Banks and Ratios

The reason to look at company ratios is that the stock price for a company tells you very little. The price of a stock certainly does not tell you if the stock is cheap or expensive. For example, a stock price of $10 on one stock could be an expensive price, but a stock price of $20 on another stock could be a cheap price. It is like all stocks have their own currency and you will need a common frame of reference in order to tell how relatively cheap or expensive a stock is.

In this entry I am only talking about the big 6 Canadian Banks of Bank of Montreal, Bank of Nova Scotia, CIBC, Royal Bank, National Bank, and TD Bank. I try to get the right information, but I cannot guarantee anything. The results may be different from my recent reports as I have updated the stock price to the most recent ones. Also, all the data used in this entry is going back to 1988. When I talked about the individual stocks, data went back for different time periods for each stock.

The conclusion I come to is that none of the banks are currently cheap. Bank of Nova Scotia maybe reasonable as it passes the Dividend Yield test and P/S Ratio tests. The other bank look to be on the expensive side. It just may not be the right time to buy Canadian Banks.

The method I like best to check for a good stock price is using the current dividend yield and compare this against the historical median dividend yield. What you are looking for is a current dividend yield higher than the historical dividend yield. For dividend yields, the higher the dividend yields the better the relative price of a stock is.

In the first chart is the 10 year median and historical average and historical median dividend yields based on my spreadsheets for our banks. In the second chart is a comparison (M/C field) of current yield and Historical Median Yield. The higher the current yield is compared to the historical one, the better the current price is.

Of the big banks that I follow, the Bank of Nova Scotia comes off relatively better in this test. For Bank of Nova Scotia, the current dividend yield is 4.42% and the historical median one is 4.12% a difference of 7.21%. The TD Bank is a close second with a current yield of 3.54% compared to the historical median one of 3.50%. The current yield is 1.28% above the historical median yield.

Bank	Symbol	10 Year	Hist. Ave	Hist. Med
Bank of Montreal	BMO	4.21%	5.28%	4.21%
Bank of Nova Scotia	BNS	4.37%	5.09%	4.12%
CIBC	CM	4.81%	4.75%	4.45%
Royal Bank	RY	3.93%	4.25%	3.87%
National Bank	NA	4.17%	6.17%	3.98%
TD Bank	TD	3.76%	3.72%	3.50%

Below you can see that Both BNS and TD Bank are reasonably priced as their current yield is higher than the above the historical median dividend yield. The rest are showing as reasonable but above the median.

Bank	Symbol	Price	Dividend	Yield	M/C
Bank of Montreal	BMO	$145.19	$5.32	3.66%	-12.97%
Bank of Nova Scotia	BNS	$90.56	$4.00	4.42%	7.21%
CIBC	CM	$159.59	$6.44	4.04%	-9.32%
Royal Bank	RY	$142.03	$4.80	3.38%	-12.67%
National Bank	NA	$100.21	$3.48	3.47%	-12.75%
TD Bank	TD	$100.43	$3.56	3.54%	1.28%

My next favourite test is the Price/Sales (P/S) Ratio. It sometimes works better than the Dividend Yield test on certain stock, especially old income trust stocks. What you want for a reasonable price is for the current P/S Ratio to be lower than the 10 year median P/S Ratio.

Of the big banks I follow, the Bank of Nova Scotia is relatively lower with the current P/S Ratio some at 10.62% above its 10 year median P/S Ratio. Its price is reasonable, but above the median. All the other banks have a higher P/S Ratio than the 10 year median P/S Ratio.

Bank	Symbol	Ratio
Bank of Montreal	BMO	2.50
Bank of Nova Scotia	BNS	3.08
CIBC	CM	2.64
Royal Bank	RY	3.12
National Bank	NA	2.82
TD Bank	TD	3.16

In this chart, BNS is showing the stock price as reasonable and below the median. All the other banks are showing the stock price as reasonable, but above the median. Since their current ratio is more than 10% above the 10 year median, they are relatively expensive.

