Money Sense just put out their list of Canada’s Best Dividend Stocks for 2023 . This first link is for an overview. The link to the stocks is here .
Money Sense put out a list of Top 100 Dividend stocks each year. If you are looking to buy a good Canadian dividend stock, this is the place to start. This year, they did not give them a Grade, instead they ranked them according to how they scored on a list of criteria.
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 1, 2023 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 28, 2023
Thursday, February 23, 2023
Canadian Tech
National Bank Financial via Can Tech Letter says that you avoid tech stocks at your peril. It lists 6 tech picks of
OpenText (TSX:OTEX)
Lightspeed Commerce (TSX:LSPD)
Coveo Solutions (TSX:CVO)
Docebo Inc (TSX:DCBO)
Magnet Forensics (TSX:MAGT)
Softchoice Corp (TSX:SFTC)
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 Friday, February 24, 2023 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.
OpenText (TSX:OTEX)
Lightspeed Commerce (TSX:LSPD)
Coveo Solutions (TSX:CVO)
Docebo Inc (TSX:DCBO)
Magnet Forensics (TSX:MAGT)
Softchoice Corp (TSX:SFTC)
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 Friday, February 24, 2023 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 21, 2023
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 February, there has been no significate changes in the share prices, so I am using the prices from the February 14 entry.
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 2023, all the banks are relatively cheaper than last year. Royal and National have dividend yields higher than the 10 year median yield and are reasonable, but above the median. BNS is cheap. BMO and CIBC are reasonable and below the median. (I have changed my testing this year from historical yield to 10 year median yield. Banks are relatively cheap this year than last year.)
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.
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 2023, by this measure all the stocks are cheaper than in 2022. All the prices are reasonable, with BNX and CIBC being reasonable and below the median and the rest being reasonable and above the median.
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.
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.
In 2023, all the stocks are cheap than in 2022. For, again, BNS and CIBC, the stock prices are reasonable and below the median and the rest are reasonable and above the median.
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 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 2023, all the stock, by this test, are cheaper than in 2022. All the banks but National are reasonable and below the median. The National Bank is reasonable and above the median.
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.
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 2023, all the stocks are showing as cheaper than in 2022, but TD Bank is close to the 2022 difference. In this test, BMO, BNS and CIBC are reasonable and below the median. The rest are reasonable and above the median.
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.
On my other blog I wrote yesterday about ARC Resources Ltd (TSX-ARX, OTC-AETUF) ... learn more. Next, I will write about Manulife Financial Corp (TSX-MFC, NYSE-MFC) ... learn more on Wednesday, February 22, 2023 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 2023, all the banks are relatively cheaper than last year. Royal and National have dividend yields higher than the 10 year median yield and are reasonable, but above the median. BNS is cheap. BMO and CIBC are reasonable and below the median. (I have changed my testing this year from historical yield to 10 year median yield. Banks are relatively cheap this year than last year.)
| Bank 2023 | Symbol | Price | Dividend | Yield | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $135.41 | $5.72 | 4.22% | 2.53% |
| Bank of Nova Scotia | BNS | $73.57 | $4.12 | 5.60% | 22.81% |
| CIBC | CM | $61.66 | $3.40 | 5.51% | 18.33% |
| Royal Bank | RY | $138.76 | $5.28 | 3.81% | -1.68% |
| National Bank | NA | $100.60 | $3.88 | 3.86% | -7.51% |
| TD Bank | TD | $93.01 | $3.84 | 4.13% | 8.93% |
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% |
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 2023, by this measure all the stocks are cheaper than in 2022. All the prices are reasonable, with BNX and CIBC being reasonable and below the median and the rest being reasonable and above the median.
| Bank 2023 | Symbol | Price | Rev/ Share | P/S Ratio | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | 135.41 | $47.34 | 2.86 | 11.73% |
| Bank of Nova Scotia | BNS | 73.57 | $28.50 | 2.58 | -13.95% |
| CIBC | CM | 61.66 | $25.60 | 2.41 | -12.73% |
| Royal Bank | RY | 138.76 | $38.72 | 3.58 | 13.05% |
| National Bank | NA | 100.6 | $31.26 | 3.22 | 8.72% |
| TD Bank | TD | 93.01 | $28.21 | 3.30 | 3.68% |
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% |
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.
In 2023, all the stocks are cheap than in 2022. For, again, BNS and CIBC, the stock prices are reasonable and below the median and the rest are reasonable and above the median.
| Bank 2023 | Symbol | Price | BVPS | Current P/B | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $135.41 | $95.60 | 1.42 | 2.64% |
| Bank of Nova Scotia | BNS | $73.57 | $54.68 | 1.35 | -10.90% |
| CIBC | CM | $61.66 | $48.86 | 1.26 | -19.10% |
| Royal Bank | RY | $138.76 | $73.88 | 1.88 | -0.63% |
| National Bank | NA | $100.60 | $55.24 | 1.82 | 5.88% |
| TD Bank | TD | $93.01 | $58.07 | 1.60 | 0.74% |
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 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 2023, all the stock, by this test, are cheaper than in 2022. All the banks but National are reasonable and below the median. The National Bank is reasonable and above the median.
