This review on Advice for Investors talk about a stock I follow and own of Mullen Group. The article also compares this stock to Transat A. T. The article talks about how Mullen Group quality is growing well Transat A. T. is declining. I do not follow or own Transat A. T.
On my other blog I wrote yesterday about AltaGas Ltd (TSX-ALA, OTC-ATGFF) ... learn more. Next, I will write about BCE Inc (TSX-BCE, NYSE-BCE) ... learn more on Friday, April 1, 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, March 31, 2022
Tuesday, March 29, 2022
Value Investors
This article in Money Sense has some good advice for value investors.
On my other blog I wrote yesterday about TC Energy Corp (TSX-TRP, NYSE-TRP) ... learn more. Next, I will write about AltaGas Ltd (TSX-ALA, OTC-ATGFF) ... learn more on Wednesday, March 30, 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 TC Energy Corp (TSX-TRP, NYSE-TRP) ... learn more. Next, I will write about AltaGas Ltd (TSX-ALA, OTC-ATGFF) ... learn more on Wednesday, March 30, 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, March 24, 2022
Richelieu Hardware
he Investment Reporter on Advice for Investors says to buy this stock for gains and growing dividends. Read the full report to see why. This is one of my stocks and I am always interested to hear what the Investment Reporter says on different stocks.
On my other blog I wrote yesterday about Enbridge Inc (TSX-ENB, NYSE-ENB) ... learn more. Next, I will write about TransAlta Corp (TSX-TA, NSYE-TAC) ... learn more on Friday, March 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.
On my other blog I wrote yesterday about Enbridge Inc (TSX-ENB, NYSE-ENB) ... learn more. Next, I will write about TransAlta Corp (TSX-TA, NSYE-TAC) ... learn more on Friday, March 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.
Tuesday, March 22, 2022
Rights of Shareholders
An article called What Rights do Shareholders have on Money Sense is a great article for novice investors. It explains in simple language the rights of different classes of shareholders.
On my other blog I wrote yesterday about Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF) ... learn more. Next, I will write about Enbridge Inc (TSX-ENB, NYSE-ENB) ... learn more on Wednesday, March 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.
On my other blog I wrote yesterday about Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF) ... learn more. Next, I will write about Enbridge Inc (TSX-ENB, NYSE-ENB) ... learn more on Wednesday, March 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, March 17, 2022
Make Friends as An Adult
The newsletter Psyche has an interesting article called "How to make friends as an adult".
You never know what the future holds, but friends can be great when you need help. I helped out a fiend when you needed to move from an abusive relationship. That kindness was paid back in spades by all sorts of friends when I became a single mom.
As Lyndsay Green says in her book You Could Live a Long Time, Are You Ready you should try out relationships. If they do not workout, it is fine because you were only trying things out.
On my other blog I wrote yesterday about RioCan Real Estate (TSX-REI.UN, OTC-RIOCF) ... learn more. Next, I will write about H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF) ... learn more on Friday, March 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.
You never know what the future holds, but friends can be great when you need help. I helped out a fiend when you needed to move from an abusive relationship. That kindness was paid back in spades by all sorts of friends when I became a single mom.
As Lyndsay Green says in her book You Could Live a Long Time, Are You Ready you should try out relationships. If they do not workout, it is fine because you were only trying things out.
On my other blog I wrote yesterday about RioCan Real Estate (TSX-REI.UN, OTC-RIOCF) ... learn more. Next, I will write about H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF) ... learn more on Friday, March 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, March 15, 2022
Dividend All-Stars 2022
Each year Money Sense put out a list of Dividend All-Stars with a grade. The grades this year are A and B. Read their article on the Money Sense site and see what dividend stocks they feel are All-Stars for 2022. For their top 100 stocks see Money Sense.
On my other blog I wrote yesterday about Home Capital Group (TSX-HCG, OTC-HMCBF) ... learn more. Next, I will write about RioCan Real Estate (TSX-REI.UN, OTC-RIOCF) ... learn more on Wednesday, March 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.
On my other blog I wrote yesterday about Home Capital Group (TSX-HCG, OTC-HMCBF) ... learn more. Next, I will write about RioCan Real Estate (TSX-REI.UN, OTC-RIOCF) ... learn more on Wednesday, March 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, March 10, 2022
Something to Buy March 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 March 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.
