RioCan Real Estate

Sound bite for Twitter and StockTwits is: Dividend Growth REIT. Results of stock price testing is that the stock price is probably reasonable and may even be cheap. Debt Ratios are fine. The important Dividend Payout Ratios (DPR) for AFFO and FFO are fine. The current dividend yield is good with dividend growth back after declining distributions. See my spreadsheet on RioCan Real Estate.

Is it a good company at a reasonable price? I bought this stock for diversification purposes as I own no real estate. The problem with stocks that pay high yields is that the is not much growth in dividends, but you do get a good return of passive income. At this point, it might be a speculative buy as it does have office Real Estate and there are problems in office Real Estate at this point in time. I plan to keep my shares in the stock for the same reasons I bought it.

I own this stock of RioCan Real Estate (TSX-REI.UN, OTC-RIOCF). I first bought this stock in 1998 because I wanted to diversify my portfolio into REITs. It was a stock covered and recommended by MPL Communications in their Income Trust coverage. Over the years I have made several more purchases of this REIT.

When I was updating my spreadsheet, I noticed that the value of my shares is depressed, but my total return is fine. I have had this stock since 1998, so for 26 years. I have made a number of purchases over the years. My total return is 9.16% with a capital loss of $0.40% and dividends at 9.56%. A lot of real estate stocks are currently depressed. Normally I would expect such stock to have a capital gain around 3% a year and the rest from distributions.

If you had invested in this company in December 2013, for $1,015.57 you would have bought 41 shares at $24.77 per share. In December 2023, after 10 years you would have received $354.54.21 in dividends. The stock would be worth $763.42. Your total return would have been $1,297.96. This would be a total return of 3.16% per year with 2.81% from capital loss and 5.98% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$24.77	$1,015.57	41	10	$534.54	$763.42	$1,297.96

The current dividend yield is good with dividend growth back after declining distributions. The dividend yield is good (5% to 6% ranges) at 6.15%. The 5, 10 and historical dividend yields are also good at 5.37%, 5.37% and 6.54%. The dividends have gone down over the past 5 years by 5.7% per year. After dividends were cut in 2021, the company started to raise them again in 2022. The last dividend increase was in 2024 and it was for 2.8%. The dividend payment is still 23% below payments made in 2020.

The important Dividend Payout Ratios (DPR) for AFFO and FFO are fine. The DPR for 2023 for Earnings per Share (EPS) is high at 823% with 5 year coverage at 117%, but the important DPRs is the AFFO and FFO. The DPR for 2023 for Adjusted Funds from Operations (AFFO) is fine at 70% with 5 year coverage at 79%. The DPR for 2023 for Funds from Operations (FFO) is fine at 60% with 5 year coverage at 70%. The DPR for 2023 for Cash Flow per Share (CFPS) is high at 65% with 5 year coverage at 74%. The DPR for 2023 for Free Cash Flow (FCF) 1 cannot be calculated because of negative FCF with 5 year coverage high at 913%. The DPR for 2023 for Free Cash Flow (FCF) 1 cannot be calculated because of negative FCF with 5 year coverage high at 90%. There are often differences in how different companies calculate the FCF.

Item	Cur	5 Years
EPS	823.08%	116.63%
AFFO	69.93%	79.15%
FFO	60.45%	69.71%
CFPS	65.00%	74.24%
FCF 1	N/C	912.88%
FCF 2	N/C	90.17%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2023 is too high at 1.07 and currently at 1.09. The Liquidity Ratio for 2023 is good at 2.81. The Debt Ratio for 2023 is good at 2.00. The Leverage and Debt/Equity Ratios for 2023 are good at 2.00 and 1.00.

Type	Year End	Ratio Curr
Lg Term R	1.07	1.09
Intang/GW	0.00	0.00
Liquidity	2.81	2.81
Liq. + CF	3.29	3.21
Debt Ratio	2.00	2.00
Leverage	2.00	2.00
D/E Ratio	1.00	1.00

The Total Return per year is shown below for years of 5 to 30 to the end of 2023. 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.
2018	5	-5.73%	0.73%	-4.79%	5.52%
2013	10	-2.70%	3.16%	-2.81%	5.98%
2008	15	-1.59%	11.03%	2.09%	8.95%
2003	20	-0.32%	9.11%	0.99%	8.13%
1998	25	0.48%	13.43%	2.77%	10.66%
1993	30	3.19%	13.80%	3.31%	10.49%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.38, 10.43 and 12.17. The corresponding 10 year ratios are 11.25, 12.06 and 12.87. The corresponding historical ratios are 13.73, 12.67, and 15.27. The current P/E Ratio is 10.26 based on a stock price of $18.05 and EPS estimate for 2024 of $1.76. 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 Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/ Funds from Operations Ratios are 10.26, 12.56 and 14.86. The corresponding 10 year ratios are 12.32, 13.46 and 15.14. The current P/FFO Ratio is 10.08 based on a stock price of $18.05 and FFO estimate for 2024 of $1.79. 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 Funds from Operations (AFFO) data. The 5-year low, median, and high median Price/ Adjusted Funds from Operations Ratios are 11.32, 14.48 and 16.25. The corresponding 10 year ratios are 13.41, 14.77 and 16.68. The current P/AFFO Ratio is 12.28 based on a stock price of $18.05 and AFFO estimate for 2024 of $1.47. 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 $28.61. The 10-year low, median, and high median Price/Graham Price Ratios are 0.75, 0.80 and 0.88. The current P/GP Ratio is 0.63 based on a stock price of $18.05. 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 0.94. The current P/B Ratio is 0.73 based on a Book Value of $7,438M, Book Value per Share of $24.76 and a stock price of $18.05. The current ratio is 22% 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 14.94. The current P/CF Ratio is 14.07 based on Cash Flow for the last 12 months of $386M, Cash Flow per Share of $1.28 and a stock price of $18.05. The current ratio is 6% 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 6.54%. The current dividend yield is 6.15% based on dividends of $1.11. The current dividend yield is 6% 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 5.37%. The current dividend yield is 6.15% based on dividends of $1.11. The current dividend yield is 15% 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 6.32. The current P/S Ratio is 4.68 based on Revenue estimate for 2024 of $1,160M, Revenue per Share of $3.86 and a stock price of $18.05. The current ratio is 26% 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 may even be cheap. The 10 year dividend yield is test is showing the stock price as reasonable and below the median. However, this test is best for dividend growth stocks and this stock has recently cut dividends. The P/S Ratio testing is showing the stock price as cheap. Most of the rest of the testing is showing the stock price as cheap.

