Alaris Equity Partners Income Trust

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. Results of stock price testing is that the stock price is probably reasonable and below the median. It may even be cheap. Debt Ratios are good. The Dividend Payout Ratios (DPR) are fine currently, but are expected to be rather too high in 2023. The current dividend yield is high with dividend growth restarted. See my spreadsheet on Alaris Equity Partners Income Trust.

Is it a good company at a reasonable price? This stock has a large portion of its total return in dividends. I like to buy a range of companies, so with high dividends and some with moderate dividends and some with low dividends. Note that there is a trade off between dividend yield and growth. I own this company and will continue to do so. I still like it. The stock price seems reasonable and below the median and may even be cheap.

I own this stock of Alaris Equity Partners Income Trust (TSX-AD.UN, OTC-ALARF). I own this stock of Alaris Equity Partners Income Trust (TSX-AD, OTC-ALARF). This is a stock that Dividends in Hand Blogger had bought in July 2016. It was also recommended by Acumen Capital report in a report by Brian Pow and Oliver Shao via Investor’s Digest. The Blogger Dividends in Hand sold his position in this company in April 29, 2020.

When I was updating my spreadsheet, I noticed I have had this for just over 5 years. Last year at the end of March 2022, I had total return of 9.92%, with 2.74% from capital gains and 7.18% from dividends. This year, my total return to the end of March 2023 is just 6.04% with a capital loss of 1.54% and dividends of 7.58%.

The following chart shows growth over past 5 and 10 years. The stock crashed when dividends were cut in 2020 and so both dividends are stock price are down over the past 5 years.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth	113.32%	16.36%
5	EPS Growth	775.76%	54.20%
5	Net Income Growth	998.12%	61.48%
5	Cash Flow Growth	107.93%	15.77%
5	Dividend Growth	-22.73%	-4.01%
5	Stock Price Growth	-28.87%	-4.95%
10	Revenue Growth	491.87%	19.46%
10	EPS Growth	236.05%	12.75%
10	Net Income Growth	624.54%	21.90%
10	Cash Flow Growth	475.94%	19.13%
10	Dividend Growth	12.82%	1.21%
10	Stock Price Growth	-47.82%	-3.83%

If you had invested in this company in December 2012, for $1,019.53 you would have bought 43 shares at $23.71 per share. In December 2022, after 10 years you would have received $628.34 in dividends. The stock would be worth $689.72. Your total return would have been $1,318.06.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$23.71	$1,019.53	43	10	$628.34	$689.72	$1,318.06

The current dividend yield is high with dividend growth restarted. The current dividend yield is high (7% or higher) at 8.11%. The 5, 10 and historical median dividend yields are also high at 7.77%, 7.29% and 7.29%. Dividends were cut in 2019. The company again started to raise dividends in 2021. The last dividend increase was in 2023 and it was fore 3.03%. Dividends are still 18% below the high dividend for 2019.

The Dividend Payout Ratios (DPR) are fine currently, but are expected to be rather too high in 2023. The DPR for EPS for 2022 is 47% with 5 year coverage at 77%. The DPR for EPS is expected to be around 74% in 2023. The DPR for Cash Flow per Share (CFPS) is 35% with 5 year coverage at 49%. The DPR for CFPS for 2023 is expected to be around 61%. The DPR for Free Cash Flow (FCF) for 2022 is 39% with 5 year coverage at 57%. The DPR for FCF is expected to be round 64%.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2022 is good at 0.38. The Liquidity Ratio for 2022 is good at 2.90. The Debt Ratio for 2022 is good at 2.90. The Leverage and Debt/Equity Ratios are also good at 1.53 and 0.53.

The Total Return per year is shown below for years of 5 to 15 to the end of 2022. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2017	5	-4.01%	2.54%	-4.95%	7.49%
2012	10	1.21%	3.42%	-3.83%	7.25%
2007	15	2.24%	12.51%	3.20%	9.31%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.93, 11.26 and 12.59. The corresponding 10 year ratios are 12.10, 18.34 and 22.35. The corresponding historical ratios are 11.16, 13.84 and 17.17. The current P/E Ratio is 9.11 based on a stock price of $16.77 and EPS estimate for 2023 of $1.84. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $28.70. The 10-year low, median, and high median Price/Graham Price Ratios are 0.74, 1.04 and 1.28. The current P/GP Ratio is 0.58 based on a stock price of $16.77. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Book Value per Share Ratio of 1.23. The current P/B Ratio is 0.84 based on a stock price of $16.77, Book Value of $898M, and Book Value per Share of $19.90. The current ratio is 32% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I have a Book Value per Share estimate for 2023 of $20.50. This implies a ratio of 0.82 with stock price of $16.77 and Book Value of $925.6M. This ratio is 34% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Cash Flow per Share Ratio of 10.08. The current P/CF Ratio is 7.49 based on Cash Flow per Share estimate for 2023 of $2.24, Cash Flow of $101M and a stock price of $16.77. The current ratio is 26% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield also of 7.29%. The current dividend yield is 8.11% based on dividends of $1.36 and a stock price of $16.77. The current dividend yield is 11% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median dividend yield of 7.29%. The current dividend yield is 8.11% based on dividends of $1.36 and a stock price of $16.77. The current dividend yield is 11% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10-year median Price/Sales (Revenue) Ratio is 7.74. The current P/S Ratio is 4.73 based on Revenue estimate for 2023 of $160M, Revenue per Share of $3.54 and a stock price of $16.77. The current ratio is 39% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

Results of stock price testing is that the stock price is probably reasonable and below the median. The dividend yield tests show this. The P/S Ratio test confirms this with a stock price test of cheap. All the other tests are showing the stock price as cheap, so the stock price may even be cheap.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (3) and Hold (1). The consensus would be a Buy. The 12 months stock price consensus is $22.00. This implies a total return of 39.30% with 31.19% from capital gain and 8.11% from dividends based on a current stock price of $16.77.

On the TD WebBroker site, Geoffrey Kwan to RBC Capital gives this stock a Hold rating and price target of $19.00. See Tipranks . They say that this company has outperformed its overall industry. There seems to be only one analyst following this stock. The last time there was a Buy recommendation was in August 2022 when stock was at $17.80. Since then, the ratings have been a Hold.

Recent analysts’ remarks on Stock Chase are positive. Stock Chase gives this stock 4 stars out of 5. It is not on the Money Sense list, but it is on the Maple Money List. Adam Othman on Motley Fool thinks this stock will take off in the next bull market. Vishesh Raisinghani on Motley Fool thinks this stock is undervalued. The company put out a press release on Global Newswire about their 2022 results. Simply Wall Street reviewed this stock on Yahoo Finance last year. Simply Wall Street gives out 3 warnings on this stock of earnings are forecast to decline by an average of 18.8% per year for the next 3 years; unstable dividend track record; and significant insider selling over the past 3 months. Simply Wall Street gives this stock 3 stars out of 5.