Eleven (50%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), 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), Linamar Corporation (TSX-LNR, OTC-LIMAF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF), and Stingray Digital Group Inc (TSX-RAY.A). Goeasy Ltd (TSX-GSY, OTC-EHMEF), Linamar Corporation (TSX-LNR, OTC-LIMAF), and Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) were added to the list.
I follow 13 Consumer Staples stocks. No stock (0%) is showing as cheap by the historically high dividend yield. Saputo Inc. (TSX-SAP, OTC-SAPIF) has been deleted from this list.
Seven stocks (54%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), 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). Empire Company Ltd (TSX-EMP.A has been deleted from this list.
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). There is no change from last month.
I follow 9 Energy stocks. No stock (0%) is showing as cheap by the historical high dividend yield. Suncor Energy (TSX-SU, NYSE-SU) has been removed from this list.
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). There is no change from last month.
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.
Four stocks (50%) are showing as cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), Barclays PLC (LSE-BARC, NYSE-BCS), Home Capital Group (TSX-HCG, OTC-HMCBF), and Toronto Dominion Bank (TSX-TD, NYSE-TD). Barclays PLC (LSE-BARC, NYSE-BCS), and Home Capital Group (TSX-HCG, OTC-HMCBF) have been added to 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.
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), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), Equitable Group Inc (TSX-EQB, OTC-EQGPF), 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 deleted from this list. Equitable Group Inc (TSX-EQB, OTC-EQGPF) 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.
Four stocks (80%) 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), Sun Life Financial (TSX-SLF, NYSE-SLF). Sun Life Financial (TSX-SLF, NYSE-SLF) has been added to this list.
I follow 33 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 7 Construction stocks. One stock (14%) is showing as cheap by the historically high dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). Aecon Group Inc (TSX-ARE, OTC-AEGXF) has been added to this list.
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). There is no change from last month.
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. 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), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF) and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF) has been deleted from this list.
I follow 9 Material stocks. Kirkland Lake Gold (TSX-KL, NYSE-KL) has merged with Agnico Eagle Mines Limited. No stock (0%) is showing as cheap by the historically high dividend yield. Kirkland Lake Gold (TSX-KL, NYSE-KL) has been removed from this list.
Two stock (22%) are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), and Stella-Jones (TSX-SJ, OTC-STLJF). Kirkland Lake Gold (TSX-KL, NYSE-KL) has been removed from this list.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Two stocks (20%) are showing as cheap by historical median dividend yield. They are Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). There is no change from last month.
I follow 3 of the Telecom Service stocks. None of the stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Two stocks (67%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), and Shaw Communications Inc (TSX-SJR.B, NYSE-SJR). Telus Corp (TSX-T, NYSE-TU) has been removed from this list.
I follow 10 Tech stocks. No stock (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). 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.
Three 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 deleted from this list.
On my other blog I wrote yesterday about Emera Inc (TSX-EMA, OTC-EMRA) ... learn more. Next, I will write about Bombardier Inc (TSX-BBD.B, OTC-BDRBF) ... learn more on Friday, March 11, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield. However, this is just a place to start. It is a good idea to check the stock price with other tests, especially the P/S Ratio test. For other testing, like P/E Ratios, P/S Ratios, P/CF Ratios, P/BV Ratios and Price/Graham Price Ratios, you use estimates or data from the last reported financial quarter.
If a stock is showing as a buy using the dividend yield test, I usually like to verify it is a buy by doing a P/S Ratio test. Here you compare the current P/S Ratio to the 10 year median P/S Ratio. If the current P/S Ratio is lower than the 10 year median, then the stock is a buy. I note that Morningstar gives a current P/S Ratio. The 10 year median ratio is shown in my review of a stock. The 10 year median ratio in a review is good for one year from the date of review.
This historical dividend yield test does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 10 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy March 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.
Eleven (50%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), 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), Linamar Corporation (TSX-LNR, OTC-LIMAF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP), Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF), and Stingray Digital Group Inc (TSX-RAY.A). Goeasy Ltd (TSX-GSY, OTC-EHMEF), Linamar Corporation (TSX-LNR, OTC-LIMAF), and Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) were added to the list.
I follow 13 Consumer Staples stocks. No stock (0%) is showing as cheap by the historically high dividend yield. Saputo Inc. (TSX-SAP, OTC-SAPIF) has been deleted from this list.
Seven stocks (54%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), 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). Empire Company Ltd (TSX-EMP.A has been deleted from this list.
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). There is no change from last month.