When I look at analysts’ recommendations, I find Strong Buy (4), Buy (5) and Hold (1). The consensus would be a Strong Buy. The 12 month stock price consensus is $21.62, with a high of $24.00 and low of $19.00. The consensus price of $21.62 implies a total return of $25.93% with 19.78% from capital gains and 6.15% from dividends.

There are four recommendations onStock Chase for 2023, two are a Buy and two are Do Not Buy. Stock Chase gives this stock 3 stars out of 5. There is a problem in the Real Estate sector re Offices. Demetris Afxentiou on Motley Fool thinks this is a good stock for passive income. Aditya Raghunath on Motley Fool thinks this stock is a solid long term investment.. The company put out a Press Release for year-end 2023.

Vancouver Island Guy on Twitter talks about this stock. Simply Wall Street gives this stock 2 and one half stars out of 5. It lists 4 warnings of debt is not well covered by operating cash flow; profit margins (3.3%) are lower than last year (19.2%); unstable dividend track record; and large one-off items impacting financial results.

RioCan Real Estate Investment Trust is a Canadian real estate investment trust which owns, develops, and operates Canada's portfolio of retail-focused, increasingly mixed-use properties. The REIT's property portfolio includes shopping centers and mixed-use developments, with majority of its properties located in Ontario, Canada. RioCan’s tenants consist of grocery stores, supermarkets, restaurants, cinemas, pharmacies, and corporates. Its web site is here RioCan Real Estate.

The last stock I wrote about was about was Bombardier Inc (TSX-BBD.B, OTC-BDRBF) ... learn more. The next stock I will write about will be H & R Real Estate Trust (TSX-HR.UN, OTC-HRUFF) ... learn more on Friday, March 15, 2024 around 5 pm. Tomorrow on my other blog I will write about Canadian Banks .... learn more on Thursday, March 14, 2024 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.

Bombardier Inc

Sound bite for Twitter and StockTwits is: Industrial Sector Stock. Results of stock price testing is that the stock price is probably expensive. Debt Ratios are awful as it has a lot of debt and a negative book value. This stock currently does not current pay dividends, but it has in the past and may do so again. See my spreadsheet on Bombardier Inc.

Is it a good company at a reasonable price? The big negative for me is the negative book value. Personally, I would not buy a stock with a negative book value. I do not like the fact that a number of stock price testing cannot be done. The debt ratios are also not good. I would suggest that any purchase is highly speculative. Personally, I am not interested in this company at the present time.

I do not own this stock of Bombardier Inc (TSX-BBD.B, OTC-BDRBF) but I used to. The buying of this stock was part of my early foray into industrial stocks in 1987. Up until 2001, I was making some 35% return per annum on this stock. When the stock first dropped in 2002, I had still made some 28% return per annum on this stock. Even by the lowest point in 2005, I had made some 13% per annum on this stock. By that time, it seemed to be turning itself around, so I did not sell. I lost hope by 2017, so I sold. I made 11.08% per year.

When I was updating my spreadsheet, I noticed that this company still has a negative book value. This company is reporting in US$.

If you had invested in this company in December 2013, for $1,037.25 you would have bought 9 shares at $19.88 per share. In December 2023, after 10 years you would have received $23.21 in dividends. The stock would be worth $478.89. Your total return would have been $502.10. This would be a total loss of 7.21% per year with 7.44% from capital loss and 0.23% from dividends. This calculation takes into consideration stock consolidation, which means that the original cost is showing as higher because of this consolidation.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$115.25	$1,037.25	9	10	$23.21	$478.89	$502.10

This stock currently does not current pay dividends, but it has in the past and may do so again. However, analysts seem to feel that it could restart dividends this year. The last year that this stock paid a dividend was 2014

Debt Ratios are awful as it has a lot of debt and a negative book value. The Long Term Debt/Market Cap Ratio for 2023 is too high at 1.46 and currently at 1.49. This ratio should be under 1.00 and best at 0.50 or lower. The Liquidity Ratio for 2023 is too low at 1.00. If you added in Cash Flow after dividends, the ratios are still too low at 1.10 and currently at 1.12. I prefer this to be at 1.50 or higher. The Debt Ratio for 2023 is of course too low at 0.84 as the company has a negative book value. The Leverage and Debt/Equity Ratios for 2023 cannot be calculated because of a negative book value.

Type	Year End	Ratio Curr
Lg Term R	1.46	1.49
Intang/GW	0.02	0.02
Liquidity	1.00	1.00
Liq. + CF	1.10	1.12
Debt Ratio	0.84	0.84
Leverage	-5.18	-5.18
D/E Ratio	-6.18	-6.18

The Total Return per year is shown below for years of 5 to 37 to the end of 2023 in CDN$. 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.
2018	5	0.00%	0.95%	0.95%	0.00%
2013	10	0.00%	-7.21%	-7.44%	0.23%
2008	15	0.00%	-2.55%	-3.79%	1.24%
2003	20	0.00%	-4.23%	-5.04%	0.81%
1998	25	0.00%	-5.60%	-6.44%	0.84%
1993	30	0.00%	1.75%	-0.72%	2.47%
1988	35	0.00%	7.44%	2.69%	4.74%
1987	37	0.00%	9.96%	3.94%	6.02%

