I own some 51 different stocks. My main account (my Trading Account) holds some 35 stocks. It is set up to provide income for me. My fooling around money is in my TFSA account with 13 stocks only of which 2 overlap with my Trading Account. I have an RSP account which overlap a lot with my trading account. However, there are different ones in my Locked-In RSP account because I invested in stock when I received large sums of money from Pension Plans when I left companies I worked for.
I do know there is a rule of thumb about only investing in 20 to 25 stocks. However, it is a rule of thumb only. I am investing for income in my Trading Account. I am going to have quite a different selection in my TFSA account because I am just fooling around with some small and/or interesting companies. It is important to know the reason for your investment in certain categories.
I currently do not own US or foreign stocks. I am been investing since the last 1970 and I have invested in a lot of different vehicles. In the past I own Mutual Funds (mortgage, US, Canadian, foreign, and bonds types), Bonds, US, and foreign stocks. Some of this stuff I did ok with and some not.
My results were quite a mixed bag. I got out of US and Foreign stocks because it was mostly overall that I was not making much in US and Foreign stocks. (Although I had two US stock that went bankrupt and I did not see that coming. A little disconcerting.) I did better in the foreign individual stocks I had than in the foreign stocks Mutual Funds.
My experience made me concentrate on Canadian stocks. I still do have foreign exposure as there are a number of Canadian companies that are large and do business outside of Canada. I found that I got the best advice from two sources. One was a website run by Mike Higgs. He had an early web site and was a blogger who specialized in Canadian Dividend Growth stocks. He is now decreased. The other great source of information for me was the Investment Report investment newsletter from MPL Communications. Their site is here.
I got out of Bonds in 2007. The last bond I had was a 30 year CIBC bond paying 10% interest. Bonds have not been paying much for quite some time now. I got into bonds when the interest rates were very high.
My concentration now is on Dividend Growth stocks for income, plus some fun with my TFSA. On my web site I show an index spreadsheet. It shows what I own and what I cover.
On my other blog I wrote yesterday about Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF) ... learn more. Next, I will write about ARC Resources Ltd (TSX-ARX, OTC-AETUF) ... learn more on Friday, February 25, 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.
Thursday, February 24, 2022
Tuesday, February 22, 2022
Saving
Even though I think that saving for retirement is not the way to go because we need to get past the mind set of saving money for a certain magical day, when we spend it. See my entry on Retirement Etc of Tuesday, February 11, 2022. However, I think that having savings is a very good idea. I look at money as freedom.
I did save for my future and I was able to live off my dividends and not have a traditional job after age 54. However, there were lots of benefits along the way. The biggest one I noticed was that in the 1990’s when my company decided to downsize, I was not nearly as stress out as my co-workers. I know that I had a pot of money I could use if I did lose my job. I have never lived from pay cheque to pay cheque. That can be a very stressful way to live.
Savings and investing can provide you with a second stream of income. This is a very important point. A second stream of income can provide some backup and security if you main stream of income (like you job) becomes unstable for whatever reason.
You have to enjoy life now as well as put some money aside for the future. This is because we never know what sort of a future we will have. Look at the problems people are having with working at the present time. Also, for a lot of people working full time is not an option because of the lockdowns. I would never have been happy to draw down the money I was investing, but if it was necessary, it would have been there for me.
On my other blog I wrote yesterday about Manulife Financial Corp (TSX-MFC, NYSE-MFC) ... learn more. Next, I will write about Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF) ... learn more on Wednesday, February 23, 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.
I did save for my future and I was able to live off my dividends and not have a traditional job after age 54. However, there were lots of benefits along the way. The biggest one I noticed was that in the 1990’s when my company decided to downsize, I was not nearly as stress out as my co-workers. I know that I had a pot of money I could use if I did lose my job. I have never lived from pay cheque to pay cheque. That can be a very stressful way to live.
Savings and investing can provide you with a second stream of income. This is a very important point. A second stream of income can provide some backup and security if you main stream of income (like you job) becomes unstable for whatever reason.
You have to enjoy life now as well as put some money aside for the future. This is because we never know what sort of a future we will have. Look at the problems people are having with working at the present time. Also, for a lot of people working full time is not an option because of the lockdowns. I would never have been happy to draw down the money I was investing, but if it was necessary, it would have been there for me.
On my other blog I wrote yesterday about Manulife Financial Corp (TSX-MFC, NYSE-MFC) ... learn more. Next, I will write about Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF) ... learn more on Wednesday, February 23, 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.