I follow 9 Energy stocks. No stock (0%) is showing as cheap by the historical high dividend yield. Suncor Energy (TSX-SU, NYSE-SU) has been removed from this list.
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). There is no change from last month.
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.
Four stocks (50%) are showing as cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), Barclays PLC (LSE-BARC, NYSE-BCS), Home Capital Group (TSX-HCG, OTC-HMCBF), and Toronto Dominion Bank (TSX-TD, NYSE-TD). Barclays PLC (LSE-BARC, NYSE-BCS), and Home Capital Group (TSX-HCG, OTC-HMCBF) have been added to 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.
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), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), Equitable Group Inc (TSX-EQB, OTC-EQGPF), 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 deleted from this list. Equitable Group Inc (TSX-EQB, OTC-EQGPF) 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.
Four stocks (80%) 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), Sun Life Financial (TSX-SLF, NYSE-SLF). Sun Life Financial (TSX-SLF, NYSE-SLF) has been added to this list.
I follow 33 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 7 Construction stocks. One stock (14%) is showing as cheap by the historically high dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). Aecon Group Inc (TSX-ARE, OTC-AEGXF) has been added to this list.
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). There is no change from last month.
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. 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), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF) and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF) has been deleted from this list.
I follow 9 Material stocks. Kirkland Lake Gold (TSX-KL, NYSE-KL) has merged with Agnico Eagle Mines Limited. No stock (0%) is showing as cheap by the historically high dividend yield. Kirkland Lake Gold (TSX-KL, NYSE-KL) has been removed from this list.
Two stock (22%) are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), and Stella-Jones (TSX-SJ, OTC-STLJF). Kirkland Lake Gold (TSX-KL, NYSE-KL) has been removed from this list.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Two stocks (20%) are showing as cheap by historical median dividend yield. They are Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). There is no change from last month.
I follow 3 of the Telecom Service stocks. None of the stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Two stocks (67%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), and Shaw Communications Inc (TSX-SJR.B, NYSE-SJR). Telus Corp (TSX-T, NYSE-TU) has been removed from this list.
I follow 10 Tech stocks. No stock (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). 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.
Three 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 deleted from this list.
On my other blog I wrote yesterday about Emera Inc (TSX-EMA, OTC-EMRA) ... learn more. Next, I will write about Bombardier Inc (TSX-BBD.B, OTC-BDRBF) ... learn more on Friday, March 11, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, March 8, 2022
Dividend Stocks March 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 March 2022.
On this list,
Aecon Group Inc (TSX-ARE, OTC-AEGXF)
Barclays PLC (LSE-BARC, NYSE-BCS)
Barrick Gold Corp (TSX-ABX, NYSE-ABX)
BCE (TSX-BCE, NYSE-BCE)
Brookfield Asset Management (TSX-BAM.A, NYSE-BAM)
Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP)
Canadian Natural Resources (TSX-CNQ, NYSE-CNQ)
CCL Industries (TSX-CCL.B, OTC-CCDBF)
Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF)
Equitable Group Inc (TSX-EQB, OTC-EQGPF)
Exco Technologies Ltd (TSX-XTC, OTC-EXCOF)
FirstService Corp (TSX-FSV, NASDAQ-FSV)
Goeasy Ltd (TSX-GSY, OTC-EHMEF)
Goodfellow Inc (TSX-GDL, OTC-GFELF)
Great-West Lifeco Inc (TSX-GWO, OTC-GWLIF)
Home Capital Group (TSX-HCG, OTC-HMCBF)
Intact Financial Corp (TSX-IFC, OTC-IFCZF)
Magna International Inc. (TSX-MG, NYSE-MGA)
Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF)
Molson Coors Canada (TSX-TPX.B, NYSE-TAP)
Ovintiv Inc (TSX-OVV, OTC-OVV)
Pason Systems Inc. (TSX-PSI, OTC-PSYTF)
Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF)
RIOCAN REIT (TSX-REI.UN, OTC-RIOCF)
Sun Life Financial (TSX-SLF, NYSE-SLF)
TC Energy Corp (TSX-TRP, NYSE-TRP)
Thomson Reuters Corp (TSX-TRI, NYSE-TRI)
TMX Group Ltd (TSX-X, OTC-TMXXF)
Toromont Industries Ltd (TSX-TIH, OTC-TMTNF)
Home Capital Group (TSX-HCG, OTC-HMCBF) has restarted their dividends and this is a great sign. They plan to do dividend increases in the future. See the company’s News Release.
