In this article on Advice for Investors the author talks about how dividends beat share price gains. It has been found that share price gains account for about a third of most investors’ stock returns and share price gains can be fickled. Reinvested dividends accounts for the other two-thirds.
On my other blog I wrote yesterday about Teck Resources Ltd (TSX-TECK.B, NYSE-TECK) ... learn more. Next, I will write about Logistec Corp (TSX-LGT.B, OTC-LTKBF) ... learn more on Friday, October 1, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, September 30, 2021
Tuesday, September 28, 2021
Warren Buffett Quotes
Some good advice by Warren Buffet on investing. This is via Money Sense and Financial Post. The points he makes are below, but read the article for details.
I have built a portfolio to last through hard times and I do not sell in bear markets. My portfolio is built to out last bear markets. I do invest for the long term. I do look for quality and value in the stocks that I buy. I understand that the prices of stock are volatile but dividends are generally not.
On my other blog I wrote yesterday about Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more. Next, I will write about Teck Resources Ltd (TSX-TECK.B, NYSE-TECK) ... learn more on Wednesday, September 29, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
- Beware of inflation (it’s heating up)
- Don’t follow the herd
- Prepare your portfolio for anything
- Volatility is part of the game
- If you want to buy Bitcoin, proceed with caution
- Focus on quality and value
- Think long-term — even if you have very little to invest
I have built a portfolio to last through hard times and I do not sell in bear markets. My portfolio is built to out last bear markets. I do invest for the long term. I do look for quality and value in the stocks that I buy. I understand that the prices of stock are volatile but dividends are generally not.
On my other blog I wrote yesterday about Linamar Corporation (TSX-LNR, OTC-LIMAF) ... learn more. Next, I will write about Teck Resources Ltd (TSX-TECK.B, NYSE-TECK) ... learn more on Wednesday, September 29, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, September 23, 2021
Canadian Stocks for September 2021
Dan Kent on Stock Trades Canada recently talked about the best Canadian Dividend stocks for September 2021. They are shown below. For why he picked these stocks, read his blog entry.
Bank of Nova Scotia (TSX:BNS)
Alimentation Couche-Tard (TSX:ATD.B)
Metro (TSX:MRU)
Canadian Apartment REIT (TSX:CAR.UN)
Allied Properties REIT (TSX:AP.UN)
TC Energy (TSX:TRP)
Magna International (TSX:MG)
BCE (TSX:BCE)
Royal Bank of Canada (TSX:RY)
Fortis (TSX:FTS)
On my other blog I wrote yesterday about K-Bro Linen Inc (TSX-KBL, OTC-KBRLF) ... learn more. Next, I will write about BRP Inc (TSX-DOO, OTC-DOOO) ... learn more on Friday, September 24, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Bank of Nova Scotia (TSX:BNS)
Alimentation Couche-Tard (TSX:ATD.B)
Metro (TSX:MRU)
Canadian Apartment REIT (TSX:CAR.UN)
Allied Properties REIT (TSX:AP.UN)
TC Energy (TSX:TRP)
Magna International (TSX:MG)
BCE (TSX:BCE)
Royal Bank of Canada (TSX:RY)
Fortis (TSX:FTS)
On my other blog I wrote yesterday about K-Bro Linen Inc (TSX-KBL, OTC-KBRLF) ... learn more. Next, I will write about BRP Inc (TSX-DOO, OTC-DOOO) ... learn more on Friday, September 24, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, September 21, 2021
Money Sense on Debt
This is a great article on how to handle debt by Money Sense. It also has lots of links to explain concepts that is talked about. This is sponsored by CIBC, so there are lots of links to CIBC products, but I am sure if you talked to your bank, they will have similar products.
On my other blog I wrote yesterday about Granite REIT (TSX-GRT.UN, NYSE-GRP.U) ... learn more. Next, I will write about K-Bro Linen Inc (TSX-KBL, OTC-KBRLF) ... learn more on Wednesday, September 22, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
On my other blog I wrote yesterday about Granite REIT (TSX-GRT.UN, NYSE-GRP.U) ... learn more. Next, I will write about K-Bro Linen Inc (TSX-KBL, OTC-KBRLF) ... learn more on Wednesday, September 22, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Thursday, September 16, 2021
Successful Investing
If you want to be successful at investing, buy good stocks and hold them. You will also have to ignore the market a lot of the time. The market goes up and the market goes down. The point is to not panic. If you buy good companies, you will probably have no problems.
