest rates. The company will state what interest rate it will be based on. This means that the dividend can go up or down at the reset date.

The rules above are just the tip of the iceberg in Preferred Shares rules. If I were to buy any preferred shares, I would go for a plain vanilla sort. The fewer rules and the simpler the product are, the better in my mind. For each preferred share you buy, you really must investigate to see just what you are getting.

In regards to price in shares, it is always relative and one share at $10 might be relatively more expensive than another share at $20. Price does not mean what you think it means when dealing with shares. That is why people refer to ratios to understand the relative prices of shares. A common ratio is the Price/Earnings Ratio (P/E Ratio).

The price of the preferred does not matter. It can be set at any price. What matters is the yield. The yield on preferred shares is mostly set higher than the yield on common shares. This is to encourage people to buy the preferred shares. (Yield, by the way is dividend divided by the price and is similar to interest rates, in a way.) To companies, issuing preferred shares is just another way of raising money. Some companies like this method and some do not.

Investopedia has a number of articles on Preferred shares. There is one about How Preferred Stock work. Another article they have is Why would a company issue preferred shares. There is also an article about Why do preferred stocks have a face value that is different than market value? You can go here to pick up more entries on preferred shares.

On my other blog I wrote yesterday about AltaGas Ltd (TSX-ALA, OTC-ATGFF) ... learn more. Next, I will write about BCE Inc (TSX-BCE, NYSE-BCE) ... learn more on Wednesday, March 31, 2021 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.

Canadian Utilities

The Dividend Guy on Seeking Alpha lists his top Canadian Utility Stocks. His list is below. Read what his investment thesis is for each stock.

Algonquin Power & Utilities (AQN-TO) (NYSE-AQN)
Brookfield Infrastructure Partners (BIP.UN-TO) (NYSE-BIP)
Emera (EMA-TO) (OTCP-EMRAF)
Fortis (FTS-TO) (NYSE-FTS)

On my other blog I wrote yesterday about TransAlta Corp (TSX-TA, NSYE-TAC) ... learn more. Next, I will write about TC Energy Corp (TSX-TRP, NYSE-TRP) ... learn more on Friday, March 26, 2021 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.

Canadian Dividend Stocks

The blogger Million Dollar Journey says what his top Canadian Dividend Growth Stocks for 2021 are. He lists the following stocks on his site. See what he says about them.

Fortis
Enbridge
Canadian National Railway
Telus Corp
Emera Inc

National Bank
Alimentation Couche-Tard
Algonquin Power & Utilities
Royal Bank
Intertape Polymer

On my other blog I wrote yesterday about Enbridge Inc (TSX-ENB, NYSE-ENB) ... learn more. Next, I will write about TransAlta Corp (TSX-TA, NSYE-TAC) ... learn more on Wednesday, March 24, 2021 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.

Barrick Gold

Barrick Gold is a Top Pick for 2021 from Adrian Day on the Money Show Site. Symbols are Barrick Gold Corp (TSX-ABX, NYSE-ABX). I own shares in the company.

On my other blog I wrote yesterday about H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF) ... learn more. Next, I will write about Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF) ... learn more on Friday, March 19, 2021 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.

How Did I Do Last Year

Being asked the question on how I did last year, I started to look at the TSX performance and was surprised to see the that the TSX was only up by 2.95% and 2.63% per year over the past 15 and 10 year periods. It was up some 6.03% per year over the past 5 years. I have data going back to 1956 on the TSX and I believe that was the start date for the TSX. The TSX is up by 5.50% per year since 1956.

As I understand it, dividends add about 2% per year over the long term to the TSX Index. So, even with dividends included the TSX is only up 4.95% and 4.63% per year over the past 15 and 10 year periods. It would be up 8.03% per year over the past 5 years. And up by 7.50% per year since 1956. What I like to see on my investments is long term increase per year of at least 8% per year. I am looking at a combined return of both capital gains and dividends in my 8% per year total return.