RIOCAN REIT (TSX-REI.UN, OTC-RIOCF) has increased their dividends and this is a great sign. They decreased their dividend last year and now are increasing it. See the company’s News Release.
Kirkland Lake Gold (TSX-KL, NYSE-KL) and Agnico Eagle Mines Limited have merged as of February 8, 2022. See the News Release.
Of the stocks I follow, 0 stock has cut their dividends.
Of the stocks I follow, 0 stocks have suspended or terminated their dividend.
Of the stocks I follow, the following declined the most in their stock price.
Of the stock that I follow, these stocks gained the most in their stock price.
Most of my stocks started out as Dividend Payers. Currently 14 stocks are not paying any dividends and this would be some 8.92% of the stocks that I follow. Three of these stocks never had dividends, so 7.01% 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 IGM Financial Inc (TSX-IGM, OTC-IGIFF) ... learn more. Next, I will write about Emera Inc (TSX-EMA, OTC-EMRA) ... learn more. learn more on Wednesday, March 09, 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 March 2022.
On this list,
- I have 3 stocks with a dividend yield higher than the historical high dividend yield,
- I have 56 stocks with a dividend yield higher than the historical average dividend yield
- I have 63 stocks with a dividend yield higher than the historical median dividend yield and
- 65 stocks with a dividend yield higher than the 10 year median dividend yield.
- I have 5 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 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.
Aecon Group Inc (TSX-ARE, OTC-AEGXF)
Barclays PLC (LSE-BARC, NYSE-BCS)
Barrick Gold Corp (TSX-ABX, NYSE-ABX)
BCE (TSX-BCE, NYSE-BCE)
Brookfield Asset Management (TSX-BAM.A, NYSE-BAM)
Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP)
Canadian Natural Resources (TSX-CNQ, NYSE-CNQ)
CCL Industries (TSX-CCL.B, OTC-CCDBF)
Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF)
Equitable Group Inc (TSX-EQB, OTC-EQGPF)
Exco Technologies Ltd (TSX-XTC, OTC-EXCOF)
FirstService Corp (TSX-FSV, NASDAQ-FSV)
Goeasy Ltd (TSX-GSY, OTC-EHMEF)
Goodfellow Inc (TSX-GDL, OTC-GFELF)
Great-West Lifeco Inc (TSX-GWO, OTC-GWLIF)
Home Capital Group (TSX-HCG, OTC-HMCBF)
Intact Financial Corp (TSX-IFC, OTC-IFCZF)
Magna International Inc. (TSX-MG, NYSE-MGA)
Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF)
Molson Coors Canada (TSX-TPX.B, NYSE-TAP)
Ovintiv Inc (TSX-OVV, OTC-OVV)
Pason Systems Inc. (TSX-PSI, OTC-PSYTF)
Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF)
RIOCAN REIT (TSX-REI.UN, OTC-RIOCF)
Sun Life Financial (TSX-SLF, NYSE-SLF)
TC Energy Corp (TSX-TRP, NYSE-TRP)
Thomson Reuters Corp (TSX-TRI, NYSE-TRI)
TMX Group Ltd (TSX-X, OTC-TMXXF)
Toromont Industries Ltd (TSX-TIH, OTC-TMTNF)
Home Capital Group (TSX-HCG, OTC-HMCBF) has restarted their dividends and this is a great sign. They plan to do dividend increases in the future. See the company’s News Release.
RIOCAN REIT (TSX-REI.UN, OTC-RIOCF) has increased their dividends and this is a great sign. They decreased their dividend last year and now are increasing it. See the company’s News Release.
Kirkland Lake Gold (TSX-KL, NYSE-KL) and Agnico Eagle Mines Limited have merged as of February 8, 2022. See the News Release.
Of the stocks I follow, 0 stock has cut their dividends.
Of the stocks I follow, 0 stocks have suspended or terminated their dividend.
