Russel Metals Inc.

First I would like to say that I just bought a few board lots of Atrium Mortgage Investment Corp for my Locked-in LIF account. I reviewed Atrium Mortgage Investment Corp (TSX-AI, OTC-AMIVF)... here on Wednesday, February 28, 2018.

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. The price testing is show the price to be reasonable. This company has very good debt ratios with Liquidity Ratio at 2.38 and Debt Ratio at 1.89. See my spreadsheet on Russel Metals Inc..

I own this stock of Russel Metals Inc. (TSX-RUS, OTC-RUSMF). This was a stock on Mike Higgs' Canadian Dividend Growth List. This is a dividend paying industrial stock. You would buy for diversification purposes.

This stock has done ok for me, but not one of my winners. I have had this stock for almost 11 years and my Total Return is 5.91% per year with 0.89% from capital gains and 5.02% from dividends. Not all stocks are winners and some will do better in different economic situations.

The Dividend Payout Ratio for 2017 is 76% for EPS. However 5 year coverage is at 151%. They could not cover their dividends with EPS in 2013, 2015 and 2016. The DPR for CFPS is better at 29% for 2017 and 5 year coverage 62%.

I have information on this stock going back to 1990. Between 1993 and 1999 the stock paid no dividends. That is why the dividend growth for 20 years is n/a. Dividends were also decreased in 2008. That is why the dividend growth for 10 years is a decline of 1.4% per year. See the chart below on dividend growth.

The Total Return is show below for years of 5 to 27. 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. The stock price tends to fluctuate a lot and that is why some period really outperforms other periods.

Years	Div Gth	Tot Ret	Cap Gain	Div
5	2.40%	6.39%	1.13%	5.26%
10	-1.40%	6.45%	1.37%	5.08%
15	14.48%	24.86%	12.33%	12.53%
20	n/a	16.99%	10.05%	6.95%
25	11.50%	10.39%	6.55%	3.84%
27	5.59%	7.07%	4.04%	3.03%

The 5 year low median and high median Price/Earnings per Share Ratios are 12.98, 16.09 and 19.21. The corresponding 10 year ratios are 12.49, 14.53 and 16.16. The historical corresponding ratios are 8.22, 9.93 and 12.11. The current P/E Ratio is 12.46 based on a stock price of $27.54 and 2018 EPS estimate of $2.21. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $25.77. The 10 year low, median and high median Price/Graham Price Ratios are 0.89, 1.10 and 1.29. The current P/GP Ratio is 1.07 based on a stock price of $27.54. 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 1.83. The current P/B Ratio is 2.06 based on Book Value of $827M, Book Value per Share of 13.36 and a stock price of $27.54. The current ratio is some 13% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get an historical median dividend yield of 4.91%. The current dividend yield is 5.52% based on a stock price of $27.54 and dividends of $1.52. The current yield is some 12% above the historical median. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year median Price/Sales (Revenue) Ratio of 0.54. The current P/S Ratio is 0.48 based on 2018 Revenue estimate of $3,542M, Revenue per Share of $57.23 and a stock price of $27.54. The current ratio is below the 10 year median by 11%. This stock price testing suggests that the stock price is relatively reasonable and below the median.

When I look at analysts' recommendations I find just Buy (4) recommendations. The consensus would be a Buy. The 12 months stock price consensus is $35.67. This implies a total return of 35.04% with 29.52% from capital gains and 5.52% from dividends based on a current stock price of $27.34.

Ajay Mannan on Simply Wall Street talks about the company's P/E Ratio. A Herald Staff Writer on The Herald gives some statistics on this stock. Ambrose O'Callaghan of Motley Fool talks about the threat of US tariff and this company. See what analysts are saying about this stock on Stock Chase. Opinions vary on this stock.

Russel Metals Inc. is a metals distribution and processing company. It distributes steel products and conducts its distribution business in three business segments that are Metals Service Centers; Energy Products, and Steel Distribution. Its web site is here Russel Metals Inc..

The last stock I wrote about was about was Toromont Industries Ltd. (TSX-TIH, OTC-TMTNF)... learn more. The next stock I will write about will be Leon's Furniture Ltd. (TSX-LNF, OTC-LEFUF)... learn more on Monday, April 9, 2018 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.

Toromont Industries Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Industrial. In a lot of tests this stock is showing as expensive, but some show it as reasonable but above the median. See my spreadsheet on Toromont Industries Ltd.