Alaris Equity Partners Income Trust is an open-ended trust. The Trust, through its subsidiaries, indirectly provides alternative financing to private companies (Partners) in exchange for distributions with the principal objective of generating stable and predictable cash flows for payment of distributions to unitholders of the Trust. Its web site is here Alaris Equity Partners Income Trust.

The last stock I wrote about was about was Sun Life Financial Inc (TSX-SLF, NYSE-SLF) ... learn more. The next stock I will write about will be Toromont Industries Ltd (TSX-TIH, OTC-TMTNF) ... learn more on Friday, April 14, 2023 around 5 pm. Tomorrow on my other blog I will write about What Drives Stock Returns.... learn more on Thursday, April 13, 2023 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.

Sun Life Financial Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Insurance. The stock price is reasonable and may even be cheap. The Dividend Payout Ratios (DPR) are good. The current dividend yield is moderate with dividend growth moderate. See my spreadsheet on Sun Life Financial Inc.

Is it a good company at a reasonable price? I think this is a good company and I understand life insurance companies because I worked in IT in several. This stock is on various lists, like the Dividend Aristocrat list and Money Sense list of 100 best dividends stock. The current price is reasonable and it may even be relatively cheap. I own this stock but probably will not buy any more as I have enough of it.

I own this stock of Sun Life Financial Inc (TSX-SLF, NYSE-SLF). I first bought this stock in 2000 when it was first demutualized. It was very cheap. I bought more in 2001, 2003 and 2006. This stock was on Mike Higgs' Canadian Dividend Growth stock list and on the other dividend lists that I followed.

When I was updating my spreadsheet, I noticed that I have had this stock for 23 years and have made 7.49% with 3.92% from capital gains and 3.57% from dividends. The problem for Life Insurance companies was very low interest rates. I expect them to do better with more normal interest rates.

If you had invested in this company in December 2012, for $1,002.06 you would have bought 38 shares at $26.37 per share. In December 2022, after 10 years you would have received $722.57 in dividends. The stock would be worth $2,388.30. Your total return would have been $3,110.87.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$26.37	$1,002.06	38	10	$722.57	$2,388.30	$3,110.87

The current dividend yield is moderate with dividend growth moderate. The current dividend yield is moderate (2% to 4% ranges) at 4.53%. The 5, 10 and historical median dividend yields are also moderate at 3.96%, 3.76% and 3.64%. The dividend increases are currently moderate (8% to 14% ranges) at 9.6% per year over the past 5 years. The last dividend increase was in 2022 and it was for 4.3%. However, this company often increases their dividend more than once a year. The total increase in 2022 was for 19.5%.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2022 is 53% with 5 year coverage at 46%. The DPR for Adjusted Earnings per Share (AEPS) for 2022 was 44% with 5 year coverage at 41%. The DPR for Cash Flow per Share (CFPS) for 2022 is 7% with 5 year coverage at 24%. The DPR for Free Cash Flow (FCF) for 2022 was 39% with 5 year coverage at 44%.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is 3.90. The Long Term Debt/Covering Assets Ratio is 0.81 and that is good. The Liquidity Ratio, although not important for Financials, in 2022 was 1.74. The Debt Ratio for 2022 is 1.10 and this is fine for financials.

The Total Return per year is shown below for years of 5 to 23 to the end of 2022. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2017	5	9.60%	7.14%	3.91%	3.23%
2012	10	6.72%	13.88%	9.07%	4.80%
2007	15	5.04%	3.70%	0.81%	2.89%
2002	20	8.30%	8.06%	4.37%	3.69%
1999	23	7.90%	12.01%	7.20%	4.81%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 10.12, 12.04 and 13.96. The corresponding 10 year ratios are 10.41, 12.15 and 14.06. The corresponding historical ratios are 11.59, 13.13 and 14.47. The current P/E Ratio is 10.07 based on a stock price of $63.64 and EPS estimate for 2023 of $6.32. The ratio is below low ratio for the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.63, 10.19 and 11.84. The corresponding 10 year ratios are 9.57, 10.82 and 12.12. The current P/AEPS Ratio is 9.85 based on AEPS estimate for 2023 of $6.46 and a stock price of $63.64. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $78.71. The 10-year low, median, and high median Price/Graham Price Ratios are 0.72, 0.84 and 0.96. The current P/GP Ratio is 0.81 based on a stock price of $63.64. This ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10-year median Price/Book Value per Share Ratio of 1.48. The current P/B Ratio is 1.49 based on a stock price of $63.64, Book Value of $25,011M and Book Value per Share of $42.65. The current ratio is 0.8% above the 10 year median ratio This stock price testing suggests that the stock price is relatively reasonable but above (or at) the median.

I also have a Book Value per Share estimate for 2023 of $43.30. This implies a P/B Ratio of 1.47 with a Book Value of $25,291M, and a stock price of $63.64. The current ratio is 0.8% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below (or at) the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 8.20. The current P/CF Ratio is 7.93 based on Cash Flow per Share estimate for 2023 of $8.03, Cash Flow of $4,709M and a stock price of $63.64. The current ratio is 3% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 3.64%. The current dividend yield is 4.53% based on dividends of $2.88 and a stock price of $63.64. The current dividend yield is 24% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 3.76%. The current dividend yield is 4.53% based on dividends of $2.88 and a stock price of $63.64. The current dividend yield is 20.4% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10-year median Price/Sales (Revenue) Ratio is 1.06. The current P/S Ratio is 0.87 based on Revenue estimate for 2023 of $43,005, Revenue per Share of $73.34 and a stock price of $63.64. The current ratio is 15% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is reasonable and may even be cheap. Both the Dividend yield tests are saying the stock price is cheap. The P/S Ratio test is saying it is reasonable. The other tests vary from reasonable to cheap.

When I look at analysts’ recommendations, I find Strong Buy (3), Buy (5), Hold (7) and Underperform (1). The consensus would be a Buy. The 12 months stock price consensus is $72.73. This implies a total return of 18.81% with 14.28% from capital gains and 4.53% from dividends based on a current stock price of $63.64. The only negative remark I can find is one analyst on Stock Chase was worried about Loan Losses if we hit a depression. There was a recent positive report of this company at Zacks Equity Research.

Analysts on Stock Chase think this stock is a Buy. Stock Chase gives this stock 5 stars out of 5. The company is on the Money Sense list at number 50. Adam Othman on Motley Fool says to buy this stock if you are looking for growth and dividends. Ambrose O'Callaghan on Motley Fool thinks this is a dependable dividend stock. The company put out a press release on Newswire about their fourth quarter of 2022 results. Simply Wall Street reviewed this stock via Yahoo Finance. Simply Wall Street gives this stock 4 stars out of 5. It says the stock pass all their risk checks.