Of the stocks I follow, the following declined the most in their stock price.
| Name | Exch | Sym | Exch | Sym | Chge SP |
|---|---|---|---|---|---|
| Dorel Industries | TSX | DII.B | OTC | DIIBF | -53.81% |
| TECSYS Inc | TSX | TCS | OTC | TCYSF | -26.24% |
| BRP Inc | TSX | DOO | NASDAQ | DOOO | -25.03% |
| Barclays PLC | LSE | BARC | NYSE | BCS | -21.28% |
| Magna International Inc. | TSX | MG | NYSE | MGA | -19.89% |
| Enghouse Systems | TSX | ENGH | OTC | EGHSF | -19.28% |
| Sylogist Ltd | TSXV | SYZ | OTC | SYZLF | -18.56% |
| Bombardier Inc. | TSX | BBD.B | OTC | BDRBF | -18.34% |
| Blackberry Ltd. (RIM) | TSX | BB | NYSE | BB | -17.68% |
| LifeWorks Inc | TSX | LWRK | OTC | MSIXF | -17.15% |
Of the stock that I follow, these stocks gained the most in their stock price.
| Name | Exch | Sym | Exch | Sym | Chge SP |
|---|---|---|---|---|---|
| Supremex Inc | TSX | SXP | OTC | SUMXF | 16.72% |
| Obsidian Energy Ltd | TSX | OBE | OTC | OBELF | 18.06% |
| Ensign Energy Services | TSX | ESI | OTC | ESVIF | 19.20% |
| Pulse Seismic Inc. | TSX | PSD | OTC | PLSDF | 19.80% |
| Ovintiv Inc | TSX | OVV | OTC | OVV | 26.95% |
| Goodfellow Inc | TSX | GDL | OTC | GFELF | 29.60% |
| Barrick Gold Corp | TSX | ABX | NYSE | ABX | 30.07% |
| Trigon Metals Inc. | TSXV | TM | OTC | PNTZF | 32.77% |
| Teck Resources Ltd | TSX | TECK.B | NYSE | TECK | 34.50% |
| Maxar Technologies Ltd | TSX | MAXR | NYSE | MAXR | 35.00% |
Most of my stocks started out as Dividend Payers. Currently 14 stocks are not paying any dividends and this would be some 8.92% of the stocks that I follow. Three of these stocks never had dividends, so 7.01% 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 IGM Financial Inc (TSX-IGM, OTC-IGIFF) ... learn more. Next, I will write about Emera Inc (TSX-EMA, OTC-EMRA) ... learn more. learn more on Wednesday, March 09, 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.
Thursday, March 3, 2022
Banks and Ratios 3
All my charts are using data from the financial year ending in October 2021, expect for otherwise noted for these banks.
For dividend paying stocks, the Dividend Payout Ratios are important. For the DPRs, lower ratios are better ratios. For Banks the DPR for EPS is the most important one. When looking at these ratios, it would appear that Nation Bank has the best one, which is the lowest one. The DPR payout expect is in the 40 to 55% level for banks. On this basis all the banks are fine this year.
The problem with cash flow is that for banks they tend to be volatile and often negative. A lot of analysts ignore the Cash Flow of banks.
I have started to look at Dividend Payouts compared to Free Cash Flow. The problem I have with checking dividends against Free Cash Flow is that different sites sometimes have different values for FCF. This is a continuing problem.
When Shares are issued for Stock Options, you want a company that issues around the same relative number of shares for its industry. Of course, the lower the number of shares issued for stock options; the less money comes out of the earnings for shareholders. In the value column, I am putting in the book value of the stock options at the end of the calendar year.
For the 2021 financial year, all the banks issued a higher number of shares, except for NA. All the banks except for NA also had a higher percentage of outstanding shares and except for NA had a higher book value.
For the 2020 financial year, all the banks issued stock options at a lower percentage of outstanding share. The value of the stock options in 2020 was also lower according to their book value. Again, this year, National Bank gave out the highest percentage of their outstanding shares and also the highest in book value.
Since I was looking for performance on a long term basis, I want to include the dividend growth and total return for the 6 banks that I cover.
Below is a chart showing the long term growth of dividends for these banks for the financial year ending in 2021. Here the better growth in dividends is in the 20 to 30 year periods. The TD Bank has the best ones over most periods. The National Bank has the second highest dividend increase over most periods. It was the same last year.
Below is a chart showing the long term growth of dividends for these banks for the financial year ending in 2020. Certainly, in most cases the 15 to 30 years growth is better than the 5 and 10 years growth. The TD Bank has the best ones over most periods. The National Bank has the second highest dividend increase over most periods.
Another way of looking at dividends is to see how many years the bank increased or decreased dividends. My spreadsheet goes back a different number of years for each bank, but it would seem that TD has the best record.