I seldom look at what the stock market is doing and only occasionally look at the TSX. I belong to some investment clubs, but they mostly look at the US markets rather than the Canadian markets. This is why I was surprised to see the long term results of the TSX. I do look at how I am doing and I am especially interested in any change in the dividend income I am receiving.

With my portfolio, it is up by 5.49% and 6.30% per year over the past 15 and 10 years. It is up by 6.40% per year over the past 5 years. My total return (which includes income and what I took out of my portfolio over the past 5 and 10 years is 9.48% and 9.43% per year. I have not calculated for a 15 year period because it is a lot more complex that just looking at portfolio increases. I am taking out around 3% of my portfolio each year currently, but took more out in the past.

My dividends income increased last year by 4.45% and I had a 5 year average increase of 5.08% per year. Last year was rather a tough year for dividends as some suspended dividends and other cut them. However, there were also some dividend increases.

The TSX has a lot of resource stocks and I have less than 1% in resource stocks. It is probably because of the resource stocks, like Oil and Gas, is why I did better than the TSX. I also mostly go for Dividend Growth Stocks.

It is quite easy to do what I do. Buy some good Canadian stock that pays dividends and especially ones that increase their dividends over time. You can just Google “dividend aristocrats index Canada” and you will get lots of hits. The link to the stocks on this index is here. The blogger of Dividend Growth Investing and Retirement has great spreadsheets on these sorts of stocks. Another great source is Money Sense’s Top 100 dividend stocks that they put out each year. The list for 2021 is on the Money Sense site.

The blogger Dividend Earner gives lots of information on these stocks and includes the Payout Ratio. Payout Ratio is important as you want to be sure that companies you invest in can actually pay the dividends that they pay, especially over the long term. Stay away from resource stocks.

Try to pay a reasonable price. This is much harder to figure out. Analyst’s recommendations are generally not helpful at all. Most Analysts’ recommendations consensuses are a Buy. I compare the current dividend yield to the 10 year median and historical median yields. The closes you can get to this information is to look for the stock on Morningstar. If you click the dividend tag you get the current trailing dividend yield and 5 year trailing dividend yield average. So basically, you want the current dividend yield to be at or higher than the 5 year average dividend yield.

On my other blog I wrote today about RioCan Real Estate (TSX-REI.UN, OTC-RIOCF) ... learn more. Next, I will write about H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF) ... learn more on Wednesday, March 17, 2021 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.

My Transportation Stocks

I cover 3 transportation stocks of Canadian National Railway (TSX-CNR, NYSE-CNI), Canadian Pacific Railway (TSX-CP, NYSE-CP) and TFI International (TSX-TFII, OTC-TFIFF). I wanted to check and see if any of my transportation stocks are selling at a reasonable price. Unfortunately, on a lot of my tests on all three stocks show these stocks are relatively expensive.

The historical and 10 year median values would be good for one year in testing of stock prices for these stocks. For up to a year, you can calculate say the current yield, or get it from a web site and see if it passes the dividend yield tests. Say CNR price moves to $131.20 and gets a yield of 1.88% then it would not only pass the dividend yield historical test by being 17% below the historical median dividend yield of 1.60%, but the yield would also be 1% below the 10 year median yield of $1.86%.

For dividend paying growth stocks, the dividend yields are important way to judge current stock prices. In the following chart I show the 10 year, historical average and historical median dividend yields for these stocks.

Transportation 2021	Symbol	10 Year	Hist. Ave	Hist. Med
Canadian Pacific	CP	0.99%	2.25%	1.53%
Canadian National	CNR	1.86%	1.68%	1.60%
TFI International	TFII	2.43%	9.89%	3.13%

In this next chart, I compare the current dividend yield to the historical median dividend yield. What you want is a current yield higher than the historical dividend yield and that would show that the stock prices are relatively reasonable to cheap. In the next chart only CNR has a higher current dividend yield and shows a reasonable price. A stock price is considered expensive if the current yield is more than 20% below the historical yield which is true for CP and TFI.

