Dylan Callaghan has reviewed two stocks I own of Canadian Tire and Richelieu Hardware. The first reviewed by Dylan Callaghan was Canadian Tire on
Stock Trades. The second one reviewed by Dylan Callaghan was Richelieu Hardware on Stock Trades.
I have both of these stocks. I have done well with both. I have been invested in Canadian Tire for 21 years and have a total return of 12.64% with 10.68% from capital gains and 1.96% from dividends. This stock in most time periods have done fine, but has not always reached the 8% total return I like. For Richelieu Hardware, I have a total return of 18.80% with 17.30% from capital gains and 1.50% from dividends. I have had this stock for 12 years. I do agree with Dylan that Richelieu is quite pricy at this point.
On my other blog I wrote yesterday about High Liner Foods (TSX-HLF, OTC-HLNFF) ... learn more. Next, I will write about SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) ... learn more on Wednesday, September 1, 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.
Tuesday, August 31, 2021
Thursday, August 26, 2021
Foreign Investing
I invested outside Canada when I first starting investing. A lot of people feel that Canadians should buy some foreign, especially American stock because the Canadian market is so small. However, my experience was not that great. At one time I had American stock and some international stocks.
I had two American companies go bankrupt on me. I do get news online, which includes investment news. However, I had no idea these companies were in trouble. This could be because the US stock market is so big, that you do not get much in the way of news except on the biggest companies.
The Canadian market is a lot smaller. For most of the Canadian companies I invest in, they will be in Canadian news if thinks are going badly for them. For the small companies, that may not be readily in the news, I keep a watch on them. The problems with the US firms that when bankrupt, they were not small ones and I did not think to keep an eye on them.
I should also say that I would never invest my money in any Chinese company. The reason being that I do not trust the Chinese government. Look at what happened to DiDi Global Inc an ADR on the NYSE. One week after it raised piles of money on the NYSE, the next week the Chinese Government basically crippled the company.
Since I have learned a lot about investing since I started, I currently prefer to buy companies rather than Index Funds or ETF. I know that the Investment Reporter recommends that 25% of our portfolio be in US companies. This is the only investment letter I would recommend. They offer their newsletter currently at a low monthly fee and you can try it out. You can buy it for a short time to see what they are like. The link to the Investment Report is here.
I am currently mostly invested in Canadian Companies, but a lot of my Canadian Companies have business in the US, and some outside North America, so my portfolio is not as Canadian as it first looks like. All my Canadian banks do business outside Canada. My stocks such as Saputo Inc (TSX-SAP, OTC-SAPIF) does business internationally and TFI International Inc (TSX-TFII, OTC-TFIFF) does business in the US. So, I do have more exposure to the US and international markets than what it might first appear from my just investing in Canadian companies.
On my other blog I wrote yesterday about ATCO Ltd (TSX-ACO.X, OTC-ACLLF) ... learn more. Next, I will write about Capital Power Corp (TSX-CPX, OTC-CPRHF) ... learn more on Friday, August 27, 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.
I had two American companies go bankrupt on me. I do get news online, which includes investment news. However, I had no idea these companies were in trouble. This could be because the US stock market is so big, that you do not get much in the way of news except on the biggest companies.
The Canadian market is a lot smaller. For most of the Canadian companies I invest in, they will be in Canadian news if thinks are going badly for them. For the small companies, that may not be readily in the news, I keep a watch on them. The problems with the US firms that when bankrupt, they were not small ones and I did not think to keep an eye on them.
I should also say that I would never invest my money in any Chinese company. The reason being that I do not trust the Chinese government. Look at what happened to DiDi Global Inc an ADR on the NYSE. One week after it raised piles of money on the NYSE, the next week the Chinese Government basically crippled the company.
Since I have learned a lot about investing since I started, I currently prefer to buy companies rather than Index Funds or ETF. I know that the Investment Reporter recommends that 25% of our portfolio be in US companies. This is the only investment letter I would recommend. They offer their newsletter currently at a low monthly fee and you can try it out. You can buy it for a short time to see what they are like. The link to the Investment Report is here.