I own this stock of Toromont Industries Ltd. (TSX-TIH, OTC-TMTNF). This is one of the stocks I bought after selling Loblaws in 2008. This was a stock on Mike Higgs' Canadian Dividend Growth Stock list. I bought more in 2008 after selling Onex and AGF Management.

There is a fair bit of insider selling at 0.14%. However, it is because insiders are not picking up all the stock options that they can. I have done very well with this stock. I first bought it in 2008 and then some more in 2011. I have made a Total Return of 12.60% with 10.76% from Capital Gains and 1.84% from Dividends.

Dividends have tended to be low to moderate with increases that are moderate. The current dividend yield is low 1.66% with an historical median dividend yield also low at 1.91%. The 5 and 10 year median dividend yield are moderate, but just in the moderate range at 2.06% and 2.10%.

I considerate dividend increases in the 8% to 14% range to be moderate. The 5, 10, 15, 20, 25 and 27 year dividend increases for this company are 9.80%, 9.82%, 13.64%, 13.34%, 12.82% and 14.73%.

They can afford their dividends. The 2017 Dividend Payout Ratio is 34% with 5 year coverage also at 34%. The DPR for CFPS is also good 23% for 2017 with 5 year coverage at 28%.

The Total Return is show below for years of 5 to 27. 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.

Years	Div Gth	Tot Ret	Cap Gain	Div
5	9.80%	23.24%	21.16%	2.08%
10	9.82%	13.99%	12.28%	1.71%
15	13.64%	17.66%	15.52%	2.14%
20	13.34%	14.35%	12.69%	1.66%
25	12.82%	23.37%	19.72%	3.65%
27	14.73%	23.68%	19.77%	3.91%

The 5 year low, median and high median Price/Earnings per Share Ratios are 14.45, 17.19 and 19.92. The corresponding 10 year values are 13.80, 15.46, and 16.88. The Historical ratios are 13.04, 14.70 and 18.55. The current P/E Ratio is 19.53 based on a stock price of $55.28 and 2018 EPS estimate $2.83. This stock price testing suggests that the stock price is relatively expensive.

I get a Graham Price of $29.74. The 10 year low, median and high median Price/Graham Price Ratios are 1.28, 1.48 and 1.66. The current P/GP Ratio is 1.86 based on a stock price of $55.28. This stock price testing suggests that the stock price is relatively expensive.

I get a 10 year median Price/Book Value per Share Ratio of 3.19. The current P/B Ratio is 3.98 based on Book Value of $1,124M, Book Value per Share of $13.89 and a stock price of $55.28. The current P/B Ratio is some 25% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

I get an historical median dividend yield of 1.91%. The current dividend yield is 1.66% based on dividends of $0.92 and a stock price of $55.28. The current dividend yield is some 13% below the historical median yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

I get a 10 year Price/Sales (Revenue) Ratio of 1.14. The current P/S Ratio is 1.28 based on 2018 Revenue estimate of $3,501M, Revenue per Share of $43.25 and a stock price of $55.28. The current ratio is some 12% above the 10 year median. This stock price testing suggests that the stock price is relatively reasonable but above the median.

When I look at analysts' recommendations I find Strong Buy (1), Buy (2) and Hold (5). The consensus recommendations would be a Buy. The 12 month stock price consensus is $63.13. This implies a total return of 15.86% with 14.20% from capital gain and 1.66% from dividends based on a current price of $55.28.

This is an Market Wired notice about Toromont acquisition of Hewitt Group. Joseph Solitro on Motley Fool talks about this acquisition. See what analysts are saying about this stock on Stock Chase. They like the company.

Toromont Industries Ltd is engaged in the caterpillar dealerships, design, engineering, fabrication and installation of industrial and recreational refrigeration systems. Its web site is here Toromont Industries Ltd.

The last stock I wrote about was about was Alaris Royalty Corp (TSX-AD, OTC-ALARF)... learn more. The next stock I will write about will be Russel Metals Inc. (TSX-RUS, OTC- RUSMF)... learn more on Friday, April 6, 2018 before 11 am. Tomorrow on my other blog I will write about Something to Buy April 2018... learn more on Thursday, April 5, 2018 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.