Bank	Symbol	Price	Rev /Share	P/S Ratio	M/C
Bank of Montreal	BMO	$145.19	$41.38	3.51	40.35%
Bank of Nova Scotia	BNS	$90.56	$26.58	3.41	10.62%
CIBC	CM	$159.59	$47.58	3.35	27.05%
Royal Bank	RY	$142.03	$34.79	4.08	30.85%
National Bank	NA	$100.21	$28.11	3.56	26.42%
TD Bank	TD	$100.43	$22.99	4.37	38.40%

A common ratio is the Price/Book Value per Share Ratio. For P/B Ratio, the lower the P/B Ratio is, the more book value you get for your money. Theoretically, the book value is the difference between assets and liabilities and therefore is the potential value a company is worth or the breakup value of the stock for the shareholders. What you want to see is a current P/B Ratio below the 10 year median P/B Ratio.

When valuing a stock, the lower the P/B Ratio is, the better the stock price is on a relative basis. The 10 year median P/B Ratios for our banks are below in the first table. From this it is obvious that historically, investors were willing to pay a relatively higher price for Royal Bank shares than other shares as it has the highest P/B Ratio. It could also say that the Bank of Montreal offers the best deal when it comes to Book Value per Share as it has the lowest ratio.

Of the banks I follow, BMO has the lowest 10 year median P/B Ratio (chart 1) and the Bank of Nova Scotia is the lowest relative to its 10 year P/B Ratio as its current P/B Ratio is some 6.9% higher than the 10 year P/B Ratio (chart 2).

Bank	Symbol	P/B
Bank of Montreal	BMO	1.38
Bank of Nova Scotia	BNS	1.59
CIBC	CM	1.62
Royal Bank	RY	1.91
National Bank	NA	1.76
TD Bank	TD	1.59

The next chart shows that BNS, and CIBC, are relatively cheap as the current P/B Ratios are less than 10% above the 10 year median ratios. The Royal Bank are showing as reasonable but above the median. The rest are showing that they are relatively expensive as they are more than 20% above the 10 year median ratio

Bank	Symbol	Price	BVPS	Current P/B	M/C
Bank of Montreal	BMO	$145.19	$80.18	1.81	31.22%
Bank of Nova Scotia	BNS	$90.56	$53.28	1.70	6.90%
CIBC	CM	$159.59	$91.66	1.74	7.48%
Royal Bank	RY	$142.03	$65.22	2.18	14.02%
National Bank	NA	$100.21	$47.06	2.13	20.99%
TD Bank	TD	$100.43	$51.60	1.95	22.41%

My next favourite test to check reasonableness of the stock price is using the Graham Price. For the 10 year Price/Graham Price Ratios, the lower the ratio the lower the relative price of the underlying shares. This chart shows that investors are willing to pay a relatively higher price for Royal Bank stock than for other bank stocks as the GP Ratio is the highest ones. It also shows that generally BMO and CIBC have a relatively lower stock price as their median P/GP is the lowest of all the banks at 0.92 and 0.93 respectively.

Of the big banks I follow, the CIBC is relatively lower with the current Price/Graham Price Ratio some 7.00% above its historical median P/GP Ratio (see second chart). All the banks have a higher a Graham Price Ratio than the median Graham Price Ratio

Bank	Symbol	Low	Median	High
Bank of Montreal	BMO	0.73	0.82	0.92
Bank of Nova Scotia	BNS	0.76	0.85	0.97
CIBC	CM	0.75	0.82	0.93
Royal Bank	RY	0.88	0.98	1.09
National Bank	NA	0.76	0.87	1.02
TD Bank	TD	0.84	0.92	1.01

The following chart shows that BNS has the relatively lowest price. All the banks have current ratios above the 10 year median ratios. Their ratios are less than 10% higher than the 10 year median ratios. Therefore, this chart shows that the stock prices are reasonable, but above the median.

Bank	Symbol	Price	Graham PR.	P/GP Ratio	M/C
Bank of Montreal	BMO	$145.19	$150.76	0.96	17.45%
Bank of Nova Scotia	BNS	$90.56	$99.57	0.91	7.00%
CIBC	CM	$159.59	$168.09	0.95	15.78%
Royal Bank	RY	$142.03	$127.63	1.11	13.55%
National Bank	NA	$100.21	$97.73	1.03	17.86%
TD Bank	TD	$100.43	$95.65	1.05	14.13%

One of the most common ratios to look at is the P/E Ratio. When dealing with P/E Ratios, the lower the P/E ratio the better the relatively price is. Below is the 10 year low, median, and high median P/E Ratios for each bank I follow. What this chart also tells you is that investors are willing to pay relatively more money for TD Bank shares per dollar of earnings than for other banks as its P/E Ratios are the highest ones at 10.50, 11.47 and 12.44 for Low, Median and High P/E Ratios.

