Thursday, July 20, 2017

Canadian Banks

This is a great article on Canadian Banks by 5iResearch. It gives lots of great reasons why Canadian bank stocks should be part of every Canadian stock portfolio.

The Canadian banks would not make the US dividend achievers list because they have not grown their dividends for the past 10 years because they all stopped increases because of the 2008 crisis. However, they do have a very long history of dividends and dividend growth.

The banks are now on back on the Canadian Dividend Aristocrats because in Canada we have lower standards for our lists. For the Canadian Dividend Aristocrats list a company need only increase the dividends for the past 5 years.

The reason we have lower standards on dividend achievers is that there are far fewer stocks in Canada than in the US. We do have companies that have increased their dividends for the past 10 or even 25 years, but our lists are very short.

On my other blog I wrote yesterday about Atlantic Power Corp (TSX-ATP, NYSE-AT)... learn more. Tomorrow, I will write about Alaris Royalty Corp (TSX-AD, OTC-ALARF)... learn more on Friday, July 21, 2017 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, July 18, 2017

Do Not Panic

The best advice when investing in stocks is never ever panic. Let the stock market or your individual stock do what it wants, but do not panic no matter what happens. That is how you lose money on the stock market. I was at lunch the other day and a lady said she was worried about the stock market and so she sold all her shares. This is exactly how you lose money on the stock market.

I have been through a number of bear markets and individual stocks that tanked, but overall my portfolio has done well over the years. Maybe I left it late to sell stocks that have tanked, but still over all I did well and my dividend income has only gone up.

More to the point maybe is my son's portfolio which is relatively small. He has investments in some 15 stocks. So far he has two duds in stocks, Reitmans and TransAlta. His portfolio was increasing in value and in dividend income. When problems occurred in Reitmans and TransAlta the increase in dividends and value paused and then continued even though he still kept these stocks.

On my other blog I wrote yesterday about Artis REIT (TSX-AX.UN, OTC-ARESF)... learn more. Tomorrow, I will write about Atlantic Power Corp (TSX-ATP, NYSE-AT)... learn more on Wednesday, July 19, 2017 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, July 13, 2017

Dividend Achievers

You can find a great list of Canadian Dividend Achievers with the blogger Instagram. He gives a list Canadian Stocks with at least 10 years of dividend growth. If you are looking for some Canadian Stocks to buy, this would be a great place to starting looking for a stock.

There is a lot of really good information on quite a number of Canadian Stocks on this site. It is worthwhile downloading his spreadsheets to have a look at them and the information he has on quite a number of Canadian stocks. If you want to follow him on twitter go to @DividendEarner.

In the US, the Dividend Aristocrats have to have 25 years of dividend growth and the Dividend Achievers have to have 10 years of dividend growth. In Canada the Dividend Aristocrats list on the TSX have to only have 5 years of dividend growth. The list that is here is for 10 years of dividend growth.

I personally like dividend growth companies. I do not insist that they increase their dividends every year, but I like to see some nice growth over time.

On my other blog I wrote yesterday about Inter Pipeline Ltd (TSX-IPL, OTC-IPPLF)... learn more. Tomorrow, I will write about TMX Group Ltd (TSX-X, OTC-TMXXF)... learn more on Friday, July 14, 2017 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, July 11, 2017

New Flyer Industries Inc.

I started to look at this stock of New Flyer Industries Inc. (TSX-NFI, OTC- NFYEF) but ran into problems in for the year of 2011. Basically what seemed to have happen is that people who held subordinate notes got some 89% of the company while the original shareholders got 11% of the company.

It is difficult to reconstruct what was going on with the company prior to 2011. There is not much information online about dividends or stock prices prior to this and lots of it makes no sense. I do not like stocks that are overly complex and I have already spent too much time on this stock trying to sort out how the changes in 2011 affect the shareholders. Certainly it was not a good outcome for the shareholders.

If I only do a spreadsheet on what happened after 2011, this will not give a full picture of this stock. It certainly seems to be doing well currently, but past history does count and I do not think it I can ignore it. If I do just from after 2011 it would appear to be a far better stock in the past than it actually was. It would give a very false impression of this company.

I am not willing to spend any more time on this stock. They obviously had difficulties in 2011 for the people holding subordinate notes to really take over the company. It is not a company I would want to invest in so this will not be one of the new companies I will be covering in the future.

I have started to investigate Logistec Corp which was also on my list of stock suggestions .

On my other blog I wrote yesterday about Morneau Shepell Inc. (TSX-MSI, OTC-MSIXF)... learn more. Tomorrow, I will write about Inter Pipeline Ltd (TSX-IPL, OTC-IPPLF)... learn more on Wednesday, July 12, 2017 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, July 6, 2017

Dividend Stocks July 2017

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 July 2017.
  • I have 1 stocks with a dividend yield higher than the historical high dividend yield,
  • I have 36 stocks with a dividend yield higher than the historical average dividend yield
  • I have 64 stocks with a dividend yield higher than the historical median dividend yield and
  • 61 stocks with a dividend yield higher than the 5 year average dividend yield.
When I did my list last list in January,
  • I have 2 stocks with a dividend yield higher than the historical high dividend yield,
  • I have 40 stocks with a dividend yield higher than the historical average dividend yield
  • I have 64 stocks with a dividend yield higher than the historical median dividend yield and
  • 54 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 $161.34. This month dividends would be $157.56. However this is being reset because of splits occurring this month. Of the stock that I follow 4 stocks has raised their dividends since last month. Dividends raises are denoted in green. Those stocks are shown below.

