# What TSX dividend stocks are you buying?



## arc (May 19, 2012)

Personally I am buying sun life financial which is paying 6% dividend but their earnings are worrying... similarly CIBC and BMO have very disappointing earnings.


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## doctrine (Sep 30, 2011)

It's 6.88% actually - closer to 7% 

Where are the disappointing earnings on CIBC and BMO?

CIBC has been doing well and raised its dividend last year and probably will again this year.

BMO has also been increasing its earnings and is now at/below 50% payout again. Probably not an increase this year but next year very likely.


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## upstream (Mar 22, 2012)

This time of year I tend to wait for a few deals. Some stocks look good right now. Some are not yet in the lower part of thier range. Some like the prec metals are still sorting out where thier bottom is. Here is my list that I have on autotrac. I get an alert when my selected criteria to revisit for a buy or sell gets met. All have trailing stops as well.

VET, OLY, TRP, EMA, EMB, BNS, TD, PPL, IPL, MX, AGU, GEI, BIP.UN, ACO.X

You could randomly pick a half dozen from the list and do pretty well I think. It's a holders list. They still have a reasonably bright future.

Here are a few prec metals stocks I watch. I'm all stopped out of my positions long ago and sitting on cash waiting for confirmation of a bottom to get back in. I expect they'll likely do a head fake upward, before taking a second dip. Some short ratios are starting to evaporate now so I suspect the head fake soon. The three fear / greed indicators I watch seem to still be digging deeper into the fear end of things, especially in commodities. When the covering is done and the summer lulls set in I expect a deeper dip. Of course my crystal ball has been broken for some time.

G, ELD, IMG, SLW

People have tried to sell me on AEM lately.


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## upstream (Mar 22, 2012)

PS. I just hate Sunlife. As a customer and as an investor.


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## Jungle (Feb 17, 2010)

CIBC currently has a PE of 9 and recently beat estimates last quarter. They are due for a dividend increase this fall and releasing earnings again soon.

My limit orders include CM, COS, SU, TRP


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## Sherlock (Apr 18, 2010)

Just bought CLC a few days ago after it dropped. Yield of over 7% and I feel the dividend is safe. Other than that I added to my position in PGF which has been taking a beating lately, but the dividend is over 11%.


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## kcowan (Jul 1, 2010)

Sherlock said:


> I added to my position in PGF which has been taking a beating lately, but the dividend is over 11%.


Isn't that a warning that a reduction might be in the offing?


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## arc (May 19, 2012)

doctrine said:


> Where are the disappointing earnings on CIBC and BMO?


For CICB: Net Income (5-Year Avg.)	-0.21
For BMO: Sales (5-Year Avg.)	-0.61

I've been worried about their overall stock price as well, neither has recovered since 2008 as well as RY or TD. I was thinking of buying TD but their dividend yield is so low, what do you think about TD?


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## Sherlock (Apr 18, 2010)

kcowan said:


> Isn't that a warning that a reduction might be in the offing?


I did some research on this one before buying and the consensus seems to be that the div is sustainable.

But if it goes from 11% to 8 or whatever is that such a big deal? It would still be a much better yielder than most other stocks mentioned in this topic so far.

It's a tough environment for natural gas and all natural gas stocks have been down lately (although I believe natural gas is a good bet for the long term) but I bought it as a long term hold and as long as it pays a good dividend I'm happy.


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## phrenk (Mar 14, 2011)

I would wait before buying any of the big banks. Their earnings are due this week, with BMO starting Wednesday. It is widely anticipated that consumer loans have decreased for all the banks and that future growth will be very limited as households slowly deleverage.


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## arc (May 19, 2012)

phrenk said:


> I would wait before buying any of the big banks. Their earnings are due this week, with BMO starting Wednesday. It is widely anticipated that consumer loans have decreased for all the banks and that future growth will be very limited as households slowly deleverage.


Which of the big 5 do you recommend buying? the analysts all seems to point to TD as the best anticipated earnings.


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## buhhy (Nov 23, 2011)

Yeah, I was thinking about picking up some bank stocks too, but I guess I'll wait.


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## moneyisfornothing (Feb 18, 2012)

i would sell september calls.
i think financials are about to turn really ugly.
JMO
i cannot see what trick they can pull out this time.
take a look at jpm, MS bac, etc....
but then again what do i know:hopelessness:


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## gibor365 (Apr 1, 2011)

Canadian banks, telcos (BCE, RCI, T), CHE.UN, LIQ, REITs (i prefer ZRE and XRE), HSE, FTS, PSN


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## rassmy (May 7, 2010)

STB (student transport ), owns and operate 60% of the student transport in north america, my order went through yesterday bought 500 shares at 6.60. Dividend over 8%. They release teir earning today, looks very good.
Also I own BCE, TRP,TD,BNS,FTS,GWO,PSN,WJX,ENF.