However, you will have to realize even when buying good companies, things do happen. Companies can fail and some will. The thing is to do well on most of your stocks. You will not do well on them all. I have had failures in stocks in the past. This happens. I will sell a stock when I lose faith in it.
I buy dividend growth stock. In every bear market I have stocks that cut or suspend their dividends. You usually will not know ahead of time which stocks will have a hard time in a bear market. Every bear market is different and it will affect different sectors differently. But note in every bear market I have also had stocks that increase their dividends. In every bear market I have an overall increase in dividends.
You need to have a diversified portfolio. You need to have different companies in different sectors. The only sectors I do not recommend are the resource sectors. That is oil and gas and mining.
On my other blog I wrote yesterday about Great-West Lifeco Inc (TSX-GWO, OTC-GWLIF) ... learn more. Next, I will write about Alcanna Inc (TSX-CLIQ, OTC-LQSIF) ... learn more on on Friday, September 17, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
However, you will have to realize even when buying good companies, things do happen. Companies can fail and some will. The thing is to do well on most of your stocks. You will not do well on them all. I have had failures in stocks in the past. This happens. I will sell a stock when I lose faith in it.
I buy dividend growth stock. In every bear market I have stocks that cut or suspend their dividends. You usually will not know ahead of time which stocks will have a hard time in a bear market. Every bear market is different and it will affect different sectors differently. But note in every bear market I have also had stocks that increase their dividends. In every bear market I have an overall increase in dividends.
You need to have a diversified portfolio. You need to have different companies in different sectors. The only sectors I do not recommend are the resource sectors. That is oil and gas and mining.
On my other blog I wrote yesterday about Great-West Lifeco Inc (TSX-GWO, OTC-GWLIF) ... learn more. Next, I will write about Alcanna Inc (TSX-CLIQ, OTC-LQSIF) ... learn more on on Friday, September 17, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
Tuesday, September 14, 2021
Best Canadian Stocks
Dan Kent on Stock Trades Canada talked recently about the 10 best Canadian stocks to Buy and Hold forever. The stocks he listed are below. Read the article to see why he likes these stocks.
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.
- Agnico Eagle Mines (TSE:AEM)
- Pollard Banknote (TSE:PBL)
- Goeasy Ltd (TSE:GSY)
- TFI International (TSE:TFII)
- Shopify (TSE:SHOP)
- Nuvei (TSE:NVEI)
- Telus (TSE:T)
- Parkland Fuels (TSE:PKI)
- Brookfield Renewables (TSE:BEP.UN)
- Royal Bank (TSE:RY)
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, September 9, 2021
Something to Buy September 2021
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 September 2021 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 22 stocks in the Consumer Discretionary category. Le Chateau Inc (TSX-CTU.H) has been removed as it no longer exists. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Six (23%) 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), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP) and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
I follow 10 Consumer Staples stocks. No stocks are showing as cheap by the historically high dividend yield. There is no change from last month.
Six stocks (60%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Lassonde Industries (TSX-LAS.A, OTC-LSDAF), Loblaw Companies (TSX-L, OTC-LBLCF), Metro Inc (TSX-MRU, OTC-MTRAF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). There is no change from last month.
I follow Five Health Care stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stocks (40%) are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ), and Medtronic Inc. (NYSE-MDT). HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) has been removed from this list.
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 three stocks (33%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), 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, Financial Services, and Insurance.
I follow 8 Bank stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stocks (25%) are showing as cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), and Toronto Dominion Bank (TSX-TD, NYSE-TD). There is no change from last month.
I follow 13 Financial Service stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (23%) are showing as cheap by the historical median dividend yield. These stocks are AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (60%) are showing as cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC). There is no change from last month.
I follow 32 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 7 Construction stocks. No stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stock (29%) are showing as cheap by historical median dividend yield. They are Aecon Group Inc (TSX-ARE, OTC-AEGXF), and Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF). Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF) has been added to this list.
I have 3 stocks I have 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 7 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 stocks (14%) are showing as cheap by historical median dividend yield. It is Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) has been removed from this list.
I follow 15 Services stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month. I have moved TECSYS Inc (TSX-TCS, OTC-TCYSF) to the Tech section.