| Bank 2023 | Symbol | Price | Graham Pr | P/GP Ratio | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $135.41 | $171.03 | 0.79 | -12.03% |
| Bank of Nova Scotia | BNS | $73.57 | $101.18 | 0.73 | -11.33% |
| CIBC | CM | $61.66 | $87.53 | 0.70 | -13.03% |
| Royal Bank | RY | $138.76 | $140.17 | 0.99 | -0.01% |
| National Bank | NA | $100.60 | $109.41 | 0.92 | 5.69% |
| TD Bank | TD | $93.01 | $108.68 | 0.86 | -4.91% |
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% |
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 2023, all the stocks are showing as cheaper than in 2022, but TD Bank is close to the 2022 difference. In this test, BMO, BNS and CIBC are reasonable and below the median. The rest are reasonable and above the median.
| Bank 2023 | Symbol | Price | EPS Est. | Curr P/E | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $135.41 | $13.60 | 9.96 | -6.42% |
| Bank of Nova Scotia | BNS | $73.57 | $8.32 | 8.84 | -17.44% |
| CIBC | CM | $61.66 | $6.83 | 9.03 | -10.44% |
| Royal Bank | RY | $138.76 | $11.82 | 11.74 | 1.11% |
| National Bank | NA | $100.60 | $9.63 | 10.45 | 6.49% |
| TD Bank | TD | $93.01 | $9.04 | 10.29 | 15.34% |
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% |
On my other blog I wrote yesterday about ARC Resources Ltd (TSX-ARX, OTC-AETUF) ... learn more. Next, I will write about Manulife Financial Corp (TSX-MFC, NYSE-MFC) ... learn more on Wednesday, February 22, 2023 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 16, 2023
Retiring Early
This article on Moneywise is interesting even though it is talking about people in the US.
There can be a problem of retirees running out of money in Canada. There can be extra expenses for health in Canada, because out health insurance does not cover everything. There is also the problem of long-term care. One thing in our favour is that CPP is better funded that the US Social Security.
On my other blog I wrote yesterday about Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) ... learn more. Next, I will write about Intact Financial Corp (TSX-IFC, OTC-IFCZF) ... learn more on Friday, February 17, 2023 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.
There can be a problem of retirees running out of money in Canada. There can be extra expenses for health in Canada, because out health insurance does not cover everything. There is also the problem of long-term care. One thing in our favour is that CPP is better funded that the US Social Security.
On my other blog I wrote yesterday about Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) ... learn more. Next, I will write about Intact Financial Corp (TSX-IFC, OTC-IFCZF) ... learn more on Friday, February 17, 2023 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 14, 2023
Banks and Ratios
The reason to look at company ratios is that the stock price for a company tells you very little. The price of a stock certainly does not tell you if the stock is cheap or expensive. For example, a stock price of $10 on one stock could be an expensive price, but a stock price of $20 on another stock could be a cheap price. It is like all stocks have their own currency and you will need a common frame of reference in order to tell how relatively cheap or expensive a stock is.
In this entry I am only talking about the big 6 Canadian Banks of Bank of Montreal, Bank of Nova Scotia, CIBC, Royal Bank, National Bank, and TD Bank. I try to get the right information, but I cannot guarantee anything. The results may be different from my recent reports as I have updated the stock price to the most recent ones. Also, all the data used in this entry is going back to 1988. When I talked about the individual stocks, data went back for different time periods for each stock.
The conclusion I come to is that none of the banks are relatively reasonable, but with some above and some below the median. BNS and CIBC seem to be the cheapest according to the Dividend Yield and P/S Ratio tests. All the banks seem reasonable. It might be still a good time to buy Canadian Banks.
The method I like best to check for a good stock price is using the current dividend yield and compare this against the 10 year median dividend yield. What you are looking for is a current dividend yield higher than the historical dividend yield. For dividend yields, the higher the dividend yields the better the relative price of a stock is.
In the first chart is the 10 year high and median and historical median dividend yields based on my spreadsheets for our banks. In the second chart is a comparison (M/C field) of current yield and 10 year Median Yield. The higher the current yield is compared to the historical one, the better the current price is.
Of the big banks that I follow, the Bank of Nova Scotia comes off relatively better in this test. For Bank of Nova Scotia, the current dividend yield is 5.60% and the 10 year median one is 4.56% a difference of 22.81%.
All the banks are showing a higher yield than the 10 year median except for the Royal Bank and National Bank. These banks are still reasonable, but the yield is above the median.
My next favourite test is the Price/Sales (P/S) Ratio. It sometimes works better than the Dividend Yield test on certain stock, especially old income trust stocks. What you want for a reasonable price is for the current P/S Ratio to be lower than the 10 year median P/S Ratio.
Of the big banks I follow, the Bank of Nova Scotia is relatively lower with the current P/S Ratio at 10.62% above its 10 year median P/S Ratio. Its price is reasonable, but above the median. All the other banks have a higher P/S Ratio than the 10 year median P/S Ratio.
In this chart, BNS and CIBC are showing the stock price as reasonable and below the median. All the other banks are showing the stock price as reasonable, but above the median. Since BMO and RY have a current ratio that is more than 10% above the 10 year median, they are relatively expensive. Although some analysts say the stock is expensive if 20% or more above the 10 year median ratio.