The Total Return per year is shown below for years of 5 to 34 to the end of 2023 in US$. 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.
2018	5	0.00%	1.40%	1.40%	0.00%
2013	10	0.00%	-9.45%	-9.66%	0.21%
2008	15	0.00%	-2.84%	-4.34%	1.50%
2003	20	0.00%	-4.12%	-5.14%	1.02%
1998	25	0.00%	-5.00%	-6.02%	1.03%
1993	30	0.00%	1.77%	-0.77%	2.54%
1890	34	0.00%	6.18%	1.99%	4.19%

The 5-year low, median, and high median Price/Earnings per Share Ratios are all negative, so I can do not test using them. The 10 year ratios are also all negative, and so cannot be used. The historical ratios are 9.39, 12.39 and 15.30. The current P/E Ratio is 9.47 based on a stock price of $52.72 and EPS estimate for 2024 of $5.57 (4.13 US$). This ratio is between the low and median ratios of the historical median ratios. This stock price testing suggests that the stock price is relatively reasonable and below 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 5.08, 7.96 and 9.78. The current P/AEPS 9.44 based on a stock price of $39.08 and AEPS estimate for 2024 of $4.14. This ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median. This testing is in US$ and you will get a similar result in CDN$.

I cannot do any Graham Price testing because of the negative book value. I cannot do any Price/Book Value per Share Ratio testing because of the negative book value. I cannot do any dividend yield testing because this company, at the current time, is not paying dividends.

I get a 10-year median Price/Cash Flow per Share Ratio of 7.18. The current P/CF Ratio is 5.32 based on a stock price of $39.08, Cash Flow per Share estimate for 2024 of $7.35 and a Cash Flow of $718M. The current ratio is 26% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$ and you will get a similar result in CDN$.

The 10-year median Price/Sales (Revenue) Ratio is 0.30. The current P/S Ratio is 0.45 based on Revenue estimate for 2024 of $8,506M, Revenue per Share of $87.10 and a stock price of $39.08. The current ratio is 50% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will get a similar result in CDN$.

Results of stock price testing is that the stock price is probably expensive. I am going with the P/S Ratio test here. This is the only one that says that the stock price is expensive. Other tests go from cheap to reasonable and above the median. One problem is that a number of tests cannot be done as the Book Value is negative.

When I look at analysts’ recommendations, I find Strong Buy (4), Buy (7), Hold (3), Underperform (2) and Sell (1). There is not much consensus here. The consensus based on Analysts’ Consensus score in a Buy. The 12 month stock price consensus is $77.94 ($57.86 US$) with a high of $100.01 ($74.24 US$) and low of $41.03 ($30.46 US$). The consensus stock price of $77.94 implies a total return of 47.84% with 47.84% from capital gains and 0% from dividends.

There are only entries on Stock Chase from 2023 and there are 4 Do Not Buy recommendations. However, the last recommendation was a Buy. Stock Chase gives this stock 3 stars out of 5. Christopher Liew on Motley Fool thinks this stock could rebound in 2024. Amy Legate-Wolfe on Motley Fool thinks this company has an uncertain future. The company put out a Press Release on their year-end results for 2023.

Simply Wall Street via Yahoo Finance looks at this stock. Simply Wall Street gives this stock 2 and one half stars. They have 4 warnings of negative shareholder’s equity; interest payments are not well covered by earnings; significant insider selling over the past 3 months; and shareholders have been diluted in the past year.

Bombardier designs, manufactures, markets, and provides parts and maintenance for its large, long-range Global and medium-to-large Challenger aircraft families of business jets. Most of the company's revenue is generated in North America, with operations in Europe, North America, Asia-Pacific, and other markets. Its web site is here Bombardier Inc.

The last stock I wrote about was about was be Emera Inc (TSX-EMA, OTC-EMRA) ... learn more. The next stock I will write about will be RioCan Real Estate (TSX-REI.UN, OTC-RIOCF) ... learn more on Wednesday, March 13, 2024 around 5 pm. Tomorrow on my other blog I will write about TFSA Calculator .... learn more on Tuesday, March 12, 2024 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.

Emera Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. Results of stock price testing is that the stock price is reasonable and may even be cheap. Debt Ratios are generally not good ones, with debt being too high. The Dividend Payout Ratios (DPR) are fine, especially when considering dividends paid in Cash. The current dividend yield is good with dividend growth low. See my spreadsheet on Emera Inc.

Is it a good company at a reasonable price? What I do not like about this stock is the debt level, but this is not the first time debt level has been very high for this company. Utilities tend to have a lot of debt, but the debt for the company is still unusually high. I wonder if this is a good idea for a utility stock at the current time. However, I do own this company and I do not intend to sell.

I own this stock of Emera Inc (TSX-EMA, OTC-EMRA). I first bought this stock in 2005, as I wanted to buy something for my Locked in RRSP. I think that this was an appropriate stock and has good value. I was using up excess cash in my account.

When I was updating my spreadsheet, I noticed I have done well with this stock. As of the end of February, I have earned 9.31% per year with 3.30% from capital gains and 6.01% from dividends. I have had this stock for almost 19 years, but my purchases have been spread out and my last purchase was in 2023. Generally, I have found buy stocks over time gives me a better return.

If you had invested in this company in December 2013, for $1,008.81 you would have bought 33 shares at $30.57 per share. In December 2023, after 10 years you would have received $740.44 in dividends. The stock would be worth $1,659.90. Your total return would have been $2,400.34. This would be a total return of 10.84% per year with 5.11% from capital gain and 5.73% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$30.57	$1,008.81	33	10	$740.44	$1,659.90	$2,400.34

The current dividend yield is good with dividend growth low. The current dividend yield is good (5% to 6% ranges) at 5.89%. The 5, 10 and historical dividend yields are moderate (2% to 4% ranges) at 4.69%, 4.62% and 4.77%. The dividend increases are low (below 8% per year) at 4.1% per year over the past 5 years. The last dividend increase was in 2023.

The Dividend Payout Ratios (DPR) are fine, especially when considering dividends paid in Cash. The DPR for 2023 for Earnings per Share (EPS) is high at 78% with 5 year coverage at 82%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is high at 94% with 5 year coverage at 91%. The DPR for dividends paid in cash in 2023 is a lot lower at 47% with 5 year coverage at 53%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 34% with 5 year coverage at 43%.