One stock (7%) is showing as cheap by historical median dividend yield. It is Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc (TSX-PSI, OTC- PSYTF) and Wajax Corp (TSX-WJX, OTC-WJXFF) have been removed from this list.
I follow 10 Material stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Kirkland Lake Gold (TSX-KL, NYSE-KL). There is no change from last month.
Four stock (40%) are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), Chemtrade Logistics Inc. Fund (TSX-CHE.UN, OTC-CGIFF), Kirkland Lake Gold (TSX-KL, NYSE-KL), and Stella-Jones (TSX-SJ, OTC-STLJF). There is no change from last month.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Two stocks (20%) are showing as cheap by historical median dividend yield. They are Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). There is no change from last month.
I follow 3 of the Telecom Service stocks. None of the stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Three stocks (100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Shaw Communications Inc (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
I follow 10 Tech stocks. No stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month. I have moved TECSYS Inc (TSX-TCS, OTC-TCYSF) to this Tech section.
Three stock (33%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF), Evertz Technologies (TSX-ET, OTC-EVTZF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.
I follow 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.
Three stocks (38%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF), and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 9 of the Power Type utility companies. One stock (10%) is showing as cheap by historical high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
Two stocks (20%) are showing as cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). There is no change from last month.
On my other blog I wrote yesterday about Telus Corp (TSX-T, NYSE-TU) ... learn more. Next, I will write about Wajax Corp (TSX-WJX, OTC-WJXFF) ... learn more on Friday, September 10, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
The advantages to using dividend yield to judge how cheap or expensive a stock is, is that you are not using estimates or old data (like last reported quarter's data). You are using today's stock price and today's dividend yield. However, this is just a place to start. It is a good idea to check the stock price with other tests, especially the P/S Ratio test. For other testing, like P/E Ratios, P/S Ratios, P/CF Ratios, P/BV Ratios and Price/Graham Price Ratios, you use estimates or data from the last reported financial quarter.
If a stock is showing as a buy using the dividend yield test, I usually like to verify it is a buy by doing a P/S Ratio test. Here you compare the current P/S Ratio to the 10 year median P/S Ratio. If the current P/S Ratio is lower than the 10 year median, then the stock is a buy. I note that Morningstar gives a current P/S Ratio. The 10 year median ratio is shown in my review of a stock. The 10 year median ratio in a review is good for one year from the date of review.
This historical dividend yield test does not work well for old Income Trust companies. These companies had quite high Dividend Yields which will probably never be seen again. So, I started a column called VT (for Valid Test) and this applies to checking stock price using dividend yield. If it is not a valid test, I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 10 year median dividend yield.
However, no system is perfect. But if you are interested in buying a stock a list of stocks cheap or reasonable using dividend yield data might be a good place to start.
Categorizing stocks is not as simple as it might seem. Every site you go to has categorized stocks a bit differently. I try to keep this as simple as possible. See Something to Buy September 2021 Spreadsheet above to see what stocks are showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave), historical median dividend yields (P/Med) or on 5 year median dividend yields (P/5Yr). As in other spreadsheets, you can highlight a line or a number of lines for better viewing.
In the following notes I am only going to list stocks showing as cheap using the historical high dividend yields (P/Hi) and historical median dividend yields (P/Med).
I follow 22 stocks in the Consumer Discretionary category. Le Chateau Inc (TSX-CTU.H) has been removed as it no longer exists. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Six (23%) 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), Leon's Furniture (TSX-LNF, OTC-LEFUF), Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP) and Stingray Digital Group Inc (TSX-RAY.A). There is no change from last month.
I follow 10 Consumer Staples stocks. No stocks are showing as cheap by the historically high dividend yield. There is no change from last month.
Six stocks (60%) are showing cheap by historical median dividend yield. These are Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF), Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Lassonde Industries (TSX-LAS.A, OTC-LSDAF), Loblaw Companies (TSX-L, OTC-LBLCF), Metro Inc (TSX-MRU, OTC-MTRAF), and Saputo Inc. (TSX-SAP, OTC-SAPIF). There is no change from last month.
I follow Five Health Care stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stocks (40%) are cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ), and Medtronic Inc. (NYSE-MDT). HLS Therapeutics Inc (TSX-HLS, OTC-HLTRF) has been removed from this list.