Bank	Symbol	Low P/E	Median P/E	High P/E
Bank of Montreal	BMO	9.97	11.11	12.28
Bank of Nova Scotia	BNS	9.59	11.03	12.47
CIBC	CM	8.47	9.63	10.73
Royal Bank	RY	10.15	11.39	12.57
National Bank	NA	8.45	9.83	11.64
TD Bank	TD	10.50	11.47	12.44

So, what is the relatively cheapest bank today? Currently BNS has the lower P/E Ratio at 10.95 (see chart below). In the chart below, in the last column I am comparing the 10 year Median P/E with the Current P/E. BNS has the lowest relative P/E Ratio (at 0.72% below the 10 year Median P/E Ratio). All the rest have a higher current P/E Ratio than the 10 year median ratio. All the banks but CIBC has a current ratio less than 20% above the 10 year median ratio and therefore have a stock price that is reasonable, but above the median. The CIBC bank is showing a stock price as relatively expensive.

Bank	Symbol	Price	2022 EPS Est.	Curr P/E	M/C
Bank of Montreal	BMO	$145.19	$12.60	11.52	3.72%
Bank of Nova Scotia	BNS	$90.56	$8.27	10.95	-0.72%
CIBC	CM	$159.59	$13.70	11.65	20.96%
Royal Bank	RY	$142.03	$11.10	12.80	12.34%
National Bank	NA	$100.21	$9.02	11.11	13.02%
TD Bank	TD	$100.43	$7.88	12.74	11.12%

On my other blog I wrote yesterday about Sylogist Ltd (TSX-SYZ, OTC-SYZLF) ... learn more. Next, I will write about Enghouse Systems Ltd (TSX-ENGH, OTC-EGHSF) ... learn more on Wednesday, January 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. Follow me on Twitter.

Four REITs to Buy

Money Reporter on Advice for Investors talks about 4 REITs to Buy. They are listed below. Read the article to find out why they are recommending REITs.

REITs are:

• Cap REIT (TSX-CAR.UN)
• Granite REIT (TSX-GRT.UN)
• H&R REIT (TSX-HR.UN) and
• RioCan REIT (TSX-REI.UN)

On my other blog I wrote yesterday about Transcontinental Inc (TSX-TCL.A, OTC-TCLAF) ... learn more. Next, I will write about Sylogist Ltd (TSX-SYZ, OTC-SYZLF) ... learn more on Wednesday, January 26, 2022 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.

Reviewing Last Year

After I received my final statements for the year, I review how I have done. This year is a surprise for me. Generally, I outperform the market in down markets (bear) and underperform the market in up markets (bull). This year was a great year for the TSX as the index was up 21.74%. If you add 2% for dividends it is 23.74%.

Actually, outperforming the market in down markets (bear), that is not going down as much, and underperforming the market in up markets (bull) is a good thing. It means that my returns do not vary as much as the market, so in the longer term, I will outperform the market.

However, I did better than the TSX with a total return of 30.06%. This figure takes into account the money I take out of my account each year for spending. It is interesting to look at what each account did. My trading account had a return of 27.90%, my TFSA account had a return of 9.32%, my RIF Account had a return of 31.97% and my LIF account had a return of 38.74%.

What is interesting is that TFSA account is my fooling around money and it made the lowest return. My LIF account has been interesting also because I had two large sums to invest because of pension money I received when I left jobs. It has always varied a lot against the TSX.

I think that my RIF and LIF did better than my Trading Account because, I take money from my trading account during the year, but only take money out of my RIF and LIFE at the end of each year. When I transfer money from the RIF and LIF, half is in cash (mainly to pay tax) and half is in stock. However, I do have a larger percentage of cash in my RIF and LIF accounts.