Alaris Royalty Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. I just bought some 70 shares of this stock for my TFSA. It is all the cash I had in my account and I only have this stock in my TFSA. All the stock price testing I did showed this stock as relatively cheap. Of course, stocks are often cheap for a reason and that makes them of higher risk. See my spreadsheet on Alaris Royalty Corp .

I own this stock of Alaris Royalty Corp (TSX-AD, OTC-ALARF). This is a stock that Dividends In Hand Blogger has 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. See the article here .

Insiders are buying to the tune of 0.05%. This is relatively a lot as you would expect Net Insider Buying or Net Insider Selling to be around 0.01% to 0.02%. Also insider buying is by all that is CEO, CFO, Officers and Directors.

Currently the dividend yield is very high at 9.88%. The dividends have been all over the place with the high being over 21% and low being 3.66%. The historical median is 6.61% with 5 year median at 5.30% and 9 year median at 6.61%. Dividends have been level since an increase in 2015. Some analysts expect the company to raise their dividends again in 2019.

I do not have any long term dividend growth because this company was started at the end of 2007. It went public in December 2008. It started to pay dividends at the end of 2009. The growth in dividends over the past 5 and 8 years is at 6.72% and 6.35% per year.

The Dividend Payout Ratio for EPS for 2017 is 506% with 5 year coverage at 117%. EPS dropped by 82% in 2017, but is expected to recover in 2018. The company says that they are fine with current dividends and it is covered by cash flow. The DPR for CFPS in 2017 is 81% with 5 year coverage with 5 year coverage at 88%.

Again there is little to talk about in terms of long term returns. However, the Total Return over the past 5 and 10 years is at 4.03% and 15.22% per year. The capital loss over the past 5 years is at 2.71% and the capital gain over the past 10 years is 7.53%. The portion of the Total Return attributable to dividends is at 6.74% and 7.69% over the past 5 and 10 years.

The 5 year low, median and high median Price/Earnings per Share Ratios are 15.18, 19.21 and 23.23. The 9 year corresponding ratios are 12.38, 15.66 and 19.54. The current P/E Ratio is 9.11 based on 2018 EPS estimate of $1.80 and a stock price of $16.39. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $25.79. The 10 year low, median and high median Price/Graham Price Ratios are 0.76, 1.01 and 1.27. The current P/GP Ratio is 0.64 based on a stock price of $16.39. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year Price/Book Value per Share Ratio of 1.32. The current P/B Ratio is 1.00 based on Book Value of $604M, Book Value per Share of $16.42 and a stock price of $16.39. The current P/B Ratio is some 25% lower than the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

The historical median dividend yield is 6.61%. The current dividend yield is 9.88% based on dividends of $1.62 and a stock price of $16.39. The current yield is some 50% above the historical median yield. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Sales (Revenue) is 10.81. The current P/S Ratio is 5.92 based on 2018 Revenue estimate of $102, Revenue per Share of $2.77 and a stock price of $16.39. The current ratio is some 45% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations I find Buy (5) and Hold (3). The consensus would be a Buy. The 12 month stock price consensus is $22.06. This implies a total return of 44.48% with 34.59% from capital gains and 9.88% from dividends based on a current stock price of $16.39.

Joseph Solitro of Motley Fool says why this company is a buy. See what analysts are saying about this stock at Stock Chase. Some like this company and some do not. There are differing views also on Stockhouse Bullboard on this company.

Alaris Royalty Corp provides finance to private operating entities, typically in the form of preferred limited partnership interests, preferred interest in limited liability corporations in North America, or long-term license and royalty arrangements. Its web site is here Alaris Royalty Corp.

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 Wednesday, April 4, 2018 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks April 2018... learn more on Tuesday, April 3, 2018 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.

Sun Life Financial Inc.

Sound bite for Twitter and StockTwits is: Dividend Growth Financial. The stock price is probably reasonable. All life insurance companies were having a hard time because of the ultra-low interest rates. They are just now recovering as is this company. It was a good sign when they started to raise dividends again in 2015. See my spreadsheet on Sun Life Financial Inc.

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.

I know that insurance companies have had a rough time because of ultra-low interest rates. They all should do better in the future with rising interest rates. I have a total return on this stock of $7.39% per year. This is a little mediocre. I have capital gain of 3.94% per year and dividends of $3.45% per year. My dividends have paid for 65.6% of the cost of my stock. On my original purchase I am making a yield of 13.5%.