A common ratio is the Price/Book Value per Share Ratio. For P/B Ratio, the lower the P/B Ratio is, the more book value you get for your money. Theoretically, the book value is the difference between assets and liabilities and therefore is the potential value a company is worth or the breakup value of the stock for the shareholders. What you want to see is a current P/B Ratio below the 10 year median P/B Ratio.
When valuing a stock, the lower the P/B Ratio is, the better the stock price is on a relative basis. The 10 year median P/B Ratios for our banks are below in the first table. From this it is obvious that historically, investors were willing to pay a relatively higher price for Royal Bank shares than other shares as it has the highest P/B Ratio. It could also say that the Bank of Montreal offers the best deal when it comes to Book Value per Share as it has the lowest ratio.
Of the banks I follow, BMO has the lowest 10 year median P/B Ratio at 1.38 (chart 1) and the Bank of Nova Scotia is the lowest relative to its 10 year P/B Ratio as its current P/B Ratio is some 6.9% higher than the 10 year P/B Ratio (chart 2).
The next chart shows that BNS, and CIBC have relatively the lowest ratio above the 10 year median ratios. These banks and Royal Bank are showing as reasonable but above the median. The rest are showing that they are relatively expensive as they are more than 20% above the 10 year median ratio
My next favourite test to check reasonableness of the stock price is using the Graham Price. For the 10 year Price/Graham Price Ratios, the lower the ratio the lower the relative price of the underlying shares. This chart shows that investors are willing to pay a relatively higher price for Royal Bank stock than for other bank stocks as the GP Ratio is the highest ones. It also shows that generally BNS and CIBC have a relatively lower stock price as their median P/GP is the lowest of all the banks at 0.73 and 0.79 respectively.
Of the big banks I follow, the CIBC is relatively lower with the current Price/Graham Price Ratio some 13.03% below its 10 year median P/GP Ratio (see second chart). All the banks have a lower Graham Price Ratio than the median Graham Price Ratio except for National Bank.
The following chart shows that CIBC has the relatively lowest price. All the banks have current ratios below the 10 year median ratios with the exception of National Bank. So, they are all Reasonable and below the median with National Bank reasonable and above the median.
One of the most common ratios to look at is the P/E Ratio. When dealing with P/E Ratios, the lower the P/E ratio the better the relatively price is. Below is the 10 year low, median, and high median P/E Ratios for each bank I follow. What this chart also tells you is that investors are willing to pay relatively more money for Royal Bank shares per dollar of earnings than for other banks as its P/E Ratios are the highest ones at 10.31, 11.62 and 12.92 for Low, Median and High P/E Ratios.
So, what is the relatively cheapest bank today? Currently BNS has the lower P/E Ratio at 8.84 (see chart below). In the chart below, in the last column I am comparing the 10 year Median P/E with the Current P/E. BNS has the lowest relative P/E Ratio (at 17.44% below the 10 year Median P/E Ratio). BMO, BNS and CIBC have current P/E Ratios below the 10 year median. They are reasonable and below the median. All the others are reasonable but above the median.
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 Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) ... learn more on Wednesday, February 15, 2023 around 5 pm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
In this entry I am only talking about the big 6 Canadian Banks of Bank of Montreal, Bank of Nova Scotia, CIBC, Royal Bank, National Bank, and TD Bank. I try to get the right information, but I cannot guarantee anything. The results may be different from my recent reports as I have updated the stock price to the most recent ones. Also, all the data used in this entry is going back to 1988. When I talked about the individual stocks, data went back for different time periods for each stock.
The conclusion I come to is that none of the banks are relatively reasonable, but with some above and some below the median. BNS and CIBC seem to be the cheapest according to the Dividend Yield and P/S Ratio tests. All the banks seem reasonable. It might be still a good time to buy Canadian Banks.
The method I like best to check for a good stock price is using the current dividend yield and compare this against the 10 year median dividend yield. What you are looking for is a current dividend yield higher than the historical dividend yield. For dividend yields, the higher the dividend yields the better the relative price of a stock is.
In the first chart is the 10 year high and median and historical median dividend yields based on my spreadsheets for our banks. In the second chart is a comparison (M/C field) of current yield and 10 year Median Yield. The higher the current yield is compared to the historical one, the better the current price is.
Of the big banks that I follow, the Bank of Nova Scotia comes off relatively better in this test. For Bank of Nova Scotia, the current dividend yield is 5.60% and the 10 year median one is 4.56% a difference of 22.81%.
| Bank | Symbol | 10Y H | 10 Year Med | Hist. Med |
|---|---|---|---|---|
| Bank of Montreal | BMO | 7.27% | 4.12% | 4.14% |
| Bank of Nova Scotia | BNS | 7.58% | 4.56% | 4.12% |
| CIBC | CM | 8.43% | 4.66% | 4.49% |
| Royal Bank | RY | 5.80% | 3.87% | 3.82% |
| National Bank | NA | 7.15% | 4.17% | 3.94% |
| TD Bank | TD | 6.22% | 3.79% | 3.50% |
All the banks are showing a higher yield than the 10 year median except for the Royal Bank and National Bank. These banks are still reasonable, but the yield is above the median.
| Bank | Symbol | Price | Dividend | Yield | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $135.41 | $5.72 | 4.22% | 2.53% |
| Bank of Nova Scotia | BNS | $73.57 | $4.12 | 5.60% | 22.81% |
| CIBC | CM | $61.66 | $3.40 | 5.51% | 18.33% |
| Royal Bank | RY | $138.76 | $5.28 | 3.81% | -1.68% |
| National Bank | NA | $100.60 | $3.88 | 3.86% | -7.51% |
| TD Bank | TD | $93.01 | $3.84 | 4.13% | 8.93% |
My next favourite test is the Price/Sales (P/S) Ratio. It sometimes works better than the Dividend Yield test on certain stock, especially old income trust stocks. What you want for a reasonable price is for the current P/S Ratio to be lower than the 10 year median P/S Ratio.