Thursday, February 17, 2022
Family and Friendship
Having contact and relationships with family members or friends is very important in life, especially if you live in a city. Sometimes this can be better than money in the bank. Your connection to others can really help you out in time of need.
At one period in my life, I was a single mom and working. I do not know what I would have done without my family and friends to help me out. My in-laws took my son to their place when he was sick. They also picked him up when the daycare phoned and told me I had to pick him up because they thought he was sick. Friends also pick my son up from school when I had an appointment after work. I found people to look after my son on November 11 and Easter Monday when the daycare was closed and schools and offices were not. I do not know how some of the other single working moms managed, because some of them had no one.
Also, a friend of mine was living with her boyfriend. After they were living together for a while, he became abusive and she needed to leave. I went with her to collect her stuff. She came to stay at my place until got resettled in a place of her own. I took her in because she was a friend and I knew her well.
You may give money to someone you feel sorry for on the street. However, you do not invite them into your home, and especially not into your home to stay for a while.
You may not have relatives living in your city. However, you can make great friends anywhere. You just need to get involved. And there are lots of ways of getting involved. You can do charity work or volunteer work; you can join a club and you can join meetup.
When I first came back to Toronto, all the way from Thornhill, I joined a number of clubs to do sports. I joined a skiing club, a sailing club, a tennis club, and a squash club. Some of these are still around. One was Voyageurs Ski Club. Another was High Park Ski Club. I went sailing with North Toronto Sailing club that is now the Island Sailing Club. These are the clubs that I met people that I am still friends with.
I have joined a number of groups at Meetup and have met very nice people there. Meetup is relatively new being only started some 20 years ago in New York city. Meetup groups are doing more things than just walking with some covid restrictions being lifted. Some are doing Zoom meetings until they can go back to other activities. For retirees, there are Probus Clubs. There are lots of them all over Ontario. I have also met a lot of great people UK Connexion.
On my other blog I wrote yesterday about Allied Properties Real Estate Investment Trust (TSX-AP.UN, OTC-APYRF) ... learn more. Next, I will write about Intact Financial Corp (TSX-IFC, OTC-IFCZF) ... learn more on Friday, February 18, 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.
At one period in my life, I was a single mom and working. I do not know what I would have done without my family and friends to help me out. My in-laws took my son to their place when he was sick. They also picked him up when the daycare phoned and told me I had to pick him up because they thought he was sick. Friends also pick my son up from school when I had an appointment after work. I found people to look after my son on November 11 and Easter Monday when the daycare was closed and schools and offices were not. I do not know how some of the other single working moms managed, because some of them had no one.
Also, a friend of mine was living with her boyfriend. After they were living together for a while, he became abusive and she needed to leave. I went with her to collect her stuff. She came to stay at my place until got resettled in a place of her own. I took her in because she was a friend and I knew her well.
You may give money to someone you feel sorry for on the street. However, you do not invite them into your home, and especially not into your home to stay for a while.
You may not have relatives living in your city. However, you can make great friends anywhere. You just need to get involved. And there are lots of ways of getting involved. You can do charity work or volunteer work; you can join a club and you can join meetup.
When I first came back to Toronto, all the way from Thornhill, I joined a number of clubs to do sports. I joined a skiing club, a sailing club, a tennis club, and a squash club. Some of these are still around. One was Voyageurs Ski Club. Another was High Park Ski Club. I went sailing with North Toronto Sailing club that is now the Island Sailing Club. These are the clubs that I met people that I am still friends with.
I have joined a number of groups at Meetup and have met very nice people there. Meetup is relatively new being only started some 20 years ago in New York city. Meetup groups are doing more things than just walking with some covid restrictions being lifted. Some are doing Zoom meetings until they can go back to other activities. For retirees, there are Probus Clubs. There are lots of them all over Ontario. I have also met a lot of great people UK Connexion.
On my other blog I wrote yesterday about Allied Properties Real Estate Investment Trust (TSX-AP.UN, OTC-APYRF) ... learn more. Next, I will write about Intact Financial Corp (TSX-IFC, OTC-IFCZF) ... learn more on Friday, February 18, 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.
Tuesday, February 15, 2022
Stocks for 2022
Dan Kent on Stocks Trades talk about 10 of the Best Canadian Stocks to Buy in 2022. His picks are below. Read his article to find out why he picks these stocks.