I am currently mostly invested in Canadian Companies, but a lot of my Canadian Companies have business in the US, and some outside North America, so my portfolio is not as Canadian as it first looks like. All my Canadian banks do business outside Canada. My stocks such as Saputo Inc (TSX-SAP, OTC-SAPIF) does business internationally and TFI International Inc (TSX-TFII, OTC-TFIFF) does business in the US. So, I do have more exposure to the US and international markets than what it might first appear from my just investing in Canadian companies.
On my other blog I wrote yesterday about ATCO Ltd (TSX-ACO.X, OTC-ACLLF) ... learn more. Next, I will write about Capital Power Corp (TSX-CPX, OTC-CPRHF) ... learn more on Friday, August 27, 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.
Tuesday, August 24, 2021
Quality of a Sell Decision
Joe Wiggins on behavioral Investment talks about sell decisions. I have continued to review stocks after I have sold them. In hindsight some were good decisions and some were not. However, he is right that you often do not know how things will turn out. You can only make the best decision you can on the information that is available.
On my other blog I wrote yesterday about Exchange Income Corp (TSX-EIF, OTC-EIFZF) ... learn more. Next, I will write about ATCO Ltd (TSX-ACO.X, OTC-ACLLF) ... learn more on Wednesday, August 25, 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.
On my other blog I wrote yesterday about Exchange Income Corp (TSX-EIF, OTC-EIFZF) ... learn more. Next, I will write about ATCO Ltd (TSX-ACO.X, OTC-ACLLF) ... learn more on Wednesday, August 25, 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.
Thursday, August 19, 2021
You Do Not Need to Be Rich to Invest
I certainly was not rich when I started to invest. I had little money. It was the 1970’s so I bought Canadian Savings Bonds on a monthly basis and cash them in, in November each year to buy some stock or mutual fund. Times were different back then and buying a bond with monthly payments worked for me. I was also lucky that the bonds came due in November as it just happened to be a great time to buy stocks.
I made a few false starts in the 1970’s. I did not know what I was doing. People talked a lot about investing in mutual funds. However, by themselves the Canadian Savings Bonds were great because of high interest. In fact, you could make more money in bank savings accounts than investing. But, I still have some stocks I bought in the 1980’s of Bell, Bank of Montreal and Fortis.
Today you can do a similar thing. You can put money away each month into a savings account to buy stocks when there is enough money. You can take out a line of credit or use a margin account if you have the discipline of paying into your account on a regular basis. I still have a line of credit account for buying stock.
When I started buying stocks, the transactions fees were much higher and you had to buy what was called a Board Lot (100 shares), but most stocks were $20 or less a share. Now share prices are much higher, fees are a lot lower and you can buy any number of shares.
It took me a while to realize that the only shares I should be buying for me were dividend growth stocks, but I did finally learn that. I have a portfolio filled with dividend growth stocks and it is doing very well.
On my other blog I wrote yesterday about Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF) ... learn more. Next, I will write about Alimentation Couche-Tard Inc (TSX-ATD.B, OTC-ANCUF) ... learn more on Friday, August 20, 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.
I made a few false starts in the 1970’s. I did not know what I was doing. People talked a lot about investing in mutual funds. However, by themselves the Canadian Savings Bonds were great because of high interest. In fact, you could make more money in bank savings accounts than investing. But, I still have some stocks I bought in the 1980’s of Bell, Bank of Montreal and Fortis.
Today you can do a similar thing. You can put money away each month into a savings account to buy stocks when there is enough money. You can take out a line of credit or use a margin account if you have the discipline of paying into your account on a regular basis. I still have a line of credit account for buying stock.
When I started buying stocks, the transactions fees were much higher and you had to buy what was called a Board Lot (100 shares), but most stocks were $20 or less a share. Now share prices are much higher, fees are a lot lower and you can buy any number of shares.
It took me a while to realize that the only shares I should be buying for me were dividend growth stocks, but I did finally learn that. I have a portfolio filled with dividend growth stocks and it is doing very well.