The other thing I looked at was long term total return. This is calculated from December to December. It will include both capital gains and dividends. It is a compound growth rate per year. Here I am looking for total return of 8% per year or more. All the banks achieved that with the 5 years ending December 2021 except for BNS and this bank came close.
This next chart is for the year ending of December 2020. It will include both capital gains and dividends. It is a compound growth rate per year. Here I am looking for total return of 8% per year or more. All the banks achieved that with the 5 years ending December 2020.
The next thing to cover is how well the banks cover their deposits with assets. In this case, the lower the ratio the better. TD has the lowest and best ratio.
For the financial ending in 2020, TD also had the lowest and best ratio.
The last thing I want to cover how much an investor would earn if they bought shares with approximately $1,000 on December 31, 1988 and held them to December 31, 2021. On this basis, Royal Bank is the winner with total return of $39,758.48. BNS is the lowest at $18,505.13.
Last year I looked at how much an investor would earn if they bought shares with approximately $1,000 on December 31, 1988 and held them to December 2020. On this basis, Royal Bank is the winner with total return of $32,534.75. BNS is a close second at $31,339.68.
On my other blog I wrote yesterday about Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF) ... learn more. Next, I will write about TFI International Inc (TSX-TFII, OTC-TFIFF) ... learn more on Friday, March 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.
For dividend paying stocks, the Dividend Payout Ratios are important. For the DPRs, lower ratios are better ratios. For Banks the DPR for EPS is the most important one. When looking at these ratios, it would appear that Nation Bank has the best one, which is the lowest one. The DPR payout expect is in the 40 to 55% level for banks. On this basis all the banks are fine this year.
The problem with cash flow is that for banks they tend to be volatile and often negative. A lot of analysts ignore the Cash Flow of banks.
| Bank | Symbol | DPR for EPS | DPR for CFPS |
|---|---|---|---|
| Bank of Montreal | BMO | 36.61% | 27.72% |
| Bank of Nova Scotia | BNS | 46.75% | Neg CF |
| CIBC | CM | 41.92% | 28.90% |
| Royal Bank | RY | 39.06% | 10.09% |
| National Bank | NA | 31.70% | 10.36% |
| TD Bank | TD | 40.93% | 36.39% |
I have started to look at Dividend Payouts compared to Free Cash Flow. The problem I have with checking dividends against Free Cash Flow is that different sites sometimes have different values for FCF. This is a continuing problem.
When Shares are issued for Stock Options, you want a company that issues around the same relative number of shares for its industry. Of course, the lower the number of shares issued for stock options; the less money comes out of the earnings for shareholders. In the value column, I am putting in the book value of the stock options at the end of the calendar year.
For the 2021 financial year, all the banks issued a higher number of shares, except for NA. All the banks except for NA also had a higher percentage of outstanding shares and except for NA had a higher book value.
| Bank | Symbol | Shares | ‘% of Shares | Value $M |
|---|---|---|---|---|
| Bank of Montreal | BMO | 1.631 | 0.250% | $122 |
| Bank of Nova Scotia | BNS | 3.016 | 0.250% | $200 |
| CIBC | CM | 1.705 | 0.380% | $176 |
| Royal Bank | RY | 1.326 | 0.093% | $165 |
| National Bank | NA | 1.930 | 0.570% | $104 |
| TD Bank | TD | 2.800 | 0.150% | $165 |
For the 2020 financial year, all the banks issued stock options at a lower percentage of outstanding share. The value of the stock options in 2020 was also lower according to their book value. Again, this year, National Bank gave out the highest percentage of their outstanding shares and also the highest in book value.
| Bank | Symbol | Shares | ‘% of Shares | Value $M |
|---|---|---|---|---|
| Bank of Montreal | BMO | 0.564 | 0.090% | $40 |
| Bank of Nova Scotia | BNS | 0.942 | 0.080% | $59 |
| CIBC | CM | 0.824 | 0.180% | $87 |
| Royal Bank | RY | 1.043 | 0.070% | $80 |
| National Bank | NA | 2.318 | 0.690% | $111 |
| TD Bank | TD | 1.500 | 0.080% | $79 |
Since I was looking for performance on a long term basis, I want to include the dividend growth and total return for the 6 banks that I cover.