Of the big banks I follow, the Bank of Nova Scotia is relatively lower with the current P/S Ratio at 10.62% above its 10 year median P/S Ratio. Its price is reasonable, but above the median. All the other banks have a higher P/S Ratio than the 10 year median P/S Ratio.
| Bank | Symbol | Ratio |
|---|---|---|
| Bank of Montreal | BMO | 2.56 |
| Bank of Nova Scotia | BNS | 3.00 |
| CIBC | CM | 2.76 |
| Royal Bank | RY | 3.17 |
| National Bank | NA | 2.96 |
| TD Bank | TD | 3.18 |
In this chart, BNS and CIBC are showing the stock price as reasonable and below the median. All the other banks are showing the stock price as reasonable, but above the median. Since BMO and RY have a current ratio that is more than 10% above the 10 year median, they are relatively expensive. Although some analysts say the stock is expensive if 20% or more above the 10 year median ratio.
| Bank | Symbol | Price | Rev per Share | P/S Ratio | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $135.41 | $47.34 | 2.86 | 11.73% |
| Bank of Nova Scotia | BNS | $73.57 | $28.50 | 2.58 | -13.95% |
| CIBC | CM | $61.66 | $25.60 | 2.41 | -12.73% |
| Royal Bank | RY | $138.76 | $38.72 | 3.58 | 13.05% |
| National Bank | NA | $100.60 | $31.26 | 3.22 | 8.72% |
| TD Bank | TD | $93.01 | $28.21 | 3.30 | 3.68% |
A common ratio is the Price/Book Value per Share Ratio. For P/B Ratio, the lower the P/B Ratio is, the more book value you get for your money. Theoretically, the book value is the difference between assets and liabilities and therefore is the potential value a company is worth or the breakup value of the stock for the shareholders. What you want to see is a current P/B Ratio below the 10 year median P/B Ratio.
When valuing a stock, the lower the P/B Ratio is, the better the stock price is on a relative basis. The 10 year median P/B Ratios for our banks are below in the first table. From this it is obvious that historically, investors were willing to pay a relatively higher price for Royal Bank shares than other shares as it has the highest P/B Ratio. It could also say that the Bank of Montreal offers the best deal when it comes to Book Value per Share as it has the lowest ratio.
Of the banks I follow, BMO has the lowest 10 year median P/B Ratio at 1.38 (chart 1) and the Bank of Nova Scotia is the lowest relative to its 10 year P/B Ratio as its current P/B Ratio is some 6.9% higher than the 10 year P/B Ratio (chart 2).
| Bank | Symbol | P/B |
|---|---|---|
| Bank of Montreal | BMO | 1.38 |
| Bank of Nova Scotia | BNS | 1.59 |
| CIBC | CM | 1.62 |
| Royal Bank | RY | 1.91 |
| National Bank | NA | 1.76 |
| TD Bank | TD | 1.59 |
The next chart shows that BNS, and CIBC have relatively the lowest ratio above the 10 year median ratios. These banks and Royal Bank are showing as reasonable but above the median. The rest are showing that they are relatively expensive as they are more than 20% above the 10 year median ratio
| Bank | Symbol | Price | BVPS | Current P/B | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $145.19 | $80.18 | 1.81 | 31.22% |
| Bank of Nova Scotia | BNS | $90.56 | $53.28 | 1.70 | 6.90% |
| CIBC | CM | $159.59 | $91.66 | 1.74 | 7.48% |
| Royal Bank | RY | $142.03 | $65.22 | 2.18 | 14.02% |
| National Bank | NA | $100.21 | $47.06 | 2.13 | 20.99% |
| TD Bank | TD | $100.43 | $51.60 | 1.95 | 22.41% |
My next favourite test to check reasonableness of the stock price is using the Graham Price. For the 10 year Price/Graham Price Ratios, the lower the ratio the lower the relative price of the underlying shares. This chart shows that investors are willing to pay a relatively higher price for Royal Bank stock than for other bank stocks as the GP Ratio is the highest ones. It also shows that generally BNS and CIBC have a relatively lower stock price as their median P/GP is the lowest of all the banks at 0.73 and 0.79 respectively.