Dividends are in the moderate range and the dividend increases have been low. They used to have better dividend growth but the last recession and with extremely low dividend yields, insurance companies have not been doing well. They will do better when the interest rates get to a more normal level.

The current dividend yield is 3.46% with 5, 10 and historical rates at 3.64%, 4.18% and 3.58% respectively. The dividend growth over the past 5, 10, 15 and 18 years is 3.92%, 2.83%, 7.87% and 7.43% per year. The dividend growth is low as there were no dividend increases in the years of 2009 to 2014 inclusive.

The Dividend Payout Ratio for EPS is at 50% for 2017 with 5 year coverage of 50%. The DPR for CFPS is 54% with 5 year coverage of 38%. They can cover their dividend fine.

I have Total Returns for the past 18 years since this stock was issued. So the Total Return for the past 5, 10, 15 and 18 years are 17.66%, 2.05%, 8.10% and 12.71%. The portion of this Total Return that is attributable to capital gains is 14.49%, -0.71%, 4.53% and 8.13%. The portion of this Total Return that is attributable to dividends is 3.17%, 2.76%, 3.57% and 4.58%.

The statistics from above in chart form.

Years	Div Gth	Tot Ret	Cap Gain	Div
5	3.92%	17.66%	14.49%	3.17%
10	2.83%	2.05%	-0.71%	2.76%
15	7.87%	8.10%	4.53%	3.57%
18	7.43%	12.71%	8.13%	4.58%

The 5 year low, median and high median Price/Earnings Ratios are 12.37, 13.73 and 15.09. The 10 year corresponding ratios are 11.46, 12.71 and 14.18. The historical ratios are 12.03, 13.65 and 15.09. The current P/E Ratio is 11.72 based on a stock price of $52.61 and 2018 EPS estimate of $4.49. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $56.61. The 10 year low, median and high median Price/Graham Price Ratios are 0.70, 0.91 and 1.03. The current P/GP Ratio is 0.93 based on a stock price of $52.61. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Book Value per Share Ratio is 1.35. The current P/B Ratio is 1.66 based on Book Value of $19,364M, Book Value per Share of $31.72 and a stock price of $52.61. The current P/B Ratio is some 23% above the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

Note that a good P/B Ratio for buying a stock is 1.50. The reason for the low P/.B Ratios is because this company has not been doing that well lately and therefore the stock price has not been growing much. I expect it to do better in the future with the rising interest rates.

The historical median dividend yield is 3.58%. The current dividend yield is 3.46% based on dividends of $1.82 and a stock price of $52.61. The current dividend is some 3.4% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The reason that it is not showing a cheap price on this testing is that dividends were flat for a number of years from 2009 to 2014.

The 10 year median Price/Sales (Revenue) Ratio is 0.95. The current P/S Ratio is 1.00 based on 2018 Revenue estimate of $32,185M, Revenue per Share of $52.72 and a stock price of $52.61. The current P/S Ratio is some 5% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

When I look at analysts' recommendations I find Buy (9) and Hold (5) recommendations. The consensus would be a Buy. The 12 month stock price consensus is $58.50. This implies a total return of 14.66% with 11.20% from capital gain and 3.46% from dividends based on a current stock price of $52.61.

Fred Thornhill of Reuters published in the Globe and Mail an article about this company acquiring Excel Funds and then exited their EIFs funds. Xavier Javi on Registrar Journal talks about changes in institutional investment in this company. Winifred Garcia on Reurope Financial New talks about recent analysts ratings for this company. See what analysts are saying about this company on Stock Chase. Most like this company.

Sun Life Financial Inc. provides diversified financial services. It provides insurance, retirement, and wealth management products and services to individual 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 BCE Inc. (TSX-BCE, NYSE-BCE)... learn more. The next stock I will write about will be Alaris Royalty Corp (TSX-AD, OTC-ALARF)... learn more on Tuesday, April 3, 2018 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 Utility. Price seems to be cheap to reasonable. Also see my cautionary notes below. See my spreadsheet on BCE Inc.

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 is was called an orphan and widow stock. It is not easy to figure out what I have earned on this stock because it has spun off shares for Nortel and Bell Aliant. In 2016 I sold Manitoba Telecom. To keep the same in Telecom category, I bought some more BCE with the proceeds.