The DPR for 2023 for Free Cash Flow 1 (FCF) is not calculable because of so many years of negative FCF with 5 year coverage at a negative 40%. The DPR for 2023 for Free Cash Flow 2 (FCF) is good at 32% with 5 year coverage at 57%. Problem is that there is disagreement on what the FCF is. This seems to be a typical problem for FCF.

Note that a lot of utility companies only pay a portion of their dividends in cash because shareholders can use their dividends to buy more shares rather than receive cash. This accounts for the Dividend Reinvestment Plan that shareholders use through registration of their shares with Emera. Note that also now, shareholders can reinvest their dividends via their brokers and the percentage above does not take this into consideration.

Item	Cur	5 Years
EPS	78.08%	82.42%
AEPS	94.17%	90.52%
Div Pd Cash	46.70%	53.45%
CFPS	33.90%	43.21%
FCF 1	N/C	-39.75%
FCF 2	31.79%	56.92%

Debt Ratios are generally not good ones, with debt being too high. The Long Term Debt/Market Cap Ratio for 2023 is far too high at 1.25 and currently at 1.29. The Liquidity Ratio for 2023 is far too low at 0.82 and 0.82 currently. If you added in Cash Flow after dividends, the ratios are too low at 1.13 and currently at 1.16. I prefer these ratios to be 1.50 or higher. The Debt Ratio for 2023 is low at 1.44. I also prefer this ratio to be 1.50 or higher. The Leverage and Debt/Equity Ratios for 2023 are too high 3.71 and 2.57. I prefer these ratios to be below 3.00 and 2.00.

Type	Year End	Ratio Curr
Lg Term R	1.25	1.29
Intang/GW	0.41	0.42
Liquidity	0.82	0.82
Liq. + CF	1.13	1.16
Debt Ratio	1.44	1.44
Leverage	3.71	3.71
D/E Ratio	2.57	2.57

The Total Return per year is shown below for years of 5 to 31 to the end of 2023. 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.
2018	5	4.08%	8.41%	2.85%	5.56%
2013	10	7.03%	10.84%	5.11%	5.73%
2008	15	7.33%	11.14%	5.60%	5.53%
2003	20	6.06%	10.45%	5.32%	5.13%
1998	25	5.02%	8.66%	4.17%	4.49%
1993	30	4.47%	9.61%	4.61%	4.99%
1992	31		10.67%	5.10%	5.57%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 15.56, 17.25 and 18.23. The corresponding 10 year ratios are 14.95, 16.56 and 17.83. The corresponding historical ratios are 13.41, 15.36 and 17.08. The current P/E Ratio is 15.10 based on a stock price of $48.73 and EPS estimate for 2024 of $3.23. 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 also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 16.58, 19.25 and 22.54. The corresponding 10 year ratios are 16.23, 18.08 and 19.57. The current ratio is 15.18 based on a stock price of $48.73 and AEPS estimate for 2024 of $3.21. 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 $52.04. The 10-year low, median, and high median Price/Graham Price Ratios are 1.00, 1.15 and 1.27. The current P/GP Ratio is 0.94 based on a stock price of $48.73. 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 1.62. The current P/B Ratio is 1.30 based on a stock price of $48.73, Book Value of $1,422 and Book Value per Share of $37.49. The current ratio is 19.6% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I have a Book Value per Share estimate for 2024 of $38.20, but this Book Value is calculated differently from how I do the calculation and with this calculation, the 10 year median ratio would be 1.44. With a Book Value per Share of $38.20, this implies a ratio of 1.28 with a stock price of $48.73 and Book Value of $10,853M. This ratio is 11% 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 8.24. The current P/CF Ratio is 5.95 based on Cash Flow per Share estimate for 2024 of $8.19, Cash Flow of $2,327M and a stock price of $48.73. The current ratio is 28% 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 4.77%. The current dividend yield is 5.89% based on dividends of $2.87 and a stock price of $48.73. The current ratio is 23% 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 4.62%. The current dividend yield is 5.89% based on dividends of $2.87 and a stock price of $48.73. The current ratio is 28% 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 2.09. The current ratio is 1.78 based on Revenue estimate for 2024 of $7,774M, Revenue per Share of $27.36 and a stock price of $48.73. 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. The dividend yield tests are saying that the stock price is relatively cheap. The P/S Ratio test says that the stock price is reasonable and below the median. Other testing is saying the stock price is either reasonable or cheap.

When I look at analysts’ recommendations, I find Strong Buy (1), Buy (6), Hold (6), Underperform (1), and Sell (1). The consensus would be Hold. The 12 month stock price consensus is $52.64 with a High of $60.00 and Low of $44.00. The consensus price of $52.64 implies a total return of $13.91% with 8.02% from capital gains and 5.89% from dividends.

Mixed reviews on Stock Chase for 2024. There are two Buys, one Watch and one Do Not buy. Stock Chase gives this stock 4 stars out of 5. This stock is no longer on the Money Sense dividend list, but it is on others I follow. Amy Legate-Wolfe on Motley Fool thinks it is smart to buy utilities currently, especially Emera. Daniel Da Costa on Motley Fool thinks you should buy Emera for passive dividend income. Emera put out a Press Release on their fourth quarter of 2023.

Simply Wall Street via Yahoo Finance put out a report on this company. Simply Wall Street has 3 warnings of interest payments are not well covered by earnings; dividend of 5.94% is not well covered by cash flows; and shareholders have been diluted in the past year. Simply Wall Street gives this stock 3 and one half stars out of 5.

Emera is a geographically diverse energy and services company investing in electricity generation, transmission, and distribution as well as gas transmission and utility energy services. Emera has operations throughout North America and the Caribbean countries. Its web site is here Emera Inc.