Pollard Banknote (TSE:PBL)
Shopify (TSE:SHOP)
Telus (TSE:T)
TFI International (TSE:TFII)
Parkland Fuels (TSE:PKI)
Goeasy Ltd (TSE:GSY)
Algonquin Power and Utilities (TSE:AQN)
Canadian Natural Resources (TSE:CNQ)
Nuvei (TSE:NVEI)
Royal Bank of Canada (TSE:RY)
On my other blog I wrote yesterday about Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) ... learn more. Next, I will write Allied Properties Real Estate Investment Trust (TSX-AP.UN, OTC-APYRF) ... learn more on Wednesday, February 16, 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.
Pollard Banknote (TSE:PBL)
Shopify (TSE:SHOP)
Telus (TSE:T)
TFI International (TSE:TFII)
Parkland Fuels (TSE:PKI)
Goeasy Ltd (TSE:GSY)
Algonquin Power and Utilities (TSE:AQN)
Canadian Natural Resources (TSE:CNQ)
Nuvei (TSE:NVEI)
Royal Bank of Canada (TSE:RY)
On my other blog I wrote yesterday about Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) ... learn more. Next, I will write Allied Properties Real Estate Investment Trust (TSX-AP.UN, OTC-APYRF) ... learn more on Wednesday, February 16, 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.
Thursday, February 10, 2022
Great Rally of 2021
Greg Schnell of Stock Charts talks about what a great year 2021 was for the market. Vaccine names like Moderna (MRNA) did good if you were careful about your entry and exit points. However, a number of stocks sectors and stocks got hit. Among the stocks was Peloton, and Zoom. Also, the SPAC, biotech, electric vehicles, payment systems, and renewable energy sectors got stuck.
On my other blog I wrote yesterday about Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more. Next, I will write about AGF Management Ltd (TSX-AGF.B, OTC-AGFMF) ... learn more on Friday, February 11, 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.
On my other blog I wrote yesterday about Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more. Next, I will write about AGF Management Ltd (TSX-AGF.B, OTC-AGFMF) ... learn more on Friday, February 11, 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.
Tuesday, February 8, 2022
Banks and Ratios 2
What I want to look at today is the relative stock price using different criterion between last year when I reviewed the banks and this year. Since I published Banks and Ratios in January, all the bank’s stock prices have gone up. This entry uses the most recent prices.
I will start off with my favourite measure of for determining if the current stock price is relatively good or not. My favourite measure is to compare the current dividend yield with the historical dividend yield. The last column shows difference between the current dividend yield and the historical median dividend yield. What you want is a current dividend yield equal to or above the historical median dividend yield.
In 2022 all but the BNS has a dividend yield below the historical median dividend yields. They are all within the reasonableness range. On this basis the BNS is relatively cheaper than all the other banks.
In 2021 National Bank had a dividend yield below the historical median dividend yields, but still within a reasonable range. All the rest had dividend yields above the historical median dividend yields and therefore reasonable. Also, both BNS and TD Bank are showing the stock price as cheap.
The next checking of the stock price I will look at is using the Price/Sales Ratio. Here for a reasonable or cheap stock price you want the current P/S Ratio to be lower than the 10 year median ratio.
In 2022 only BNS has a P/S Ratio within the reasonableness range. All the other banks are showing that the stock price is expensive based on P/S Ratio testing as all the current P/S Ratios are more than 20% above the 10 year median P/S Ratio.
In 2021 only BNS had ratios lowered than the 10 year ratio. The rest have stock price that are reasonable, but above the median. BMO, BNS, National Bank and TD Bank are all relatively cheaper in 2021 than in 2020.
The next checking of the stock price I will look at is using the Price/Book Value per Share Ratio. Here you want the current P/B Ratio to be lower than the 10 year median P/B. Ratio. Here the last column shows how much above or below the current P/B Ratio is compared to the 10 year median P/B Ratio.
For this test in 2022, BNS, CIBC and RY are showing a stock price still within the reasonableness range. BMO, NA and TD are showing the stock price as relatively expensive as their current P/B Ratio is more than 20% higher than the 10 year median P/B Ratio.
In this test for 2021, the banks of BNS, CIBC showed a price that was relatively cheap. For BMO, Royal Bank and TD the price is relatively reasonable and below the median. For National Bank the price is relatively reasonable but above the median. Bank of Montreal, Royal Bank, National Bank and TD Bank are all relatively cheaper in 2021 compared to 2020.
In another test I look at the Price/Graham Price Ratio compared to the 10 year median P/GP Ratio. You want the current P/GP Ratio to be lower than the 10 year median P/GP Ratio. Here again the last column says how much the current P/GP Ratio is above or below the 10 year median P/GP Ratio.