The problem with looking at BCE long term is that they have spun off Nortel. They bought and then spun of Bell Aliant. Because I have owned BCE since 1987, my spreadsheet covers all this. What I did not like about Bell spinning off these companies is that I ended up with odd lots of stock each time. They could have organized the spin off better. Other companies do not let you end up with odd lots of shares because of spin-offs.

There are a few of cautionary notes. This first is the problem with Book Value in that it has declined over the past 10 years by 0.65% per year and has only grown by 4.47% per year over the past 5 years. The second one is that the Dividend Payout Ratio is a bit too high. The 5 year coverage is 86% and I would prefer to see this at 80% or lower.

The next cautionary is concerns comprehensive income. For this company there is a big difference between comprehensive income and net income with comprehensive income being a lot lower. In 2017 the comprehensive income is 30% lower and the 5 year median difference is 30%. This is a lot. This could point to Net Income or EPS not being of good quality.

Lastly, we should not ignore the fact that the current P/S Ratio is some 39% higher than the 10 year median P/S ratio. This by itself would not suggest an expensive stock, but it should give you pause.

Dividends have generally been in the good range (4 to 5%). The current dividend yield is 5.75% with 5, 10 and historical dividend yields at 4.73%, 5.02% and 4.63%. Dividend growth has been low (that is below 8%). I have data going back some 34 years. The dividends have grown at 5.25%, 6.86%, 5.90%, 4.39%, 3.69%, 3.34% and 3.37% per year over the past 5, 10, 15, 20, 25, 30 and 34years.

Dividend Payout Ratios are a little high. I prefer them to be 80% or lower for utility stocks and this is basically a utility stock. The DPR for 2018 was 91% with 5 year coverage of 86%. The 5 year coverage is probably the most important figure. For 2018 analysts expect the DPR to be around 86% with 5 year coverage at 85%. The DPR for CFPS for 2017 was at 27% with 5 year coverage at 35%. This is fine.

I have total return going back some 35 years. I think total return at around 8% for the long term is a good return. The total return for this stock over the past 5, 10, 15, 20, 25, 30 and 35 years is 12.45%, 8.51%, 9.17%, 9.90%, 9.63%, 9.37% and 13.45% per year.

The portion of the total return attributed to capital gains over these time periods is 7.21%, 4.30%, 5.13%, 42%, 4.89%, 4.44% and 5.67% per year. The portion of the total return attributed to dividends over these time periods is 5.24%, 4.22%, 4.04%, 4.48%, 4.74%, 4.93% and 7.79% per year.

The statistics from above in chart form.

Years	Div Gth	Tot Ret	Cap Gain	Div
5	5.25%	12.45%	7.21%	5.24%
10	6.86%	8.51%	4.30%	4.22%
15	5.90%	9.17%	5.13%	4.04%
20	4.39%	9.90%	5.42%	4.48%
25	3.69%	9.63%	4.89%	4.74%
30	3.34%	9.37%	4.44%	4.93%
35	3.37%	13.45%	5.67%	7.79%

The 5 year low, median and high median Price/Earnings per Share Ratios are 16.37, 17.72 and 19.07. The corresponding 10 year ratios are 15.67, 17.14 and 18.61. The corresponding historical ratios are 12.97, 15.62 and 16.07. The current P/E Ratios are 15.18. This stock price testing would suggest that the stock price is relatively cheap to reasonable and below the median.

I get a Graham Price of $36.19. The 10 year low, median and high median Price/Graham Price Ratios are 1.33, 1.53 and 1.74. The current P/GP Ratio is 1.45 based on a stock price of $52.51. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year Price/Book Value per Share Ratio is 3.07. The current P/B Ratio is 3.12 based on Book Value of $15,156M, Book Value per Share of $16.82 and a stock price of $52.51. The current ratio is some 2% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The historical dividend yield is 4.63%. The current dividend yield is 5.75% based on dividends of $3.02 with a stock price of $52.51. The current yield is some 24% above the historical median dividend yield. This stock price testing would suggest that the stock price is relatively cheap.

I get a 10 year median Price/Sales (Revenue) Ratio of 1.68. The current P/S Ratio is 2.02 based on Revenue of $23.371M, Revenue per Share ratio of $25.94 and a stock price of $52.51. The current P/S Ratio is some 21% higher than the 10 year median ratio. This stock price testing would suggest that the stock price is relatively expensive.