The last stock I wrote about was about was IGM Financial Inc (TSX-IGM, OTC-IGIFF) ... learn more. The next stock I will write about will be Bombardier Inc (TSX-BBD.B, OTC-BDRBF) ... learn more on Monday, March 11, 2024 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.

IGM Financial Inc

Sound bite for Twitter and StockTwits is: Dividend Paying Financial. Results of stock price testing is that the stock price is relatively reasonable. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are fine, but it would be nice if they were lower. The current dividend yield is good with dividend growth non-existent. See my spreadsheet on IGM Financial Inc.

Is it a good company at a reasonable price? Currently, I would think that the only reason to buy this company is because of the dividends which seem to be stable and sustainable and they are good. This is called passive income investing. Not what I like to do at the moment as I am into lower dividend yields, but dividend growth. However, it all depends on what you want in your investments. The results of the stock price testing is that the stock price is reasonable and below the median.

I do not own this stock of IGM Financial Inc (TSX-IGM, OTC-IGIFF). I am following this stock because I used to own this stock. The stock was on Mike Higgs' list of dividend growth stocks and on the other Dividend lists at that time. I owned this stock from 2006 to 2011. I sold because I decided to rationalizing my portfolio. Selling ones that did not make it into my core and buying ones that did of the same type.

When I was updating my spreadsheet, I noticed that they have not increased their dividend since 2015. Most of the return is from the dividends. Currently the dividend yield is rather good at 6.35%.

If you had invested in this company in December 2013, for $1,009.62 you would have bought 18 shares at $56.09 per share. In December 2023, after 10 years you would have received $403.18 in dividends. The stock would be worth $630.18. Your total return would have been $1,033.38. This would be a total return of 0.28% per year with 4.60% from capital loss and 4.89% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$56.09	$1,009.62	18	10	$403.20	$630.18	$1,033.38

The current dividend yield is good with dividend growth non-existent. The current dividend yield is good (5% to 6% ranges) at 6.35%. The 5 and 10 year median dividend yield is also good at 6.04% and 5.97%. The historical median dividend yield is moderate (2% to 4% ranges) at 4.34%. The dividends have not been increased since 2015. Analysts do not expect this to change in the near term.

The Dividend Payout Ratios (DPR) are fine, but it would be nice if they were lower. The DPR for 2023 for Earnings per Share (EPS) is good at 47% with 5 year coverage fine at 60%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is fine at 66% with 5 year coverage at 65%. The DPR for 2023 for Cash Flow per Share (CFPS) is fine at 67% with 5 year coverage at 68%. The DPR for 2023 for Free Cash Flow (FCF) is fine at 78% with 5 year coverage at 79%.

Item	Cur	5 Years
EPS	46.68%	59.65%
AEPS	65.41%	64.76%
CFPS	66.93%	68.13%
FCF	78.28%	79.11%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.29 and currently at 0.28. Because this is a financial, I am also looking at Long Term Debt/Covering Asset Ratio and there are good in 2023 at 0.72. The Liquidity Ratio for 2023 is good at 1.96. The Debt Ratio for 2023 is good at 1.56. The Leverage and Debt/Equity Ratios for 2023 are fine at 2.78 and 1.78.

Type	Year End	Ratio Curr
Lg Term R	0.29	0.28
Lg Term R A	0.72	0.72
Intang/GW	0.47	0.46
Liquidity	1.96	1.96
Liq. + CF	2.30	2.18
Debt Ratio	1.56	1.56
Leverage	2.78	2.78
D/E Ratio	1.78	1.78

The Total Return per year is shown below for years of 5 to 33 to the end of 2023. 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.
2018	5	0.00%	9.38%	2.44%	6.94%
2013	10	0.46%	0.28%	-4.60%	4.89%
2008	15	0.79%	6.09%	-0.08%	6.17%
2003	20	4.19%	6.53%	0.59%	5.94%
1998	25	7.37%	6.34%	1.14%	5.21%
1993	30	9.97%	9.66%	3.82%	5.85%
1990	33	9.89%	16.15%	7.53%	8.62%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.31, 9.58 and 12.57. The corresponding 10 year ratios are 9.74, 11.33 and 13.01. The corresponding historical ratios are 9.96, 14.98, and 17.48. The current P/E Ratio is 9.76 based on a stock price of $35.44 and EPS estimate for 2024 of $3.63. 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 also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.92, 10.83 and 12.61. The corresponding 10 year ratios are 9.54, 11.38 and 9.54. The current ratio is 9.50 based on a stock price of $35.44 and AEPS estimate for 2023 of $3.73. 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 $48.67. The 10-year low, median, and high median Price/Graham Price Ratios are 0.84, 0.98 and 1.10. The current ratio is 0.73 based on a stock price of $35.44. The current ratio is below the low ratio of the 10 year median ratio. 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 1.91. The current P/B Ratio is 1.26 based on a stock price of $35.44, Book Value of $6,700M and Book Value per Share of $28.22. The current ratio is 34% 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 11.78. The current P/CF Ratio is 11.54 based on Cash Flow per Share estimate for 2024 of $3.07, Cash Flow of $731M and a stock price of $35.44. The current P/CF Ratio is 2% 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 4.34%. The current dividend yield is 6.35% based on dividends of 2.25% and a stock price of $35.44. This dividend yield is 46% 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 6.26%. The current dividend yield is 6.35% based on dividends of 2.25% and a stock price of $35.44. This dividend yield is 6% 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 2.81. The current P/S Ratio is 2.55 based on Revenue estimate for 2023 of $3,305M, Revenue per Share of 13.88 and a stock price of $35.44. The current ratio is 9% 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 relatively reasonable. The 10 year median dividend yield test says this as does the P/S Ratio test. However, a lot of the tests suggest that the stock price is cheap.

When I look at analysts’ recommendations, I find Strong Buy (3) and Hold (5). The consensus would be a Buy. The 12 month stock price consensus is $41.71 with a high of $37 and low of $35.23. This implies a total return of 24.04% with 17.69% from capital gains and 6.35% from dividends.

