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 June 2025 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. Three of these stocks (10%) are showing as cheap by the historically high dividend yield. They are BRP Inc (TSX-DOO, NASDAQ-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Magna International Inc. (TSX-MG, NYSE-MGA). There is no change from last month.
Nine (45%) of Consumer Discretionary are showing cheap by historical median dividend yield. They are BRP Inc (TSX-DOO, NASDAQ-DOOO), Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), Goodfellow Inc (TSX-GDL, OTC-GFELF), High Liner Foods (TSX-HLF, OTC-HLNFF), 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), and Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF). Keg Royalties Income Fund, (TSX-KEG.UN, OTC-KRIUF) has been removed from this list.
I follow 13 Consumer Staples stocks. Two stocks (15%) are showing as cheap by the historically high dividend yield. They are Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF) has been removed from this list.
Eight stocks (62%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Jamieson Wellness Inc (TSX-JWEL, OTC-JWLLF), KP Tissue Inc (TSX-KPT, NYSE-KPTSF), Lassonde Industries (TSX (LAS.A, OTC-LSDAF), Maple Leaf Foods Inc (TSX-MFI, OTC-MLFNF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). Metro Inc (TSX-MRU-OTC-MTRAF) has been removed from this list.
I follow Five Health Care stocks. One of these stocks (20%) is showing as cheap by the historically high dividend yield. It is Medtronic PCL (NYSE-MDT). There is no change from last month.
Two stocks (40%) are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ), and Medtronic Inc. (NYSE-MDT). There is no change from last month.
I follow 8 Energy stocks. Veren Inc (TSX-VRN, NYSE-VRN) was acquired by Whitecap Resources Inc. (TSX-WCP, OTC-SPGYF) on March 10, 2025, so the number of energy stocks I am following has gone from 9 to 8.
Two stocks (25%) are showing as cheap by the historical high dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), and Cenovus Energy Inc (TSX-CVE, NYSE-CVE). There is no change from last month.
There are Five stocks (63%) 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 27 Financial stocks under the categories of Banks (7), Financial Services (15), and Insurance (5).
I follow 7 Bank stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stocks (29%) are showing as cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), and Toronto Dominion Bank (TSX-TD, NYSE-TD). Bank of Montreal (TSX-BMO, NYSE-BMO) has been deleted from this list.
I follow 15 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.
Seven stocks (47%) are showing as cheap by the historical median dividend yield. These stocks are Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF), Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF), EQB Inc (TSX-EQB, OTC-EQGPF), Goeasy Ltd (TSX-GSY, OTC-EHMEF), Guardian Capital Group (TSX-GCG.A, OTC-GCAAF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). AGF Management Ltd (TSX-AGF.B, OTC-AGFMF) and First National Financial Corp (TSX-FN, OTC-FNLIF) have been removed from this list. Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF) has been added to this list.
I follow 5 Insurance stocks. None of these stocks (0%) is showing as cheap by the historically high dividend yield. Manulife Financial Corp (TSX-MFC, NYSE-MFC) has been deleted from this list.
Three stocks (60%) are showing as cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), Manulife Financial Corp (TSX-MFC, NYSE-MFC), and Sun Life Financial (TSX-SLF, NYSE-SLF). There is no change from last month.
I follow 33 Industrial stocks. Because I have so many and Industrial, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction (7), Industrial (3), Manufacturing (5) and (Business) Services (18).
I have 7 Construction stocks. No stock (0%) is showing as cheap by the historically high dividend yield. There is no change from last month.
Two stock (29%) is showing as cheap by historical median dividend yield. It is Aecon Group Inc (TSX-ARE, OTC-AEGXF), and Toromont Industries Ltd (TSX-TIH, OTC-TMTNF). 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 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 18 Services stocks. One stock (6%) is showing as cheap by the historically high dividend yield. It is Canadian National Railway (TSX-CNR, NYSE-CNI.). There is no change from last month.
Nine stock (50%) 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), McCoy Global Inc (TSX-MCB, OTC-MCCRF), Parkland Fuel Corp (TSX-PKI, OTC-PKIUF), Pason Systems Inc (TSX-PSI, OTC-PSYTF), Pulse Seismic Inc. (TSX-PSD, OTC-PLSDF), Transcontinental Inc (TSX-TCL.A, OTC-TCLAF), Trican Well Service Ltd (TSX-TCW, OTC-TOLWF), and Wajax Corp (TSX-WJX, OTC-WJXFF). There is no change from last month.
I follow 10 Material stocks. No stock (0%) is showing as cheap by the historically high dividend yield. There is no change from last month.
Four stock (40%) is showing as cheap by historical median dividend yield. They are Adentra Inc (TSX-ADEN, OTC-HDIUF), Agnico Eagle Mines Ltd (TSX-AEM, NYSE-AEM), Barrick Mining 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 stock (0%) is showing as cheap by historically high dividend yield. There is no change from last month.
Seven stocks (70%) are showing as cheap by historical median dividend yield. They are Allied Properties REIT (TSX-AP.UN, OTC-APYRF), Artis REIT (TSX-AX.UN, OTC-ARESF), First Capital REIT (TSX-FCR.UN, OTC-FCXXF), Granite REIT (TSX-GRT.UN, NYSE-GRP.U), Melcor Developments Inc. and (TSX-MRD, OTC-MODVF), RIOCAN REIT (TSX-REI.UN, OTC-RIOCF) and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF), FirstService Corp (TSX-FSV, NASDAQ-FSV) have been removed from this list.
I follow 4 of the Telecom Service stocks. 3 of the stocks (75%) are showing as cheap by historically high dividend yield. They are Cogeco Communications Inc (TSX-CCA, OTC-CGEAF), Quebecor Inc (TSX-QBR.B, OTC-QBCRF), and Telus Corp (TSX-T, NYSE-TU). BCE (TSX-BCE, NYSE-BCE) has been removed from this list.
Four stocks (100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Cogeco Communications Inc (TSX-CCA, OTC-CGEAF), Quebecor Inc (TSX-QBR.B, OTC-QBCRF) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
I follow 7 Tech stocks. One stock (14%) is showing as cheap by historical high dividend yield. It is Enghouse Systems Limited (TSX-ENGH, OTC-EGHSF). Evertz Technologies (TSX-ET, OTC-EVTZF) has been deleted from this list.
Three stock (43%) are showing cheap by historical median dividend yield. They are 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 8 of the Infrastructure Type stocks. No stock (0%) is showing as cheap by historical high dividend yield. There is no change from last month. South Bow Corp (TSX-SOBO, NYSE-SOBO) is showing as cheap, but I have little data on this stock. I am waiting to have more data on this stock.
Two stocks (25%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month. South Bow Corp (TSX-SOBO, NYSE-SOBO) is showing as cheap but I have little data on this stock.
I follow 9 of the Power Type utility companies. No stock (0%) is showing as cheap by historical high dividend yield.
Three stocks (33%) are showing as cheap by historical median dividend yield. Those stocks are Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN), Boralex Inc (TSX-BLX, OTC-BRLXF), and Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). Fortis Inc (TSX-FTS, OTC-FRTSF), and ATCO Ltd (TSX-ACO.X, OTC-ACLLF) have been removed from this list.
On my other blog I wrote yesterday about IA Financial Corp (TSX-IAG, OTC-IDLLF) ... learn more. Next, I will write about Adentra Inc (TSX-ADEN, OTC-HDIUF) ... learn more on Friday, June 6, 2025 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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