Sun Life provides life insurance, retirement, and asset management products to individuals and corporate customers in Canada, the United States, and Asia. Its web site is here Sun Life Financial Inc.

The last stock I wrote about was about was Goodfellow Inc (TSX-GDL, OTC-GFELF) ... learn more. The next stock I will write about will be Alaris Equity Partners Income Trust (TSX-AD, OTC-ALARF) ... learn more on Wednesday, April 12, 2023 around 5 pm. Tomorrow on my other blog I will write about Investor Protection Fund .... learn more on Tuesday, April 11, 2023 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.

Goodfellow Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Consumer. Stock Price is probably reasonable to cheap. Debt Ratios are good. The Dividend Payout Ratios (DPR) are good. The company does have an inconsistency when it comes to dividends. The current dividend yield is good with dividend growth good. See my spreadsheet on Goodfellow Inc .

Is it a good company at a reasonable price? What I like about this small company is that they had good debt ratios. The Liquidity Ratio is important for small companies and this company has one of 4.25 (where typically a ratio of 1.50 or higher is considered good). The Debt ratio is also very good at 4.11. Leverage and Debt/Equity Ratios are good at 1.32 and 0.32. The company currently has no long term debt or bank indebtedness. The stock price testing is showing the stock as cheap with the dividend yield tests. Stock Price is probably reasonable to cheap.

I own this stock of Goodfellow Inc (TSX-GDL, OTC-GFELF). Goodfellow looks like a good small cap stock. It was being pushed by Investor Reporter. The report is no longer on Advice for Investors site.

When I was updating my spreadsheet, I noticed that I have not done well with this stock. I have held it for just over 12 years and have made a total return of 4.83% with 2.43% from capital gains and 2.40% from dividends. However, this is not a core stock for me. If you look at the chart below, you will see that people who bought this stock some 15 years ago have not done well. I bought at the wrong time.

The company is optimistic about the future based on their dividend increases. They stopped dividends in 2017 and 2018. However, since dividends have restarted in 2019, dividends are up by 53% per year. The other good thing is that insiders have bought shares (around $10.50 in the past year). And finally, I like to mention about this stock is that I cannot find any analysts that are following it.

If you had invested in this company in December 2012, for $1,001.88 you would have bought 121 shares at $8.28 per share. In December 2022, after 10 years you would have received $447.70 in dividends. The stock would be worth $1,511.29. Your total return would have been $1,958.99.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$8.28	$1,001.88	121	10	$447.70	$1,511.29	$1,958.99

In the Chart below on growth, Revenue is the lowest growth. Since increasing revenue is required for other long term growth, this is a problem.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth	20.53%	0.94%
5	AFFO Growth	1974.19%	83.39%
5	Net Income Growth	1660.60%	77.47%
5	Cash Flow Growth	-52.47%	-8.09%
6	Dividend Growth	200.00%	20.09%
5	Stock Price Growth	51.03%	8.60%
10	Revenue Growth	26.06%	2.34%
10	AFFO Growth	562.89%	20.82%
10	Net Income Growth	650.38%	22.33%
10	Cash Flow Growth	303.00%	14.96%
10	Dividend Growth	350.00%	20.09%
10	Stock Price Growth	50.85%	3.39%

The current dividend yield is good with dividend growth good. The current dividend yield is good (5% to 6% ranges) at 6.67%. The 5 year dividend yield is also good at 5.79%. The 10 and historical dividend yield is moderate (2% to 4% ranges) at 3.65% and 3.74%.

The company does have an inconsistency when it comes to dividends. Over the past 31 years of data that I have, they have raised the dividend in 19 years and decreased it in 10 years. There were no dividends in 2017 and 2018. In the past 5 years they have gone from $0.00 dividends to 1.00. Over the past 7 years, dividends have gone up by 20% per year. The last dividend increase was in 2023 and it was for 25%.

The DPR for EPS for 2022 is 24% with 5 year coverage at 20%. The DPR for Adjusted Funds from Operation is 14% with 5 year coverage at 10%. The DPR for Cash Flow per Share for 2022 is 14% with 5 year coverage at 11%. The DPR for Free Cash Flow (FCF) for 2022 is 8% with 5 year coverage at 7%.

Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2022 is 0.00. This company has no long term debt. The Liquidity Ratio is good at 4.25. The Debt Ratio is good at 4.11. Leverage and Debt/Equity Ratios are good at 1.32 and 0.32.

The Total Return per year is shown below for years of 5 to 31 to the end of 2022. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2017	5	20.09%	14.35%	8.60%	5.75%
2012	10	16.23%	8.32%	4.20%	4.12%
2007	15	1.69%	3.64%	0.10%	3.53%
2002	20	7.81%	10.57%	3.98%	6.59%
1997	25	8.14%	8.43%	3.39%	5.03%
1992	30	10.94%	14.40%	6.30%	8.11%
1991	31	11.60%	12.80%	5.81%	7.00%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 2.37, 3.76 and 5.22. The corresponding 10 year ratios are 5.81, 6.89 and 8.00. The corresponding historical ratios are 6.59, 8.05 and 9.15. The current P/E Ratio is 3.93 based on a stock price of $15.00 and EPS for the last 12 month of $3.82. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I also have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/AFFO Ratios are 1.41, 1.81 and 2.51. The corresponding 10 year ratios are 4.75, 5.18 and 5.62. The current P/AFFO Ratio is 2.33 based on AFFO of 6.43 for the last 12 months and a stock price of $15.00. This ratio is below the low ratio for 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $43.31. The 10-year low, median, and high median Price/Graham Price Ratios are 0.52, 056 and 0.60. The current P/GP Ratio is 0.28 based on a stock price of $15.00. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Book Value per Share Ratio of 0.58. The current P/B Ratio is 0.69 based on a Book Value of $186.8M, Book Value per Share of $21.83 and a stock price of $15.00. The current ratio is 18% above the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 3.78. The current P/CF Ratio is 4.93 based on Cash Flow for the last 12 months of $26M, Cash Flow per Share of $19.2M and a stock price of $15.00. The current ratio is 61% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 3.74%. The current dividend yield is 6.67% based on dividends of $1.00 and a stock price of $15.00. The current dividend yield is 78% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 3.65%. The current dividend yield is 6.67% based on dividends of $1.00 and a stock price of $15.00. The current dividend yield is 82% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10-year median Price/Sales (Revenue) Ratio is 0.14. The current P/S Ratio is 0.20 based on Revenue for the last 12 months of $631.2M, Revenue per Share of $73.75 and a stock price of $15.00. The current ratio is 43% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably cheap. This is not an easy answer. However, I will go with the dividend yield tests. It is only the P/S Ratio and P/CF Ratio tests that says the stock price is expensive. I usually like the P/S Ratio test to confirm the dividend yield tests. However, the recently raising of the dividends suggests that the company is optimistic about the future. Also, the Graham Price at $43.31 is way above the current stock price.