On analyst thought this stock on Stock Chase was a buy in 2023, but the latest analyst’s recommendation is a Do Not Buy. Stock Chase gives this stock 4 stars out of 5. Joey Frenette on Motley Fool says to sell this stock as it does not have a lot going for it. This is unusual, as generally speaking, writers on Motley Fool are positive about the stocks they talk about. Adam Othman on Motley Fool thinks you should buy this stock for its dividends. The company put out a press release on Newswire about their fourth quarter of 2023 results.

Simply Wall Street via Yahoo Finance talks about buying this stock for its consistent and sustainable dividends. Simply Wall Street has one warnings of earnings are forecast to decline by an average of 2.3% per year for the next 3 years. Simply Wall Street gives this stock 4 stars out of 5.

IGM Financial is the largest non-bank-affiliated asset manager in Canada. The firm is part of the Power Financial group of companies. IGM has two main operating divisions of asset management (operated through Mackenzie Investments) and wealth management (via its Investors Group Wealth Management subsidiary) that provide investment management products and services. Its web site is here IGM Financial Inc.

The last stock I wrote about was about was TFI International Inc (TSX-TFII, OTC-TFIFF) ... learn more. The next stock I will write about will be Emera Inc (TSX-EMA, OTC-EMRA) ... learn more on Friday, March 8, 2024 around 5 pm. Tomorrow on my other blog I will write about Something to Buy March 2024 .... learn more on Thursday, March 7, 2024 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.

TFI International Inc

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. Results of stock price testing is that the stock price is probably relatively expensive. Debt Ratios are fine. The Dividend Payout Ratios (DPR) are good. The current dividend yield is low with dividend growth good. See my spreadsheet on TFI International Inc.

Is it a good company at a reasonable price? I see analyst recommendation of a Strong Buy but the 12 month price consensus is only a 3.01% total return, which is very low. This does not make much sense to me. I do think that this is a great company, but the it seems to be that it is currently rather expensive.

I own this stock of TFI International Inc (TSX-TFII, OTC-TFIFF). I read a report called "6 Canadian Dividend Stocks That Fly Under the Radar" by John Heinzl in April of 2013. This is one of the stocks mentioned. There was also a good review of this stock by Advice Hotline by MPL Communications.

When I was updating my spreadsheet, I noticed I have done incredibly well with this stock. I have had it for just almost 7 years and have made a total return of 35.18% per year with 33.04% from capital gains and 2.14% from dividends.

If you had invested in this company in December 2013, for $1,010.40 you would have bought 40 shares at $25.26 per share. In December 2023, after 10 years you would have received $400.77 in dividends. The stock would be worth $7,209.60. Your total return would have been $7,610.37. This would be a total return of 23.31% per year with 21.71% from capital gain and 1.60% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$25.26	$1,010.40	40	10	$400.77	$7,209.60	$7,610.37

The current dividend yield is low with dividend growth good. The current dividend is low (below 2%) at 1.08%. The 5 year median dividend yield is also low at 1.18. The 10 year and historical median dividend yields are moderate (2% to 4% ranges) at 2.24% and 2.58%. The dividend increases are good (15% and above per year) at 17.9% per year over the past 5 years. The last dividend increase was in 2024 and it was for 14.3%.

The Dividend Payout Ratios (DPR) are good. The DPR for 2023 for Earnings per Share (EPS) is good at 24% with 5 year coverage at 18%. The DPR for 2023 for Adjusted Earnings per Share (AEPS) is good at 23% with 5 year coverage at 21%. The DPR for 2023 for Cash Flow per Share (CFPS) is good at 10% with 5 year coverage at 9%. The DPR for 2023 for Free Cash Flow (FCF) is good at 19% with 5 year coverage at 17%.

Item	Cur	5 Years
EPS	24.14%	17.86%
AEPS	22.65%	20.56%
CFPS	9.76%	8.74%
FCF	18.63%	17.10%

Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2023 is good at 0.11 and currently at 0.10. The Liquidity Ratio for 2023 is a bit low at 1.25 and 1.25 currently. If you added in Cash Flow after dividends, the ratios are fine at 2.09 and currently at 2.05. The Debt Ratio for 2023 is good at 1.70 and 1.70 currently. The Leverage and Debt/Equity Ratios for 2023 are fine at 2.42 and 1.42.

Type	Year End	Ratio Curr
Lg Term R	0.11	0.10
Intang/GW	0.18	0.16
Liquidity	1.25	1.25
Liq. + CF	2.09	2.05
Debt Ratio	1.70	1.70
Leverage	2.42	2.42
D/E Ratio	1.42	1.42

The Total Return per year is shown below for years of 5 to 33 to the end of 2023 in CDN$. 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.
2018	5	17.13%	40.47%	38.55%	1.92%
2013	10	13.54%	23.31%	21.71%	1.60%
2008	15	5.64%	32.63%	28.58%	4.05%
2003	20	2.45%	20.76%	15.82%	4.94%
1998	25	2.34%	25.06%	17.72%	7.34%
1993	30		23.91%	18.32%	5.60%
1990	33		19.38%	16.01%	3.37%

The Total Return per year is shown below for years of 5 to 20 to the end of 2023 in CDN$. 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.
2018	5	17.85%	41.29%	39.29%	1.99%
2013	10	11.09%	20.54%	19.11%	1.43%
2008	15	5.10%	32.50%	27.88%	4.62%
2003	20	2.34%	21.62%	15.67%	5.95%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 7.76, 12.07 and 16.77. The corresponding 10 year ratios are 9.07, 12.12 and 17.31. The corresponding historical ratios are 8.45, 11.86 and 14.16. The current P/E Ratio is 20.51 based on a stock price of $201.46 and EPS estimate for $9.82. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/AEPS Earnings per Share Ratios 8.73, 11.12 and 16.39. The corresponding 10 year ratios are 9.91, 14.53 and 17.63. The current P/AEPS Ratio is 20.07 based on a stock price of $201.46 and AEPS estimate for 2024 of $10.04. This ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I get a Graham Price of $96.72. The 10-year low, median, and high median Price/Graham Price Ratios are 0.97, 1.20 and 1.47. The current P/GP Ratio is 2.08 based on a stock price of $201.46. The current ratio is above the high ratio of the 10 year median ratios. This ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. This testing is in CDN$.