Andrew Peller Ltd (TSX-ADW.A, OTC-ADWPF)
Canadian Pacific Railway (TSX-CP, NYSE-CP)
Empire Company Ltd. (TSX-EMP.A, (OTC-EMLAF)
Medtronic PCL (NYSE-MDT)

Of the stocks that I follow no company has decreased their dividends. Of the stocks that I follow one company has suspended their dividends because as I understand it, the HCG has suspended their dividend although site like TD and G&M are still showing a dividend.

Home Capital Group (TSX-HCG, OTC-HMCBF).

For Power Corp (TSX-POW, OTC-PWCDF) I had dividends as $1.34 on the spreadsheet last month and they should be $1.43. CCL Industries (TSX-CCL.B, OTC-CCDBF) has done a 5 to 1 split. Waste Connections Inc. (TSX-WCN, NYSE-WCN) has done a 3 to 2 split. Penn West Petroleum (TSX-PWT, NYSE-PWE) is now Obsidian Energy Ltd. (TSX-OBE, NYSE-OBE)

Canyon Services Group (TSX-FRC, OTC-CYSVF) has a plan of arrangement with Trican Well Service Ltd (TSX-TCW, OTC-TOLWF) for 1.7 shares of Trican for each share of Canyon. So now I am following Trican from Canyon stock. DH Corporation (TSX-DH, OTC-DHIFF) has been acquired by Vista Equity Partners and so deleted from my list.

Most of my stocks started out as Dividend Payers. Currently 13 stocks are not paying any dividends and this would be some 10.3% of the stocks that I follow. Three of these stocks never had dividends, so 8.39% 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) (that used to be Kombat Copper Inc. (TSX-KBT, 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 Premium Brands Holdings Corp (TSX-PBH, OTC-PRBZF)... learn more. Tomorrow, I will write about Suncor Energy Inc. (TSX-SU, NYSE-SU)... learn more on Wednesday, July 5, 2017 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

Tuesday, July 4, 2017

Something to Buy July 2017

Since I cannot seem to upload the spreadsheet to my website, I am putting up the second part of my review of my stocks and if they are cheap or not via Dividend Yield testing.

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 July 2017 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. None of these stocks are showing as cheap by the historically high dividend yield. 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), Goeasy Ltd. (TSX-GSY, OTC-EHMEF), High Liner Foods (TSX-HLF, OTC-HLNFF), Leon's Furniture (TSX-LNF); Magna International Inc. (TSX-MG), Newfoundland Capital Corp (TSX-NCC.A) and Reitmans (Canada) Ltd. (TSX-RET.A). Goeasy Ltd. (TSX-GSY, OTC-EHMEF), is new to this list.

I follow 12 Consumer Staples stocks. There no companies showing as cheap by the historically high dividend yield. Three stocks (or 25%) are showing cheap by historical median dividend yield. These are Empire Company Ltd (TSX-EMP.A, OTC-EMLAF), Jean Coutu Group Inc. (TSX-PJC.A, OTC-JCOUF) and Loblaw Companies (TSX-L, OTC-LBLCF). This is the same as last month.

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 12 Real Estate stocks. None of these stocks are showing as cheap by the historically high dividend yield. Three stocks (or 25%) are showing cheap by historical median dividend yield. They are Artis REIT (TSX-AX.UN); Granite Real Estate (TSX-GRT.UN) and Melcor Developments Inc. (TSX-MRD. This is the same as last month.

I follow 8 Bank stocks. None are showing as cheap by the historically high dividend yield. Three stocks (or 37%) are showing cheap by the historical median dividend yield. These stocks are CIBC (TSX-CM, NYSE-CM), National Bank of Canada (TSX-NA, OTC-NTIOF) and Toronto Dominion Bank (TSX-TD, NYSE-TD). Home Capital Group (TSX-HCG, OTC-HMCBF) is no longer cheap by historically high dividend yield or by historical median dividend yield. Bank of Nova Scotia (TSX-BNS, NYSE-BNS) is no longer cheap by historical median dividend yield.

I follow 12 Financial Service stocks. None are showing as cheap by the historically high dividend yield. Eight (or 67%) 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), Alaris Royalty Corp (TSX-AD, OTC-ALARF), CI Financial (TSX-CIX), Equitable Group Inc. (TSX-EQB, OTC-EQGPF), Gluskin Sheff + Associates Inc. (TSX-GS), IGM Financial (TSX-IGM) and Power Corp (TSX-POW). DH Corporation (TSX-DH, OTC-DHIFF) has been removed from the TSX.

I follow 5 Insurance stocks. 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); Manulife Financial Corp (TSX-MFC), Power Financial Corp (TSX-PWF) and Sun Life Financial (TSX-SLF, NYSE-SLF). There is no change from last month.

I follow 32 Industrial stocks. Because I have so many and Industrial is not very descriptive, I have divided my Industrial stocks into 4 separate categories under Industrial. They are Construction, 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 and 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 8 Manufacturing stocks. None are showing as cheap by the historically high dividend yield. Four stocks or 50% are showing as cheap by historical median dividend yield. They are Canam Group Inc. (TSX-CAM, OTC-CNMGA), Exco Technologies Ltd. (TSX-XTC, OTC-EXCOF), Hammond Power Solutions Inc. (TSX-HPS.A, OTC-HMDPF) and PFB Corp (TSX-PFB, OTC-PFBOF). Intertape Polymer Group Inc. (TSX-ITP, OTC-ITPOF) has been removed from the list.

