Thursday, February 22, 2018

Canadian Bloggers

Are you worried about going alone with building an investment portfolio? Why not follow along with another blogger to get ideas of what to buy and when. There is a number of Canadian Investors who are blogging about how they are building their portfolio.

I post on my blog any buys or sells that I make. However, I am no longer building a portfolio, but I am in the process of living off the one that I did build. The following is a list of bloggers who are talking about the portfolios that they are building. I am not endorsing anyone, but you may find it interesting to read what others are doing.

Rob at Passive Canadian Income talks about what stocks he is buying and why. Here is some of his recent buys. He also has have blog entries showing Income for January 2018 and what is in his portfolio.

The blogger Monsieur Dividende is on a quest to earn dividends and quit working. He talks about how he is doing along the way. He recently published his Income Summary for January 2018.

The blogger the Dividend Earner is another Canadian that talks about his journey to build his portfolio of dividend stocks. He recently published a list of what he considers to be Canadian Blue Chip stocks.

Matthew Freeman a blogger called All About the Dividends shares his journey about building a stock portfolio. He recently published a list what you want to buy on the recent Dip

Tawcan is living in Vancouver and does investing in Canadian Dividend stocks. He recently published a blog entry on stocks he was considering for 2018.

The blogger of Dividend Growth Investing and Retirement is a Canadian living in BC. What is interesting about his blog is that month he publishes a spreadsheet about Canadian Dividend All Stars.

Another Canadian Blogger called My Own Advisor recently wrote about his January 2018 Dividend Income Update.

Kay Ng is blogging at the site Passive Income Earner. On this site there are blog entries talking about Canadian stocks. A recent one look at Fortis Inc.

This is just a sampling of what is out there. There is quite a diverse lot of Canadians blogging about investment. Perhaps at least one will give you a good idea for your investing.

By the way, if anyone wants me to write on a particular subject, just let me know.

On my other blog I wrote yesterday about Home Capital Group (TSX-HCG, OTC-HMCBF)... learn more. Next, I will write about Canadian Real Estate Investment Trust (TSX-REF.UN, OTC-CRXIF)... learn more on Friday, 23, 2018 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 20, 2018

Canadian Market

A lot of Canadians think that the only real market is the US market. Many feel that lately the US market has done much better than the Canadian market. But I think that I have proven you can do well on the Canadian market. Since I have stopped working in 1999, my portfolio is some 2.58 times what it was in 1999 and my income has increased by 240%.

This I think is quite good considering I went through two bear markets after 1999. I have mostly dividend growth stocks and little (around 1%) in resource stock.

On my other blog I wrote yesterday about Emera Inc. (TSX-EMA, OTC-EMRA)... learn more. Next, I will write about Home Capital Group (TSX-HCG, OTC-HMCBF)... learn more on Wednesday, February 21, 2018 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 15, 2018

Good Quality Stocks

I cover a lot of good quality Canadian Stocks in all sectors. When investing you should check out the stocks as in my prior post Investing is a Marathon .

Good Quality Consumer Discretionary Stock I cover:

Company TSX Symbol Other Symbol
Canadian Tire Corp TSX CTC.A OTC CDNAF
Dorel Industries TSX DII.B OTC DIIBF
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
Linamar Corporation TSX LNR OTC LIMAF
Magna International Inc. TSX MG NYSE MGA
Molson Coors Canada TSX TPX.B NYSE TAP
Newfoundland Capital Corp TSX NCC.A
Pizza Pizza Royalty Corp TSX PZA OTC PZRIF
Richelieu Hardware Ltd. TSX RCH OTC RHUHF
Thomson Reuters Corp TSX TRI NYSE TRI


Good Quality Consumer Staple Stocks I cover:

Company TSX Symbol Other Symbol
Alimentation Couche-Tard TSX ATD.B OTC ANCUF
Andrew Peller Ltd TSX ADW.A OTC ADWPF
Empire Company Ltd. TSX EMP.A OTC EMLAF
Jean Coutu Group Inc. TSX PJC.A OTC JCOUF
Lassonde Industries TSX LAS.A OTC LSDAF
Loblaw Companies TSX L OTC LBLCF
Metro Inc. TSX MRU OTC MTRAF
North West Company TSX NWC OTC NWTUF
Premium Brands Holdings Corp TSX PBH OTC PRBZF
Rogers' Sugar TSX RSI OTC RSGUF
Saputo Inc. TSX SAP OTC SAPIF


I only cover two in Health Care and they are both American stock which are:

Company Symbol
Johnson and Johnson NYSE JNJ
Medtronic PCL NYSE MDT


Good Quality Real Estate companies:

Company TSX Symbol Other Symbol
Allied Properties REIT TSX AP.UN OTC APYRF
Canadian Real Estate TSX REF.UN OTC CRXIF
First Capital Realty TSX FCR OTC FCRGF
FirstService Corp. TSX FSV NASDAQ FSV
Granite REIT TSX GRT.UN NYSE GRP.U
H & R REIT TSX HR.UN OTC HRUFF
RIOCAN REIT TSX REI.UN OTC RIOCF
SmartCentres REIT TSX SRU.UN OTC CWYUF


Good Quality Canadian Bank stocks:

Company TSX Symbol Other Symbol
Bank of Montreal TSX BMO NYSE BMO
Bank of Nova Scotia TSX BNS NYSE BNS
CIBC TSX CM NYSE CM
National Bank of Canada TSX NA OTC NTIOF
Royal Bank TSX RY NYSE RY
Toronto Dominion Bank TSX TD NYSE TD


Good Quality Financial Services:

Company TSX Symbol Other Symbol
Accord Financial Corp TSX ACD OTC ACCFF
AGF Management Ltd TSX AGF.B OTC AGFMF
Alaris Royalty Corp TSX AD OTC ALARF
Brookfield Asset Management TSX BAM.A NYSE BAM
CI Financial TSX CIX OTC CIFAF
Equitable Group Inc. TSX EQB OTC EQGPF
Gluskin Sheff + Associates Inc. TSX GS OTC GLUSF
IGM Financial TSX IGM OTC IGIFF
Morneau Shepell Inc. TSX MSI OTC MSIXF
Onex Corp TSX ONEX OTC ONEXF
Power Corp TSX POW OTC PWCDF
TMX Group Ltd. TSX X OTC TMXXF


Good Quality Insurance stocks:

Company TSX Symbol Other Symbol
Great-West Lifeco Inc. TSX GWO OTC GWLIF
Industrial Alliance Ins. and Fin. TSX IAG OTC IDLLF
Intact Financial Corp. TSX IFC OTC IFCZF
Manulife Financial Corp TSX MFC NYSE MFC
Power Financial Corp TSX PWF OTC POFNF
Sun Life Financial TSX SLF NYSE SLF


Good Quality Industrial Construction companies:

Company TSX Symbol Other Symbol
Badger Daylighting Ltd TSX BAD OTC BADFF
Bird Construction Inc. TSX BDT OTC BIRDF
SNC-Lavalin TSX SNC OTC SNCAF
Stantec Inc. TSX STN NYSE STN
Toromont Industries Ltd TSX TIH OTC TMTNF
WSP Global Inc. TSX WSP OTC WSPOF


Good Quality Industrial Stocks:

Company TSX Symbol Other Symbol
Exchange Income Corp TSX EIF OTC EIFZF
Finning International Inc. TSX FTT OTC FINGF
Russel Metals TSX RUS OTC RUSMF


Good Quality Industrial Manufacturing:

Company TSX Symbol Other Symbol
Ag Growth International TSX AFN OTC AGGZF
Exco Technologies Ltd TSX XTC OTC EXCOF
Intertape Polymer Group Inc. TSX ITP OTC ITPOF
PFB Corp TSX PFB OTC PFBOF


Some Good Quality Industrial Services Stocks:

Company TSX Symbol Other Symbol
Canadian National Railway TSX CNR NYSE CNI
Canadian Pacific Railway TSX CP NYSE CP
Logistec Corp TSX LGT.B OTC LTKBF
Parkland Fuel Corp TSX PKI OTC PKIUF
Ritchie Bros Auctioneers Inc. TSX RBA NYSE RBA
Superior Plus Corp. TSX SPB OTC SUUIF
TECSYS Inc. TSX TCS OTC TCYSF
TFI International TSX TFII OTC TFIFF
Transcontinental Inc. TSX TCL.A OTC TCLAF
Waste Connections Inc. TSX WCN NYSE WCN


Good Quality Materials stocks, although I would not buy much in this category:

Company TSX Symbol Other Symbol
Barrick Gold Corp. TSX ABX NYSE ABX
CCL Industries TSX CCL.B OTC CCDBF
Chemtrade Logistics Inc. Fund TSX CHE.UN OTC CGIFF
Hardwoods Distribution Inc. TSX HWD OTC HDIUF
Methanex Corp TSX MX NASDAQ MEOH
Stella-Jones TSX SJ OTC STLJF
Teck Resources Ltd TSX TECK.B NYSE TECK


Good Quality Energy Stocks, but I also would not buy much in this category either:

Company TSX Symbol Other Symbol
ARC Resources Ltd. TSX ARX OTC AETUF
Canadian Natural Resources TSX CNQ NYSE CNQ
Cenovus Energy Inc. TSX CVE NYSE CVE
Crescent Point Energy Corp TSX CPG NYSE CPG
Encana Corp. TSX ECA OTC ECA
Ensign Energy Services TSX ESI OTC ESVIF
Husky Energy TSX HSE OTC HUSKF
Mullen Group TSX MTL OTC MLLGF
Suncor Energy TSX SU NYSE SU


Good Quality Tech stocks:

Company TSX Symbol Other Symbol
Computer Modelling Group Ltd TSX CMG OTC CMDXF
Enghouse Systems Limited TSX ENGH OTC EGHSF
Evertz Technologies TSX ET OTC EVTZF
Sylogist Ltd TSXV SYZ OTC SYZLF


Good Quality Infrastructure Utility stocks:

Company TSX Symbol Other Symbol
AltaGas Ltd TSX ALA OTC ATGFF
Enbridge Inc. TSX ENB NYSE ENB
Enbridge Income Fund Holdings Inc. TSX ENF OTC EBGUF
Inter Pipeline Ltd. TSX IPL OTC IPPLF
Keyera Corp TSX KEY OTC KEYUF
Pembina Pipelines Corp TSX PPL NYSE PBA
TransCanada Corp TSX TRP NYSE TRP


Good Quality Power Utility Stocks:

Company TSX Symbol Other Symbol
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
EnerCare Inc. TSX ECI OTC CSUWF
Fortis Inc. TSX FTS OTC FRTSF
Innergex Renewable Energy TSX INE OTC INGXF


Good Quality Telecom Stocks:

Company TSX Symbol Other Symbol
BCE TSX BCE NYSE BCE
Shaw Communications Inc. TSX SJR.B NYSE SJR
Telus Corp. TSX T NYSE TU


On my other blog I wrote yesterday about Manulife Financial Corp. (TSX-MFC, NYSE-MFC)... learn more. Next, I will write about IGM Financial (TSX-IGM, OTC-IGIFF)... learn more on Friday, February 16, 2018 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 13, 2018

Investing is a Marathon

Investing is not a sprint, it is a marathon. Sure I have heard of investors hitting the big time but that is more like winning the lottery. Most people do not win the lottery. Investing is a marathon as you must give compounding time to work its magic for you.

You need to buy dividend stocks that raise their dividends over time. You have to ensure that your company can afford its dividends. The last thing is that you do not overpay for your company.

One site you can use to check if dividends are increasing is Morningstar. Go to Performance Tab and then to Dividends and Splits. For example in this link you can see dividend payments for Manulife Financial on Morningstar.