On my other blog I wrote yesterday about Chemtrade Logistics Income Fund (TSX-CHE.UN, OTC-CGIFF) ... learn more. Next, I will write about Alimentation Couche-Tard Inc (TSX-ATD.B, OTC-ANCUF) ... learn more on Friday, August 20, 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.
Tuesday, August 17, 2021
Best Online Brokers
Money Sense has published their list of the Best Online Brokers in Canada for 2021. See this information on the best ones see Money Sense. According to Money Sense, the four best online brokers are Questrade, National Bank Direct Brokerage, TD Direct Investing and Qtrade Direct Investing.
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 Wednesday, August 18, 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.
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 Wednesday, August 18, 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.
Thursday, August 12, 2021
P/E Ratio and Stock Price
I seldom use the P/E Ratio to judge a stock price. I know the rule of thumb is a P/E Ratio at 10 or below is a cheap one and a reasonable one is at around 15. However, what is a good P/E Ratio often depends on what sector a stock is in. Also, the “E” side of the ratio can be badly affected by earnings losses and by special events (i.e., when company writes-off goodwill).
I have statistics on the 5 years of median low and 5 year median high P/E Ratios for the stocks I follow. The lowest P/E Ratios sorted by the P/E Low Ratios are shown below and they are all negative. You cannot use negative P/E Ratios in trying to determine a good stock price.
The 10 companies with the highest 5 year median low P/E Ratio and 5 year median high P/E Ratios, sorted by the 5 year median high P/E Ratios are shown below. There are a couple of reasons I know of for very high P/E Ratios.
One reason is that if an earnings tank, a stock’s price will only go so low. No matter what the earnings are, especially over a short term, the stock price will only go down so far. The stock price reflects the value investors place on a company. Another reason is that investors feel that a stock has a great future, the P/E Ratio can soar. This is what is probably happening to Absolute Software listed above.
I look at the 5, 10 and historical median dividend yields compared to the current one to try to evaluate the current stock price. If the 5, 10 and historical median dividend yields are distorted by very high P/E Ratios or negative P/E Ratios, it is difficult if not impossible to evaluate the current stock price using P/E ratios.
The P/E testing on Superior Plus Corp (TSX-SPB, OTC-SUUIF) yesterday illustrates problems when testing using P/E Ratios.
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 have statistics on the 5 years of median low and 5 year median high P/E Ratios for the stocks I follow. The lowest P/E Ratios sorted by the P/E Low Ratios are shown below and they are all negative. You cannot use negative P/E Ratios in trying to determine a good stock price.
| No | Name | Exch | Sym | Exch | Sym | P/E L | P/E H |
|---|---|---|---|---|---|---|---|
| 1 | Pulse Seismic. | TSX | PSD | OTC | PLSDF | -22.56 | -36.56 |
| 2 | Ballard Power | TSX | BLDP | NASDAQ | BLDP | -16.67 | -42.12 |
| 3 | HLS Therapeutics | TSX | HLS | OTC | HLTRF | -14.95 | -29.30 |
| 4 | Chemtrade Logistics | TSX | CHE.UN | OTC | CGIFF | -7.50 | -13.55 |
| 5 | Crescent Point | TSX | CPG | NYSE | CPG | -6.95 | -12.71 |
| 6 | TransAlta Corp | TSX | TA | NYSE | TAC | -4.52 | -8.99 |
| 7 | Trican Well Service | TSX | TCW | OTC | TOLWF | -3.23 | -6.58 |
| 8 | Blackberry Ltd. | TSX | BB | NYSE | BB | -2.70 | -3.43 |
| 9 | Trigon Metals Inc. | TSX | TM | OTC | PNTZF | -2.60 | -4.00 |
| 10 | McCoy Global Inc | TSX | MCB | OTC | MCCRF | -2.32 | -4.07 |
The 10 companies with the highest 5 year median low P/E Ratio and 5 year median high P/E Ratios, sorted by the 5 year median high P/E Ratios are shown below. There are a couple of reasons I know of for very high P/E Ratios.