I have 15 Services stocks. None are showing as cheap by the historically high dividend yield. Three stocks or 20% 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) and Transcontinental Inc. (TSX-TCL.A, OTC-TCLAF). Canyon Services Group (TSX-FRC, OTC-CYSVF) has a plan of arrangement with Trican Well Service Ltd (TSX-TCW, OTC-TOLWF). So now I am following Trican from Canyon stock

I follow 8 Material stocks. I am now following Hardwoods Distribution Inc. (TSX-HWD, OTC-HDIUF). None are showing as cheap by the historically high dividend yield. One stock or 14% is showing as cheap by historical median dividend yield and that stock is Methanex Corp (TSX-MX, NASDAQ-MEOH). This is the same as for last month.

I follow 10 Energy stocks. One Stock or (10%) is showing as cheap by the historical high dividend yield. It is Suncor Energy (TSX-SU, NYSE-SU). 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). Last month it was Ensign Energy Services (TSX-ESI, OTC-ESVIF) showing as cheap by the historical high dividend yield.

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), MacDonald Dettwiler & Assoc. (TSX-MDA, OTC-MDDWF), and Sylogist Ltd (TSXV-SYZ, OTC-SYZLF). There is no change from last month.

I follow 8 of the Infrastructure type utility companies. None are showing as cheap by historical high dividend yield. Two stocks (or 25%) are showing cheap by historical median dividend yield. They are AltaGas Ltd (TSX-ALA, OTC-ATGFF) and Enbridge Inc. (TSX-ENB, NYSE-ENB). This is the same as last month.

I follow 12 of the Power type utility companies. None are showing as cheap by the historically high dividend yield. Three stock (or 25%) is 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) and Emera Inc. (TSX-EMA, OTC-EMRAF). Algonquin Power & Utilities Corp (TSX-AQN, NYSE-AQN) has been added to this list. Last month only two showed a cheap by historical median dividend yield and they were ATCO and Emera.

I follow 4 of the Telecom Service type utility companies. No stock is showing cheap by the historical high dividend yield. Four stocks (or 100%) are showing cheap by historical median dividend yield. These stocks are BCE (TSX-BCE, NYSE-BCE), Quarterhaill Inc. (TSX-QTRH, NASDAQ-QTRH), Shaw Communications Inc. (TSX-SJR.B, NYSE-SJR) and Telus Corp (TSX-T, NYSE-TU). There is no change from last month.

On my other blog I wrote yesterday about Premium Brands Holdings Corp (TSX-PBH, OTC-PRBZF)... learn more. Tomorrow, I will write about Suncor Energy Inc. (TSX-SU, NYSE-SU)... learn more on Wednesday, July 5, 2017 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.

Friday, June 30, 2017

Debt and Dividends

Sorry, but I meant to publish this on Thursday and must have gotten off track.

Last week I spoke about debt ratios. What I want to talk about today is company debt and possible implications on dividends. If you do dividend investing like I do, you should be aware of this.

Long term debt usually comes with a Covenant . Here I have referred you to the definition on Investopedia. Perhaps a clearer answer to what is a Debt Covenant is shown here at Simple Studies.

As an investor you should want to know if the companies you invest in have long term debt with covenants and what the covenant might say. If you are investing for dividends in companies that have long term debt you should be aware that debt ratios can affect dividend payments. If certain debt ratios exceed certain levels, a company could be forced to reduce or suspend dividends.

I have read in the past of this happening, but via google I did not get much in the way of examples. Lauren Thomas on CNBC in March 2017 says that Frontier Communications (Nasdaq- FTR) might cut or suspend dividend to address significant debt maturities in 2020-2022, even if it is not required to do so per its bonds' covenants. Precision Drilling Corporation in a Press Release with their fourth quarterly 2015 results says "The dividend suspension, while a result of a debt covenant restriction, further strengthens the balance sheet as we continue to maneuver through uncharted waters".

If you see long term debt jump a lot in one year, it is a good idea to check to see why and what the implications are for you company. The problem with debt ratios being not so good for a company is that they could get into problems, a vulnerability, when bad times come. We still go through economic cycles of expansion and recessions. In every recession there is always companies that cut or suspend dividends.

On my other blog I wrote on Wednesday about AGT Food and Ingredients Inc. (TSX-AGT, OTC-AGXXF)... learn more. Today, I will write about Intact Financial Corp (TSX-IFC, OTC-IFCZF)... learn more on Friday, June 30, 2017 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, June 27, 2017

T-Bills and Stocks

Rupert Hargreaves writes an interesting article on Value Walk about how T-Bills over their lifetime can beat stocks. Overall the stock market beats T-Bills.

However, most of the return on the market is created by some 4% of the stocks. So if you do not pick the right stocks you may not be able to beat investing in T-Bills. In the US Hendrik Bessembinder says that 42% of the stocks outperformed T-Bills, but the rest produced negative returns.

Note also that companies disappear off of exchanges for other reasons that Bankruptcy. Companies change their names and symbols, they are bought out or taken private. This is not necessarily bad for investors. You get seemingly new companies with companies split up or spin off sections of their business.