Next is to see that EPS cover the dividends. Continuing with Manulife Financial, the last screen showed total dividends of 0.52, 057, 0.665, 0.74 and 0.82 for years 2013 to 2017. On this next screen, Morningstar shows Diluted EPS of $1.62, 1.80, 1.05, 1.41, and 0.98 for years 2013 to 2017. From this you can see the company is covering its dividends.

It is often important to look at more than one year. If a company cannot in one year, that is not especially important unless it is a pattern. Companies can have a low earning year or a loss and it is no big deal. However, look to see how dividends have been covered over the past 5 years. This is much more important. They need to be able to cover dividends over a period of time.

The last thing about not paying too much may be more complex. In my reports I look a stock pricing from a number of ratios. You can compare current data with the historical or 10 year median ratios I give in my report. The ones I give will mostly not change over the course of a year. If you use Reuters and the Financial Tab, you will things like P/S Ratio, P/B Ratios and dividend yields. The only thing not available online is P/GP Ratios.

The thing to never rely on to judge when to buy a stock is analyst's recommendations. They just do not seem to time things right. It is not just that they never issue or seldom issue selling recommendations. They tend to issue Hold recommendations when a stock has fallen and it is time to buy, or issue a Buy when a stock has taken off and the price is currently too high.

If you want information on what to buy when you are looking for a financial planner or investment newsletter. I have never dealt with a financial planner so I do not know anything about getting one. The only newsletter that I feel I can recommend is The Investment Reporter by MPL Communications. Their Money Letter is also good if you want fixed income. The Investment Reporter will offer very concrete and solid advice on investing for Canadians. They take a long term investment view. You can often get a deal to try out the newsletter. Too many newsletters take far too short of view on stocks that they recommend.

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 14, 2018 around 5 pm.

Also, on my book blog I have put a review of the book The Intimate Bond by Brian Fagan learn more...

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 8, 2018

Something to Buy February 2018

Well the TSX continued to decline today. So now it is down by some 3.5% since February 2, 2018 when I updated my spreadsheet. It is down by 1.7% just today.

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 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.

For other testing, like using P/E Ratios and Price/Graham Price Ratios, you use EPS estimates or from the last reported financial quarter. When using P/S Ratios, P/CF Ratios or P/BV Ratios you are using data from the last reported financial quarter.

This system 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 not a valid test I use N to show this. For these stocks, you might be better comparing the current dividend yield to the 5 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 2018 Spreadsheet 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. One of these stocks is showing as cheap by the historically high dividend yield and that is Newfoundland Capital Corp (TSX-NCC.A). Nine (or 41%) are showing cheap by historical median dividend yield. They are Canadian Tire Corp (TSX-CTC.A, OTC-CDNAF), DHX Media Ltd. (TSX-DHX.A, OTC-DHXMF), Dorel Industries (TSX-DII.B, OTC-DIIBF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF); Magna International Inc. (TSX-MG, NYSE-MGA), Molson Coors Canada (TSX-TPX.B, NYSE-TAP) Newfoundland Capital Corp (TSX-NCC.A) and Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF). There is no change from last month.

I follow 12 Consumer Staples stocks. No companies are showing as cheap by the historically high dividend yield. Five stocks (or 42%) 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), Jean Coutu Group Inc. (TSX-PJC.A, OTC-JCOUF), Loblaw Companies (TSX-L, OTC-LBLCF) and Metro Inc. (TSX-MRU, OTC-MTRAF). Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF) has been added to this list.

I only follow two Health Care stocks and both are US stocks. None of these stocks are showing as cheap by the historically high dividend yield. They are both cheap by the historical median dividend yield. The stocks are Johnson and Johnson (NYSE-JNJ) and Medtronic Inc. (NYSE-MDT). This is the same as for last month.

I follow 10 Real Estate stocks as I have deleted Colliers International Group Inc. (TSX-CIGI, NASDAQ-CIGI) as I will no longer follow this stock. None of these stocks are showing as cheap by the historically high dividend yield. Four stocks (or 40%) are showing cheap by historical median dividend yield. They are Artis REIT (TSX-AX.UN, OTC- ARESF); Granite Real Estate (TSX-GRT.UN, NYSE-GRP.U), H & R REIT (TSX-HR.UN, OTC-HRUFF) and Melcor Developments Inc. (TSX-MRD, OTC-MODVF). H & R REIT (TSX-HR.UN, OTC-HRUFF) has been added back to this list.