One reason is that if an earnings tank, a stock’s price will only go so low. No matter what the earnings are, especially over a short term, the stock price will only go down so far. The stock price reflects the value investors place on a company. Another reason is that investors feel that a stock has a great future, the P/E Ratio can soar. This is what is probably happening to Absolute Software listed above.
| No | Name | Exch | Sym | Exch | Sym | P/E L | P/E H |
|---|---|---|---|---|---|---|---|
| 1 | Chartwell Retirement | TSX | CSH.UN | NYSE | CWSRF | 230.43 | 260.37 |
| 2 | Sienna Senior Living | TSX | SIA | OTC | LWSCF | 69.35 | 90.15 |
| 3 | LifeWorks Inc | TSX | LWRK | OTC | MSIXF | 42.30 | 54.76 |
| 4 | Innergex Renewable | TSX | INE | OTC | INGXF | 36.32 | 56.07 |
| 5 | Parkland Fuel Corp | TSX | PKI | OTC | PKIUF | 34.28 | 46.59 |
| 6 | FirstService Corp | TSX | FSV | NASDAQ | FSV | 32.48 | 50.41 |
| 7 | K-Bro Linen Inc | TSX | KBL | OTC | KBRLF | 31.30 | 40.93 |
| 8 | Waste Connections | TSX | WCN | NYSE | WCN | 29.32 | 37.68 |
| 9 | Medtronic PCL | NYSE | MDT | 26.02 | 32.17 | ||
| 10 | Absolute Software | TSX | ABST | NASDAQ | ABST | 25.70 | 40.72 |
I look at the 5, 10 and historical median dividend yields compared to the current one to try to evaluate the current stock price. If the 5, 10 and historical median dividend yields are distorted by very high P/E Ratios or negative P/E Ratios, it is difficult if not impossible to evaluate the current stock price using P/E ratios.
The P/E testing on Superior Plus Corp (TSX-SPB, OTC-SUUIF) yesterday illustrates problems when testing using P/E Ratios.
- The 5 year low, median, and high median Price/Earnings per Share Ratios are 4.24, 5.34 and 6.43. the corresponding 10 year ratios are 9.56, 12.07 and 14.58. The corresponding historical ratios are 12.98, 15.73 and 19.53. The current P/E Ratio is 38.98 based on a 15.59 and EPS estimate of $.40. The current ratio is above the 10 year high median ratio. This stock price testing suggests that the stock price is relatively expensive.
- However, all the ratios are negatively affected by earning losses that produce negative P/E Ratios. They are also affected by high P/E Ratios because of some years of very low earnings. Earnings for this stock are quite volatile also. The P/E Ratio for 2022 is better with a P/E Ratio of 18.56 based on a stock price of $15.59 and EPS estimate for 2022 of $0.84. This testing also says that the stock price is relatively expensive because the P/E is higher than the 10 year high median ratio.
- The P/E Ratio for 2023 is 12.37. This is based on a stock price of $15.59 and EPS estimate for 2023 of $1.26. This testing says that the stock price is relatively reasonable but above the median because the P/E Ratio is between the median and high 10 year median ratios. However, the further out an estimate is from today’s date, the less trustworthy it is. This is not a good test for assessing the current stock price.
- If the current ratio is 20% or more below the 10 year median ratio, then the stock price is cheap.
- If the current ratio is below the 10 year median ratio, but not as high as 20% below, then the stock price is relatively reasonable and below the median.
- If the current ratio is above the 10 year median ratio, but less than 20% above, then the stock price is relatively reasonable but above the median.
- If the current ratio is 20% or more above 10 year median ratio, then the stock price is expensive.
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 10, 2021
Canadian Retail Stocks
The Blogger Million Dollar Journey in May of this year, talks published an article on Some Wide Moat Canadian Retail Stocks by Dale Roberts.
He likes Grocery stores. These include Loblaws (TSX-L), Metro (TSX-MRU) and Empire (TSX-EMP.A). He thinks another interest grocer is The North West Company. Alimentation Couche-Tard (TSX-ATD.B) is called a Canadian success story. He thinks you might also want to look at Parkland Fuel Corp (TSX-PKI). For a restaurant, he says to look at Restaurant Brands International (TSX-QRS) which has Tim Hortons.