I have done well overtime. I have been investing from the late 1970's. However, I tended to pick big companies that pay dividends. However, not all my investments have worked out and I have lost money on some. Overall I have made good money, especially from dividends.

On my other blog I wrote yesterday about Saputo Inc. (TSX-SAP, OTC-SAPIF)... learn more. Tomorrow, I will write about AGT Food and Ingredients Inc. (TSX-AGT, OTC-AGXXF)... learn more on Wednesday, June 28, 2017 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, June 22, 2017

Debt Ratios

In order to judge is a stock has good debt ratios you have to have a feel for what is common for the sector the stock is in. In the chart below I am look at five different debt ratios. These are categorized by the sectors my stocks are in. There are not so much typical ratios for stocks, but typical ratios for stocks of the different sectors.

If you notice for Banks and Insurance under Financials, the Long Term Debt/Market Cap ratios are quite high. For this ratio, you generally want it at or less than 1.00, but Financials are quite different from other sectors in this regard.

For Liquidity Ratio, generally you want it to be 1.50 and above. Most, but not all sectors achieve this. In some sectors, the companies depend on cash flow to cover current liabilities. See the low ratios for Real Estate and Infrastructure Utilities. Note that most analysts do not consider this ratio at all for Financials.

For Debt Ratios (Assets over Liabilities) you again want the ratios to be 1.50 and above. However, banks are different. For banks the standard used to 1.04 and above. Most banks have now moved higher than 1.04. Insurance companies are similar to banks for this ratio.

Generally for Leverage or Assets/Book Value you look for a ratio that is under 2.00. However, the median for different sectors can be higher. Banks and Insurance companies have very high Leverage Ratios. Utilities can also have relatively high Leverage Ratios. For example, the median Leverage Ratio for my Power Utilities is 3.03.

The Debt/Equity Ratio is similar to the Leverage Ratio, but is lower. Generally here you want a ratio less than 1.00. However, it is generally higher in some sectors like Utilities. The financial also have very high Leverage and Debt/Equity Ratios.

Below is my chart on the median ratios for the different sectors. The column titles are: LTD = Long Term Debt, Debt/Market Cap Ratio; Liq = Liquidity or Current Assets / Current Liabilities; A/DB= Asset/Liability Ratio; Lev = Leverage Asset/Book Value; Dt/Eq = Debt/Equity Ratio. This can help you decide if a stock is out of line with the ratios of its sector.

Sub-Index C LTD Liq A/DB Lev Dt/Eq
Cons Discretionary C 0.23 1.91 1.86 2.10 1.10
Cons Staple C 0.11 1.54 1.87 2.21 1.21
Health Care C 2.73 2.12 1.90 0.90
Real Estate E 0.65 0.85 2.03 1.98 0.98
Bank F 8.23 2.20 1.07 16.37 15.37
Financial Services F 0.44 1.52 1.66 2.51 1.51
Insurance F 6.51 1.65 1.08 12.99 11.99
Construction I 0.15 1.39 2.09 1.96 0.96
Industrial I 0.19 2.78 1.79 2.49 1.49
Manufacturing I 0.21 2.02 2.30 1.66 0.66
Services I 0.23 1.43 2.02 1.93 0.93
Materials M 0.22 1.80 1.81 2.41 1.34
Energy R 0.35 1.28 2.03 1.97 0.97
Tech T 0.00 2.24 2.58 1.53 0.53
Infrastructure U 0.29 0.87 1.69 2.54 1.14
Power U 1.08 1.24 1.42 3.03 2.13
Telecom Services U 0.37 0.52 1.63 2.62 1.62


*C =Index code or type of stock. C=Consumer, E-Real Estate, F=Financial, I=Industrial, M=Materials, R=Resources, T=Tech and U-Utilities.

On my other blog I wrote yesterday about Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF)... learn more. Tomorrow, I will write about Parkland Fuel Corp. (TSX-PKI, OTC-PKIUF)... learn more on Friday, June 23, 2017 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, June 20, 2017

More is Not Better

More is not necessarily better, sometimes more is just more. People like my gravy. My secret is I put a pinch of mace in it. However, would you think that people would still like it if I put in more mace or lots of mace?

What people do not realize is that before capitalism, we did not have a sizeable middle class. In fact having a middle class is relatively new in history. For most of history there were just the few elites and everyone else.

Having some rules for a capitalistic market makes the market work better. Such things as the rule of law and standard weights and measures were very good for capitalistic markets. Actually these sorts of things are good for all sorts of market systems.

Look at the US. As it expanded government (and taxes) and brought in rules for business (starting in the 1930's) the middle class expanded. So the elected officials brought in more government and more rules were brought in. Sometime in the late 1970's the middle started to get smaller and the wealthy to get wealthier. See chart 2 in this article by John Mauldin at The Market Oracle.

I sometimes wonder if we really any longer have a capitalistic market system. We have governments that profess to want to protect people at all time from all things. Frankly I do not think that is possible. Companies are so heavily regulated that they need to have compliance officers.

This, by the way, works for the big companies that can afford to do this, but works against small companies that cannot. I read that in the US in 2016 was the first year when there were more company's going bankrupt that new companies.

We have very socialistic governments. We are piling on more and more rules trying to make people behave in certain ways and make the economy behave in certain ways. This does not seem to be working.