In 2022, the banks of BNS, and CIBC are showing within the reasonableness range as the current P/GP Ratio is less than 20% above the 10 year median P/GP Ratio. The other banks are showing as expensive.
In 2021, BMO, BNS, CIBC, and TD Bank are all showing current P/GP Ratios lower than 10 year median P/GP ratios. These banks are showing stock prices that are reasonable and below the median. The Royal Bank and National Bank are showing stock prices that are reasonable, but above the median. BMO and National Bank are relatively cheaper in 2021 compared to 2020.
The last test on stock price test to look at is to compare the current Price/Earnings Ratio to the 10 year median P/E Ratio.
In 2022, the CIBC bank is showing as expensive as it has an EPS Ratio more than 20% above the 10 year median P/E Ratio. The other banks are still within the reasonableness range as their P/E Ratios are less than 20% above the 10 year median ratio.
In 2021, by this criterion, BMO stock price is relatively the lowest. For all the stocks but the stock prices are showing as reasonable but above the median.
On my other blog I wrote yesterday about Canadian National Railway (TSX-CNR, NYSE-CNI) ... learn more. Next, I will write about Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more on Wednesday, February 9, 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 will start off with my favourite measure of for determining if the current stock price is relatively good or not. My favourite measure is to compare the current dividend yield with the historical dividend yield. The last column shows difference between the current dividend yield and the historical median dividend yield. What you want is a current dividend yield equal to or above the historical median dividend yield.
In 2022 all but the BNS has a dividend yield below the historical median dividend yields. They are all within the reasonableness range. On this basis the BNS is relatively cheaper than all the other banks.
| Bank 2022 | Symbol | Price | Dividend | Yield | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $150.04 | $5.32 | 3.55% | -15.78% |
| Bank of Nova Scotia | BNS | $94.48 | $4.00 | 4.23% | 2.76% |
| CIBC | CM | $166.52 | $6.44 | 3.87% | -13.09% |
| Royal Bank | RY | $147.14 | $4.80 | 3.26% | -15.71% |
| National Bank | NA | $103.75 | $3.48 | 3.35% | -15.72% |
| TD Bank | TD | $107.41 | $3.56 | 3.31% | -5.30% |
In 2021 National Bank had a dividend yield below the historical median dividend yields, but still within a reasonable range. All the rest had dividend yields above the historical median dividend yields and therefore reasonable. Also, both BNS and TD Bank are showing the stock price as cheap.
| Bank 2021 | Symbol | Price | Dividend | Yield | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $97.60 | $4.24 | 4.34% | 1.26% |
| Bank of Nova Scotia | BNS | $69.40 | $3.60 | 5.19% | 26.21% |
| CIBC | CM | $111.06 | $5.84 | 5.26% | 18.97% |
| Royal Bank | RY | $107.36 | $4.32 | 4.02% | 2.65% |
| National Bank | NA | $73.55 | $2.84 | 3.86% | -3.95% |
| TD Bank | TD | $73.58 | $3.16 | 4.29% | 22.70% |
The next checking of the stock price I will look at is using the Price/Sales Ratio. Here for a reasonable or cheap stock price you want the current P/S Ratio to be lower than the 10 year median ratio.
In 2022 only BNS has a P/S Ratio within the reasonableness range. All the other banks are showing that the stock price is expensive based on P/S Ratio testing as all the current P/S Ratios are more than 20% above the 10 year median P/S Ratio.
| Bank 2022 | Symbol | Price | Rev / Share | P/S Ratio | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $150.04 | $41.38 | 3.63 | 45.04% |
| Bank of Nova Scotia | BNS | $94.48 | $26.58 | 3.55 | 15.41% |
| CIBC | CM | $166.52 | $47.58 | 3.50 | 32.57% |
| Royal Bank | RY | $147.14 | $34.79 | 4.23 | 35.56% |
| National Bank | NA | $103.75 | $28.11 | 3.69 | 30.88% |
| TD Bank | TD | $107.41 | $22.99 | 4.67 | 48.01% |
In 2021 only BNS had ratios lowered than the 10 year ratio. The rest have stock price that are reasonable, but above the median. BMO, BNS, National Bank and TD Bank are all relatively cheaper in 2021 than in 2020.
| Bank 2021 | Symbol | Price | Rev/Share | P/S Ratio | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $97.60 | $36.58 | 2.67 | 6.72% |
| Bank of Nova Scotia | BNS | $69.40 | $24.99 | 2.78 | -13.75% |
| CIBC | CM | $111.06 | $42.35 | 2.62 | 3.87% |
| Royal Bank | RY | $107.36 | $32.00 | 3.36 | 11.46% |
| National Bank | NA | $73.55 | $24.52 | 3.00 | 7.83% |
| TD Bank | TD | $73.58 | $21.62 | 3.40 | 7.82% |
The next checking of the stock price I will look at is using the Price/Book Value per Share Ratio. Here you want the current P/B Ratio to be lower than the 10 year median P/B. Ratio. Here the last column shows how much above or below the current P/B Ratio is compared to the 10 year median P/B Ratio.