Below is a chart showing the long term growth of dividends for these banks for the financial year ending in 2021. Here the better growth in dividends is in the 20 to 30 year periods. The TD Bank has the best ones over most periods. The National Bank has the second highest dividend increase over most periods. It was the same last year.
| Bank | Symbol | 5 Yr. | 10 Yr. | 15 Yr. | 20 Yr. | 25 Yr. | 30 Yr. |
|---|---|---|---|---|---|---|---|
| Bank of Montreal | BMO | 4.76% | 4.24% | 4.28% | 6.88% | 7.44% | 7.18% |
| Bank of N. S. | BNS | 4.56% | 5.79% | 6.01% | 9.19% | 10.10% | 9.30% |
| CIBC | CM | 4.22% | 5.22% | 5.12% | 7.25% | 8.01% | 7.54% |
| Royal Bank | RY | 6.60% | 7.46% | 6.90% | 9.51% | 10.57% | 9.71% |
| National Bank | NA | 7.04% | 8.52% | 8.47% | 10.67% | 11.15% | 6.71% |
| TD Bank | TD | 7.91% | 9.25% | 8.81% | 9.19% | 10.68% | 9.82% |
Below is a chart showing the long term growth of dividends for these banks for the financial year ending in 2020. Certainly, in most cases the 15 to 30 years growth is better than the 5 and 10 years growth. The TD Bank has the best ones over most periods. The National Bank has the second highest dividend increase over most periods.
| Bank | Symbol | 5 Yr. | 10 Yr. | 15 Yr. | 20 Yr. | 25 Yr. | 30 Yr. |
|---|---|---|---|---|---|---|---|
| Bank of Montreal | BMO | 5.51% | 4.16% | 5.63% | 7.45% | 7.79% | 7.15% |
| Bank of N. S. | BNS | 5.77% | 6.27% | 6.92% | 10.37% | 10.27% | 9.30% |
| CIBC | CM | 6.39% | 5.28% | 5.36% | 7.82% | 8.60% | 7.53% |
| Royal Bank | RY | 6.19% | 7.58% | 8.01% | 9.61% | 10.77% | 9.42% |
| National Bank | NA | 7.22% | 7.68% | 9.37% | 10.63% | 10.80% | 6.91% |
| TD Bank | TD | 9.23% | 9.81% | 9.57% | 10.03% | 11.18% | 9.77% |
Another way of looking at dividends is to see how many years the bank increased or decreased dividends. My spreadsheet goes back a different number of years for each bank, but it would seem that TD has the best record.
| Banks | Symbol | Yrs | Inc | Dec | Flat |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | 38 | 28 | 0 | 10 |
| Bank of Nova Scotia | BNS | 36 | 33 | 0 | 3 |
| CIBC | CM | 38 | 28 | 0 | 10 |
| Royal Bank | RY | 38 | 29 | 0 | 9 |
| National Bank | NA | 35 | 29 | 1 | 5 |
| TD Bank | TD | 46 | 41 | 0 | 5 |
The other thing I looked at was long term total return. This is calculated from December to December. It will include both capital gains and dividends. It is a compound growth rate per year. Here I am looking for total return of 8% per year or more. All the banks achieved that with the 5 years ending December 2021 except for BNS and this bank came close.
| Bank | Symbol | 5 Yr. | 10 Yr. | 15 Yr. | 20 Yr. | 25 Yr. | 30 Yr. |
|---|---|---|---|---|---|---|---|
| Bank Montreal | BMO | 10.67% | 13.55% | 8.07% | 10.90% | 11.84% | 13.67% |
| Bank of N.S. | BNS | 7.90% | 10.30% | 7.44% | 11.19% | 13.45% | 15.20% |
| CIBC | CM | 10.61% | 11.89% | 6.29% | 9.10% | 10.95% | 12.03% |
| Royal Bank | RY | 11.81% | 14.09% | 9.34% | 12.51% | 14.44% | 14.66% |
| National Bank | NA | 17.13% | 15.49% | 11.06% | 13.93% | 15.62% | 13.55% |
| TD Bank | TD | 11.57% | 13.65% | 10.28% | 11.36% | 14.00% | 14.87% |
This next chart is for the year ending of December 2020. It will include both capital gains and dividends. It is a compound growth rate per year. Here I am looking for total return of 8% per year or more. All the banks achieved that with the 5 years ending December 2020.