Somehow we trust our government bureaucrats implicitly, but we have no faith individuals, especially individuals that run companies. We think that they are all greedy, but bureaucrats are pure? (It would seem to be uncaring bureaucrats that lead to the fire in London. See the Associated Press article on CBC News. I bet no bureaucrat would face any consequences but if it was a private company, people would go to jail.)

Do not get me wrong about rules. Capitalism works best under rules. It is just at the present time our economy seems to be suffering because we have far too many rules. We are drowning in rules. Our taxes are so complex that most people cannot do their own taxes. This is stupid.

Maybe rules should get more basic and go more towards "if you sell something that makes people sick, you will be prosecuted and could end up with a fine or jail or both" rather than our current more minutiae rules where small companies need a compliance officer to ensure all rules are followed.

On my other blog I wrote yesterday about CI Financial Corp (TSX-CIX, OTC- CIFAF)... learn more. Tomorrow, I will write about Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF)... learn more on Wednesday, June 21, 2017 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, June 15, 2017

Investing Easy

Investing does not have to be difficult. I know that some ad try to say that doing it on your own is difficult and hard, but it does not have to be. Look around you and what do you see. There are big companies that you could invest in with little difficulty. Basically invest in big companies that pay dividends.

Invest in some of the big banks like Royal Bank or TD Bank. Invest in some of the big retailers like Canadian Tire that seem to be doing well. However, say away from department stores that do not seem to be doing well. The utilities of Enbridge Inc. and Emera Inc. are in the news. One is a pipeline and one produces power.

Look at lists of under the various sectors put out by the TSX. If you cannot get into the index from above link go to the TSX Main Link. Go with companies where you recognize by name. The TSX also has a Dividend Aristocrat Index. (You will have to scroll down their list of indexes to get to this one.) Again go with a company you recognize.

Probably the best investment new letter is The Investment Reporter which you can find here. You can often get an initial deal on this investment letter. They will also send you a free newsletter which might also help you. Also, stay away from any investment letter that promises too much. I mean the ones that promise high returns quickly or high dividend yields. Only the people who sell these investment letters get rich, you will not.

Investing in stocks is not a get rich quick investment. If you want to get rich investing it is takes a while. You need to get compounding working for you. Buy stocks when you can and reinvest your dividends. You can bit by bit build up a portfolio that is producing money for you.

The other important point is that you do not panic, especially when we hit a bear market. There are going to be bear markets. It is more important to track dividends paid rather than the stock price. For most stocks, they will continue to pay dividends and some even increase them in bear markets. So focus on dividends not stock price.

On my other blog I wrote yesterday about Power Corp of Canada (TSX-POW, OTC-PWCDF)... learn more. Tomorrow, I will write about Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN)... learn more on Friday, June 16, 2017 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, June 13, 2017

Success Long Term

There is a very interesting story about how one guy Russ Gremel paid $1,000 for shares in Walgreen 70 years ago. The shares are now worth $2.1M. See the story on blogger Dividend Growth Investor.

This is all very interesting, but this is not the way I would recommend to invest. He had no diversification at all. The problem is that even the best of companies can get into problems. The fact is that once solid good companies can go bankrupt.

On the other hand this certainly shows the power of compounding.

On my other blog I wrote yesterday about Liquor Stores N. A. Ltd. (TSX-LIQ, OTC-LQSIF)... learn more. Tomorrow, I will write about Power Corp of Canada (TSX-POW, OTC-PWCDF)... learn more on Wednesday, June 14, 2017 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, June 6, 2017

Dividend Stocks June 2017

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 June 2017.
  • I have 2 stocks with a dividend yield higher than the historical high dividend yield,
  • I have 40 stocks with a dividend yield higher than the historical average dividend yield
  • I have 64 stocks with a dividend yield higher than the historical median dividend yield and
  • 54 stocks with a dividend yield higher than the 5 year average dividend yield.
When I did my list last list in January,
  • I have 2 stocks with a dividend yield higher than the historical high dividend yield,
  • I have 37 stocks with a dividend yield higher than the historical average dividend yield
  • I have 60 stocks with a dividend yield higher than the historical median dividend yield and
  • 55 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 $59.14. This month dividends would be $161.34. Of the stock that I follow 13 stocks has raised their dividends since last month. Dividends raises are denoted in green. Those stocks are shown below.

Bank of Montreal (TSX-BMO, NYSE-BMO)
Canadian Real Estate (TSX-REF.UN, OTC-CRXIF)
CI Financial (TSX-CIX, OTC-CIFAF)
Enbridge Inc. (TSX-ENB, NYSE-ENB)
Jean Coutu Group Inc. (TSX-PJC.A, OTC-JCOUF)

Keyera Corp (TSX-KEY, OTC-KEYUF)
Lassonde Industries (TSX-LAS.A, OTC-LSDAF)
Loblaw Companies (TSX-L, OTC-LBLCF)
National Bank of Canada (TSX-NA, OTC-NTIOF)
Onex Corp (TSX-ONEX, OTC-ONEXF)

Telus Corp. (TSX-T, NYSE-TU)
TMX Group Ltd. (TSX-X, OTC-TMXXF)
Sun Life Financial (TSX-SLF, NYSE-SLF)

Of the stocks that I follow no company has decreased their dividends. Of the stocks that I follow no company has suspended their dividends.

The name and symbol change of Wi-Lan (TSX-WIN, NASDAQ-WILN) has been changed to Quarterhaill Inc (TSX-QTRH, NASDAQ-QTRH).