For this test in 2022, BNS, CIBC and RY are showing a stock price still within the reasonableness range. BMO, NA and TD are showing the stock price as relatively expensive as their current P/B Ratio is more than 20% higher than the 10 year median P/B Ratio.
| Bank 2022 | Symbol | Price | BVPS | Current P/B | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $150.04 | $80.18 | 1.87 | 35.60% |
| Bank of Nova Scotia | BNS | $94.48 | $53.28 | 1.77 | 11.53% |
| CIBC | CM | $166.52 | $91.66 | 1.82 | 12.14% |
| Royal Bank | RY | $147.14 | $65.22 | 2.26 | 18.12% |
| National Bank | NA | $103.75 | $47.06 | 2.20 | 25.26% |
| TD Bank | TD | $107.41 | $51.60 | 2.08 | 30.92% |
In this test for 2021, the banks of BNS, CIBC showed a price that was relatively cheap. For BMO, Royal Bank and TD the price is relatively reasonable and below the median. For National Bank the price is relatively reasonable but above the median. Bank of Montreal, Royal Bank, National Bank and TD Bank are all relatively cheaper in 2021 compared to 2020.
| Bank 2021 | Symbol | Price | BVPS | Curr P/B | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $97.60 | $79.34 | 1.23 | -12.76% |
| Bank of Nova Scotia | BNS | $69.40 | $51.85 | 1.34 | -21.27% |
| CIBC | CM | $111.06 | $83.67 | 1.33 | -25.01% |
| Royal Bank | RY | $107.36 | $56.86 | 1.89 | -3.67% |
| National Bank | NA | $73.55 | $38.91 | 1.89 | 7.40% |
| TD Bank | TD | $73.58 | $49.80 | 1.48 | -8.23% |
In another test I look at the Price/Graham Price Ratio compared to the 10 year median P/GP Ratio. You want the current P/GP Ratio to be lower than the 10 year median P/GP Ratio. Here again the last column says how much the current P/GP Ratio is above or below the 10 year median P/GP Ratio.
In 2022, the banks of BNS, and CIBC are showing within the reasonableness range as the current P/GP Ratio is less than 20% above the 10 year median P/GP Ratio. The other banks are showing as expensive.
| Bank 2022 | Symbol | Price | Graham Pr | P/GP Ratio | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $150.04 | $150.76 | 1.00 | 21.37% |
| Bank of Nova Scotia | BNS | $94.48 | $99.57 | 0.95 | 11.63% |
| CIBC | CM | $166.52 | $168.09 | 0.99 | 20.81% |
| Royal Bank | RY | $147.14 | $127.63 | 1.15 | 17.64% |
| National Bank | NA | $103.75 | $97.73 | 1.06 | 22.02% |
| TD Bank | TD | $107.41 | $95.65 | 1.12 | 22.06% |
In 2021, BMO, BNS, CIBC, and TD Bank are all showing current P/GP Ratios lower than 10 year median P/GP ratios. These banks are showing stock prices that are reasonable and below the median. The Royal Bank and National Bank are showing stock prices that are reasonable, but above the median. BMO and National Bank are relatively cheaper in 2021 compared to 2020.
| Bank 2021 | Symbol | Price | Graham Pr | P/GP Ratio | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $97.60 | $122.53 | 0.80 | -4.03% |
| Bank of Nova Scotia | BNS | $69.40 | $83.88 | 0.83 | -5.98% |
| CIBC | CM | $111.06 | $139.92 | 0.79 | -8.77% |
| Royal Bank | RY | $107.36 | $104.95 | 1.02 | 1.28% |
| National Bank | NA | $73.55 | $75.90 | 0.97 | 10.12% |
| TD Bank | TD | $73.58 | $80.34 | 0.92 | -2.57% |
The last test on stock price test to look at is to compare the current Price/Earnings Ratio to the 10 year median P/E Ratio.