He says most Canadian have a place in their heart or Canadian Tire. And, what about Leon’s Furniture (TSX-LNF) which has a location in every province across Canada. Another stock to look at is Sleep Country (TSX-ZZZ). Or, perhaps you might want a budget store like Dollarama (TSX-DOL). He also gives an honorable mention to Canada Goose (TSX-GOOS) and Lululemon (TSX-LULU).
He says that the Canadian Retail sector does not get a lot of press, but it is actually a very robust sector.
On my other blog I wrote yesterday about Evertz Technologies (TSX-ET, OTC-EVTZF) ... learn more. Next, I will write about Superior Plus Corp (TSX-SPB, OTC-SUUIF) ... learn more on Wednesday, August 11, 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.
He likes Grocery stores. These include Loblaws (TSX-L), Metro (TSX-MRU) and Empire (TSX-EMP.A). He thinks another interest grocer is The North West Company. Alimentation Couche-Tard (TSX-ATD.B) is called a Canadian success story. He thinks you might also want to look at Parkland Fuel Corp (TSX-PKI). For a restaurant, he says to look at Restaurant Brands International (TSX-QRS) which has Tim Hortons.
He says most Canadian have a place in their heart or Canadian Tire. And, what about Leon’s Furniture (TSX-LNF) which has a location in every province across Canada. Another stock to look at is Sleep Country (TSX-ZZZ). Or, perhaps you might want a budget store like Dollarama (TSX-DOL). He also gives an honorable mention to Canada Goose (TSX-GOOS) and Lululemon (TSX-LULU).
He says that the Canadian Retail sector does not get a lot of press, but it is actually a very robust sector.
On my other blog I wrote yesterday about Evertz Technologies (TSX-ET, OTC-EVTZF) ... learn more. Next, I will write about Superior Plus Corp (TSX-SPB, OTC-SUUIF) ... learn more on Wednesday, August 11, 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.
Thursday, August 5, 2021
Something to Buy August 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 August 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. Le Chateau Inc (TSX-CTU.H) will be removed as it no longer exists. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Six (23%) 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), Molson Coors Canada (TSX-TPX.B, NYSE-TAP) and Stingray Digital Group Inc (TSX-RAY.A). Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP) have been added to this list. Molson Coors Canada has just reinstated their dividends.
I follow 10 Consumer Staples stocks. No stocks are showing as cheap by the historically high dividend yield. There is no change from last month.
Six stocks (60%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Lassonde Industries (TSX-LAS.A, OTC-LSDAF), 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. There is no change from last month.
Three stocks (60%) are cheap by the historical median dividend yield. The stocks are HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), and Medtronic Inc. (NYSE-MDT). There is no change from last month.
I follow 9 Energy stocks. No stock (0%) is showing as cheap by the historical high dividend yield. There is no change from last month.
There are two stocks (22%) 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). Ovintiv Inc (TSX-OVV, OTC-OVV) has been added to this list.
I follow 26 Financial stocks under the categories of Banks, Financial Services, and Insurance.
I follow 8 Bank 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 (25%) are showing as cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), 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.
Three stocks (23%) are showing as cheap by the historical median dividend yield. These stocks are AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF) has been removed from this list.
I follow 5 Insurance 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 (60%) 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), and Manulife Financial Corp (TSX-MFC, NYSE-MFC). 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 moved TECSYS Inc (TSX-TCS, OTC-TCYSF) to the Tech section.
I have 7 Construction stocks. No stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
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%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). 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). Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) has been added back to this list.
I follow 15 Services stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month. I have moved TECSYS Inc (TSX-TCS, OTC-TCYSF) to the Tech section.
Four stocks (27%) 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). Pason Systems Inc (TSX-PSI, OTC- PSYTF) and Wajax Corp (TSX-WJX, OTC-WJXFF) have 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.
Two stocks (20%) are showing as cheap by historical median dividend yield. They are 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. None of the stocks (0%) are showing as cheap by historically high dividend yield. 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 10 Tech stocks. No stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month. I have moved TECSYS Inc (TSX-TCS, OTC-TCYSF) to this Tech section.
Three stock (33%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF), 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. None of the stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month.