Of the big banks I follow, the CIBC is relatively lower with the current Price/Graham Price Ratio some 13.03% below its 10 year median P/GP Ratio (see second chart). All the banks have a lower Graham Price Ratio than the median Graham Price Ratio except for National Bank.
| Bank | Symbol | Low | Median | High |
|---|---|---|---|---|
| Bank of Montreal | BMO | 0.71 | 0.90 | 0.80 |
| Bank of Nova Scotia | BNS | 0.71 | 0.82 | 0.96 |
| CIBC | CM | 0.69 | 0.81 | 0.92 |
| Royal Bank | RY | 0.89 | 0.99 | 1.09 |
| National Bank | NA | 0.75 | 0.87 | 1.00 |
| TD Bank | TD | 0.81 | 0.90 | 1.01 |
The following chart shows that CIBC has the relatively lowest price. All the banks have current ratios below the 10 year median ratios with the exception of National Bank. So, they are all Reasonable and below the median with National Bank reasonable and above the median.
| Bank | Symbol | Price | Graham Pr | P/GP Ratio | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $135.41 | $171.03 | 0.79 | -12.03% |
| Bank of Nova Scotia | BNS | $73.57 | $101.18 | 0.73 | -11.33% |
| CIBC | CM | $61.66 | $87.53 | 0.70 | -13.03% |
| Royal Bank | RY | $138.76 | $140.17 | 0.99 | -0.01% |
| National Bank | NA | $100.60 | $109.41 | 0.92 | 5.69% |
| TD Bank | TD | $93.01 | $108.68 | 0.86 | -4.91% |
One of the most common ratios to look at is the P/E Ratio. When dealing with P/E Ratios, the lower the P/E ratio the better the relatively price is. Below is the 10 year low, median, and high median P/E Ratios for each bank I follow. What this chart also tells you is that investors are willing to pay relatively more money for Royal Bank shares per dollar of earnings than for other banks as its P/E Ratios are the highest ones at 10.31, 11.62 and 12.92 for Low, Median and High P/E Ratios.
| Bank | Symbol | Low P/E | Median P/E | High P/E |
|---|---|---|---|---|
| Bank of Montreal | BMO | 7.45 | 10.64 | 11.97 |
| Bank of Nova Scotia | BNS | 8.82 | 10.71 | 11.78 |
| CIBC | CM | 8.23 | 10.08 | 10.87 |
| Royal Bank | RY | 10.31 | 11.61 | 12.92 |
| National Bank | NA | 8.65 | 9.81 | 11.05 |
| TD Bank | TD | 8.25 | 8.92 | 11.28 |
So, what is the relatively cheapest bank today? Currently BNS has the lower P/E Ratio at 8.84 (see chart below). In the chart below, in the last column I am comparing the 10 year Median P/E with the Current P/E. BNS has the lowest relative P/E Ratio (at 17.44% below the 10 year Median P/E Ratio). BMO, BNS and CIBC have current P/E Ratios below the 10 year median. They are reasonable and below the median. All the others are reasonable but above the median.
| Bank | Symbol | Price | 2023 EPS Est. | Curr P/E | M/C |
|---|---|---|---|---|---|
| Bank of Montreal | BMO | $135.41 | $13.60 | 9.96 | -6.42% |
| Bank of Nova Scotia | BNS | $73.57 | $8.32 | 8.84 | -17.44% |
| CIBC | CM | $61.66 | $6.83 | 9.03 | -10.44% |
| Royal Bank | RY | $138.76 | $11.82 | 11.74 | 1.11% |
| National Bank | NA | $100.60 | $9.63 | 10.45 | 6.49% |
| TD Bank | TD | $93.01 | $9.04 | 10.29 | 15.34% |
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 Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF) ... learn more on Wednesday, February 15, 2023 around 5 pm.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.
Thursday, February 9, 2023
Something to Buy February 2023
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 2023 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical median dividend yields (P/Med), 10 year high dividend yields (P/10Hi), or 10 year median dividend yields (P/10Yr). As in other spreadsheets, you can highlight a line or several 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 20 stocks in the Consumer Discretionary category. One of these stocks (5%) are showing as cheap by the historically high dividend yield. It is Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF). Leon's Furniture (TSX-LNF, OTC-LEFUF) has been removed from this list.
Ten (50%) 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), K-Bro Linen Inc (TSX-KBL, OTC-KBRLF), 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), Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF), and Stingray Digital Group Inc (TSX-RAY.A). Savaria Corporation (TSX-SIS, OTC-SISXF) and Linamar Corporation (TSX-LNR, OTC-LIMAF) have been deleted from this list.
I follow 13 Consumer Staples stocks. No stock (0%) is showing as cheap by the historically high dividend yield. Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF) has been deleted from this list.
Nine stocks (69%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), KP Tissue Inc (TSX-KPT, NYSE-KPTSF), Lassonde Industries (TSX-LAS.A, OTC-LSDAF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Metro Inc (TSX-MRU, OTC-MTRAF), Saputo Inc. (TSX-SAP, OTC-SAPIF), and Waterloo Brewing Ltd (TSX-WBR, OTC-BIBLF). Metro Inc (TSX-MRU, OTC-MTRAF) has been added to this list.
I follow Six Health Care stocks. Two of these stocks (33%) are showing as cheap by the historically high dividend yield. They are Medtronic PCL (NYSE-MDT), Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none). There is no change from last month.
Six stocks (100%) are cheap by the historical median dividend yield. The stocks are Chartwell Retirement Residences (TSX-CSH.UN, NYSE-CWSRF), HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT), Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none), and Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF). There is no change from last month.