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## Loon (Apr 12, 2012)

Anybody ever looked at LIQ ?


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## Echo (Apr 1, 2011)

Loon said:


> Anybody ever looked at LIQ ?


I bought LIQ back in '09 for around $12. It's around $17.70 now and pays a nice dividend of 9 cents/share per month. They have been buying stores in the U.S., as the market in Alberta is pretty saturated. They just reported record 1st quarter results - http://www.theglobeandmail.com/glob...20120514&archive=ccnm&slug=201205140790460001

The only downside I can see is their CEO's name is Crook 

I'm holding onto this one for the long term.


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## Sampson (Apr 3, 2009)

Echo said:


> as the market in Alberta is pretty saturated.


Ain't that the truth!


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## doctrine (Sep 30, 2011)

Haven't taken a closer look lately, but record profits of $0.10 while paying $0.27 a month in dividends means a closer inspection is necessary.


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## arc (May 19, 2012)

I am looking at BMO stocks and I am wondering why all the analyst say to hold it rather than to buy? their profits jumped 27% and have great dividend and PE ratios??

What do you think?
thanks


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## Echo (Apr 1, 2011)

doctrine said:


> Haven't taken a closer look lately, but record profits of $0.10 while paying $0.27 a month in dividends means a closer inspection is necessary.


I guess it was record 1st quarter sales - not profits.


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## doctrine (Sep 30, 2011)

Whoops, yeah I saw that too. Still would rather see at least a 100% payout rather than 300%.


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## fersure (Apr 19, 2009)

Echo said:


> I bought LIQ back in '09 for around $12. It's around $17.70 now and pays a nice dividend of 9 cents/share per month. They have been buying stores in the U.S., as the market in Alberta is pretty saturated. They just reported record 1st quarter results - http://www.theglobeandmail.com/glob...20120514&archive=ccnm&slug=201205140790460001
> 
> The only downside I can see is their CEO's name is Crook
> 
> I'm holding onto this one for the long term.


I love the idea of LIQ and have owned it since it was an income trust. However, excluding dividends, I have only just got back to even.
There are a couple of issues on the horizon in BC that are troubling...related to the complete and utter mismanagement of privatization experiments by the BC Liberals.

1) The privitization of the three distribution centres: In order to balance the budget, the BC Liberals are holding an utterly corrupt sale of the distribution outlets. As Liquor Stores is still required to purchase booze from the BC LDB, a private sector monopoly (complete with the existing LDB public sector contract) will be disasterous for the bottom line. This problem could go away if a Private Members bill regarding interprovincial sales of wine makes it throught Parliament. Hopefully Harper would make regulations to include all liquor, not just wine.

Alternatively, I am hoping Jimmy Pattison is succesful in the bidding process: I'd love the irony of having Glen Clark run liquor distribution in BC!

2) Garry Collins is still on the board. If the NDP get elected and hold a public inquiry on the sale on BC Rail, the wiretap evidence collected against him when he served as Finance Minister should prove to be very interesting.

Re. distribution policy - LIQ pays out .27 a quarter. They always over distribute in the first quarter: sales pick up during the summer and before Christmas to bring the payout ration below 90% for the year.


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## Echo (Apr 1, 2011)

@fersure - good point regarding the cyclical nature of liquor sales. Q1 is definitely a slow period, and throughout the year the payout ratio will come down.

Regarding BC, it's a mess right now and that's why I think LIQ has turned its attention to the US for growth and expansion.


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## Belguy (May 24, 2010)

http://www.theglobeandmail.com/glob...ety-conscious-bargain-hunters/article2443957/


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## humble_pie (Jun 7, 2009)

i don't click on embedded links but if what belguy is proffering is norman rothery's current list of favoured dividend payors in yesterday's globe & mail, there are some surprisingly weak names in that list.


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## doctrine (Sep 30, 2011)

Agreed, I saw that list and beware. Any of those companies that have a P/B of < 1 have serious issues.


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## riseofamillionaire (Feb 23, 2012)

I have been building a position in Alaris Royalty AD-T over the last few months. Love their business model, no debt and the mix of companies they finance. IMO, a very unique company worth investing in.


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## Ethan (Aug 8, 2010)

humble_pie said:


> i don't click on embedded links but if what belguy is proffering is norman rothery's current list of favoured dividend payors in yesterday's globe & mail, there are some surprisingly weak names in that list.


The embedded link is to Norman Rothery's list. Which stocks do you think are weak? Based on the ratios he disclosed they all look good.


