Monday, June 2, 2014

Husky Energy Inc.

On my other blog I am today writing about possible cheap dividend stocks for June 2014 continue... I am also doing a review of DHX Media Ltd. (TSX-DHX, OTC-DHXMF) today ...continue...

I own this stock of Husky Energy Inc. (TSX-HSE, OTC-HUSKF). I had been tracking this stock prior to buying it. When selling some of my SNC-Lavalin in 2008 I was looking for something to buy. With this purchase, I only used a third of the money I got from my SNC sale, but got enough dividends on this to replace the dividends I will lose from my SNC sale. The stock was selling at a reasonable price. This company is into oil and natural gas and they have been making money.

This is an oil and gas company which has a decent yield. The current yield is 3.27%. The 5 year median dividend yield is 4.59%. Often with these sorts of stocks, the dividends go down as well as up. Over the past 5 years dividends have decreased by 5.1% per year. However, over the past 10 years, dividends are up by 12.49% per year.

I have not had this stock that long (only since 2008). My total return is at 5.31% per year with 2.02% per year from capital gains and 3.29% from dividends. The total return on this stock over the past 5 and 10 years is at 7.75% and 14.86% per year. The portion of this total return attributable to capital gains is at 4.05% and 7.91% per year over these periods. The portion of this total return attributable to dividends is at 3.70% and 6.94% per year over these periods.

The outstanding shares have increased at the rate of 3% and 1.5% per year over the past 5 and 10 years. Shares have increased due Share Issues, Stock Dividends (in place of dividends) and Stock Options. Growth in Revenues, Earnings and Cash Flow has been good over the last 10 years, but not so much over the past 5 year.

Revenue per Share is up by 5.7% and 12% per year over the past 5 and 10 years if you look at the 5 year running averages. EPS is down by 9.1% and up by 8.7% per year over the past 5 and 10 years if you look at the 5 year running averages. Cash Flow per Share is down by 3.8% and up by 7.3% per year over the past 5 and 10 year using the 5 year running averages.

For Return on Equity the rate has been below 10% 3 times in the last 10 years and all these have occurred within the last 5 years. The ROE for the year ending in 2013 was 9.2% and the 5 year median ROE is also 9.2%. The ROE on comprehensive income is a bit better with the ROE for 2013 at 10.4% and the 5 year median also at 10.4%.

The Liquidity Ratio for 2013 is 1.18. This is a little low. If you add in cash flow after dividends it becomes 2.01. The Debt Ratio is quite good at 2.19. Leverage and Debt/Equity Ratios are also quite good at 1.84 and 0.84.

I have little of my investment in oil and gas stocks and this is my main one. I think it will be fine over the longer term and I will hold on to what I have. This investment has been fine, but not great. See my spreadsheet at hse.htm.

This is the first of two parts. The second part will be posted on Tuesday, June 3, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.

This company is one of Canada's largest energy and energy-related companies. The Company's operations include the exploration, development and production of crude oil and natural gas. Husky has operations in Western Canada, Eastern Canada, US, China, Indonesia and Greenland. This company is mostly foreign owned. Industry: Oil and Gas (Integrated Oils). Its web site is here Husky.

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. Follow me on Twitter or StockTwits.


  1. HSE was on my shortlist of Canadian energy stocks my last go around of purchases. Ultimately went with suncor as i think they have better growth potential. I may get Husky next go around as looks like growth may ramp up for them. Hopefully HSE dividend will get back on track in the right direction!

  2. I'd like to get your take on Cineplex

  3. Sorry, but Cineplex is not a stock I currently follow.