When I look at analysts’ recommendations, I find that according to Barron’s and Market Watch sites there seems to be one Buy rating. The only place I could find any coverage was Simply Wall Street.

There are no entries on Stock Chase for this company Simply Wall Street reviews this stock via Yahoo Finance. The company put out a press release via Globe Newswire on their fourth quarter results for 2022.

Simply Wall Street on Yahoo Finance has a recent report talking about insider buying. Simply Wall Street has two warnings of unstable dividend track record; and does not have a meaningful market cap (CA$128M). Simply Wall Street gives this company 3 stars out of 5.

Goodfellow Inc is engaged in various business activities related to remanufacturing and distribution of lumber and wood products. Majority of company's revenue is generated from sale of Lumber. The company operates in Canada and The United States; majority revenue is generated from Canada. Its web site is here Goodfellow Inc .

The last stock I wrote about was about was Melcor Developments Inc (TSX-MRD, OTC-MODVF) ... learn more. The next stock I will write about will be Sun Life Financial Inc (TSX-SLF, NYSE-SLF) ... learn more on Monday, April 10, 2023 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. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Melcor Developments Inc

Today I bought some more HLS Therapeutics Inc (TSX-HLS) for the TFSA Account. This account is my fooling around money. I am using mostly dividend income as I have not had the spare money to make my 2023 contribution.

Sound bite for Twitter and StockTwits is: Dividend Growth Real Estate. The stock price is relatively cheap. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are good. The current dividend yield is good with dividend growth low. See my spreadsheet on Melcor Developments Inc.

Is it a good company at a reasonable price? I intend to hold on to the shares I have. I think this is a reasonable action. I like to have some investment in Alberta, but it is a region of boom and bust. I do not have much invested in this stock. The current stock price is relatively cheap. I do expect to make money on this over the long term. I have done well with dividends. It is a good sign when insiders are buying.

I own this stock of Melcor Developments Inc (TSX-MRD, OTC-MODVF). This was one of the stocks on Mike Higgs' list of good dividend growth stocks. So, I investigated it and bought it. I bought this stock first in 2008 and then some more in 2009. It is a little followed real estate company from Western Canada.

When I was updating my spreadsheet, I noticed I have this in my Pension RIF and in my Trading Account. Overall, I have a total return of 5.07% with 0.73% from capital gains and 4.34% from dividends. For my Trading Account, I have a total return of 7.24% with 2.46% from capital gains and 4.78% from dividends. This is a small cap stock from Western Canada. As far as I can see, Alberta is a boom/bust type of economy.

I follow 6 officers and directors of this company as to what shares they own and what options they have. In the past year, 5 of these 6 increased their shares in this company, with increases in shares ranging from 6% to 43%. This is a good sign.

If you had invested in this company in December 2012, for $1,008.00 you would have bought 64 shares at $15.75 per share. In December 2022, after 10 years you would have received $355.84 in dividends. The stock would be worth $681.60. Your total return would have been $1,037.44. With dividend paying stock, it is harder to end in a loss position.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$15.75	$1,008.00	64	10	$355.84	$681.60	$1,037.44

According to the following charts the company has been growing except for Revenue over the past 5 years, unlike over the past 10 years where there was no growth except for dividends. I would be happier if Revenue could grow. Analysts do expect growth in Revenue in 2023.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth	-6.70%	-1.29%
5	FFO Growth	6.21%	1.21%
5	Net Income Growth	131.94%	18.32%
5	Cash Flow Growth	147.79%	19.90%
5	Dividend Growth	11.54%	2.21%
5	Stock Price Growth	-43.66%	-6.99%
10	Revenue Growth	-13.73%	-1.28%
10	FFO Growth	-18.09%	-1.65%
10	Net Income Growth	-17.70%	-1.62%
10	Cash Flow Growth	-91.21%	-6.28%
10	Dividend Growth	28.89%	10.00%
10	Stock Price Growth	-47.89%	-3.84%

The current dividend yield is good with dividend growth low. The current dividend yield is good (5% to 6% ranges) at 5.40%. The 5, 10 and historical dividend yields are moderate (2% to 4% ranges) at 3.70%, 3.66% and 2.92%. The dividends are currently growing at a low rate (below 8%) at 2.2% per year over the past 5 years. Dividends were cut in 2016. Dividends are current 6.7% above the high dividends of 2015. The last dividend increase was in 2023 and it was for 6.7%.

The Dividend Payout Ratios (DPR) are good. The DPR for EPS for 2022 is 21% with 5 year coverage at 30%. The DPR for Funds from Operations (FFO) for 2022 is 31% with 5 year coverage at 27%. The DPR for Cash Flow per Share (CFPS) for 2022 is 31% with 5 year coverage at 26%. The DPR for Free Cash Flow (FCF) for 2022 is 63% with 5 year coverage at 34%.

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio is too high at 2.22. This means that the market is not valuing the debt on this company’s assets at the same price as the balance sheet. The balance sheet shows assets worth $1,874M, Debt at $870.1M and market cap at $332.8M. The Long Term Debt/Covering Assets Ratio is fine at 0.46. The Liquidity Ratio is good at 3.68. The Debt Ratio is good at 2.19. The Leverage and Debt/Equity Ratios are good at 1.84 and 0.84.

The Total Return per year is shown below for years of 5 to 32 to the end of 2022. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2017	5	2.21%	-3.39%	-6.99%	3.60%
2012	10	10.00%	0.35%	-3.84%	4.19%
2007	15	2.51%	-0.77%	-4.08%	3.31%
2002	20	9.19%	12.07%	5.43%	6.65%
1997	25	7.28%	15.93%	7.62%	8.32%
1992	30	11.88%	16.82%	7.86%	8.96%
1990	32	13.53%	16.56%	8.03%	8.54%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.35, 7.32 and 8.91. The corresponding 10 year ratios are 6.40, 7.51 and 8.93. The corresponding historical ratios are 6.28, 7.25 and 8.43. The current P/E Ratio is 6.11 based on a stock price of $11.85 and EPS estimate for 2023 of $1.94. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I also have Funds from Operations (FFO) data. The 5-year low, median, and high median Price/Funds from Operations Ratios are 5.23, 7.33 and 9.44. The corresponding 10 year ratios are 7.42, 8.72 and 9.85. The current ratio is 6.30 based on a stock price of $11.85 and FFO for last 12 months of $1.88. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $40.57. The 10-year low, median, and high median Price/Graham Price Ratios are 0.37, 0.45 and 0.50. The current P/GP Ratio is 0.29 based on a stock price of $11.85. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Book Value per Share Ratio of 0.48. The current P/B Ratio is 0.31 based on a stock price of $11.85, Book Value of $1,178M and Book Value per Share of $37.71. The current ratio is 34% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Cash Flow per Share Ratio of 12.42. The current P/CF Ratio is 20.18 based on Cash Flow for the past 12 months of $18.4M, Cash Flow per Share of $0.59 and a stock price of $11.85. The current P/CF Ratio is 62% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also collection Cash Flow excluding Working Capital (WC). This has a 10 year P/CF Ratio of 9.21 based Cash Flow excluding WC of 58.3M, Cash Flow per Share of $1.87 and a stock price of $11.85. The current ratio is 31% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. (Some analysts like the Cash Flow excluding WC better than just Cash Flow.)