Transportation 2021	Symbol	Price	Dividend	Yield	M/C
Canadian Pacific	CP	$471.64	$3.80	0.81%	-47.34%
Canadian National	CNR	$145.13	$2.46	1.70%	5.94%
TFI International	TFII	$92.50	$1.16	1.25%	-59.93%

In the next chart, I compare the current dividend yield to the 10 year median dividend yield. What you want is a current yield higher than the 10 year median dividend yield. In the next chart no stock has a higher current dividend yield. A stock price is considered expensive if the current yield is more than 20% below the historical yield. A stock price is considered reasonable, but above the median if the current dividend yield is less than 20% below the 10 year median dividend yield. In this case CF and CNR are shown as reasonable, but above the median.

Transportation 2021	Symbol	Price	Dividend	Yield	M/C
Canadian Pacific	CP	$471.64	$3.80	0.81%	-18.62%
Canadian National	CNR	$145.13	$2.46	1.70%	-8.87%
TFI International	TFII	$92.50	$1.16	1.25%	-48.39%

In testing the stock price, I like to see the Dividend yield test results confirmed by the P/S Ratio test. In the chart below, I show the 10 year median P/S Ratio for these stocks.

Transportation 2021	Symbol	Ratio
Canadian Pacific	CP	4.62
Canadian National	CNR	5.23
TFI International	TFII	0.63

In this test, what I want is the current P/S Ratio to be below the 10 year median ratio for the stock. The stock is considered to still be reasonable, but above the median if the current P/S Ratio is less than 20% above the 10 year median P/S Ratio. In this test, all these stocks are showing as relatively expensive. CNR is showing as the least relatively expensive stock.

Transportation 2021	Symbol	Price	Rev per Sh	P/S Ratio	M/C
Canadian Pacific	CP	$471.64	$62.70	7.52	62.82%
Canadian National	CNR	$145.13	$20.71	7.01	33.99%
TFI International	TFII	$92.50	$83.53	1.11	75.78%

In the following chart, I am showing the 10 year low, median, and high median Price/Graham Price ratios.

Transportation 2021	Symbol	Low	Median	High
Canadian Pacific	CP	1.69	2.03	2.39
Canadian National	CNR	1.52	1.81	2.03
TFI International	TFII	0.84	1.05	1.39

In this test, for a reasonable price, I would like to see the current P/GP Ratio below the 10 year median ratios above. None meet this. A stock is cheap if the current P/GP Ratio is below the low P/GP median ratio. None meet this. A stock is expensive if the current P/GP Ratio is above the high median 10 year ratio. In this test, all the stocks are expensive. For example, CP is expensive because the current P/GP Ratio of 2.98 is above the 10 year high median P/GP Ratio of 2.39.

Transportation 2021	Symbol	Price	Graham Pr	P/GP Ratio	M/C
Canadian Pacific	CP	$471.64	$158.36	2.98	46.71%
Canadian National	CNR	$145.13	$60.70	2.39	32.10%
TFI International	TFII	$92.50	$50.28	1.84	75.21%

The next test is the Price/Earnings per Share Ratio test. The chart below shows the 10 year low, median, and high median P/E Ratios for each of my Transportation stocks.

Transportation 2021	Symbol	Low P/E	Median P/E	High P/E
Canadian Pacific	CP	15.29	19.09	22.89
Canadian National	CNR	14.90	17.56	19.98
TFI International	TFII	9.38	12.16	16.45

The next chart shows the current P/E Ratios for my Transportation stocks. A reasonable price is when the current P/E Ratio is below the 10 year high median P/E Ratio. Although it is best if the current P/E Ratio was at or below the 10 year median P/E Ratio. For CP the current P/E Ratio at 21.71 is below the 10 year high median P/E Ratio. Its price is considered still reasonable but above the median.

The other two stocks are expensive as their current P/E Ratios are above the 10 year high median P/E Ratios of the above chart. For example, the TFII current P/E Ratio at 19.89 is above the above 10 year high median Ratio of 16.45.