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 three stocks (33%) showing as cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), 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, Financial Services, and Insurance.
I follow 8 Bank stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stocks (25%) are showing as cheap by historical median dividend yield. They are Bank of Nova Scotia (TSX-BNS, NYSE-BNS), and Toronto Dominion Bank (TSX-TD, NYSE-TD). There is no change from last month.
I follow 13 Financial Service stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (23%) are showing as cheap by the historical median dividend yield. These stocks are AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), IGM Financial (TSX-IGM, OTC-IGIFF), and Power Corp (TSX-POW, OTC-PWCDF). There is no change from last month.
I follow 5 Insurance stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Three stocks (60%) are showing as cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), IA Financial Corp (TSX-IAG, OTC-IDLLF), and Manulife Financial Corp (TSX-MFC, NYSE-MFC). There is no change from last month.
I follow 32 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.
I have 7 Construction stocks. No stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month.
Two stock (29%) are showing as cheap by historical median dividend yield. They are Aecon Group Inc (TSX-ARE, OTC-AEGXF), and Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF). Badger Infrastructure Solutions Ltd (TSX-BDGI, OTC-BADFF) has been added to this list.
I have 3 stocks I have 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 7 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 stocks (14%) are showing as cheap by historical median dividend yield. It is Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF). Hammond Power Solutions Inc (TSX-HPS.A, OTC-HMDPF) has been removed from this list.
I follow 15 Services stocks. None of these stocks (0%) are showing as cheap by the historically high dividend yield. There is no change from last month. I have moved TECSYS Inc (TSX-TCS, OTC-TCYSF) to the Tech section.
One stock (7%) is showing as cheap by historical median dividend yield. It is Transcontinental Inc (TSX-TCL.A, OTC-TCLAF). Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc (TSX-PSI, OTC- PSYTF) and Wajax Corp (TSX-WJX, OTC-WJXFF) have been removed from this list.
I follow 10 Material stocks. One stock (10%) is showing as cheap by the historically high dividend yield. It is Kirkland Lake Gold (TSX-KL, NYSE-KL). There is no change from last month.
Four stock (40%) are showing as cheap by historical median dividend yield. The stocks are Barrick Gold Corp (TSX-ABX, NYSE-ABX), Chemtrade Logistics Inc. Fund (TSX-CHE.UN, OTC-CGIFF), Kirkland Lake Gold (TSX-KL, NYSE-KL), and Stella-Jones (TSX-SJ, OTC-STLJF). There is no change from last month.
I follow 10 Real Estate stocks. No stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Two stocks (20%) are showing as cheap by historical median dividend yield. They are Melcor Developments Inc. (TSX-MRD, OTC-MODVF), and SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF). There is no change from last month.
I follow 3 of the Telecom Service stocks. None of the stocks (0%) are showing as cheap by historically high dividend yield. There is no change from last month.
Three stocks (100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Shaw Communications Inc (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.
I follow 10 Tech stocks. No stocks (0%) are showing as cheap by historical high dividend yield. There is no change from last month. I have moved TECSYS Inc (TSX-TCS, OTC-TCYSF) to this Tech section.
Three stock (33%) are showing cheap by historical median dividend yield. They are Computer Modelling Group Ltd (TSX-CMG, OTC-CMDXF), Evertz Technologies (TSX-ET, OTC-EVTZF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.
I follow 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.
Three stocks (38%) are showing cheap by historical median dividend yield. They are Enbridge Inc. (TSX-ENB, NYSE-ENB), Keyera Corp (TSX-KEY, OTC-KEYUF), and TC Energy Corp (TSX-TRP, NYSE-TRP). There is no change from last month.
I follow 9 of the Power Type utility companies. One stock (10%) is showing as cheap by historical high dividend yield. It is ATCO Ltd (TSX-ACO.X, OTC-ACLLF). There is no change from last month.
Two stocks (20%) are showing as cheap by historical median dividend yield. Those stocks are ATCO Ltd (TSX-ACO.X, OTC-ACLLF), Canadian Utilities Ltd (TSX-CU, OTC-CDUAF). There is no change from last month.
On my other blog I wrote yesterday about Telus Corp (TSX-T, NYSE-TU) ... learn more. Next, I will write about Wajax Corp (TSX-WJX, OTC-WJXFF) ... learn more on Friday, September 10, 2021 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk . The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.
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