I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. One stock (or 12.5%) is showing cheap by historical median dividend yield. It is CIBC (TSX-CM, NYSE-CM).

I follow 13 Financial Service stocks. None are showing as cheap by the historically high dividend yield. Eight (or 62%) stocks are showing cheap by the historical median dividend yield. These stocks are Accord Financial Corp (TSX-ACD, OTC-ACCFF), AGF Management Ltd (TSX-AGF.B, OTC-AGFMF), Alaris Royalty Corp (TSX-AD, OTC-ALARF), CI Financial (TSX-CIX, OTC-CIFAF), Equitable Group Inc. (TSX-EQB, OTC-EQGPF), Gluskin Sheff + Associates Inc. (TSX-GS, OTC-GLUSF), IGM Financial (TSX-IGM, OTC-IGIFF) and Power Corp (TSX-POW, OTC-PWCDF). Equitable Group Inc. (TSX-EQB, OTC-EQGPF) is back on this list.

I follow 6 Insurance stocks. This is an increase from 5 and I am now following Industrial Alliance Ins. and Fin. (TSX-IAG, OTC-IDLLF). None are showing as cheap by the historically high dividend yield. Four stocks (or 80%) are showing cheap by historical median dividend yield. These stocks are Great-West Lifeco Inc. (TSX-GWO, OTC-GWLIF), Industrial Alliance Ins. and Fin. (TSX-IAG, OTC-IDLLF), Manulife Financial Corp (TSX-MFC, NYSE-MFC) and Power Financial Corp (TSX-PWF, OTC-POFNF). Industrial Alliance Ins. and Fin. (TSX-IAG, OTC-IDLLF) have been added to this list.

I follow 33 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, Industrial, Manufacturing and (Business) Services.

I have 6 Construction stocks. None are cheap by the historically high dividend yield. Two stocks or 33% are showing as cheap by historical median dividend yield. They are SNC-Lavalin (TSX-SNC, OTC-SNCAF) and Stantec Inc. (TSX-STN, NYSE-STN). There is no change from last month.

I have 3 stocks I have left with the sub-index of Industrial. None are cheap by the historically high dividend yield. Two stocks or 67% are showing as cheap by historical median dividend yield. They are Finning International Inc. (TSX-FTT, OTC-FINGF), and Russel Metals (TSX-RUS, OTC-RUSMF). There is no change from last month.

I have 7 Manufacturing stocks. None are showing as cheap by the historically high dividend yield. Four stocks or 57% are showing as cheap by historical median dividend yield. They are Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), Hammond Power Solutions Inc. (TSX-HPS.A, OTC-HMDPF), Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF) and PFB Corp (TSX-PFB, OTC-PFBOF). There is no change from last month.

I follow 17 Services stocks. None are showing as cheap by the historically high dividend yield. Five stocks or 29% are showing as cheap by historical median dividend yield. These stocks are Canadian National Railway (TSX-CNR, NYSE-CNI), Pason Systems Inc. (TSX-PSI, OTC-PSYTF) Ritchie Bros Auctioneers Inc. (TSX-RBA, NYSE-RBA), Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF) and Wajax Corp (TSX-WJX, OTC-WJXFF). Wajax Corp (TSX-WJX, OTC-WJXFF)) has been added to cheap by historically median dividend yield list.

I follow 8 Material stocks. None are showing as cheap by the historically high dividend yield. None are showing as cheap by historical median dividend yield. This is the same as for last month.

I follow 10 Energy stocks. Mullen Group (TSX-MTL, OTC-MLLGF) is showing as cheap by the historical high dividend yield and Ensign Energy Services (TSX-ESI, OTC-ESVIF) is no longer showing as cheap by the historical high dividend yield. There are five stocks (or 50%) showing cheap by historical median dividend yield. They are Canadian Natural Resources (TSX-CNQ, NYSE-CNQ), Cenovus Energy Inc. (TSX-CVE, NYSE-CVE), Ensign Energy Services (TSX-ESI, OTC-ESVIF); Mullen Group (TSX-MTL, OTC-MLLGF) and Suncor Energy (TSX-SU, NYSE-SU). There is no change in this last list from last month.