I get a 10-year median Price/Book Value per Share Ratio of 2.45. The current P/B Ratio is 4.83 based on a stock price of $148.31, Book Value of $2,591M, and a Book Value per Share of $30.69. The current ratio is 97% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will a similar result in CDN$.

I also have Book Value per Share estimate for 2024 of $34.30 US$. This implies a P/B Ratio of 4.32 with a Book Value of $2,896M and stock price of $148.31. This ratio is 77% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$.

I get a 10-year median Price/Cash Flow per Share Ratio of 7.78. The current P/CF Ratio is 12.79 based on a stock price of $148.31, Cash Flow per Share estimate for 2024 of $11.60 and Cash Flow of $979.5M. The current ratio is 64% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will a similar result in CDN$.

I get an historical median dividend yield of 2.58%. The current dividend yield is 1.08% based on dividends of $1.60 and a stock price of $148.31. The current ratio is 58% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will a similar result in CDN$.

I get a 10 year median dividend yield of 2.51%. The current dividend yield is 1.08% based on dividends of $1.60 and a stock price of $148.31. The current ratio is 52% below the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will a similar result in CDN$.

The 10-year median Price/Sales (Revenue) Ratio is 0.72. The current P/S Ratio is 1.39 based on a stock price of $148.31, Revenue estimate for 2024 of $8,991M and Revenue per Share of $106.48. The current ratio is 94% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive. This testing is in US$ and you will a similar result in CDN$.

Results of stock price testing is that the stock price is probably relatively expensive. The dividend yield tests points to an expensive stock price. The P/S Ratio test confirms this. All the other testing is saying that the stock price is relatively expensive.

When I look at analysts’ recommendations, I find Strong Buy (10), Buy (6) and Hold (4). The current consensus would be a Strong Buy. The 12 month stock price consensus is $205.36 ($151.40 US$), with a high of $237.37 ($175.00US$) and low of $166.57 ($122.80 US$. The 12 month stock price consensus price of $205.36 implies a total return of 3.01% with 1.94% from capital gains and 1.08% from dividends.

Analysts seem to like this stock on Stock Chase. The two entries for 2024 are buys. Stock Chase gives this stock 5 stars out of 5. It is on all my dividend lists. Amy Legate-Wolfe on Motley Fool reviews this stock and still thinks it is a buy even after it is up a lot. Robin Brown Motley Fool calls this stock a trucking success story. The company put out a press release via Newswire about their fourth quarter of 2023 results.

Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street put out one warning of has a high level of debt. Simply Wall Street gives this stock 3 and one half stars out of 5.

TFI International Inc is a transportation and logistics company domiciled in Canada. The company organizes itself into four segments: package and courier, less-than-truckload, truckload, and logistics. TFI International derives the majority of revenue domestically, followed by the United States. Its web site is here TFI International Inc.

The last stock I wrote about was about was Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF) ... learn more. The next stock I will write about will be IGM Financial Inc (TSX-IGM, OTC-IGIFF) ... learn more on Wednesday, March 6, 2024 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks March 2024 .... learn more on Tuesday, March 5, 2024 around 5 pm.

This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.

Atrium Mortgage Investment Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. Results of stock price testing is that the stock price is probably cheap. Some Debt Ratios are good, but they do have a lot of debt. The Dividend Payout Ratios (DPR) are fine I think as the company is deliberately paying out a lot of their earnings as dividends. The current dividend yield is high with dividend growth low and with special dividends. See my spreadsheet on Atrium Mortgage Investment Corp.

Is it a good company at a reasonable price? If you buy this stock, it is best to hold in a RRSP or TFSA because the dividends are taxed as Interest Income. I expect the special dividends to decline in the near future because EPS is expected to decline. The company is keeping the regular dividend flat and giving out special dividends depending on how well the company does. It is a good way of doing things in an uncertain market. The stock price is currently cheap, probably because the analysts expect EPS to drop over the near term. I own this stock and I intend to keep this stock after this review.

I own this stock of Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF). I saw this on company on the Canadian Dividend All-Star List. It has just recently started to pay dividends. It has only been around since 2012 and has good dividends. Dividends are good but are taxed as income.

When I was updating my spreadsheet, I noticed the special dividends are declared in one year and paid in the next year in February. They are in the annual statements in the year they are declared, not in the year paid. Of course, what is unusual about this stock is that they have lots of special dividends. This company produces a lot of income, but not much in capital gains. The income from this company is classified at Interest Income, not Dividends.

If you had invested in this company in December 2013, for $1,008.12 you would have bought 93 shares at $10.84 per share. In December 2023, after 10 years you would have received $889.23 in dividends. The stock would be worth $978.36. Your total return would have been $1,867.59. This would be a total return of 8.53% per year with 0.30% from capital loss and 8.83% from dividends.

Cost	Tot. Cost	Shares	Years	Dividends	Stock Val	Tot Ret
$10.84	$1,008.12	93	10	$889.23	$978.36	$1,867.59

The current dividend yield is high with dividend growth low and with special dividends. The current dividend yield is high (7% and higher) at 7.96%. The 5, 10 and historical dividend yields are also high at 7.28%, 7.24% and 7.22%. The dividend increases are low. The 5 year growth for dividends is low (below 8% per year) at 0.04% per year.

The current total dividend yield is high (7% and higher) at 10.44%. The 5, 10 and historical total dividend yields are also high at 7.84%, 7.77% and 7.69%. Since 2018, all the dividend increases are for the special dividends. The 5 year growth for dividends and special dividends is low at 3.8% per year. Every year since 20174, this company has given out a special dividend. It is determined at the end of the year to be paid in the following year.