| Bank | Symbol | 5 Yr. | 10 Yr. | 15 Yr. | 20 Yr. | 25 Yr. | 30 Yr. |
|---|---|---|---|---|---|---|---|
| Bank of Montreal | BMO | 8.79% | 9.93% | 7.70% | 8.78% | 13.08% | 15.69% |
| Bank of N. S. | BNS | 9.55% | 6.32% | 6.96% | 10.88% | 15.59% | 18.49% |
| CIBC | CM | 8.99% | 8.26% | 6.80% | 9.03% | 12.70% | 12.82% |
| Royal Bank | RY | 11.46% | 11.41% | 9.68% | 11.36% | 16.43% | 14.90% |
| National Bank | NA | 14.68% | 10.83% | 8.97% | 12.62% | 15.49% | 14.91% |
| TD Bank | TD | 10.08% | 10.92% | 9.50% | 9.52% | 15.44% | 14.46% |
The next thing to cover is how well the banks cover their deposits with assets. In this case, the lower the ratio the better. TD has the lowest and best ratio.
| Bank | Symbol | Deposits Cov |
|---|---|---|
| Bank of Montreal | BMO | 0.86 |
| Bank of Nova Scotia | BNS | 0.67 |
| CIBC | CM | 0.83 |
| Royal Bank | RY | 0.73 |
| National Bank | NA | 0.73 |
| TD Bank | TD | 0.69 |
For the financial ending in 2020, TD also had the lowest and best ratio.
| Bank | Symbol | Deposits Cov |
|---|---|---|
| Bank of Montreal | BMO | 0.95 |
| Bank of Nova Scotia | BNS | 0.93 |
| CIBC | CM | 0.82 |
| Royal Bank | RY | 0.72 |
| National Bank | NA | 0.73 |
| TD Bank | TD | 0.71 |
The last thing I want to cover how much an investor would earn if they bought shares with approximately $1,000 on December 31, 1988 and held them to December 31, 2021. On this basis, Royal Bank is the winner with total return of $39,758.48. BNS is the lowest at $18,505.13.
| Symbol | Spent | Shares | Worth | Divs Pd | Total |
|---|---|---|---|---|---|
| BMO | $1,001.00 | 143.00 | $19,475.17 | $9,510.93 | $28,986.10 |
| BNS | $1,001.81 | 274.00 | $12,089.25 | $6,415.88 | $18,505.13 |
| CM | $1,002.78 | 81.00 | $13,373.10 | $7,101.27 | $20,474.37 |
| RY | $1,000.64 | 212.00 | $28,461.00 | $11,297.48 | $39,758.48 |
| NA | $1,000.05 | 174.00 | $16,780.56 | $6,205.71 | $22,986.27 |
| TD | $1,001.25 | 225.00 | $21,820.50 | $8,153.44 | $29,973.94 |
Last year I looked at how much an investor would earn if they bought shares with approximately $1,000 on December 31, 1988 and held them to December 2020. On this basis, Royal Bank is the winner with total return of $32,534.75. BNS is a close second at $31,339.68.
| Symbol | Spent | Shares | Worth | Divs Pd | Total |
|---|---|---|---|---|---|
| BMO | $1,000.02 | 142.86 | $13,825.99 | $8,895.89 | $22,721.88 |
| BNS | $998.98 | 273.50 | $18,816.80 | $12,522.88 | $31,339.68 |
| CM | $1,000.06 | 80.78 | $9,182.26 | $6,610.23 | $15,792.49 |
| RY | $1,000.03 | 211.87 | $22,159.48 | $10,375.27 | $32,534.75 |
| NA | $1,000.04 | 173.92 | $12,459.63 | $5,708.92 | $18,168.55 |
| TD | $1,000.00 | 224.72 | $16,161.86 | $7,433.18 | $23,595.04 |
On my other blog I wrote yesterday about Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF) ... learn more. Next, I will write about TFI International Inc (TSX-TFII, OTC-TFIFF) ... learn more on Friday, March 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, March 1, 2022
Tyler Cowen Interview
Noahpinion interviews Tyler Cowen an economist and public intellectual. I found this interview so interesting that I tried to buy Tyler Cowen’s book called Stubborn Attachments, but it is not widely available near me.
On my other blog I wrote yesterday about Russel Metals Inc (TSX-RUS, OTC-RUSMF) ... learn more. Next, I will write about Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF) ... learn more on Wednesday, March 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 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 Russel Metals Inc (TSX-RUS, OTC-RUSMF) ... learn more. Next, I will write about Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF) ... learn more on Wednesday, March 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 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.
Subscribe to:
Posts (Atom)