I follow 8 Tech stocks. None are showing as cheap by historical high dividend yield. Five stocks (or 63%) are showing cheap by historical median dividend yield. They are Absolute Software Corporation (TSX-ABT, OTC-ALSWF) Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF), Evertz Technologies (TSX-ET, OTC-EVTZF), Maxar Technologies Ltd (TSX-MAXR-NYSE-MAXR) and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). Maxar Technologies Ltd (TSX-MAXR-NYSE-MAXR) has been added to this list.

I follow 7 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. Four stocks (or 57%) are showing cheap by historical median dividend yield. They are AltaGas Ltd (TSX-ALA, OTC-ATGFF), Enbridge Inc. (TSX-ENB, NYSE-ENB), Enbridge Income Fund Holdings Inc. (TSX-ENF, OTC-EBGUF) and TransCanada Corp (TSX-TRP, NYSE-TRP). TransCanada Corp (TSX-TRP, NYSE-TRP) has been added to this list.

I follow 12 of the Power type utility companies. ATCO Ltd (TSX-ACO.X, OTC-ACLLF) is showing as cheap by the historically high dividend yield. This is new for this month. Six stock (or 50%) are showing 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) and Emera Inc. (TSX-EMA, OTC-EMRAF), Fortis Inc. (TSX-FTS, OTC-FRTSF) and Just Energy Group Inc. (TSX-JE, NYSE-JE). This last list has not changed from last month.

I follow 4 of the Telecom Service type utility companies. Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) stock is showing as cheap by the historical high dividend yield. This is new this month. Three stocks (or 75%) 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 for the last list.

On my other blog I wrote yesterday about Canadian National Railway (TSX-CNR, NYSE-CNI)... learn more. Next, I will write about Absolute Software Corporation (TSX-ABT, OTC-ALSWF)... learn more on Friday, February 9, 2018 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 6, 2018

Dividend Stocks February 2018

I always update my spreadsheet the week end before I post this entry. I do not have the time to update and post on the same day. Mostly this does not matter. However, the TSX has declined but it has only declined 1.5% since the close of February 2, 2018 so this is not too bad. The TSX was 15605.74 at the close of February 2, 2018 and 15366.83 at the close today February 6, 2018.

First I want to point out that not all of the stocks I follow are great investments. I follow a diverse selection of stocks. There are some that I would never invest in personally. I follow a number of resource stocks even though I personally have little invested in this area. I follow what I find interesting and with resource stocks, I think it is important for Canadians to know what is happening in the resource area. On the other hand I do follow of good number of great dividend growth stocks.

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. See my spreadsheet at dividend growth stocks that I just updated for February 2018. On this list,
  • I have 5 stocks with a dividend yield higher than the historical high dividend yield,
  • I have 35 stocks with a dividend yield higher than the historical average dividend yield
  • I have 69 stocks with a dividend yield higher than the historical median dividend yield and
  • 72 stocks with a dividend yield higher than the 5 year average dividend yield.
When I did my list last list in December 2017,
  • I have 2 stocks with a dividend yield higher than the historical high dividend yield,
  • I have 32 stocks with a dividend yield higher than the historical average dividend yield
  • I have 61 stocks with a dividend yield higher than the historical median dividend yield and
  • 60 stocks with a dividend yield higher than the 5 year average dividend yield.
When I did my list in January 2014,
  • 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 average dividend yield.
On this list, • I have 5 stock with a dividend yield higher than the historical high dividend yield, • I have 35 stocks with a dividend yield higher than the historical average dividend yield and • I have 69 stocks with a dividend yield higher than the historical median dividend yield and • 72 stocks with a dividend yield higher than the 5 year average dividend yield. When I did my list last list in January 2017 • I have 2 stock with a dividend yield higher than the historical high dividend yield, • I have 32 stocks with a dividend yield higher than the historical average dividend yield and • I have 61 stocks with a dividend yield higher than the historical median dividend yield and • 60 stocks with a dividend yield higher than the 5 year average dividend yield. When I did my list in January 2014, • 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 average dividend yield.

