Wednesday, January 21, 2015

Sample Portfolio

One thing that people have mention is that they would like to see a sample dividend growth portfolio. I have made one up on a spreadsheet that can also be used to determine how much to allocate to each stock. See my spreadsheet at sampleportfolio.htm.

In the spreadsheet you can put in Total Fund (Amount for investment. I am assuming $200,000 in my spreadsheet). You need to get updated shares costs and dividend information before you begin. The Globe and Mail website is a good place to get this information. Put in your commission rate in top box of "Comm"of column J. Here I am assuming $9.99 which is a common amount.

Under the column of Shares Possible (G), it will say approximately how many shares you can purchase for Total Fund divided by number of stocks. Then you will manually enter into the spreadsheet in the "Share Pur"(column H) a number close to the number shares of column G. Shares can only be purchased in lots of 100. You can play around with the share number until you get an amount total at the end of column K that is close to but less than your fund amount.

This portfolio has 15 stocks and they are all dividend growth ones. The following is the list of companies I have chosen for my sample portfolio:
  • Bank of Nova Scotia (TSX-BNS)
  • BCE Inc. (TSX-BCE
  • Canadian Tire A (TSX-CTC.A)
  • CDN National Railway (TSX-CNR)
  • Emera Inc. (TSX-EMA)
  • Fortis Inc. (TSX-FTS)
  • Manulife Financial (TSX-MFC)
  • Metro Inc. (TSX-MRU)
  • Pembina Pipeline (TSX-PPL)
  • Power Corp. (TSX-POW
  • RioCan (REI.UN)
  • Saputo Inc. (TSX-SAP)
  • SNC-Lavalin Group (TSX-SNC)
  • TD Bank (TSX-TD)
  • TransCanada Corp. (TSX-TRP)
This spreadsheet only holds stocks that are Financials, Utilities, Consumer, Industrial or REITs. When I was starting out I did not invest in any resource stocks. Even now only 1% to3% of the portfolio is in resource stocks.

If you want a copy of my spreadsheet, just email me.

On my other blog I am today writing about Enghouse Systems Ltd. (TSX-ESL, OTC- EGHSF) ... continue...

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.

Monday, January 19, 2015

Bloggers Portfolios

The blogger Save Invest Give has on his website a page listing about 100 blogs and what these bloggers are invested in. It may be a great place to find the next company you might want to invest in.

On my other blog I am today writing about Toronto Dominion Bank (TSX-TD, NYSE-TD) ... continue...

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.

Saturday, January 17, 2015

Women’s Art Association Show



The Women’s Art Association of Canada is having an Art Show on Sunday, January 18, 2015. The show is called Romancing the Word. This show is on from January 14, 2015 to February 10, 2015. The Gallery is at 23 Prince Arthur Avenue. This is close to the St. George Subway Station, Bedford exit.

The Gallery is open from 1 pm to 4 pm. Otherwise if you go during the week you can view the Dignam Gallery paintings from 9:30 to 3:30 by appointment at 416 922 2060.

Wednesday, January 14, 2015

Mission Statements

One of the things that I will be looking for in the stocks that I review this year is a mission statement. What I am looking for is a statement that the company wants to do well by their customers, employees, and community and thereby earn shareholders a reasonable return.

So far on the 7 companies I have looked at this year, including 4 of our biggest Canadian banks, I can find nothing on their site that says mission statement. For one company I looked at I could find no statements at all that hit any of these points.

For most companies so far I have basically pieced together what they have said that covers what I am looking for. Mission statements have been around a long time now. I find it rather shocking that I am having a hard time finding any such thing on the sites I have looked at.

On my other blog I am today writing about Bank of Nova Scotia (TSX-BNS, NYSE-BNS) ... continue...

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.

Monday, January 12, 2015

Shareholder Value Maximization

Shareholder Value Maximization or SVM is one of world's dumbest ideas according to James Montier. You can read his paper at the GMO America site. On the GMO page look for recent commentary and The World's Dumbest Idea by James Montier.

Basically the best companies have mission statements like Johnson and Johnson that puts the community and its customers first and their responsibility to the shareholders last. However, JNJ with this mission statement has produced better returns over a very long to its shareholders.

I am a capitalist. Actually, I am an old fashion capitalist. I believe that for a company to do well, it must provide a product or service that people are willing to pay for. To stay in business for the long term, you must treat your customers well. Also, you have to treat your employee well for them to treat your customers well. You need to be a good corporate citizen also to keep customers. What you should look for, for all your hard work is a fair and reasonable profit.

It seems to me that our new social entrepreneurs are just getting back to what old fashioned entrepreneurs where like. This is just a thought.

One of the things I am going to be looking for when I review company is if they have a mission statement and what it says.

On my other blog I am today writing about Royal Bank of Canada (TSX-RY, NYSE-RY) ... continue...

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.

Wednesday, January 7, 2015

Something to Buy January 2015

There is always something to buy in the stock market. On Monday, 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.

However, no system is perfect. But if you are interested in buy 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 my spreadsheet at here. As in other spreadsheets, you can highlight a line or a number of lines for better viewing.

Of the consumer discretionary stocks, Dorel Industries (TSX-DII.B A) and Newfoundland Capital Corp (TSX-NCC.A) are showing as relatively cheap by the historical average. Another consumer discretionary stocks which is showing as cheap by the 5 year median is Goodfellow Inc. (TSX-GDL).