In 2022, the CIBC bank is showing as expensive as it has an EPS Ratio more than 20% above the 10 year median P/E Ratio. The other banks are still within the reasonableness range as their P/E Ratios are less than 20% above the 10 year median ratio.
| Bank 2022 | Symbol | Price | EPS Est. | Curr P/E | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $150.04 | $12.60 | 11.91 | 7.18% |
| Bank of Nova Scotia | BNS | $94.48 | $8.27 | 11.42 | 3.58% |
| CIBC | CM | $166.52 | $13.70 | 12.15 | 26.22% |
| Royal Bank | RY | $147.14 | $11.10 | 13.26 | 16.38% |
| National Bank | NA | $103.75 | $9.02 | 11.50 | 17.01% |
| TD Bank | TD | $107.41 | $7.88 | 13.63 | 18.84% |
In 2021, by this criterion, BMO stock price is relatively the lowest. For all the stocks but the stock prices are showing as reasonable but above the median.
| Bank 2021 | Symbol | Price | EPS Est. | Curr P/E | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $97.60 | $8.41 | 11.61 | 2.70% |
| Bank of Nova Scotia | BNS | $69.40 | $6.03 | 11.51 | 6.86% |
| CIBC | CM | $111.06 | $10.40 | 10.68 | 7.00% |
| Royal Bank | RY | $107.36 | $8.61 | 12.47 | 8.15% |
| National Bank | NA | $73.55 | $6.58 | 11.18 | 9.27% |
| TD Bank | TD | $73.58 | $5.76 | 12.77 | 4.97% |
On my other blog I wrote yesterday about Canadian National Railway (TSX-CNR, NYSE-CNI) ... learn more. Next, I will write about Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more on Wednesday, February 9, 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, February 3, 2022
Something to Buy February 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 February 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 follow 13 Consumer Staples stocks. One stock (7%) is showing as cheap by the historically high dividend yield. It is Saputo Inc. (TSX-SAP, OTC-SAPIF). Saputo Inc. (TSX-SAP, OTC-SAPIF) have been added to this list. Metro Inc (TSX-MRU, OTC-MTRAF) was originally added but it is a mistake.
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). There is no change from last month.
I follow Six 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.
Four stocks (67%) are cheap by the historical median dividend yield. The stocks are HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT), and Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none). Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none) has been added to 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 three stocks (22%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). Mullen Group (TSX-MTL, OTC-MLLGF) has been added back to 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). 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.
Six stocks (46%) are showing as cheap by the historical median dividend yield. These stocks are Accord Financial Corp (TSX-ACD, OTC-ACCFF), AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). Accord Financial Corp (TSX-ACD, OTC-ACCFF), and Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF) has been added to 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 33 Industrial stocks. Algoma Central Corporation (TSX-ALC, OTC-AGMJF) has been added to this as I am now following this stock. 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. There is no change from last month.
Two stock (29%) are showing as cheap by historical median dividend yield. They are Aecon Group Inc (TSX-ARE, OTC-AEGXF) and Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF). Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF) has been added back to 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. 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 17 Services stocks. Algoma Central Corporation (TSX-ALC, OTC-AGMJF) has been added to this as I am now following this stock. 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.
Six stock (35%) are showing as cheap by historical median dividend yield. They are Algoma Central Corporation (TSX-ALC, OTC-AGMJF), Canadian National Railway (TSX-CNR, NYSE-CNI), 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). Algoma Central Corporation (TSX-ALC, OTC-AGMJF), and Canadian National Railway (TSX-CNR, NYSE-CNI) were 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.
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.
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). SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) has been added back to 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.
Four stock (40%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF), Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF), Evertz Technologies (TSX-ET, OTC-EVTZF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF) has been added to this list.
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.
Three stocks (33%) are showing as cheap by historical median dividend yield. Those stocks are Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN), ATCO Ltd (TSX-ACO.X, OTC-ACLLF), and Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN) has added back to this list.
On my other blog I wrote yesterday about Exco Technologies Ltd (TSX-XTC, OTC-EXCOF) ... learn more. Next, I will write about Absolute Software Corporation (TSX-ABST, NASDAQ-ABST) ... learn more on Friday, February 4, 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.
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 February 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 follow 13 Consumer Staples stocks. One stock (7%) is showing as cheap by the historically high dividend yield. It is Saputo Inc. (TSX-SAP, OTC-SAPIF). Saputo Inc. (TSX-SAP, OTC-SAPIF) have been added to this list. Metro Inc (TSX-MRU, OTC-MTRAF) was originally added but it is a mistake.
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). There is no change from last month.
I follow Six 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.