When I look at analysts' recommendations I find Strong Buy (2), Buy (7), Hold (11) and Underperform (1). The consensus would be a Hold. The 12 month stock price consensus is $61.32. This implies a total return of 22.53% with 16.78% from capital gains and $5.75% from dividends based on a current stock price of $52.51.

Jacob Donnelly of Motley Fool thinks it is a good time to buy this stock with the increased yield because of the lower stock price. Interestingly Joey Frenette of Motley Fool gives his reason why not to buy this stock. Vivian Park onBZ Weekly talks about expected growth in EPS and analysts recent recommendations. See what analysts are saying about this stock on Stock Chase. They like it for the dividends but do not expect much capital growth going forward.

BCE Inc. is a telecommunication company. It caters to residential, business and wholesale customers with solutions for all their communications needs. Its web site is here BCE 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 Friday, April 30, 2018 around 5 pm. Tomorrow on my other blog I will write about Dividend Cuts... learn more on Thursday, April 29, 2018 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.

Sound bite for Twitter and StockTwits is: Dividend Growth Real Estate. Generally, this stock seems relatively cheap. It is doing business in Alberta and Alberta has been having a hard time. I am keeping my shares. See my spreadsheet on Melcor Developments Inc.

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 looked into 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.

This is an Alberta company and it hit a low in 2015. Currently The Long Term Debt/Market Cap Ratio is 1.28 which is high. This ratio has been too high since 2015. Other debt ratios are better. Leverage and Debt/Equity Ratios are good at 1.97 and 0.97. The Debt Ratio and Liquidity Ratios are very good at 2.03 and 3.49.

The other thing to point out is that the Comprehensive Income ROE is 3% against the Net Income ROE of 7.8%. The Net Income ROE is some 21% lower than the Comprehensive ROE. This can point to a quality issue for the Net Income. Here the difference is all due to currency exchange.

The dividends are moderate with the current dividend at 3.65%. The 5, 10 and historical median dividends are 3.09%, 305% and 2.77%. The dividend increases used to be moderate to good, but they are lower now. The 5, 10, 15, 20, 25 and 27 year growth in dividends are at 2.93%, 2.66%, 11.62%, 8.59%, 13.92% and 15.76%.

The reason for the lower current dividend growth is that dividends were cut by 20% in 2016. This was in line with lower EPS in 2016. However, in 2017 they raised the dividends again by some 8.3%. So far in 2018 there is no hint from the company of an increase in 2018.

However in March 2018 the company said that "With the dividend declared today, we are now in our 30th consecutive year of dividend payments. Since becoming a public company in 1968, we have paid dividends in all but three years."

They can afford their dividends, but the Dividend Payout Ratio is higher now than it has ever been. The Dividend Payout Ratio for 2017 was 45% with 5 year coverage of 30%. The DPR for CFPS is 37% with 5 year coverage of 38%.

Until recently this company was doing very well. I am holding on to my shares as I believe that it will do well again in the future. It is an Alberta company and Alberta has always had a boom, bust type of economy. The 5, 10, 15, 20, 25 and 27 year Total Return is at 3.55% 0.25%, 15.19%, 18.15%, 18.26% and 17.74% per year.

The portion of the total return attributable to capital loss in the last 5 and 10 years is at 0.58% and 2.59% per year. The portion of the total return attributable to capital gain in the past 15, 20, 25 and 27 years is at 9.93%, 11.61%, 11.10% and 11.06% per year. The portion of the total return attributable to dividends over the past 5, 10, 15, 20, 25 and 27 years is 4.13%, 2.84%, 5.26%, 6.53%, 7.16% and 6.68% per year.

I have made 6.94% per year with 2.58% from capital gains and 4.36% from dividends. Dividends have covered some 48.25% of the cost of my stocks. I am only making a return on original shares bought in 2008 of 2.99% as I paid more for then the shares are now worth. However, overall I am getting a yield of 4.79% if you consider all the shares I own. I bought more shares when the company hit the lows of $4.28 and $6.65.

The 5 year low, median and high median Price/Earnings per Share Ratios are 6.45, 7.70 and 8.95. The corresponding 10 year ratios are 5.38, 8.10 and 9.33. The corresponding historical P/E Ratios are 5.84, 7.21 and 8.42. The current P/E Ratio is 10.63 based on a stock price of $14.25 and 2018 EPS estimate of $1.34. This stock price testing suggests that the stock price is relatively expensive.