I follow 9 Energy stocks. No stock (0%) is showing as cheap by the historical high dividend yield. There is no change from last month.
There are Five stocks (56%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc (TSX-CVE, NYSE-CVE), Mullen Group (TSX-MTL, OTC-MLLGF), Ovintiv Inc (TSX-OVV, OTC-OVV), 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.
Five stocks (62%) 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), Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM), Home Capital Group (TSX-HCG, OTC-HMCBF), and Toronto Dominion Bank (TSX-TD, NYSE-TD). Bank of Montreal (TSX-BMO, NYSE-BMO), National Bank of Canada (TSX-NA, OTC-NTIOF), and Royal Bank of Canada (TSX-RY, NYSE-RY) have been deleted from this list.
I follow 13 Financial Service stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Nine stocks (69%) are showing as cheap by the historical median dividend yield. These stocks are Accord Financial Corp (TSX-ACD, OTC-ACCFF), Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), CI Financial (TSX-CIX, NYSE-CIXX), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), EQB Inc (TSX-EQB, OTC-EQGPF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). AGF Management Ltd (TSX-AGF.B, OTC-AGFMF) has been removed from this list.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
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). There is no change from last month.
I follow 32 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction (7), Industrial (3), Manufacturing (5) and (Business) Services (17).
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). There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). There is no change from last month.
I have 3 stocks 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). Russel Metals (TSX-RUS, OTC-RUSMF) has been removed from this list.
I have 5 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.
Eight stock (47%) 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), GFL Environmental Inc (TSX-GFL, NYSE -GFL), Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), Pason Systems Inc (TSX-PSI, OTC-PSYTF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF), and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). Wajax Corp (TSX-WJX, OTC-WJXFF) has been deleted from this list.
I follow 10 Material stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Agnico Eagle Mines Ltd (TSX-AEM, NYSE-AEM). There is no change from last month.
Three stock (33%) are showing as cheap by historical median dividend yield. The stocks are Agnico Eagle Mines Ltd (TSX-AEM, NYSE-AEM), Barrick Gold Corp (TSX-ABX, NYSE-ABX), and Stella-Jones (TSX-SJ, OTC-STLJF). There is no change from last month.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Three stocks (30%) are showing as cheap by historical median dividend yield. They are Allied Properties REIT (TSX-AP.UN, OTC-APYRF), Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). First Capital REIT (TSX-FCR.UN, OTC-FCXXF), and Granite REIT (TSX-GRT.UN, NYSE-GRP.U) have been deleted from 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 stock (0%) is 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 Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF), Evertz Technologies (TSX-ET, OTC-EVTZF), Quarterhaill Inc (TSX-QTRH, OTC-QTRHF) and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.
I follow 8 of the Infrastructure Type utility companies. None of the stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month. Hydro One Ltd. (TSX-H, OTC-HRNNF) has been added to the infrastructure list as I am now following this stock.
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 8 of the Power Type utility companies. One stock (13%) 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.
Five stocks (63%) 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), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), Emera Inc (TSX-EMA, OTC-EMRAF), and Fortis Inc (TSX-FTS, OTC-FRTSF). There is no change from last month.
On my other blog I wrote yesterday about AGF Management Ltd (TSX-AGF.B, OTC-AGFMF) ... learn more. Next, I will write about Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more on Friday, February 10, 2023 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 2023 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical median dividend yields (P/Med), 10 year high dividend yields (P/10Hi), or 10 year median dividend yields (P/10Yr). As in other spreadsheets, you can highlight a line or several 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 20 stocks in the Consumer Discretionary category. One of these stocks (5%) are showing as cheap by the historically high dividend yield. It is Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF). Leon's Furniture (TSX-LNF, OTC-LEFUF) has been removed from this list.
Ten (50%) 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), K-Bro Linen Inc (TSX-KBL, OTC-KBRLF), 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), Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF), and Stingray Digital Group Inc (TSX-RAY.A). Savaria Corporation (TSX-SIS, OTC-SISXF) and Linamar Corporation (TSX-LNR, OTC-LIMAF) have been deleted from this list.
I follow 13 Consumer Staples stocks. No stock (0%) is showing as cheap by the historically high dividend yield. Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF) has been deleted from this list.
Nine stocks (69%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), KP Tissue Inc (TSX-KPT, NYSE-KPTSF), Lassonde Industries (TSX-LAS.A, OTC-LSDAF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), Metro Inc (TSX-MRU, OTC-MTRAF), Saputo Inc. (TSX-SAP, OTC-SAPIF), and Waterloo Brewing Ltd (TSX-WBR, OTC-BIBLF). Metro Inc (TSX-MRU, OTC-MTRAF) has been added to this list.
I follow Six Health Care stocks. Two of these stocks (33%) are showing as cheap by the historically high dividend yield. They are Medtronic PCL (NYSE-MDT), Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none). There is no change from last month.
Six stocks (100%) are cheap by the historical median dividend yield. The stocks are Chartwell Retirement Residences (TSX-CSH.UN, NYSE-CWSRF), HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF), Johnson and Johnson (NYSE-JNJ), Medtronic Inc. (NYSE-MDT), Neighbourly Pharmacy Inc (TSX-NBLY, OTC-none), and Sienna Senior Living Inc (TSX-SIA, OTC-LWSCF). There is no change from last month.