Three stocks (38%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF), and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 9 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 as cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). There is no change from last month.
The last stock I wrote about was about was BlackBerry Ltd (TSX-BB, NYSE-BB) ... learn more. The next stock I will write about will be Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF) ... learn more on Friday, August 6, 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.
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 August 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. Le Chateau Inc (TSX-CTU.H) will be removed as it no longer exists. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Six (23%) 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), Molson Coors Canada (TSX-TPX.B, NYSE-TAP) and Stingray Digital Group Inc (TSX-RAY.A). Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP) have been added to this list. Molson Coors Canada has just reinstated their dividends.
I follow 10 Consumer Staples stocks. No stocks are showing as cheap by the historically high dividend yield. There is no change from last month.
Six stocks (60%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Lassonde Industries (TSX-LAS.A, OTC-LSDAF), 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. There is no change from last month.
Three stocks (60%) are cheap by the historical median dividend yield. The stocks are HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), and Medtronic Inc. (NYSE-MDT). There is no change from last month.
I follow 9 Energy stocks. No stock (0%) is showing as cheap by the historical high dividend yield. There is no change from last month.
There are two stocks (22%) 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). Ovintiv Inc (TSX-OVV, OTC-OVV) has been added to this list.
I follow 26 Financial stocks under the categories of Banks, Financial Services, and Insurance.
I follow 8 Bank 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 (25%) are showing as cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), 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.
Three stocks (23%) are showing as cheap by the historical median dividend yield. These stocks are AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF) has been removed from this list.
I follow 5 Insurance 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 (60%) 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), and Manulife Financial Corp (TSX-MFC, NYSE-MFC). 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 moved TECSYS Inc (TSX-TCS, OTC-TCYSF) to the Tech section.
I have 7 Construction stocks. No stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
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%) are showing as cheap by the historically high dividend yield. There is no change from last month.
One stock (33%) is showing as cheap by historical median dividend yield. It is Finning International Inc. (TSX-FTT, OTC-FINGF). 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). Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) has been added back to this list.
I follow 15 Services stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month. I have moved TECSYS Inc (TSX-TCS, OTC-TCYSF) to the Tech section.
Four stocks (27%) 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). Pason Systems Inc (TSX-PSI, OTC- PSYTF) and Wajax Corp (TSX-WJX, OTC-WJXFF) have 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.
Two stocks (20%) are showing as cheap by historical median dividend yield. They are 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. None of the stocks (0%) are showing as cheap by historically high dividend yield. 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 10 Tech stocks. No stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month. I have moved TECSYS Inc (TSX-TCS, OTC-TCYSF) to this Tech section.
Three stock (33%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF), 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. None of the stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month.
Three stocks (38%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF), and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 9 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 as cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). There is no change from last month.
The last stock I wrote about was about was BlackBerry Ltd (TSX-BB, NYSE-BB) ... learn more. The next stock I will write about will be Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF) ... learn more on Friday, August 6, 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.
Tuesday, August 3, 2021
Dividend Stocks August 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 August 2021.
On this list,
AGF Management Ltd (TSX-AGF.B, OTC-AGFMF)
Barclays PLC (LSE-BARC, NYSE-BCS)
Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF)
Loblaw Companies (TSX-L, OTC-LBLCF)
Methanex Corp (TSX-MX, NASDAQ-MEOH)
Molson Coors Canada (TSX-TPX.B, NYSE-TAP)
Ovintiv Inc (TSX-OVV, OTC-OVV)
Note that Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF) has started to raise their dividends again after cutting dividends. Molson Coors Canada (TSX-TPX.B, NYSE-TAP) has reinstated their dividends after suspending it. These are good signs.
I will be deleting Le Chateau Inc (TSX-CTU.H) from my list of companies as it has gone out of business. See the announcement on Cision.
Of the stocks I follow, 0 stock have cut their dividends.
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.
Of the stock that I follow, these stocks gained the most in their stock price.
Most of my stocks started out as Dividend Payers. Currently 18 stocks are not paying any dividends and this would be some 12.26% of the stocks that I follow. Three of these stocks never had dividends, so 10.32% 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 today about was Stingray Digital Group Inc (TSX-RAY.A, OTC-NONE) ... learn more. The next stock I will write about will be BlackBerry Ltd (TSX-BB, NYSE-BB) ... learn more on Wednesday, August 4, 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.