I get an historical median dividend yield of 2.92%. The current dividend yield is 5.40% based on a stock price of $11.85 and dividends of $0.64. The current yield is 85% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 3.66%. The current dividend yield is 5.40% based on a stock price of $11.85 and dividends of $0.64. The current yield is 48% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10-year median Price/Sales (Revenue) Ratio is 1.94. The current P/S Ratio is 1.18 based on a stock price of $11.85, Revenue estimate for 2023 of $313M, and Revenue per Share of $10.02. The current ratio is 39% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is the dividend yield tests are showing the stock price as relatively cheap. This is confirmed by the P/S Ratio testing. Almost all the testing is showing the stock price as relatively cheap. Also, I noticed that the ratios for this stock are very low. For example, a P/E Ratio of 10.00 is generally considered a low ratio, but the median high ratio for this stock for the 10 year median ratios is just 8.93.

When I look at analysts’ recommendations, I find one Hold Rating and a 12 month stock price consensus of $14.00. This implies a total return of 23.54% with 18.14% from capital gains and 5.40% from dividends. There seems to be only one analyst following this stock. A hold recommendation does not seem to go with an 23% total return.

The last remark on this stock on Stock Chase was in 2016. It is not well followed. Stock Chase give this stock 1 star out of 5. It has never been on the Money Sense list. Nikhil Kumar on Motley Fool asked in 2021 if this is Canada’s cheapest Real Estate stock. Aditya Raghunath on Motley Fool did not like this company in 2020. The company put out a Press Release on Newswire about their fourth quarter of 2022.

Simply Wall Street via Yahoo Finance put out a recent report on this stock. Simply Wall Street gives 3 warnings on this stock of debt is not well covered by operating cash flow; dividend of 5.33% is not well covered; and large one-off items impacting financial results. Simply Wall Street gives this stock 3 stars out of 5.

Melcor Developments Ltd is a real estate development company. It develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centers, and golf courses. Its web site is here Melcor Developments Inc.

The last stock I wrote about was about was BCE Inc (TSX-BCE, NYSE-BCE) ... learn more. The next stock I will write about will be Goodfellow Inc (TSX-GDL, OTC-GFELF) ... learn more on Friday, April 7, 2023 around 5 pm. Tomorrow on my other blog I will write about Something to Buy April 2023 .... learn more on Thursday, April 6, 2023 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. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

BCE Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Telecom. The stock price is reasonable and it may even be cheap. It would be good if they improved the Liquidity Ratio, but other ratios are fine. Some Dividend Payout Ratios (DPR) are too high, like the ones for Earnings. The dividend yields are good with dividend growth low. See my spreadsheet on BCE Inc.

Is it a good company at a reasonable price? I think this is a good company and it is a core stock for me. I will be keeping the shares I have. I will not be buying any more as I have enough of this company in my portfolio. The stock price is reasonable, and it may even be cheap.

I own this stock of BCE Inc (TSX-BCE, NYSE-BCE). This is one of first stocks I bought, which was in 1982. At that time, it was called an orphan and widow stock. Since I bought this stock, it has spun off shares for Nortel and Bell Aliant. The annoying thing with their spin offs is you always end up with an odd number of shares. In 2016 I sold Manitoba Telecom. To keep the same in Telecom category, I bought some more BCE with the proceeds.

When I was updating my spreadsheet, I noticed I have had this stock for 35 years and have made a total return of 12.52% with 6.54% from capital gains and 5.98% from dividends. There has been a lot of changes in this stock where they spin off both Nortel and Bell Alient. Every time they did such things, I ended up with an odd number of shares. I return is not the same as the returns of 35 years below, but it is probably because I bought shares over several years.

If you had invested in this company in December 2012, for $1,023.12 you would have bought 24 shares at $42.63 per share. In December 2022, after 10 years you would have received $704.34. in dividends. The stock would be worth $1,427.76. Your total return would have been $2,132.10.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$42.63	$1,023.12	24	10	$704.34	$1,427.76	$2,132.10

If you had invested in this company in December 2002, for $1,023.00 you would have bought 36 shares at $28.50.63 per share. In December 2022, after 20 years you would have received $1,588.68 in dividends. The stock would be worth $2,141.64. Your total return would have been $3,730.32.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$28.50	$1,026.00	36	20	$1,588.68	$2,141.64	$3,730.32

The dividend yields are good with dividend growth low. The current dividend yield is good (5% to 6% range) at 6.37%. The 5 and 10 year median dividend yields are also good at 5.59% and 5.22%. The historical median dividend yield is moderate (2% to 4% ranges) at 4.13%. The growth in dividends has been low (below 8% per year) at 5.1% per year over the past 5 years. The last dividend increase occurred in 2023 and it was for 5.2%.

Some Dividend Payout Ratios (DPR) are too high, like the ones for Earnings. The DPR for EPS for 2022 are 122% with 5 year coverage at 109%. The DPR for EPS for 2023 is expected to be lower at 118%. The DPR for Adjusted Earnings per Share (AEPS) for 2022 are 109% and 100%. The DPR for AEPS for 2023 is expected to be higher at 119%, but be around 100% in 2025. These DPRs are too high. The DPR for Cash Flow per Share (CFPS) for 2022 is 33% and with 5 year coverage at 32% and these are fine. The DPR for Free Cash Flow for 2022 is 103% with 5 year coverage at 98%. This DPR is expected to be 90% in 2023.

It would be good if they improved the Liquidity Ratio, but other ratios are fine. The Long Term Debt/Market Cap Ratio for 2022 is good at 0.51. The Liquidity Ratio for 2022 is too low at 0.57. If you add in cash flow after dividends it is only 1.01. If you also add back in the current portion of the long term debt it is 1.57. What you want is a ratio of 1.50 or above. Depending on rolling over long term debt to get there is risky. The Debt Ratio is 1.48 and I prefer this to be 1.50 or higher.