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## Ethan (Aug 8, 2010)

Dumped my position in Fortis (TSE:FTS) last week to start a position in AutoCanada (TSE:ACQ) and to add shares to my positions in Canadian Oil Sands (TSE:COS) and Legacy Oil and Gas (TSE:LEG). All but LEG are dividend payers.


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## humble_pie (Jun 7, 2009)

Ethan said:


> The embedded link is to Norman Rothery's list. Which stocks do you think are weak? Based on the ratios he disclosed they all look good.



that's a good question. I think that norman rothery, when he prepared this article, was mindful of the fact that nobody would read another overworked & oft-repeated list with the same-old dividend biggies. So he had to come up with a list that would contain some novelties - some hors d'oeuvres to whet a jaded reader's appetite - while still satisfying his criteria for large-cap, big revenue, low P/E, etc.

the result is a list that i'd mostly eliminate. Put another way, out of his list i would definitely consider BMO or husky; i might consider great-west life & power corp; & nothing else.

the rest have one or more of these undesirable characteristis: weak trading volume, no options, inactive or spotty options markets, previous suspension or draconian reduction of dividends, no 3 or 5 year history because company went public just over 2 years ago.

in general, i think rothery's list is an example of backward-looking screeners being used to produce a list of stocks that does not quite jibe with actual history or present-day circumstances.

power corporation, for example, is profoundly weakened by its giant ownership of european Pargesa & this fact is not going to go away any time soon. Its option markets are mediocre & in addition POW is saddled with a 2nd generation hereditary leadership where the sons will have the usual difficulties matching the business genius of their titan father. 

canaccord's presence on a recommended dividend list is another red flag signalling that other candidates on the same list may be flawed as well. 

canaccord is a boutique investment house known for its underwriting of small speculative issues, particularly from the resource sector. Some might go further & say that its IPOs tend to be of a lower quality than those brought out by rivals gmp & sprott. 

in an economic downturn, this stock will suffer badly. Compare its 5-year history with a chartered bank, keeping in mind that *none* of the banks ever decreased or suspended their dividend.

canaccord, on the other hand, stopped its dividend in late 2008; reinstated it a year later at .05; the present dividend of .10 is only now, 7 years later, reaching the .41 payout level of the year 2005.

i for one never buy hi-dividend stocks with aberrant histories or shaky market performance. What i seek in a hi-dividend is a strong, heavily-traded large cap with a stable dividend history over many years plus a developed option market that sees volume every day, either in canada or the US.


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## PMREdmonton (Apr 6, 2009)

riseofamillionaire said:


> I have been building a position in Alaris Royalty AD-T over the last few months. Love their business model, no debt and the mix of companies they finance. IMO, a very unique company worth investing in.


I like the business model and performance of Alaris Royalty as well. They offer a good valuation, good dividend yield and good potential for capital appreciation. I am waiting for a dip to buy some more but presently have 200 shares. I'd ultimately like to have about 500 to 1000 shares.


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## PMREdmonton (Apr 6, 2009)

The Canadian dividend stocks that I've been interested in lately are:

Any big Canadian bank(I like BNS, RY and TD)
Canadian energy (PBN, COS, ECA)
Railways (CNR)
Telecom (BCE, RCI.B, T)
Energy services (PSN, FRC)
Pipelines (IPL.UN)
Mining (TCK, ABX, G, CCO, NSU)
Retail (ACQ, LIQ, ATD.B)
Agriculture (SAP)
Healthcare (nothing - look to the US at ABT, JNJ, BDX, COV, PFE)
Royalty firms (AD, SLW)
Manufacturing (BBD.B)
Construction/conststruction (SNC, BDT, BAD)


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## Belguy (May 24, 2010)

In this month's Canadian Business, they name these five stocks as their 'Best Dividend Stocks' because, even in shaky markets, these companies have kept growing their payouts to investors.

Black Diamond Group Ltd. (BDI)
Enbridge Inc. (ENB)
Killam Properties Inc. (KMP)
Rogers Communications Inc. (RCI.B)
Shaw Communications Inc. (SJR.B)

The summer 2012 issue, now on the newstands, is their annual investor edition and contains several stocks lists for consideration.


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## FrugalTrader (Oct 13, 2008)

From the Norm Rothery list, what do you guys think of CPX (Capital Power) and CFW (Calfrac Well Services)?


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## Belguy (May 24, 2010)

If I am not mistaken, I believe that Norm Rothery is a deep value investor. I do not know about how his history of stock picking has been.

Also, on page 76 of the summer 2012 issue of Canadian Business, they list their 20 'Superstar Stocks' that have achieved their full 5-star buy rating. I do not know how many of these are dividend payers.


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## doctrine (Sep 30, 2011)

I like Killiam, but it's gone up nearly 30% this year. It was much better when it was giving me a 6% yield on purchase. My capital gains are great, but I wanted to buy more.


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