One Consumer Staple stocks is showing as relatively cheap by the 5 year median and that is .North West Co. (TSX-NWC).

Both the US Health Care stocks I follow, that is Johnson and Johnson (NYSE-JNJ) and Medtronic Inc. (NYSE-MDT) are relatively cheap by the historical average.

Of the Real Estate Stocks, Granite Real Estate (TSX-GRT.UN) and Melcor Developments Inc. (TSX-MRD) are showing relatively cheap by the historical average. H & R Real Estate Investment Trust (TSX-HR.UN) is showing as relatively cheap by the 5 year median.

All the Canadian banks of Bank of Montreal (TSX-BMO), Bank of Nova Scotia (TSX-BNS) National Bank of Canada (TSX-NA), Royal Bank (TSX-RY) and Toronto Dominion Bank (TSX-TD) are showing as relatively cheap by the historical average.

Of the Financial Services stocks, AGF Management (TSX-AGF) is still showing as cheap historically. CI Financial (TSX-CIX), Home Capital Group (TSX-HCG), IGM Financial (TSX-IGM) and Power Corp (TSX-POW) are showing as relatively cheap by the historical average. None of the Insurance group is show as cheap.

Of the industrials Hammond Power Solutions Inc. (TSX-HPS) and PFB Corp (TSX-PFB) are showing as relatively cheap historically. Also, Bombardier Inc. (TSX-BBD.B), Finning International Inc. (TSX-FTT), Pason Systems Inc. (TSX-PSI), Pulse Seismic Inc. (TSX-PSD), Russel Metals (TSX-RUS), SNC-Lavalin (TSX-SNC) and Transcontinental Inc. (TSX-TCL) are showing as relatively cheap by the historical average.

Other industrials are showing as relatively cheap by the 5 year median. They are Canexus Corporation (TSX-CUS), Canyon Services Group (TSX-FRC), Exchange Income Corp (TSX-EIF), McCoy Global Inc. (TSX-MCB), Mullen Group (TSX-MTL), Stantec Inc. (TSX-STN) and Wajax Corp (TSX-WJX).

There are not many companies in the Tech sector, but Calian Technologies Ltd (TSX-CTY) is showing as relatively cheap historically and Evertz Technologies (TSX-ET) is showing as relatively cheap by the historical average.

A number of energy stocks also seem cheap. Examples are Canadian Natural Resources (TSX-CNQ); Canadian Oil Sands Ltd (TSX-COS), Cenovus Energy Inc. (TSX-CVE), Ensign Energy Services (TSX-ESI) and Suncor Energy (TSX-SU) are showing as relatively cheap historically. Husky Energy (TSX-HSE) and Penn West Petroleum (TSX-PWT) are showing as relatively cheap by the historical average. Crescent Point Energy Corp (TXS-CPG) is showing as relatively cheap by the 5 year median.

I have two materials stocks and both are showing up cheap. Teck Resources Ltd (TSX-TCK.B) is showing as relatively cheap historically. Barrick Gold Corp. (TSX-ABX) is showing as relatively cheap by the historical average.

The infrastructure type utility companies only Enbridge Inc. (TSX-ENB) is showing relatively cheap by the 5 year median. The only utility companies that is showing as cheap, is TransAlta Corp (TSX-TA) which is showing as relatively cheap by the historical average and Northland Power Inc.(TSX-NPI) which is showing relatively cheap by the 5 year median.

Of the Telecom Stocks Shaw Communications Inc. (TSX-SJR.B) and Manitoba Telecom (TSX-MBT) are showing as relatively cheap by the historical average. WiLan Inc. (TSX-WIN) is showing as relatively cheap historically.

On my other blog I am today writing about Calian Technologies Ltd. (TSX-CTY, OTC-CLNFF)...continue...

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.

Monday, January 5, 2015

Dividend Stocks January 2015

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. See my spreadsheet at dividend growth stocks that I just updated for January 2015.

On this list,
  • I have 11 stocks with a dividend yield higher than the historical high dividend yield,
  • I have 39 stocks with a dividend yield higher than the historical average dividend yield and
  • 45 stocks with a dividend yield higher than the 5 year average dividend yield.
When I did my list two months ago,
  • I had 13 stocks with a dividend yield higher than the historical high dividend yield,
  • I had 37 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.
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.
Of the stock that I follow 8 stocks have raised their dividends since last month. Dividends raises are denoted in green. They are:

Bank of Montreal (TSX-BMO)
Enbridge Inc. (TSX-ENB)
Ensign Energy Services (TSX-ESI)
Evertz Technologies (TSX-ET)
Fortis Inc. (TSX-FTS)

Granite Real Estate (TSX-GRT.UN)
National Bank of Canada (TSX-NA)
TransForce Inc. (TSX-TFI)

I have deleted Contrans Group Inc. (TSX-CSS) from my list as they were bought out by TransForce Inc. (TSX-TFI).

I am showing whether a stock is relatively cheap based on historical high dividend yields (P/Hi), historical average dividend yields (P/Ave) 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 average 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.

However, 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.

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 Stocks . 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 am today writing about Metro Inc. (TSX-MRU, OTC-MTRAF) ...continue...

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.