The Total Return per year is shown below for years of 5 to 40 to the end of 2022. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2017	5	5.10%	5.17%	-0.30%	5.47%
2012	10	5.17%	9.22%	3.39%	5.83%
2007	15	6.27%	7.64%	2.74%	4.89%
2002	20	5.70%	8.68%	3.75%	4.93%
1997	25	9.03%	9.13%	4.25%	4.88%
1992	30	7.62%	8.09%	4.01%	4.09%
1987	35	6.75%	7.34%	3.75%	3.59%
1982	40	6.43%	9.06%	4.90%	4.16%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 18.14, 20.27 and 22.39. The corresponding 10 year ratios are 16.39, 18.28 and 19.63. The corresponding historical ratios are 15.64, 17.58 and 18.25. The current P/E Ratio is 18.70 based on a stock price of $60.79 and EPS estimate for 2023 of $3.25. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I also have Adjusted Earnings per Share (AEPS) Data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 16.81, 19.00 and 20.99. The corresponding 10 year ratios are 15.46, 16.89 and 18.38. The current P/AEPS Ratio is 19.00. This is at the median ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and at the median.

I get a Graham Price of $37.88. The 10-year low, median, and high median Price/Graham Price Ratios are 1.44, 1.63 and 1.75. The current P/GP Ratio is 1.60 based on a stock price of $60.79. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10-year median Price/Book Value per Share Ratio of 3.20. The current P/B Ratio is 3.05 based on a stock price of $60.79, Book Value per Share of $19.93 and Book Value of $18,175M. The current P/B Ratio is 3.05 based on a stock price of $60.79. The current ratio is 4.7% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I also have a Book Value per Share estimate of $21.60. This implies a ratio of 2.81 with a stock price of $67.79 and Book Value of $19,699M. This ratio is 12% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 6.96. The current P/CF Ratio is 6.61 based on Cash Flow per Share estimate for 2023 of $9.20, Cash Flow of $8,023M and a stock price of $60.79. This ratio is 5% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 4.13%. The current dividend yield is 6.37% based on dividends of $3.87 and a stock price of $60.79. The current dividend yield is 54% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 5.22%. The current dividend yield is 6.37% based on dividends of $3.87 and a stock price of $60.79. The current dividend yield is 22% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.

The 10-year median Price/Sales (Revenue) Ratio is 2.26. The current P/S Ratio is 2.24 based on Revenue estimate of $24,792M, Revenue per Share of $27.18 and a stock price of $60.79. The current ratio is 1.2% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

Results of stock price testing is that the stock price is reasonable and may be cheap. The dividend yield tests are saying the stock price is cheap. The P/S Ratio test is saying the stock price is reasonable and below the median. Most of the other tests are showing that the stock price is reasonable and below or at the median.

When I look at analysts’ recommendations, I find Strong Buy (2), Buy (3) and Hold (13). The consensus would be a Buy. The 12 month stock price consensus is $65.53. This implies a total return of 14.16% with 7.80% from capital gains and 6.37% from dividends based on a stock price of $60.79.

Most Analysts like this stock on Stock Chase. Stock Chase gives this stock 5 stars out of 5. It is not on the latest Money Sense list, but has been on this list in the past. Vishesh Raisinghani on Motley Fool thinks it has a safe dividend and future growth. Karen Thomas on Motley Fool thinks this is a blue chip that is mispriced. The company put out a press release on Newswire about their fourth quarter of 2022.

Simply Wall Street on Yahoo Finance talks about ownership of shares of this company. Simply Wall Street gives out 3 warnings of dividend of 6.39% is not well covered by earnings or cash flows; has a high level of debt; and significant insider selling over the past 3 months. Simply Wall Street gives this stock 3 stars out of 5.

BCE provides wireless, broadband, television, and landline phone services in Canada. It is one of the big three national wireless carriers, with about 30% of the market. It is also has ILEC throughout much of the eastern half of Canada, including in the most populous Canadian provinces: Ontario and Quebec. Additionally, BCE has a media segment, which holds television, radio, and digital media assets. Its web site is here BCE Inc.

The last stock I wrote about was about was Hydro One Ltd (TSX-H, OTC-HRNNF) ... learn more. The next stock I will write about will be Melcor Developments Inc (TSX-MRD, OTC-MODVF) ... learn more on Wednesday, April 5, 2023 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks April 2023.... learn more on Tuesday, April 4, 2023 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. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

Hydro One Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. The current stock price is relatively expensive. Debt Ratios are mostly fine, but the company should improve their Liquidity Ratio. The Dividend Payout Ratios (DPR) are fine with the one AEPS being probably the most important. The dividend yields are moderate with dividend growth low. See my spreadsheet on Hydro One Ltd.

Is it a good company at a reasonable price? This will probably be a good utility to invest in. They are growing their dividends and intend to continue to do that. However, I think that the current stock price is relatively expensive.

I do not own this stock of Hydro One Ltd (TSX-H, OTC-HRNNF). It is a utility stock and has been recommended by various persons. It is on the Money Sense list with a C. Rating. It appeared in the Stable Dividend Portfolio when Norman Rothery originally wrote about it in December 21, 2022.

When I was updating my spreadsheet, I noticed that the Liquidity Ratios are very low. The current ratio is 0.51. The 9 year median is 0.51. Even add in cash flow after dividends it does not even get it to 1.00 (only 0.96). Only adding back in the current portion of the current debt do you get past 1.00. In 2022 this gets you to a low ratio of 1.15. It is best at 1.50. When this ratio is under 1.00, it means that current assets cannot cover current liabilities. Having very low Liquidity Ratios can cause problems in bad economic times. This can occur if debt holders cannot roll over the current debt. (I guess you can assume this will not happen as long as the Ontario government owns shares in this company.)

If you had invested in this company in December 2015, for $1,003.05 you would have bought 45 shares at $22.29 per share. In December 2022, after 7 years you would have received $308.90 in dividends. The stock would be worth $1,632.15. Your total return would have been $1,941.05.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$22.29	$1,003.05	45	7	$308.90	$1,632.15	$1,941.05

The current dividend yield is moderate (2% to 4% ranges) at 3.90%. The 5, 6 and historical dividend yields are also moderate at 3.91%, 3.91% and 3.91%. The dividends are increased at a low rate (below 8%) at 2.9% per year for the past 5 years. The last dividend increase was in 2022 and it was for 5%.

The Dividend Payout Ratios (DPR) are fine with the one AEPS being probably the most important. The DPR for EPS for 2022 is 63% with 5 year coverage at 67%. The DPR for Adjusted Earnings per Share (AEPS) for 2022 if 63% with 5 year coverage at 65%. The DPR for Funds from Operations (FFO) for 2022 is 30.22% with 5 year coverage at 33%. The DPR for Cash Flow per Share (CFPS) for 2022 is 29% with 5 year coverage at 30%. The DPR for Free Cash Flow for 2022 could be 380% with 5 year coverage at 663% according to one site.

Debt Ratios are mostly fine, but the company should improve their Liquidity Ratio. The Long Term Debt/Market Cap Ratio for 2022 is 0.60 and is fine. The Debt Ratio for 2022 is good at 1.57. The Debt/Equity and Shareholders' Equity Ratios are 2.78 and 1.77 respectively and these are fine.