Four stocks (67%) are cheap by the historical median dividend yield. The stocks are HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT), and Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none). Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none) has been added to 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 three stocks (22%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). Mullen Group (TSX-MTL, OTC-MLLGF) has been added back to 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). 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.
Six stocks (46%) are showing as cheap by the historical median dividend yield. These stocks are Accord Financial Corp (TSX-ACD, OTC-ACCFF), AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). Accord Financial Corp (TSX-ACD, OTC-ACCFF), and Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF) has been added to 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 33 Industrial stocks. Algoma Central Corporation (TSX-ALC, OTC-AGMJF) has been added to this as I am now following this stock. 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. There is no change from last month.
Two stock (29%) are showing as cheap by historical median dividend yield. They are Aecon Group Inc (TSX-ARE, OTC-AEGXF) and Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF). Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF) has been added back to 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. 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 17 Services stocks. Algoma Central Corporation (TSX-ALC, OTC-AGMJF) has been added to this as I am now following this stock. 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.
Six stock (35%) are showing as cheap by historical median dividend yield. They are Algoma Central Corporation (TSX-ALC, OTC-AGMJF), Canadian National Railway (TSX-CNR, NYSE-CNI), 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). Algoma Central Corporation (TSX-ALC, OTC-AGMJF), and Canadian National Railway (TSX-CNR, NYSE-CNI) were 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.
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.
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). SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) has been added back to 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.
Four stock (40%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF), Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF), Evertz Technologies (TSX-ET, OTC-EVTZF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF) has been added to this list.
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.
Three stocks (33%) are showing as cheap by historical median dividend yield. Those stocks are Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN), ATCO Ltd (TSX-ACO.X, OTC-ACLLF), and Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN) has added back to this list.
On my other blog I wrote yesterday about Exco Technologies Ltd (TSX-XTC, OTC-EXCOF) ... learn more. Next, I will write about Absolute Software Corporation (TSX-ABST, NASDAQ-ABST) ... learn more on Friday, February 4, 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.
Tuesday, February 1, 2022
Dividend Stocks February 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 February 2022.
On this list,
Accord Financial Corp (TSX-ACD, OTC-ACCFF)
Allied Properties REIT (TSX-AP.UN, OTC-APYRF)
ATCO Ltd (TSX-ACO.X, OTC-ACLLF)
Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF)
Canadian National Railway (TSX-CNR, NYSE-CNI)
Canadian Utilities Ltd (TSX-CU, OTC-CDUAF)
Manulife Financial Corp (TSX-MFC, NYSE-MFC)
Metro Inc (TSX-MRU, OTC-MTRAF)
Mullen Group (TSX-MTL, OTC-MLLGF)
Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF)
Supremex Inc (TSX-SXP, OTC-SUMXF)
Of the stocks I follow, 1 stock have cut their dividends.
H & R REIT (TSX-HR.UN, OTC-HRUFF)
Of the stocks I follow, 0 stock have suspended or terminated their dividend.
New and Deleted stocks. I have added 1 stock of Algoma Central Corporation (TSX-ALC, OTC-AGMJF) to my list of stocks.
Manulife Financial Corp (TSX-MFC, NYSE-MFC) has raised their dividend. TD WebBroker says to $1.17 (or $0.2925 a quarter), however, G&M and Motley Fool both say that it is to $1.32 (or 0.33 a quarter). I also found a Newswire announcement from Manulife saying the dividend will be $0.33 a share per quarter. I am going with $0.33 a share per quarter.
Supremex Inc (TSX-SXP, OTC-SUMXF) has reinstated their dividends . There is a notice on Yahoo Finance. This is always a good economic sign.
Last month I reported that 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. Now we know. They did not decrease their dividends, they increased them by 5%. I showed a decrease in January 2022. Now I am showing the increase in this report.
H & R REIT (TSX-HR.UN, OTC-HRUFF) has decreased their dividends for the second year in a row. Last year the decrease was 50%. This year the decrease is almost 25%. See their site and latest news.
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 15 stocks are not paying any dividends and this would be some 9.49% of the stocks that I follow. Three of these stocks never had dividends, so 7.59% 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 Shaw Communications Inc (TSX-SJR.B, NYSE-SJR) ... learn more. Next, I will write about Exco Technologies Ltd (TSX-XTC, OTC-EXCOF) ... learn more on Wednesday, February 2, 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.
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 February 2022.
On this list,
- 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 62 stocks with a dividend yield higher than the historical median dividend yield and
- 62 stocks with a dividend yield higher than the 10 year median dividend yield.