I get from TD WebBroker, each year what they consider my return on each account. However, I do not agree with all their values. Mostly, I disagree with the values they start with. (I do go back and check my figures against old statements.) I do take into account items posted in January for December. I do not know where they get some of their starting value from. However, the returns they get and the ones I get do not vary by any significant amount.

On my other blog I wrote yesterday about National Bank of Canada (TSX-NA, OTC-NTIOF) ... learn more. Next, I will write Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM) ... learn more on Friday, January 21, 2022 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.

Best Canadian Banks

Dan Kent on Stock Trades Canada gives his 6 best Canadian Bank Stocks for December 2021. (There are advertisements on this site, just click on the X in the top right corner of the ad to make them disappear.)

They are:

1. Goeasy Ltd (TSX-GSY)
2. Canadian Imperial Bank of Commerce (TSX-CM)
3. Bank of Montreal (TSX-BMO)
4. Toronto Dominion Bank (TSX-TD)
5. National Bank (TSX-NA)
6. The Royal Bank of Canada (TSX-RY)

Personally, I own BMO, TD and RY. I would not buy Goeasy as I do not like their business model.

On my other blog I wrote yesterday about Bank of Nova Scotia (TSX-BNS, NYSE-BNS) ... learn more. Next, I will write about National Bank of Canada (TSX-NA, OTC-NTIOF) ... learn more on Wednesday, January 19, 2022 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.

Good News from 2021

Here is some Good News from 2021 on Future Crunch. Future Crunch is a site that talks about only the good news that is happening around the world. It is worth while reading. You do not always and only want to read “if it bleeds, it leads” sort of news. You can sign up for a monthly newsletter from Future Crunch.

This publication talks about good news in health, which is mainly vaccines, but not just for covid, but for things like malaria which still kills a lot of people each year. There is an article on new conservations areas like the creation of the North-Atlantic Current and Evlanov Sea Basin, a vast, protected area off the south west coast of Ireland.

Another article talks about the extension of abortion rights in some countries. An article talks about recent wins for democracy. Also, another article talks about recently efforts to clean energy. They also have an article on animal rights and about how some animals are being legally recognized as sentient beings.

On my other blog I wrote yesterday about Calian Group Ltd (TSX-CGY, OTC-CLNFF) ... learn more. Next, I will write about Toronto Dominion Bank (TSX-TD, NYSE-TD) ... learn more on Friday, January 14, 2022 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.

Retirement Etc.

There are lots of books and information for the young about saving for retirement. I am reading another just published called Rule of 30 By Frederick Vettese. However, I feel people are missing a really big point and that is how do you want to live your life considering you can live a long time, especially after our current retirement age of 65.

Personally, I think we should do away with “Retirement”. I do not think that it makes sense anymore because we are living so much longer. So, you work from 20 or 25 to 65 and save to retire at 65. Then, what do you do? I want to travel is what a lot of people say.

I think what people need to ask themselves is how are you still going to be a productive member of your society all your life. I have talked to a number of retirees that got bored with retirement and so they get a part-time job or do charity work. Although, I must admit a number of people had planned on doing charity work after retirement.

Never before in history has there been so many older people in a society. Nor have so many people collected so much in savings. In the past the dependent population has always been the young, but not anymore. Now we potentially have large portion of the population of retired old people and some have large savings, mostly in pension vehicles. But are they going to continue to contribute to society? I hope so.

If you look at statistic of retirees that retire and do nothing, they are in very poor physical and mental health after 5 years. What they need to do is walk, exercise, socialize and find some way to contribute to society. I must admit I stopped working at a traditional job when I was 54 as I had enough savings that I did not need to have a job.

What I do is try to walk 1 to 2 hours a day, exercise 5 days a week, and socialize. I socialize by belonging to a few clubs and meetup groups. I belong to a Probus group Probus group and UKC. I have also joined a number of groups in Meetup. Probus has an annual fee around $40 to $60 a year. UKC charges nothing to join but charges $5 for each event you go to. Meetup is free to join as are most group, but most group charge $2 to $5 per event as the organizers have to pay meetup.

Hopefully I do contribute to society. I think that blogging does contribute to society. I do not monetize my site, but people that do are still contributing to society. I also organize events and parties for people I know.

Another thing about getting older is keeping in touch with friends and family. You also have to be open to making new friends. A good book to read about this subject is You Could Live a Long Time, Are You Ready by Lyndsay Green.