Transportation 2021	Symbol	Price	2021 EPS Est.	Curr P/E	M/C
Canadian Pacific	CP	$471.64	$20.30	23.23	21.71%
Canadian National	CNR	$145.13	$5.92	24.52	39.61%
TFI International	TFII	$92.50	$4.65	19.89	63.59%

The last test is to compare the 10 year median P/B Ratio in the chart below to the current P/B Ratio of each stock. Ideally the best result is for the current P/B Ratio to be at or below the 10 year median P/E Ratios.

Transportation 2021	Symbol	P/B
Canadian Pacific	CP	5.44
Canadian National	CNR	4.24
TFI International	TFII	2.12

None of the stock have a current P/B Ratio below the 10 year median P/B Ratios. Also, none have a current P/B Ratio is less than 20% above the 10 year median Ratio which would mean the current stock price is considered to be still reasonable but above the median. They are all considered to be relatively expensive as all the current ratios are more than 20% higher than the 10 year median P/B Ratios. For example, for CP the current P/B Ratio of 8.59 is 58% above the 10 year median P/B Ratio of 5.44.

Transportation 2021	Symbol	Price	BVPS	Current P/B	M/C
Canadian Pacific	CP	$471.64	$54.91	8.59	57.89%
Canadian National	CNR	$145.13	$27.67	5.25	23.70%
TFI International	TFII	$92.50	$24.16	3.83	80.60%

On my other blog I wrote yesterday about Bombardier Inc (TSX-BBD.B, OTC-BDRBF) ... learn more. Next, I will write about Home Capital Group (TSX-HCG, OTC-HMCBF) ... learn more on Friday, March 12, 2021 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.

What I Blog About

I have three blogs that are on Google’s Blogger. I also have a website that I have coded. (I used to work in IT.)

One blog is to talk about the books I have read . It is different than most book reviews as I also provide links to other reviews and lectures or interviews that are online. I read mostly history and economic books. I think it gives you a deeper understanding of the subject matter to read what other people think and to hear the author talk about the subject matter of his or her book.

I belong to an online book site called Good Reads . I also publish my reviews there. I sometimes get books free to read and review. Recently I read and reviewed a book called The Money Plot, given to me my Other Press of New York. I also got books from Ben McNally’s breakfast with authors that were held at the King Eddie. I look forward to a future where these will occur again. If you do not know Ben McNally’s Book Shop, I think it is the last great book shop in Toronto.

Another blog I have is mostly short entries about investing and economics. I write some and I also refer to other people’s work that I find interesting. For example, I like the site Advice for Investors by MPL Communications. They often write about stocks and investing and I refer to entries I find interesting or cover of stocks I personally cover. I also like to point out things like when Money Sense publishes it’s Top 100 Dividend stocks each year.

Under this blog I review all my stocks each month and see if the dividends have changed. I do a chart on what stocks have gone up or down the most. I also look at each stock to determine if the current price is reasonable or not by looking at the current dividend yield compared to past dividend yields.

My third blog is my favourite as it is about investing in actual stocks. I go for dividend growth stocks and I try to buy them at a reasonable price. I rather go for a lower dividend yield stock that grows their dividends rather than a high dividend yield stocks that does not grow their dividends.

I follow some 157 stock for my own enjoyment and to keep track of my investments. I have spreadsheets on all stocks I track and with some stocks my data go back 30 or 40 years. Of course, some only go back 10 to 15 years. I write about 3 stocks I cover each week. Because I used to be a technical writer, all the good stuff on the stock is in the first paragraph.

I look at the common aspects of stock such as dividend yield and growth combination, dividend coverage ratios, debt ratios and total return over various periods. I do a number of tests to see if the stock price is currently reasonable or not. I also look and see what various sites and analysts say about this stock.

To determine a reasonable price, I look at historical and 10 year median dividend yields compared to the current dividend yield. I like to see the results of the dividend yield testing confirmed by comparing the 10 year median Price/Sales Ratio to the current P/S Ratio. This is different from what most people look at as mostly people use the Price/Earnings per Share Ratio to determine if the price is reasonable or not.

To help determine how a stock will do in the future, for example will it continue to grow dividends or not, I look at what the stock has done in the past, what it is doing now and what analysts expect in the future. It is not perfect but it generally works. With investing in dividend growth stocks, you do not have right all the time, just most of the time.