- 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.
- 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.
Accord Financial Corp (TSX-ACD, OTC-ACCFF)
Allied Properties REIT (TSX-AP.UN, OTC-APYRF)
ATCO Ltd (TSX-ACO.X, OTC-ACLLF)
Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF)
Canadian National Railway (TSX-CNR, NYSE-CNI)
Canadian Utilities Ltd (TSX-CU, OTC-CDUAF)
Manulife Financial Corp (TSX-MFC, NYSE-MFC)
Metro Inc (TSX-MRU, OTC-MTRAF)
Mullen Group (TSX-MTL, OTC-MLLGF)
Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF)
Supremex Inc (TSX-SXP, OTC-SUMXF)
Of the stocks I follow, 1 stock have cut their dividends.
H & R REIT (TSX-HR.UN, OTC-HRUFF)
Of the stocks I follow, 0 stock have suspended or terminated their dividend.
New and Deleted stocks. I have added 1 stock of Algoma Central Corporation (TSX-ALC, OTC-AGMJF) to my list of stocks.
Manulife Financial Corp (TSX-MFC, NYSE-MFC) has raised their dividend. TD WebBroker says to $1.17 (or $0.2925 a quarter), however, G&M and Motley Fool both say that it is to $1.32 (or 0.33 a quarter). I also found a Newswire announcement from Manulife saying the dividend will be $0.33 a share per quarter. I am going with $0.33 a share per quarter.
Supremex Inc (TSX-SXP, OTC-SUMXF) has reinstated their dividends . There is a notice on Yahoo Finance. This is always a good economic sign.
Last month I reported that 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. Now we know. They did not decrease their dividends, they increased them by 5%. I showed a decrease in January 2022. Now I am showing the increase in this report.
H & R REIT (TSX-HR.UN, OTC-HRUFF) has decreased their dividends for the second year in a row. Last year the decrease was 50%. This year the decrease is almost 25%. See their site and latest news.
Of the stocks I follow, the following declined the most in their stock price.
| Name | Exch | Sym | Exch | Sym | Chge SP |
|---|---|---|---|---|---|
| Trigon Metals Inc. | TSXV | TM | OTC | PNTZF | -27.76% |
| Ballard Power Systems | TSX | BLDP | NASDAQ | BLDP | -26.05% |
| Goeasy Ltd. | TSX | GSY | OTC | EHMEF | -20.79% |
| H & R REIT | TSX | HR.UN | OTC | HRUFF | -20.62% |
| FirstService Corp | TSX | FSV | NASDAQ | FSV | -20.58% |
| TECSYS Inc | TSX | TCS | OTC | TCYSF | -20.47% |
| North West Company | TSX | NWC | OTC | NWTUF | -17.76% |
| Absolute Software | TSX | ABST | NASDAQ | ABST | -17.71% |
| Neighbourly Pharmacy | TSX | NBLY | OTC | none | -16.73% |
| Maxar Technologies | TSX | MAXR | NYSE | MAXR | -16.69% |
Of the stock that I follow, these stocks gained the most in their stock price.
| Name | Exch | Sym | Exch | Sym | Chge SP |
|---|---|---|---|---|---|
| Just Energy Group Inc | TSX | JE | NYSE | JE | 14.68% |
| Cenovus Energy Inc | TSX | CVE | NYSE | CVE | 18.70% |
| Methanex Corp | TSX | MX | NASDAQ | MEOH | 19.00% |
| Dorel Industries | TSX | DII.B | OTC | DIIBF | 19.08% |
| Crescent Point Energy | TSX | CPG | NYSE | CPG | 21.04% |
| Canadian Natural Resc | TSX | CNQ | NYSE | CNQ | 21.55% |
| ARC Resources Ltd | TSX | ARX | OTC | AETUF | 22.87% |
| Trican Well Service Ltd | TSX | TCW | OTC | TOLWF | 28.16% |
| Ensign Energy Services | TSX | ESI | OTC | ESVIF | 33.33% |
| Obsidian Energy Ltd | TSX | OBE | OTC | OBELF | 74.28% |
Most of my stocks started out as Dividend Payers. Currently 15 stocks are not paying any dividends and this would be some 9.49% of the stocks that I follow. Three of these stocks never had dividends, so 7.59% 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 Shaw Communications Inc (TSX-SJR.B, NYSE-SJR) ... learn more. Next, I will write about Exco Technologies Ltd (TSX-XTC, OTC-EXCOF) ... learn more on Wednesday, February 2, 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.
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