People who retire sometimes believe they have friends at work. However, if you have not socialized outside of work with your work friends, you really do not have work friends. The other thing is that as you get older you lose both friends and family. People die, move away, or become incapacitated somehow so they cannot really socialize or go out much.

Now getting back to the topic of “Retirement”. We are going to live a long time. We need to restructure our lives so that we take time out for traveling, retraining, re-education during our lives. To save all your life to get to a set age and then stop no longer makes sense. I think that this is just old fashion thinking. We need to have full and meaningful living as long as we live.

On my other blog I wrote yesterday about Rogers Sugar Inc (TSX-RSI, OTC-RSGUF) ... learn more. Next, I will write about Calian Group Ltd (TSX-CGY, OTC-CLNFF) ... learn more on Wednesday, January 12, 2022 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 January 2022

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 January 2022 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 22 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.

Eight (36%) 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), High Liner Foods (TSX-HLF, OTC-HLNFF), Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF), 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). There is no change from last month.

I now follow 13 Consumer Staples stocks. KP Tissue Inc (TSX-KPT, NYSE-KPTSF); Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF) and Waterloo Brewing Ltd (TSX-WBR, OTC-BIBLF) have been added to this list from last month. No stock (0%) is showing as cheap by the historically high dividend yield. Saputo Inc. (TSX-SAP, OTC-SAPIF) has been removed from this list.

Eight stocks (62%) 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), KP Tissue Inc (TSX-KPT, NYSE-KPTSF), Lassonde Industries (TSX-LAS.A, OTC-LSDAF), Loblaw Companies (TSX-L, OTC-LBLCF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Metro Inc (TSX-MRU, OTC-MTRAF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). KP Tissue Inc (TSX-KPT, NYSE-KPTSF), and Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF) have been added to this list.

I follow Six Health Care stocks. Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none) has been added to this list. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.

Three stocks (50%) 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). Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF) has been removed from this list.

I follow 9 Energy stocks. One stock (11%) is showing as cheap by the historical high dividend yield. It is Suncor Energy (TSX-SU, NYSE-SU). 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), and Suncor Energy (TSX-SU, NYSE-SU). Mullen Group (TSX-MTL, OTC-MLLGF) has been removed from this list.

I follow 26 Financial stocks under the categories of Banks (8), Financial Services (13), and Insurance (5).

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 (38%) 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). CIBC (TSX-CM, NYSE-CM) has been removed from this list.

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.

Four stocks (31%) are showing as cheap by the historical median dividend yield. These stocks are AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), 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. PFB Corp (TSX-PFB, OTC-PFBOF) has been removed from this list as it was bought out. 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 stock (0%) is showing as cheap by the historically high dividend yield. Aecon Group Inc (TSX-ARE, OTC-AEGXF) has been removed from this list.

One stock (14%) is showing as cheap by historical median dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF) has been removed from this list.

I have 3 stocks 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 6 Manufacturing stocks. PFB Corp (TSX-PFB, OTC-PFBOF) has been removed from this list as it was bought out. None of these 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 Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). There is no change from last month.

I follow 16 Services stocks. One of these stocks (6.25%) is showing as cheap by the historically high dividend yield. It is Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF). There is no change from last month.

Four stock (25%) are showing as cheap by historical median dividend yield. They are Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF) and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). There is no 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.

Three stock (30%) are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), 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.

One stocks (10%) is showing as cheap by historical median dividend yield. It is Melcor Developments Inc. (TSX-MRD, OTC-MODVF). SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) has been removed from this list.

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.

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 7 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 (22%) are showing as cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), and Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN) has been removed from this list.

On my other blog I wrote yesterday about Bank of Montreal (TSX-BMO, NYSE-BMO) ... learn more. Next, I will write about Royal Bank of Canada (TSX-RY, NYSE-RY) ... learn more on Friday, January 07, 2022 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 January 2022

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 January 2022.

On this list,

• I have 4 stocks with a dividend yield higher than the historical high dividend yield,
• I have 33 stocks with a dividend yield higher than the historical average dividend yield
• I have 52 stocks with a dividend yield higher than the historical median dividend yield and
• 54 stocks with a dividend yield higher than the 10 year median dividend yield.