I follow 9 Energy stocks. No stock (0%) is showing as cheap by the historical high dividend yield. There is no change from last month.
There are Five stocks (56%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc (TSX-CVE, NYSE-CVE), Mullen Group (TSX-MTL, OTC-MLLGF), Ovintiv Inc (TSX-OVV, OTC-OVV), 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.
Five stocks (62%) 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), Canadian Imperial Bank of Commerce (TSX-CM, NYSE-CM), Home Capital Group (TSX-HCG, OTC-HMCBF), and Toronto Dominion Bank (TSX-TD, NYSE-TD). Bank of Montreal (TSX-BMO, NYSE-BMO), National Bank of Canada (TSX-NA, OTC-NTIOF), and Royal Bank of Canada (TSX-RY, NYSE-RY) have been deleted from this list.
I follow 13 Financial Service stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Nine stocks (69%) are showing as cheap by the historical median dividend yield. These stocks are Accord Financial Corp (TSX-ACD, OTC-ACCFF), Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), CI Financial (TSX-CIX, NYSE-CIXX), Element Fleet Management Corp (TSX-EFN, OTC-ELEEF), EQB Inc (TSX-EQB, OTC-EQGPF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). AGF Management Ltd (TSX-AGF.B, OTC-AGFMF) has been removed from this list.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
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). There is no change from last month.
I follow 32 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction (7), Industrial (3), Manufacturing (5) and (Business) Services (17).
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). There is no change from last month.
One stock (14%) is showing as cheap by historical median dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF). There is no change from last month.
I have 3 stocks 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). Russel Metals (TSX-RUS, OTC-RUSMF) has been removed from this list.
I have 5 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.
Eight stock (47%) 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), GFL Environmental Inc (TSX-GFL, NYSE -GFL), Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), Pason Systems Inc (TSX-PSI, OTC-PSYTF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Titanium Transportation Group Inc (TSX-TTR, OTC-TTTGF), and Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). Wajax Corp (TSX-WJX, OTC-WJXFF) has been deleted from this list.
I follow 10 Material stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Agnico Eagle Mines Ltd (TSX-AEM, NYSE-AEM). There is no change from last month.
Three stock (33%) are showing as cheap by historical median dividend yield. The stocks are Agnico Eagle Mines Ltd (TSX-AEM, NYSE-AEM), Barrick Gold Corp (TSX-ABX, NYSE-ABX), and Stella-Jones (TSX-SJ, OTC-STLJF). There is no change from last month.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Three stocks (30%) are showing as cheap by historical median dividend yield. They are Allied Properties REIT (TSX-AP.UN, OTC-APYRF), Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). First Capital REIT (TSX-FCR.UN, OTC-FCXXF), and Granite REIT (TSX-GRT.UN, NYSE-GRP.U) have been deleted from 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 stock (0%) is 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 Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF), Evertz Technologies (TSX-ET, OTC-EVTZF), Quarterhaill Inc (TSX-QTRH, OTC-QTRHF) and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.
I follow 8 of the Infrastructure Type utility companies. None of the stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month. Hydro One Ltd. (TSX-H, OTC-HRNNF) has been added to the infrastructure list as I am now following this stock.
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 8 of the Power Type utility companies. One stock (13%) 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.
Five stocks (63%) 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), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF), Emera Inc (TSX-EMA, OTC-EMRAF), and Fortis Inc (TSX-FTS, OTC-FRTSF). There is no change from last month.
On my other blog I wrote yesterday about AGF Management Ltd (TSX-AGF.B, OTC-AGFMF) ... learn more. Next, I will write about Canadian Pacific Railway (TSX-CP, NYSE-CP) ... learn more on Friday, February 10, 2023 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 7, 2023
Dividend Stocks February 2023
First, I want to point out that not all 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 several 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 2023. Note: I am no longer looking at Historical average dividend yields.
On this list,
Algoma Central Corporation (TSX-ALC, OTC-AGMJF)
Allied Properties REIT (TSX-AP.UN, OTC-APYRF)
ATCO Ltd (TSX-ACO.X, OTC-ACLLF)
BCE Inc (TSX-BCE, NYSE-BCE)
Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP)
Canadian National Railway (TSX-CNR, NYSE-CNI)
Canadian Utilities Ltd (TSX-CU, OTC-CDUAF)
Chesswood Group (TSX-CHW, OTC-CHWWF)
H & R REIT (TSX-HR.UN, OTC-HRUFF)
Metro Inc (TSX-MRU, OTC-MTRAF)
Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF)
Of the stocks I follow, 0 stock has cut their dividends.
Of the stocks I follow, 0 stocks have suspended or terminated their dividend.
Hydro One Ltd. (TSX-H, OTC-HRNNF) has been added to my list because I decided to start following this stock.
Of the stocks I follow, the following declined the most in their stock price. Of the stocks I follow, 21.9% had declining stock prices.
Of the stock that I follow, these stocks gained the most in their stock price. Of the stock I follow, 74.8% had increasing stock price. And, 3% of the stock retained the same stock price as last month.