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 August 2021.
On this list,
- I have 2 stocks with a dividend yield higher than the historical high dividend yield,
- I have 31 stocks with a dividend yield higher than the historical average dividend yield
- I have 51 stocks with a dividend yield higher than the historical median dividend yield and
- 43 stocks with a dividend yield higher than the 5 year average dividend yield.
- I have 2 stocks with a dividend yield higher than the historical high dividend yield,
- I have 30 stocks with a dividend yield higher than the historical average dividend yield
- I have 46 stocks with a dividend yield higher than the historical median dividend yield and
- 40 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.
AGF Management Ltd (TSX-AGF.B, OTC-AGFMF)
Barclays PLC (LSE-BARC, NYSE-BCS)
Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF)
Loblaw Companies (TSX-L, OTC-LBLCF)
Methanex Corp (TSX-MX, NASDAQ-MEOH)
Molson Coors Canada (TSX-TPX.B, NYSE-TAP)
Ovintiv Inc (TSX-OVV, OTC-OVV)
Note that Keg Royalties Income Fund (TSX-KEG.UN, OTC-KRIUF) has started to raise their dividends again after cutting dividends. Molson Coors Canada (TSX-TPX.B, NYSE-TAP) has reinstated their dividends after suspending it. These are good signs.
I will be deleting Le Chateau Inc (TSX-CTU.H) from my list of companies as it has gone out of business. See the announcement on Cision.
Of the stocks I follow, 0 stock have cut their dividends.
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 |
|---|---|---|---|---|---|
| Le Chateau Inc | TSX | CTU.H | -100.00% | ||
| Just Energy Group Inc | TSX | JE | NYSE | JE | -20.59% |
| Ovintiv Inc | TSX | OVV | OTC | OVV | -19.16% |
| Ensign Energy Services | TSX | ESI | OTC | ESVIF | -18.47% |
| Obsidian Energy Ltd | TSX | OBE | OTC | OBELF | -17.80% |
| Crescent Point Energy | TSX | CPG | NYSE | CPG | -17.09% |
| Suncor Energy Inc | TSX | SU | NYSE | SU | -16.69% |
| McCoy Global Inc | TSX | MCB | OTC | MCCRF | -16.67% |
| Computer Modelling | TSX | CMG | OTC | CMDXF | -16.22% |
| Blackberry Ltd. (RIM) | TSX | BB | NYSE | BB | -14.36% |
Of the stock that I follow, these stocks gained the most in their stock price.
| Name | Exch | Sym | Exch | Sym | Chge SP |
|---|---|---|---|---|---|
| Richelieu Hardware Ltd | TSX | RCH | OTC | RHUHF | 9.32% |
| Loblaw Companies | TSX | L | OTC | LBLCF | 9.41% |
| Equitable Group Inc | TSX | EQB | OTC | EQGPF | 10.38% |
| Kirkland Lake Gold | TSX | KL | NYSE | KL | 10.82% |
| Bombardier Inc. | TSX | BBD.B | OTC | BDRBF | 12.03% |
| Aecon Group Inc | TSX | ARE | OTC | AEGXF | 12.68% |
| Element Fleet Mge. | TSX | EFN | OTC | ELEEF | 15.82% |
| TFI International | TSX | TFII | OTC | TFIFF | 22.94% |
| TECSYS Inc | TSX | TCS | OTC | TCYSF | 25.25% |
| Trigon Metals Inc. | TSX | TM | OTC | PNTZF | 53.13% |
Most of my stocks started out as Dividend Payers. Currently 18 stocks are not paying any dividends and this would be some 12.26% of the stocks that I follow. Three of these stocks never had dividends, so 10.32% 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 today about was Stingray Digital Group Inc (TSX-RAY.A, OTC-NONE) ... learn more. The next stock I will write about will be BlackBerry Ltd (TSX-BB, NYSE-BB) ... learn more on Wednesday, August 4, 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.
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