Most of my stocks started out as Dividend Payers. Currently 15 stocks are not paying any dividends and this would be some 9.74% of the stocks that I follow. Three of these stocks never had dividends, so 7.79% 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 Kombat Copper Inc. (TSX-KBT, 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 today about Waste Connections Inc. (TSX-WCN, NYSE-WCN)... learn more. Tomorrow, I will write about IGM Financial Inc. (TSX-IGM, OTC-IGIFF)... learn more on Wednesday, June 7, 2017 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, June 1, 2017

Dividend Investing

You can have a nice income from stock dividends. However, you have to be prepared for the volatility of the underlying stock. The value of your stock portfolio will to up and down all the time. Sometimes the fall in the market can be a heart stopping 30 to 50%. However, if you have large dividend paying stocks, you generally do not need to worry about this.

What you need to worry about is if your stock cuts their dividends. Then you have to decide if the stock is worth holding or if it is time to sell it and more on. Another thing to worry about is if you stock goes down a lot, but the general market has not. Find out why and decide if the stock is still worth holding or if it is time to sell and more on.

Do not worry about the volatility of the market. If you stock is going up and down with the market or with the sector it is in that is not the time to worry. You only need to seriously review your stock if it is out of line with its sector.

On my other blog I wrote yesterday about Husky Energy Inc. (TSX-HSE, OTC- HUSKF)... learn more. Tomorrow, I will write about Goeasy Ltd (TSX-GSY, OTC-EHMEF)... learn more on Friday, June 2, 2017 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, May 30, 2017

Ensign and Mullen 2

I recently reviewed Mullen Group Ltd (TSX-MTL, OTC-MLLGF and Ensign Energy Services (TSX-ESI, OTC-ESVIF). I had Ensign before 2014 but decided to sell it and replace it with Mullen. Although they do not seem to be direct competitors, they both provide services for the oil and gas industry. The main reasons I liked Mullen better in 2014 was the great Liquidity Ratio. The original blog entry of 2014 is here

Since I have done further reviews of these companies, I thought I would compare them again. I must admit I still like Mullen better. I do like companies that increase their dividends. However, I like companies better than pay dividends they can afford. In the new chart below, I do not give Ensign any credit for increasing their dividends because they cannot afford them.

Even though Mullen has done better in growth (or really not as much a decline) I do not think I can give any points for declining growth. The problem still is that the oil and gas industry is not doing well currently because of the relatively low price of oil.

It has also been my experience that when companies have insider ownership, the debt ratios, especially the Liquidity Ratio, are good. This is not the case with Ensign.

The following chart is now slightly revised.

Item Ensign Pt Mullen Pt
Liquidity Ratio Below 1.00 (0.96) -1 8.28% 1
Other Debt Ratios Good 1 Good 1
Dividend Growth Company Stopped in 2015 To 2017, down 70% -1
Dividend Yield 7.74% 2.35%
5 year Median Dividend Yield 3.42% 4.76%
Dividend Payout Ratios -48.98%, 216.04% 5 year -1 121.15%, 112.55% 5 year -1
DPR for EPS 2017 -65.75% -1 61.02% 1
DPR for CFPS 2016 43.20% (over 40%) -1 33.74% (Better) 1
Dividend Growth 5 years 4.24% -9.89%
Dividend Growth 10 years 5.54% -6.36%
Dividend Increase 2016 0%, 0 in 2017 -47.50%
Could Cut Dividend Yes Further cuts unlikely
Total Return from 2014 -8.3%, L=12.9%, D 4.6% -7.67%, L=11.8%, D=4.2%
Revenue to end of 2015 -40.04% -15.00%
Revenue to end of 2016 -38.71% -24.63%
EPS to end of 2015 -247.83% -85.29%
EPS to end of 2016 44.12% 246.67% 1
CFPS to the end of 2015 -29.96% -9.93%
CFPS to the end of 2016 -42.40% -44.26%
ROE 10 years above 10% 4 years 5 years 1
ROE 5 years above 10% 1 year 3 years 1
ROE 5 year median 3.5% 10.5% 1
Comp Inc. ROE to Net Inc., lower lower
ROE Comp Inc. 5 yr. median 7.8% 10.5% 1
Survive low Liquidity Ratio Probably n/a
Survive Dividend Cut yes Yes
Insider Ownership Yes, Chairman 17.29% 1 Yes, Chairman 3.3% 1
Score -2 8

Below is my chart from my blog entry of 2014:

Item Ensign Pt Mullen Pt
Liquidity Ratio Below 1.00 -1 Very good 1
Other Debt Ratios Good 1 Good 1
Dividend Growth Company Yes 1 Yes 1
Dividend Yield 4.50% 5.64% 1
5 year Median Dividend Y 2.55% 4.44%
Dividend Payout Ratios Better 1
Dividend Growth 5 years Better 1
Dividend Growth 10 years Better 1
Dividend Increase 2014 Yes, 1 No, but scores for smart decision 1
Could Cut Dividend Possible -1
Total Return Better 1
Revenue growth Lately, Mullen Better 1
EPS to end of 2013 Better 1
EPS to end of 2014 Better, especial over past 5 years 1
CFPS to the end of 2013 Better 1
CFPS to the end of 2014 Better 1 But not by much 1
ROE 10 years above 10% Better 1
ROE 5 years above 10% Better 1
ROE 5 year median 8.2% Better 15.8% 1
Comp Inc. ROE to Net Inc., Higher, confirms EPS 1 same 1
ROE Comp Inc. 5 yr. median 8.7% 15.8%
Survive low Liquidity Ratio Possibly not
Survive Dividend Cut Yes
Insider Ownership Yes, Chairman 16.7% 1 Yes, Chairman 3.2% 1
Score 9 14