Since 2010, I have gotten Funds from Operations (FFO) values for this company. Using the last 12 month data for FFO of $1.77, I get a current Price/FFO Ratio of 8.05 based on a stock price $14.25. The 5 year low, median and high median P/FFO ratios are 7.90, 9.85 and 10.89. The 8 year corresponding ratios are 7.42, 8.72 and 9.85. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $30.04. The 10 year low, median and high median Price/Graham Price Ratios are 0.36, 0.55 and 0.62. The current P/GP Ratio is 0.47 based on a stock price of $14.25. 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 0.70. The current P/B Ratio is 0.48 based on Book Value of $1,008M, Book Value per Share of $29.94 and a stock price of $14.25. The current P/B Ratio is some 32% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap. Also, a stock is absolutely cheap when the P/B Ratio is below 1.00.

The historical median dividend yield is 2.77%. The current dividend yield is 3.65% based on dividends of $0.52 and a stock price of $14.25. The current dividend yield is some 32% above the historical dividend yield. This stock price testing suggests that the stock price is relatively cheap.

Generally speaking when a stock cuts a dividend, the current dividend is general below the historical one and I do not use this stock price testing. I guess this shows how cheap this stock is.

When I look at analysts' recommendations I find one Hold recommendation. This stock is not well covered. The 12 month target stock price estimate is $16.00. This implies a total return of 15.93% with 12.28% from capital gains and 3.65% from dividends based on a current stock price of $14.25.

The company reported on Nasdaq Global Newswire their 2017 results. A DR Contributor on Danvers Record says the company's Gross Margin Score is 22 where 1 is stable and 100 is unstable. Heidi Stubbs on Simply Wall Street says she likes this stock. Will Ashworth on Motley Fool likes this company but notes its problem of being based on Alberta. See what analysts have to say about this stock on Stockchase. It is not well covered because the company is small and based in Alberta.

Melcor Developments Ltd is a real estate development company with community development, property development, investment property, REIT and recreational property divisions. Its web site is here Melcor Developments Inc.

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 Wednesday, March 28, 2018 around 5 pm. Tomorrow on my other blog I will write about Accounting.... learn more on Tuesday, March 27, 2018 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

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. Stock is relatively cheap. Yes I do know that TSX now puts this stock in the energy sector, but to be it is infrastructure so closer to a utility. There does not seem to be any good reason for this stock to have fallen so far. Are investing getting confused by the classification? See my spreadsheet on AltaGas Ltd.

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 fairly 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.

This company shows not only EPS, but normalized EPS (NEPS), Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO). Earnings are normalized for after-tax amounts related to transaction costs related to acquisitions, development costs related to energy export projects, provisions on assets and on investments accounted for by the equity method, unrealized gain on risk management contracts, and loss on long-term investments.

If you look at EPS and NEPS the company cannot afford their dividends. It is only under FFO and AFFO that they can. The Dividend Payout Ratio (DPR) for EPS for 2017 is 1170% with 5 year coverage of 262%. The DPR for NEPS is 177% with 5 year coverage of 153%. The DPR for FFO for 2017 is 59% with 5 year coverage at 52%. The DPR for AFFO is 57% with 5 year coverage at 58%. For EPS the DPR 5 year coverage has not been below 100% since 2007 and for NEPS the DPR 5 year coverage has not been below 100% since 2009. So this is a long standing situation.

Do not forget that EPS is rather a made up number and accounting is just as much art as it is science. On next Tuesday I am discussing this subject of accounting here.

The dividends on this stock are basically from good to high. The current dividend yield is 8.8% with 5, 10 and historical yields at 4.87%, 5.69 and 6.21%. The dividend growth used to be good, but is low for the last 10 years and moderate for the last 5 years. The 5, 10, 15 and 16 growth in dividends is at 8.68%, 0.23%, 14.54% and 17.96% per year.

The reason for the low increase for 10 years and higher increase by for 15 and 16 years is because this company became an income trust in 2004. When it did it raised the dividends by about 221%. Then in 2011 it switched back to a corporation and decreased dividends by around 39%. After the decrease in 2010 it began to raise dividends again.

The most recent increase occurred at the end of 2017 and the increase was for 4.3%. Analysts expect that this company will continue to raise the dividends. They also expect the yield to go up.