If you had one share of each stock, total dividends last month would be $161.28. This month dividends would be $163.68. Of the stock that I follow 7 stocks has raised their dividends since last month. The Mullen Group increase is significant as they had cut their dividends in 2014 and again in 2016.

ATCO Ltd (TSX-ACO.X, OTC-ACLLF)
Canadian National Railway (TSX-CNR, NYSE-CNI) Canadian Utilities Ltd (TSX- CU, OTC-CDUAF) Exco Technologies Ltd (TSX-XTC, OTC-EXCOF)

Methanex Corp (TSX-MX, NASDAQ-MEOH) Metro Inc. (TSX-MRU, OTC-MTRAF) Mullen Group (TSX-MTL, OTC-MLLGF)

HNZ Group Inc. (TSX-HNZ, OTC-CDHPF) effective December 29, 2017 has been sold to two purchasers and it has been delisted from the stock exchange. I am now following Industrial Alliance Ins. and Fin. (TSX-IAG, OTC-IDLLF).

Last month the TD Bank says that SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) have increased their dividend from $1.75 to $1.85. However, I cannot find a press-release or another site that confirms this. I know that the dividend to be paid in January 2018 is still at the old rate of $0.14583 per unit. I have not updated my spreadsheet to show any increase in dividends for this company. This month they say it is $1.72, but as far as I can see it is still $1.75.

Also, of the stocks that I follow, 0 stocks decreased or suspended their dividends.

Most of my stocks started out as Dividend Payers. Currently 15 stocks are not paying any dividends and this would be some 9.68% of the stocks that I follow. Four of these stocks never had dividends, so 7.74% of the stocks I follow have suspended their dividends. The three stocks that never paid dividends are Ballard Power Systems Inc. (TSX-BLD, NASDAQ-BLDP0, 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 5 year median dividend yields (P/5Yr). 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 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 Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF)... learn more. Next, I will write about Canadian National Railway (TSX-CNR, NYSE-CNI)... learn more on Wednesday, February 7, 2018 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 1, 2018

Dividends and Inflation

One of the great things about dividend growth stocks is that the dividends increase faster than the rate of inflation. That means that you can grow your income relatively faster than your living costs can increase. This is great when building up an income for retirement. If you are retired like I am and living off your dividend income you can have more disposable income to spend the longer you hold dividend growth stocks.

The result of all of this is that the longer you are retired the more spending money you have. Also, you will get relatively better off as time goes by. This is not a bad idea. The older you are the more you might need in disposable income to cover unexpected expenses.

There are lots of studies that say high dividend yield stocks do the best over the long term. That is dividend yields in the 4 to 5% range. However, I have found a correlation between dividend yield and dividend growth. I have found that the lower the yield the higher the growth and the higher the yield the lower the growth. Although this is not always true, you have to check out each stock as far as yield and growth goes.

I must admit that I find high dividend growth quite attractive in a stock. What I have done personally is to get a variety of dividend yield/dividend growth stocks. So I have stocks with low, medium and high dividend yields and low, medium and high growth rates.

How do you get on this track? I suggest you start out small. Buy one stock and get comfortable with it. Usually you have to buy 100 shares. Until you have more than $50,000 you really do not need more than 3 stock, but have them in different sectors. Good sectors to start with are financials, utility and consumer stocks.

And most importantly, do not focus on the day to day, even year to year movement of the stock you buy. Focus instead on the dividends. Are they being paid? Can the company afford their dividend? Are the dividends increasing over time? Companies may not increase their dividends each year, but they must increase over time.

On my other blog I wrote yesterday about Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR)... learn more. Next, I will write about AGF Management Ltd. (TSX-AGF.B, OTC-AGFMF)... learn more on Friday, February 2, 2018 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.