On my other blog I wrote yesterday about MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF)... learn more. Tomorrow, I will write about Husky Energy Inc. (TSX-HSE, OTC- HUSKF)... learn more on Wednesday, May 31, 2017 date 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, May 25, 2017

Dividend Stocks

Meb Faber writes some interesting articles on investing in dividend stocks. They are Dividend Growth Myth and What You Do Not Want to Hear About Dividend Stocks. For the first article you really have to scroll down to find the subject.

Yes, currently I have mostly dividend stocks and dividend growth stocks. I do believe in them. I am currently living off my dividends. And yes, I do have Canadian Banks which pay good dividends. However, when I was growing my portfolio I did not just go for dividend stocks and certainly not high yield stocks.

When I was growing my portfolio I was working so having high yield dividend stocks was fine in my RRSP account, but not in my trading account. In my trading account I had a mixture of median yield, low yield and no yield stocks. Today the vast majority of my stocks are dividend stocks. When building a portfolio your needs in stocks and dividends are different from when you are living off your portfolio.

On my other blog I wrote yesterday about Hardwoods Distribution Inc. (TSX-HWD, OTC-HDIUF)... learn more. Tomorrow, I will write about Ensign Energy Services (TSX-ESI, OTC-ESVIF)... learn more on Friday, May 26, 2017 around 5 pm.

Also, on my book blog I have put a review of the book The Story of the Jews by Simon Schama 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.

Tuesday, May 23, 2017

The Elmer Approach

Recently Ryan Goldsman sent me an email about a new site he was setting up called The Elmer Approach . I had cited him in some of my blogs when he had written articles for The Motley Fool.

On his site he talks about his approach to investing. He has a free book and a sample portfolio. You might find this of interest.

On my other blog I wrote today about Mullen Group (TSX-MTL, OTC-MLLGF)... learn more. Tomorrow, I will write about Hardwoods Distribution Inc. (TSX-HWD, OTC-HDIUF)... learn more on Wednesday, May 24 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, May 18, 2017

Beta Ratings

I have recently looked at the Beta Ratings for my stocks and for the stocks that I follow. Basically, if a stock has a beta rating of 1 it means that it moves with the market. If the beta is less than 1 then stocks price is theoretically less volatility than the market. If the Beta is higher than 1 that indicates that the stock price is theoretically more volatile than the market. See my spreadsheet here .

If a stock has a Beta of 1 it means that is an average risk. A Beta of 0 means the stock has zero risk. In the stocks I cover some have a negative Beta. With a negative risk you could expect less than a risk free return. A stock with a negative Beta would act like a hedge. They move in the opposite way of the market.

When I look at the Beta Ratings for the stocks I own the median Beta is 0.79, the highest is 2.14 which is Barrick Gold Corp. (TSX-ABX, NYSE-ABX) and the lowest is 0.01, which is Metro Inc. (TSX-MRU, OTC-MTRAF).

Category Beta
Median 0.80
Highest 2.14
Lowest 0.01


The stocks that I follow, including mine, the median is 0.74, the highest is 4.18, which is Penn West Petroleum (TSX-PWT, NYSE-PWE) and the lowest is -0.65 which is Alimentation Couche-Tard (TSX-ATD.B, OTC-ANCUF).

Category Beta
Median 0.74
Highest 4.18
Lowest -0.65


A good place for information about stock betas is Investopedia. On his blog Aswath Damodaran talks about the implications of negative Beta Ratings. Dan Caplinger on Motley Fool talks about negative Beta Rating stocks. There is also a good discussion about this subject by Pat McKeough On TSI Wealth Daily Advice.

On my other blog I wrote yesterday about Hammond Power Solutions Inc. (TSX-HPS, OTC- HMDPF)... learn more. Tomorrow, I will write about be Canadian Utilities Ltd (TSX-CU, OTC-CDUAF)... learn more on Friday, May 19, 2017 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, May 16, 2017

Portfolio for the Long Term

My portfolio tends to underperform in bull markets and outperform in bear markets. That means my portfolio never gets the great returns in the bull markets, but never gets the lows in the bear markets. It is less volatile. I think that over all I get a better return.

My portfolio does not mirror the TSX. The TSX is mostly banks and resources. I have the banks but I have less than 1% of my portfolio in resources. I never buy a resource stock for the long term.

Ben Graham I think certainly got it right for the individual investor. He said that the individual investor should act consistently as an investor and not as a speculator. I think that it is acting like a speculator that causes individual investors to lose money. It is not that I have not lost money on a stock; it is just that over all I have made money.

I make compounding work for me. For example, I bought Emera in 2005. On my original stock purchase after some 12 years I am making a dividend yield of 11% whereas the current yield is around 4.45%. Take the stock Fortis Inc. I bought stock some 21 years ago. On this stock I have a dividend yield on my original purchase of 23%. The current yield is 3.59%. I also bought Royal Bank some 21 years ago and I am making a dividend yield of 48% on my original purchase. Its current yield is 3.76%.