When I did my list last list in December 2021,

• I have 6 stocks with a dividend yield higher than the historical high dividend yield,
• I have 35 stocks with a dividend yield higher than the historical average dividend yield
• I have 57 stocks with a dividend yield higher than the historical median dividend yield and
• 59 stocks with a dividend yield higher than the 10 year median 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 median dividend yield.

If you had one share of each stock, total dividends last month would be $181.85. This month dividends would be $174.04. It can vary as because some stocks are paid in US$ and so this figure is affected by currency exchange. Of the stock that I follow 8 stocks has raised their dividends since last month.

AltaGas Ltd (TSX-ALA, OTC-ATGFF)
Bank of Montreal (TSX-BMO, NYSE-BMO)
Crescent Point Energy Corp (TSX-CPG, NYSE-CPG)
Enbridge Inc (TSX-ENB, NYSE-ENB)
Granite REIT (TSX-GRT.UN, NYSE-GRP.U)

Power Corp (TSX-POW, OTC-PWCDF)
TFI International Inc (TSX-TFII, OTC-TFIFF)
Waterloo Brewing Ltd (TSX-WBR, OTC-BIBLF)

Of the stocks I follow, 1 stock have cut their dividends.

Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF)

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

AltaGas Ltd (TSX-ALA, OTC-ATGFF) on December 3, 2021 announced that the dividends will be going quarterly from 2022 in March, June, September, and December. They also increased the dividends 6%. It is being interpreted that way. See the press release.

Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF) notes on dividend changes implies a decrease in dividends by 66%. This is at least the way some sites are interpreting their dividend changes. It could also be that they have not decreased their dividends. We will have to see how things work out. See the press release.

PFB Corp (TSX-PFB, OTC-PFBOF) is to be acquired by Riverside. See the press release. It has been delisted from the TSX.

New and Deleted stocks. I have added 3 stocks of KP Tissue Inc (TSX-KPT, NYSE-KPTSF); Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF) and Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none). I have deleted one stock of PFB Corp (TSX-PFB, OTC-PFBOF).

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	-15.50%
Ritchie Bros Auctioneers	TSX	RBA	NYSE	RBA	-11.95%
Enghouse Systems	TSX	ENGH	OTC	EGHSF	-9.00%
Ballard Power Systems	TSX	BLDP	NASDAQ	BLDP	-6.31%
Canadian National	TSX	CNR	NYSE	CNI	-5.45%
K-Bro Linen Inc	TSX	KBL	OTC	KBRLF	-5.00%
Equitable Group Inc	TSX	EQB	OTC	EQGPF	-4.75%
Pulse Seismic Inc.	TSX	PSD	OTC	PLSDF	-3.95%
CI Financial	TSX	CIX	NYSE	CIXX	-3.78%
Goodfellow Inc	TSX	GDL	OTC	GFELF	-3.63%

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

Name	Exch	Sym	Exch	Sym	Chge SP
Pason Systems Inc.	TSX	PSI	OTC	PSYTF	15.28%
Teck Resources Ltd	TSX	TECK.B	NYSE	TECK	15.58%
Neighbourly Pharmacy	TSX	NBLY	OTC	none	15.64%
Crescent Point Energy	TSX	CPG	NYSE	CPG	18.63%
Obsidian Energy Ltd	TSX	OBE	OTC	OBELF	19.50%
North West Company	TSX	NWC	OTC	NWTUF	22.12%
Maxar Technologies Ltd	TSX	MAXR	NYSE	MAXR	39.79%
Great-West Lifeco Inc	TSX	GWO	OTC	GWLIF	39.87%
Reitmans (Canada) Ltd	TSX	RET.A	OTC	RTMAF	62.02%
FirstService Corp	TSX	FSV	NASDAQ	FSV	72.37%

Most of my stocks started out as Dividend Payers. Currently 16 stocks are not paying any dividends and this would be some 10.19% of the stocks that I follow. Three of these stocks never had dividends, so 8.28% 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 Metro Inc (TSX-MRU, OTC-MTRAF) ... learn more. Next, I will write about Bank of Montreal (TSX-BMO, NYSE-BMO) ... learn more on Wednesday, January 5, 2022 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.