The Liquidity Ratio is 0.51. Even adding in Cash Flow after dividends gets you to 0.96. You must add back in the Current Portion of the Long Term Debt to get to 1.15 and even this is low because I like the ratio to be 1.50 or higher. A problem to adding back the Current Portion of The Long Term Debt is that in bad times, the company might not be able to just rollover their debt. Although, I must admit utilities do not seem to have had a problem with this traditionally and the Ontario government owns lots of shares in this company.

The Total Return per year is shown below for years of 5 to 08 to the end of 2022. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2017	5	4.90%	13.83%	10.12%	3.56%
2015	8	2.20%	9.71%	6.68%	3.69%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 15.45, 17.80 and 20.15. The corresponding 7 year ratios are 16.04, 18.16 and 20.30. The current P/E Ratio is 21.65 based on a stock price of $38.54 and EPS estimate for 2023 of $1.78. The current ratio is above the high ratio of the 7 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 14.02, 16.99 and 20.7. The corresponding 8 year ratios are 16.60, 18.52 and 20.07. The current P/AEPS Ratio is 21.65 based on a stock price of $38.54 and AEPS estimate for 2023 of $1.78. The current ratio is above the high ratio of the 8 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I also have Funds from Operations (FFO) data. The 5-year low, median, and high median Price/FFO Ratios are 7.82,8.74 and 9.89. The corresponding 8 year ratios are 7.83, 8.77 and 9.77. The current P/FFO Ratio is 10.54 based on a stock price of $38.54 and FFO for the last months 12 months of $3.66. The current ratio is above the high ratio of the 8 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $27.27 . The 8-year low, median, and high median Price/Graham Price Ratios are 1.02, 1.07 and 1.16. The current P/GP Ratio is 1.33 based on a stock price of $38.54. The current ratio is above the high ratio of the 8 year median ratios. This stock price testing suggests that the stock price is relatively expensive.

I get an 8-year median Price/Book Value per Share Ratio of 1.41. The current P/B Ratio is 2.04 based on a stock price of $38.54, Book Value of $11,306M and a Book Value per Share of $18.88. The current ratio is 45% above the 8 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I also have an estimate for the Book Value per Share for 2023 of $19.40. This implies a P/B Ratio of 1.99 with a stock price of $38.54 and Book Value of $11,615M. This ratio is 41% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an 8-year median Price/Cash Flow per Share Ratio of 8.10. The current P/CF Ratio is 10.25 based on an Cash Flow per Share estimate for 2023 of $3.76, Cash Flow of $2,251M and a stock price of $38.54. The current ratio is 27% above the 8 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

I get an 8-year median dividend yield of 3.91%. The current dividend yield is 2.90% based on a stock price of $38.54 and dividends of $1.1184. The current yield is 26% below the 8 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive.

The 8-year median Price/Sales (Revenue) Ratio is 2.13. The current ratio is 2.89 based on Revenue estimate for 2023 of $7,995M. The current ratio is 35% above the 8 year median ratio. This stock price testing suggests that the stock price is relatively expensive.

Results of stock price testing is that the stock price is probably expensive. I know that there is not much data on this stock because it has only been on the TSX for a limited period. However, the dividend yield test and the P/S Ratio tests agree that the stock price is relatively expensive. In fact, all the tests agree the stock price is relatively expensive. Even the analysts seem to say this when the 12 month stock price given is below the current stock price.

When I look at analysts’ recommendations, I find Strong Buy (4), Buy (1), Hold (9) and Underperform (1). The 12 month stock price consensus is $37.77. This implies a total return of $0.90% with a capital loss of 2.00% and dividends of $2.90%.

Most analysts like this stock on Stock Chase. However, one analyst, Michael Sprung does not like it because he thinks it is politicized. Stock Chase gives this stock 4 stars out of 5. Amy Legate-Wolfe on Motley Fool says to buy for income and growth. Joey Frenette on Motley Fool says this dividend stock is selling at a fair price. The company gives a press release via Newswire about their fourth quarter of 2022.

Simply Wall Street on Yahoo Finance says this stock is selling 34% above its intrinsic value. Simply Wall Street gives 2 warnings on this stock of debt is not well covered by operating cash flow; and dividend of 2.87% is not well covered. Simply Wall Street gives this stock 3 stars out of 5.

Hydro One operates regulated transmission and distribution assets in Ontario. The province of Ontario holds an approximate 47% common equity stake. Its web site is here Hydro One Ltd.

The last stock I wrote about was about was AltaGas Ltd (TSX-ALA, OTC-ATGFF) ... learn more. The next stock I will write about will be BCE Inc (TSX-BCE, NYSE-BCE) ... learn more on Monday, April 3, 2023 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. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

AltaGas Ltd

Yesterday, I bought some more Emera Inc Shares at $55.15 per share. This is for my Trading Account. This is my dividend growth account and is a core stock for me.

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. Results of stock price testing is that the stock price is probably reasonable and maybe cheap. Debt Ratios need to be improved. The Dividend Payout Ratios (DPR) is good with the important one for AEPS. The dividend yields are good with dividend growth restarted. See my spreadsheet on AltaGas Ltd.

Is it a good company at a reasonable price? I plan to hold the shares I have, but I will not be buying anymore because I have enough. I still believe I will do fine with this stock. It is encouraging that the company has restarted dividend growth. The stock price is reasonable and is probably cheap.

I own this stock of AltaGas Ltd (TSX-ALA, OTC-ATGFF). When I bought this stock in 2009 it was on many dividend growth stock lists. In 2009, I saw that this stock also had good growth in Revenues, Earnings, Dividends, and Stock Prices over the last 5 and 10 years. The stock had a strong balance sheet. I took a small position in this stock, and planned to wait and see how things go with this stock before buying more. I bought more in 2010 and 2012.

When I was updating my spreadsheet, I noticed that this year, this company has a much better Liquidity Ratio than in past years. The Liquidity Ratio for 2022 is 1.36 and the company has a 5 year median of 0.98. In 2022 this ratio is getting close to the safety on of 1.50 at 1.43.

If you had invested in this company in December 2012, for $1,007.10 you would have bought 30 shares at $33.57 per share. In December 2022, after 10 years you would have received $462.24 in dividends. The stock would be worth $701.40. Your total return would have been $1,163.64.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$33.57	$1,007.10	30	10	$462.24	$701.40	$1,163.64

You can see from the following chart that this company has mostly been doing better over the past 5 years than over the past 10 years. The exceptions are dividends and Cash Flow.