Banks are particularly good in having good dividends that grow well. But you also have to diversify. You cannot diversity in the Canadian market as much as you can in the US market, but we do have a variety of utilities, consumer and industrial stocks.

On my other blog I wrote yesterday about Pizza Pizza Royalty Corp (TSX-PZA, OTC-PZRIF)... learn more. Tomorrow, I will write about Hammond Power Solutions Inc. (TSX-HPS, OTC- HMDPF)... learn more on Wednesday, May 17, 2017 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.

Thursday, May 11, 2017

If I Knew Then 5

Here I am going to talk about my adventures in stocks, or my early stock investments. I did relative well. Doing relatively well on my stock purchases gave me confidence to invest in stock and get rid of my mutual fund investments.

The first stock I bought was BCE (TSX-BCE, NYSE-BCE) on October 15, 1982. From the time I bought this stock until September 1987 I reinvested the dividends for more stock and make extra cash deposits. To be more consistent with the Mutual Fund investments, I looked at this stock's value in October 1998. This is a holding period of some 16 years. My total return on this was 13.31% per year with 8.79% per year from capital gains and 4.52% per year from dividends. Over the same time period the TSX index showed an increase of 8.1%% per year.

Because I started to track this stock in Quicken only in December 1987, I only have Quicken calculations from there to the present. Using Quicken from December 31, 1987 to April 30, 2017 I have a total return of 9.52% per year with 4.12% from capital gains and 5.40% from dividends. The thing with Quicken is that it takes care of the split off and my selling of Nortel and Bell Aliant. This is the total return over a 29 year period. Over the same time period the TSX Index return is 5.59% per year.

Another early stock purchase was Bank of Montreal (TSX-BMO, NYSE-BMO) which I bought on October 4, 1983. From the time I bought this stock until July 1987 I reinvested the dividends for more stock and make extra cash deposits. I looked at my return for November 30, 1998. This is a holding period of 13.6 years. My total return was 14.98% with 11.84% per year from capital gains and 3.14% per year from dividends. Over the same time period the TSX index showed an increase of 6.72%% per year.

I have only tracked this stock from December 1987 also in Quicken. So from December 31, 1987 to April 30, 2017 I have a total return of 15.845 per year with 9.64% from capital Gains and 6.20% from dividends. This is the total return over a 29 year period. Over the same time period the TSX Index return is 5.59% per year.

The third stock purchase I made was Labatt which I bought on October 4, 1983. I reinvested the dividends for more share in 1985. I had to sell this stock on July 28, 1995 as the company was bought out. My total return was 11.81% with 6.68% from capital gains and 5.13% from dividends. Over the same time period the TSX index showed an increase of 8.30%% per year.

This is the last of a series of blogs called "If I knew now". In February of 2017 I started this series saying that If I Knew Then when I started investing what I know now, I would have only invested in Canadian Dividend Growth stocks. My first entry was about investing in US stocks in the blog If I Knew Then 2. In the next entry I talk about investing in international stocks under If I Knew Then 3. In the fourth entry I talked about investing in Mutual fund under If I Knew Then 4.

On my other blog I wrote yesterday about TFI International (TSX -TFII, OTC-TFIFF)... learn more. Tomorrow, I will write about Reitmans (Canada) Ltd. (TSX-RET.A, OTC-RTMAF)... learn more on Friday May 12, 2017 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.

Tuesday, May 9, 2017

If I Knew Then 4

My adventures in Mutual Funds have been mixed. I tried investing in Mutual Funds. With all the hype about Mutual Funds, I thought I should invest in them. After all they were managed by investment experts. They should do better than me that was just leaning. Turn out not to be true. The stocks I invested in did mostly better than the mutual funds.

On May 4, 1982 I invested in the Royal Bank's Equity Fund. I held it until 29 April 1997 which is 15 years. My total return was 12.59% per year. Over the same time period the TSX index showed an increase of 9.2% per year. So it would appear I did well with this.

I invested in Mackenzie Financial Corp's Industrial Growth Fund January 9, 1985. I held it until December 31, 1987, which is almost 3 years. My total return was 5.18% per year. Over the same time period the TSX index showed an increase of 10.2% per year. Here I got a positive return but it was lower than the market.

On January 30, 1992 I invested in Altamira's Equity Fund. I sold this on October 16, 1998. This is just over 6 years. My total return was 5.7% per year. Over the same time period the TSX index showed an increase of 7.5% per year. This was a positive return and only a few percentage points below the TSX.

On February 9, 1993 I invested in Altamira's Special Growth Fund. I did $100 investment every month until February 1997 when I reduced my monthly purchases is $75 per month. I stopped my monthly investments in December 1997. I sold this on October 7, 1998. So I held this fund for almost 6 years. My total return is a negative 0.2% per year. Over the same time period the TSX index showed an increase of 8.7% per year. This investment did quite poorly.

This is the fourth of a series of blogs called "If I knew now". In February of 2017 I started this series saying that If I Knew Then when I started investing what I know now, I would have only invested in Canadian Dividend Growth stocks. My first entry was about investing in US stocks in the blog If I Knew Then 2. In the next entry I talk about investing in international stocks under If I Knew Then 3.

On my other blog I wrote yesterday about McCoy Global Inc. (TSX-MCB, OTC-MCCRF)... learn more. Tomorrow, I will write about TFI International (TSX -TFII, OTC-TFIFF)... learn more on Wednesday, May 10, 2017 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.