On my other blog I wrote yesterday about Emera Inc (TSX-EMA, OTC-EMRA) ... learn more. Next, I will write about Bombardier Inc (TSX-BBD.B, OTC-BDRBF) ... learn more on Wednesday, March 10, 2021 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.

Something to Buy March 2021

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 March 2021 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. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.

Five (22%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goodfellow Inc (TSX-GDL, OTC-GFELF), 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.

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. None of these stocks (0%) are showing as cheap by the historically high dividend yield. HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) has been removed from this list.

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 9 Energy stocks. Husky Energy has been bought by Cenovus Energy. One of these stocks (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 (33%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Mullen Group (TSX-MTL, OTC-MLLGF), and Suncor Energy (TSX-SU, NYSE-SU). Ovintiv Inc (TSX-OVV, OTC-OVV) has been deleted from this group.

I follow 8 Bank stocks. None of these stocks (0%) is showing as cheap by the historically high dividend yield. There is no change from last month.

Four stocks (50%) are showing as cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), CIBC (TSX-CM, NYSE-CM), 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. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.

Seven stocks (58%) 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), CI Financial (TSX-CIX, OTC-CIFAF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF) has been deleted from this group.

I follow 6 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. 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 Sagen MI Canada Inc (TSX-MIC, OTC-GMICF). Sun Life Financial (TSX-SLF, NYSE-SLF) has been deleted from this list. Genworth has a name changed to Sagen MI Canada Inc.

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. No stocks are showing as cheap by the historically high dividend yield. Aecon Group Inc (TSX-ARE, OTC-AEGXF) has been removed from this group.

One stock (14%) is showing as cheap by historical median dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). There is no change from last month.

I have 3 stocks I have left with the sub-index of Industrial. None of these stocks (0%) is showing as cheap by the historically high dividend yield. There is no change from last month.

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. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.

Two stocks (29%) are showing as cheap by historical median dividend yield. They are Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), and Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF). There is no change from last month.

I follow 16 Services stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.

Three stocks (19%) are showing as cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR, NYSE-CNI), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). There is not change from last month.

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.

Three stocks (30%) are showing as cheap by historical median dividend yield. They are Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF), 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). There is no change from last month.

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 stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month.

Two stocks (33%) are showing cheap by historical median dividend yield. They are Evertz Technologies (TSX-ET, OTC-EVTZF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.

I follow 8 of the Infrastructure type utility companies. Two stock (25%) are showing as cheap by historical high dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB) and TC Energy Corp (TSX-TRP, NYSE-TRP). TC Energy Corp (TSX-TRP, NYSE-TRP) has been added to this list.

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). Capital Power Corp (TSX-CPX, OTC-CPRHF) has been added to 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.

Four stocks (40%) 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), Emera Inc (TSX-EMA, OTC- EMRAF) and Fortis Inc (TSX-FTS, OTC-FRTSF). Emera Inc (TSX-EMA, OTC- EMRAF) and Fortis Inc (TSX-FTS, OTC-FRTSF) have been added to this list.

On my other blog I wrote yesterday about TFI International Inc (TSX-TFII, OTC-TFIFF) ... learn more. Next, I will write about IGM Financial Inc (TSX-IGM, OTC-IGIFF) .... learn more on Friday, March 5, 2021 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.

Dividend Stocks March 2021

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. You might 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.

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 March 2021.

On this list,

• I have 6 stocks with a dividend yield higher than the historical high dividend yield,
• I have 40 stocks with a dividend yield higher than the historical average dividend yield
• I have 60 stocks with a dividend yield higher than the historical median dividend yield and
• 61 stocks with a dividend yield higher than the 5 year average dividend yield.

When I did my list last list in February 2021,

• I have 5 stocks with a dividend yield higher than the historical high dividend yield,
• I have 43 stocks with a dividend yield higher than the historical average dividend yield
• I have 61 stocks with a dividend yield higher than the historical median dividend yield and
• 71 stocks with a dividend yield higher than the 5 year average dividend yield.