The Dividend Payout Ratios (DPR) are fine I think as the company is deliberately paying out a lot of their earnings as dividends. Most of the DPR calculations looks at dividends per share compared to EPS. However, sometimes this can give a distorted view of dividend and earnings. So, for this company, I looked a Net Income and total dividends paid and currently the percentage is 82% with current percentage at 85%. This is lower then the traditional DPR calculations below. The Special Dividend is still quite high for 2024 because it is based on how well the company did in 2023. I would expect the special dividend to be lower in 2025 because EPS is expected to decline in the near future.

The DPR for 2023 for Earnings per Share (EPS) is high at 99% with 5 year coverage at 97%. The DPR for 2023 for Cash Flow per Share (CFPS) is high at 63% with 5 year coverage at 70%. The DPR for 2023 for Free Cash Flow 2 (FCF) is fine at 55% with 5 year coverage at 60%. I got my Free Cash Flow values from 2 different sources.

Item	Cur	5 Years
EPS	99.12%	96.85%
Tot Div	82.15%	84.79%
CFPS	62.93%	69.85%
FCF 1	54.93%	74.05%
FCF 2	54.93%	59.92%

Some Debt Ratios are good, but they do have a lot of debt. The Long Term Debt/Market Cap Ratio for 2023 is high at 0.81 and currently at 0.76. The Liquidity Ratio for 2023 is a good at 1.86 and 1.86 currently, but not important for financials. The Debt Ratio for 2023 is good at 2.22 and 2.22 currently. The Leverage and Debt/Equity Ratios for 2023 are good at 1.82 and 0.82.

Type	Year End	Ratio Curr
Lg Term R	0.81	0.76
Intang/GW	0.00	0.00
Liquidity	1.86	1.86
Liq. + CF	7.36	6.83
Debt Ratio	2.22	2.22
Leverage	1.82	1.82
D/E Ratio	0.82	0.82

The Total Return per year is shown below for years of 5 to 14 to the end of 2023. 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.
2018	5	3.79%	4.80%	-3.53%	8.00%
2013	10	4.42%	8.53%	-0.30%	8.33%
2009	14		6.81%	1.17%	5.44%

The 5-year low, median, and high median Price/Earnings per Share Ratios are 9.69, 11.67 and 15.06. The corresponding 10 year ratios are 11.73, 12.56 and 13.56. The current P/E Ratio is 10.00 based on a Stock Price of $11.30 and EPS estimate for 2024 of $1.13. The current P/E Ratio is below the low ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $16.70. The 10-year low, median, and high median Price/Graham Price Ratios are 0.74, 0.79 and 0.87. The current P/GP Ratio is 0.68 based on a stock price of $11.30. 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 1.14. The current P/B Ratio is 1.03 based on a stock price of $11.30, Book Value of $482.2M and Book Value per Share of $10.97. The current ratio is 9.6% 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 for 2024 of $11.00. This implies a ratio of 1.03 based on a stock price of $11.30 and Book Value of $483.6M. This ratio is 9.9% 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 10.57. The current P/CF Ratio is 6.43 based on a stock price of $11.30, Cash Flow for last 12 months of $77.3M and Cash Flow per Share of $1.76. The current ratio is 39% 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 7.22% for the regular dividends only. The current dividend yield is 7.96% based on dividends of $0.90 and a stock price of $11.30. The current dividend yield is 10% above the historical regular dividend. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get an historical median dividend yield of 7.69% for the total dividends. The current dividend yield is 10.44% based on regular dividends of $0.90, special dividend of $0.28 and a stock price of $11.30. The current dividend yield is 36% above the historical total dividend. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median dividend yield of 7.24% for the regular dividends only. The current dividend yield is 7.96% based on dividends of $0.90 and a stock price of $11.30. The current dividend yield is 10% above the 10 year regular dividend. 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 7.77% for the total dividends. The current dividend yield is 10.44% based on regular dividends of $0.90, special dividend of $0.28 and a stock price of $11.30. The current dividend yield is 34% above the 10 year total dividend. This stock price testing suggests that the stock price is relatively cheap.

The 10-year median Price/Sales (Revenue) Ratio is 7.89. The current P/S Ratio is 5.07 based on Revenue estimate for 2024 of $97.9M, Revenue per Share of $2.23 and a stock price of $11.30. The current ratio is 36% 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 cheap. For the dividend tests, I really think you have to use the total dividend. Both the historical and 10 year dividend tests show the stock price as cheap. If you use the regular dividends, these tests show stock is reasonable but below the median. The P/S Ratio test is showing the stock price as cheap. Most of the rest of the testing is showing the stock price as cheap.

When I look at analysts’ recommendations, I find Strong Buy (1) and Buy (1). The consensus would be a Strong Buy. The 12 months stock price consensus is $12.96 with a high of $13.42 and low of $12.50. The 12 month stock price consensus of $12.96 implies a total return of $25.13%, with 14.69% from capital gains and 10.44% from dividends.

Stock Chase. Stock Chase gives this stock 1 star out of 5. It is not on any of my current dividend lists. Christopher Liew on Motley Fool likes this stock for its dependable monthly payments. Adam Othman on Motley Fool likes this stock for its yield and that the dividends are financial sustainable.. The company put out a press release via Newsfile about its year end 2023 results.

Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street has three warnings of earnings are forecast to decline by an average of 2.6% per year for the next 3 years; unstable dividend track record; and has a high level of debt. Simply Wall Street gives this stock 3 and one half stars out of 5. This is a low higher than for Stock Chase.

Atrium Mortgage Investment Corp is a mortgage investment corporation in Canada. The company is a provider of financing solutions to commercial real estate and development communities in urban centers in Ontario and Western Canada. The company generates its revenue from mortgage interest and fees and rental income. Its web site is here Atrium Mortgage Investment Corp.

The last stock I wrote about was about was Choice Properties REIT (TSX-CHP.UN, OTC-PPRQF) ... learn more. The next stock I will write about will be TFI International Inc (TSX-TFII, OTC-TFIFF) ... learn more on Monday, March 4, 2024 around 5 pm.

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