Most of my stocks started out as Dividend Payers. Currently 11 stocks are not paying any dividends and this would be some 7.10% of the stocks that I follow. Three of these stocks never had dividends, so 5.16% 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 Canadian National Railway (TSX-CNR, NYSE-CNI) ... learn more. Next, I will write about AGF Management Ltd (TSX-AGF.B, OTC-AGFMF) ... learn more on Wednesday, February 8, 2023 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 several 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 2023. Note: I am no longer looking at Historical average dividend yields.
On this list,
- I have 7 stocks with a dividend yield higher than the historical high dividend yield,
- I have 80 stocks with a dividend yield higher than the historical median dividend yield
- I have 11 stocks with a dividend yield higher than the 10 year high dividend yield and
- 91 stocks with a dividend yield higher than the 10 year average dividend yield.
- I have 10 stocks with a dividend yield higher than the historical high dividend yield,
- I have 89 stocks with a dividend yield higher than the historical median dividend yield
- I have 11 stocks with a dividend yield higher than the 10 year high dividend yield and
- 83 stocks with a dividend yield higher than the 10 year average dividend yield.
- I had 9 stocks with a dividend yield higher than the historical high dividend yield,
- I had 45 stocks with a dividend yield higher than the historical average dividend yield and
- 39 stocks with a dividend yield higher than the 5 year median dividend yield.
Algoma Central Corporation (TSX-ALC, OTC-AGMJF)
Allied Properties REIT (TSX-AP.UN, OTC-APYRF)
ATCO Ltd (TSX-ACO.X, OTC-ACLLF)
BCE Inc (TSX-BCE, NYSE-BCE)
Brookfield Infrastructure Partners (TSX-BIP.UN, NYSE-BIP)
Canadian National Railway (TSX-CNR, NYSE-CNI)
Canadian Utilities Ltd (TSX-CU, OTC-CDUAF)
Chesswood Group (TSX-CHW, OTC-CHWWF)
H & R REIT (TSX-HR.UN, OTC-HRUFF)
Metro Inc (TSX-MRU, OTC-MTRAF)
Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF)
Of the stocks I follow, 0 stock has cut their dividends.
Of the stocks I follow, 0 stocks have suspended or terminated their dividend.
Hydro One Ltd. (TSX-H, OTC-HRNNF) has been added to my list because I decided to start following this stock.
Of the stocks I follow, the following declined the most in their stock price. Of the stocks I follow, 21.9% had declining stock prices.
| Name | Exch | Sym | Exch | Sym | Chge SP |
|---|---|---|---|---|---|
| ARC Resources Ltd | TSX | ARX | OTC | AETUF | -17.59% |
| Algoma Central Corp | TSX | ALC | OTC | AGMJF | -10.81% |
| Neighbourly Pharmacy | TSX | NBLY | OTC | none | -10.22% |
| Trican Well Service Ltd | TSX | TCW | OTC | TOLWF | -9.84% |
| Ovintiv Inc | TSX | OVV | OTC | OVV | -9.36% |
| Superior Plus Corp. | TSX | SPB | OTC | SUUIF | -8.73% |
| WildBrain Ltd | TSX | WILD | OTC | WLDBF | -8.65% |
| Northland Power Inc | TSX | NPI | OTC | NPIFF | -7.24% |
| Johnson and Johnson | NYSE | JNJ | -6.86% | ||
| Calian Group Ltd. | TSX | CGY | OTC | CLNFF | -6.69% |
Of the stock that I follow, these stocks gained the most in their stock price. Of the stock I follow, 74.8% had increasing stock price. And, 3% of the stock retained the same stock price as last month.
| Name | Exch | Sym | Exch | Sym | Chge SP |
|---|---|---|---|---|---|
| Granite REIT | TSX | GRT.UN | NYSE | GRP.U | 24.78% |
| Quarterhaill Inc | TSX | QTRH | OTC | QTRHF | 25.32% |
| SNC-Lavalin | TSX | SNC | OTC | SNCAF | 26.45% |
| Hammond Power Sol. | TSX | HPS.A | OTC | HMDPF | 27.04% |
| Supremex Inc | TSX | SXP | OTC | SUMXF | 29.83% |
| Methanex Corp | TSX | MX | NASDAQ | MEOH | 31.53% |
| Trigon Metals Inc. | TSXV | TM | OTC | PNTZF | 33.33% |
| Blackberry Ltd. (RIM) | TSX | BB | NYSE | BB | 36.05% |
| Ballard Power Systems | TSX | BLDP | NASDAQ | BLDP | 36.57% |
| Reitmans (Canada) Ltd | TSX | RET.A | OTC | RTMAF | 76.47% |
Most of my stocks started out as Dividend Payers. Currently 11 stocks are not paying any dividends and this would be some 7.10% of the stocks that I follow. Three of these stocks never had dividends, so 5.16% 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 Canadian National Railway (TSX-CNR, NYSE-CNI) ... learn more. Next, I will write about AGF Management Ltd (TSX-AGF.B, OTC-AGFMF) ... learn more on Wednesday, February 8, 2023 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, February 2, 2023
Future Crunch
Here is a new newsletter from Future Crunch. I always find this interesting. The main thing is the work on cancer and its increasing survival rate.
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 3, 2023 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 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 3, 2023 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.
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