When I did my list in January 2014,

• 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.

If you had one share of each stock, total dividends last month would be $169.80. This month dividends would be $171.48. It can vary as because some stocks are paid in US$ and so this figure is affected by currency exchange. Of the stock that I follow 15 stocks has raised their dividends since last month.

Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF)
Barclays PLC (LSE-BARC, NYSE-BCS) (restarted)
BCE (TSX-BCE, NYSE-BCE)
Brookfield Asset Management (TSX-BAM.A, NYSE-BAM)
Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP)

CCL Industries (TSX-CCL.B, OTC-CCDBF)
Cenovus Energy Inc (TSX-CVE, NYSE-CVE) (restarted)
Exco Technologies Ltd (TSX-XTC, OTC-EXCOF)
FirstService Corp (TSX-FSV, NASDAQ-FSV)
Goeasy Ltd. (TSX-GSY, OTC-EHMEF)

Goodfellow Inc (TSX-GDL, OTC-GFELF)
Magna International Inc. (TSX-MG, NYSE-MGA)
TC Energy Corp (TSX-TRP, NYSE-TRP)
Thomson Reuters Corp (TSX-TRI, NYSE-TRI)
Stantec Inc (TSX-STN, NYSE-STN)

Genworth MI Canada Inc (TSX-MIC, OTC-GMICF) has changed its name to Sagen MI Canada Inc (TSX-MIC, OTC-GMICF). Symbols are not being changed. Reference is here.

Of the stocks I follow, 2 stock have cut their dividends. They are both REITs.

Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF)
Mullen Group (TSX-MTL, OTC-MLLGF)

Of the stocks I follow, 0 stocks have suspended or terminated their dividend.

Of the stocks I follow, the following declined the most in their stock price.

Name	Exch	Sym	Exch	Sym	Chge SP
Just Energy Group Inc	TSX	JE	NYSE	JE	-41.49%
Blackberry Ltd. (RIM)	TSX	BB	NYSE	BB	-28.34%
Ballard Power Systems	TSX	BLDP	NASDAQ	BLDP	-18.59%
Innergex Renewable	TSX	INE	OTC	INGXF	-17.87%
Barrick Gold Corp	TSX	ABX	NYSE	ABX	-16.84%
Trigon Metals Inc.	TSX	TM	OTC	PNTZF	-16.67%
Kirkland Lake Gold	TSX	KL	NYSE	KL	-15.30%
Molson Coors Canada	TSX	TPX.B	NYSE	TAP	-14.80%
Northland Power Inc	TSX	NPI	OTC	NPIFF	-9.82%
Bombardier Inc.	TSX	BBD.B	OTC	BDRBF	-8.20%

Of the stock that I follow, these stocks gained the most in their stock price.

Name	Exch	Sym	Exch	Sym	Chge SP
Goodfellow Inc	TSX	GDL	OTC	GFELF	26.57%
ARC Resources Ltd	TSX	ARX	OTC	AETUF	28.93%
Equitable Group Inc	TSX	EQB	OTC	EQGPF	31.14%
Supremex Inc	TSX	SXP	OTC	SUMXF	32.43%
Crescent Point Energy	TSX	CPG	NYSE	CPG	32.67%
Goeasy Ltd.	TSX	GSY	OTC	EHMEF	32.83%
WildBrain Ltd	TSX	WILD	OTC	WLDBF	37.34%
Ovintiv Inc	TSX	OVV	OTC	OVV	45.95%
Inter Pipeline Ltd	TSX	IPL	OTC	IPPLF	50.88%
Obsidian Energy Ltd	TSX	OBE	OTC	OBELF	62.96%

Most of my stocks started out as Dividend Payers. Currently 19 stocks are not paying any dividends and this would be some 12.74% of the stocks that I follow. Three of these stocks never had dividends, so 10.83% 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 Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF) ... learn more. Next, I will write about TFI International Inc (TSX-TFII, OTC-TFIFF) ... learn more on Wednesday, March 3, 2021 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.