Year	Item	Tot. Growth	Per Year
5	Revenue Growth	451.09%	40.68%
5	AEPS Growth	57.14%	9.46%
5	Net Income Growth	1216.83%	168.16%
5	Cash Flow Growth	-1.15%	-0.23%
5	Dividend Growth	-98.82%	-12.84%
5	Stock Price Growth	-22.41%	150.38%
10	Revenue Growth	871.34%	25.53%
10	AEPS Growth	62.61%	4.98%
10	Net Income Growth	291.76%	26.11%
10	Cash Flow Growth	268.28%	13.92%
10	Dividend Growth	-31.13%	-2.67%
10	Stock Price Growth	-43.58%	-3.55%

The dividend yields are good with dividend growth restarted. The current dividend yields are good (5% to 6% ranges) at 5.07%. The 5, 10 and historical dividend yields are also good at 5.62%, 5.25% and 5.80%. The dividends were cut in 2019. The company then started to raise them again in 2021. The last dividend increase was in 2023 and it was for 5.7%. The dividends are still 49% below the 2018 dividends.

The Dividend Payout Ratios (DPR) is good with the important one for AEPS. The DPR for EPS for 2022 is 75% with 5 year coverage at 139%. The DPR for Adjusted Earnings per Share (AEPS) for 2022 is 57% with 5 year coverage at 88%. The DPR for Funds from Operations (FFO) is 25% with 5 year coverage at 34%. The DPR for Cash Flow per Share (CFPS) is 25% with 5 year coverage at 38%. There is a lot of disagreement on what the Free Cash Flow (FCF) is with some site showing the FCF negative.

Debt Ratios need to be improved. The Long Term Debt/Market Cap Ratio is too high 1.32. This means that the market cap is lower than the Long Term Debt. If you look at Long Term Debt/Covering Assets, the ratio is 0.70 and this is fine. The Liquidity Ratio at 1.36 is a bit low. If you add in Cash Flow after dividends it is still low at 1.43. I prefer this to be at 1.50 or higher. The Debt Ratio is a bit low at 1.47 and I would prefer this to be at 1.50 or higher. The Leverage and Debt/Equity Ratios are too high at 3.15, and 2.15. I prefer these to be below 3.00 and 2.00.

The Total Return per year is shown below for years of 5 to 23 to the end of 2022. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.

From	Years	Div. Gth	Tot Ret	Cap Gain	Div.
2017	5	-12.84%	0.78%	-3.96%	4.74%
2012	10	-2.67%	1.84%	-3.55%	5.39%
2007	15	-4.33%	5.80%	-0.82%	6.61%
2002	20	6.98%	17.71%	4.66%	13.05%
1999	23	9.76%	17.80%	6.09%	11.71%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 5.51, 9.24 and 12.97. The corresponding 10 year ratios are 22.49, 26.26 and 30.03. The corresponding historical ratios are 13.02, 15.83 and 18.70. The current ratio is 11.38 based on a stock price of $22.07 and EPS estimate for 2023 of $1.94. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 11.50, 14.25 and 16.57. The corresponding 10 year ratios are 17.91, 24.11 and 28.16. The current P/AEPS Ratio is 11.38 based on a stock price of $22.07 and AEPS estimate for 2023 of $1.94. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This is an important test for this section.

I have Adjusted Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/ Adjusted Funds from Operations Ratios are 4.47, 6.17 and 7.27. The corresponding 10 year ratios are 6.79, 7.90 and 9.94. The current ratio is 5.56 based on AFFO estimate for 2023 of $3.97 and a stock price of $22.07. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $32.04. The 10-year low, median, and high median Price/Graham Price Ratios are 0.96, 1.21 and 1.50. The current P/GP Ratio is 0.73 based on a stock price of $22.07. This ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.

I get a 10-year median Price/Book Value per Share Ratio of is 1.28. The current P/B Ratio is 1.01 based on a stock price of $22.07, Book Value of $6,870M and Book Value per Share of $24.40. The current ratio is 30% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I also have a Book Value per Share estimate of $25.20. This analyst calculate the Book Value differently that I do and their calculation gets a 10 year median ratio of 1.08. The Book Value per Share estimate gets a P/B Ratio of 0.88, Book Value $7,095M with a stock price of $22.07. This P/B Ratio is 16% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10-year median Price/Cash Flow per Share Ratio of 10.60. The current P/CF Ratio is 5.38 based on a Cash Flow per Share estimate for 2023 of $4.10, Cash Flow of $1,154M and a stock price of $22.07. This ratio is 49% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get an historical median dividend yield of 5.80%. The current dividend yield is 5.07% based on a dividend of $1.12 and a stock price of $22.07. This dividend yield is 13% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year median dividend yield of 5.25%. The current dividend yield is 5.07% based on a dividend of $1.12 and a stock price of $22.07. This dividend yield is 3% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10-year median Price/Sales (Revenue) Ratio is 1.73. The current P/S Ratio is 0.46 based on a stock price of $22.07, Revenue estimate for 2023 of $13,443 and Revenue per Share of $47.75. The current ratio is 73% below the 10 year median ratio.

Results of stock price testing is that the stock price is probably reasonable and maybe cheap. There are problems with my favourite test of dividend yield because this works best for dividend growth stocks and not well for stocks that cut their dividends. Of course, it is bad sign when companies cut dividends. The P/S Ratio test seems a reasonable test and says the stock price is cheap. Most of the tests show the stock price as relatively cheap.

When I look at analysts’ recommendations, I find Strong Buy (5), Buy (10) and Hold (1). The consensus would be a Strong Buy. The 12 month stock price consensus is $30.94. This implies a total return of $45.27% with 40.19% from capital gains and 5.07% from dividends based on a current stock price of $22.07.

One analyst on Stock Chase says it is his top pick, but another says Do Not Buy as there are better peer stocks available. Most analysts like this stock. Stock Chase give this stock 4 stars out of 5. It is not on the Money Sense list. Karen Thomas on Motley Fool reviews this stock and has an optimistic view. Robin Brown on Motley Fool says to buy this stock for passive income. The company put out a Press Release on their 2022 results.

Simply Wall Street on Yahoo Finance talks about this company’s dividend. Simply Wall Street gives this stock 3 stars out of 5. Simply Wall Street puts out 2 warnings on this stock of debt is not well covered by operating cash flow; and Dividend of 5.11% is not well covered.

AltaGas Ltd owns and operates a diversified basket of energy infrastructure businesses. Business is conducted through four segments: Midstream, power, utilities and corporate. Revenue is derived from customers in both Canada and the United States, with United States customers contributing the most. Its web site is here AltaGas Ltd.

The last stock I wrote about was about was TC Energy Corp (TSX-TRP, NYSE-TRP) ... learn more. The next stock I will write about will be Hydro One Ltd (TSX-H, OTC-HRNNF) ... learn more on Friday, March 31, 2023 around 5 pm. Tomorrow on my other blog I will write about PC Optimum Points .... learn more on Thursday, March 30, 2023 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. Or you can just Google #walktoronto spbrunner8166 to see my pictures.