I have total returns going back some 18 years. The stock price hit a peak in 2014 and has been moving down ever since. All utilities have been moving lower lately. I look at this as a utility but TSX classifies it under energy. The total return for the past 5, 10, 15 and 18 years is 2.63%, 7.37%, 19.57% and 19.11% per year.

The portion of the total return attributed to capital loss for the past 5 years is 3.14%. The portion of the total return attributed to capital gains for years 10, 15 and 18 is 0.80%, 7.70% and 9.07%. The portion of the total return attributable to dividends for the past 5, 10, 15 and 18 years is 5.77%, 6.58%, 11.87% and 10.05%.

I made purchases of this stock in 2009, 2010 and 2012. My total return is 10.51% with 7.95% from dividends and 2.56% from capital gain. The dividends I have received had paid some 56.9% of the cost of my stock. For the stock I purchases in 2009, 2010 and 2010 I am making a yield of 13.8%, 12.1% and 7.2% on my original purchase price.

The 5 year low, median and high median Price/Earnings per Share Ratio are 49.95, 60.72 and 71.49. The corresponding 10 year ratios are 24.24, 28.48 and 32.71. The historical ratios are 13.31, 16.05 and 18.80. The current P/E Ratio is 27.97 based on a stock price of $24.89 and 2018 EPS estimate of $0.89. Based on P/E Ratios of the past 5 and 10 years this stock price testing suggests that the stock price is relatively reasonable and below the median to cheap.

The 5 year ratios are so high because when there was a drop out in earnings the stock price did not fall. For 2019 and 2020 the P/E Ratios are more reasonable at 18.30 and 16.48. The 2019 P/E Ratio of 18.30 is based on EPS earnings estimate for 2019 of $1.36 and a stock price of $24.89. The 2020 P/E Ratios of 16.48 is based on EPS earnings estimate for 2020 of $1.51 and a stock price of $24.89. These P/E Ratios are more reasonable.

I get a Graham Price of $19.40. The 10 year low, median and high median Price/Graham Price Ratios are 1.31, 1.54 and 1.73. The current P/GP Ratio is 1.28 based on a stock price of $24.89. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Book Value per Share Ratio is 1.71. The current P/B Ratio is 1.32 based on Book Value of $3,296M, Book Value per Share $18.80 and a stock price of $24.89. This stock price testing suggests that the stock price is relatively cheap.

The historical dividend yield is 6.21%. The current dividend yield is 8.80% based on dividends of $2.19 and a stock price of $24.89. The current yield is some 42% higher than the historical one. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Sales (Revenue) Ratios of 2.17. The current P/S Ratio is 1.17 based on 2019 Revenue estimate of $3,908M, Revenue per Share of $22.30 and a stock price of $24.89. The current P/S Ratio is some 46% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations I find Buy (3), Hold (7) and Underperform (1). The consensus would be a Hold. The 12 months Stock price consensus is $29.36. This implies a total return of 26.76% with 8.80% from dividends and 17.96% from capital gains based on a current price of $24.89.

Kay Ng of Motley Fool thinks this stock is a buy but there is no reason to rush. Grace Strickland on Simply Wall Street thinks the stock is a bargain at the current price. See what analysts are saying about this stock on Stock Chase. They like the company but hesitate to suggest a Buy recommendation.

AltaGas Ltd is a diversified energy infrastructure business operated collectively by its operating subsidiaries. The Company offers natural gas, power and regulated utilities and has three operating segments of Gas, Power and Utilities. Its web site is here AltaGas Ltd.

The last stock I wrote about was about was TransCanada Corp (TSX-TRP, NYSE-TRP)... learn more. The next stock I will write about will be Melcor Developments Inc. (TSX-MRD, OTC-MODVF)... learn more on Monday, March 26, 2018 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.

TransCanada Corp

Sound bite for Twitter and StockTwits is: Dividend Growth Utility. You would think with the recent drop in price that this stock's price would test as cheap, but it is not. It is basically reasonable but above the median. See my spreadsheet on TransCanada Corp.

I own this stock of TransCanada Corp (TSX-TRP, NYSE-TRP). I bought the stock in 2000 at an opportune time. The company had been cutting their dividend payments in order to re-organize and get the company into shape for long term profitability. This company's stock fell hard because of this. People who depend on dividends for their income can be an unforgiving lot and can get really upset at company when a trusted company cuts dividends.

I have 27 years of dividend data and they paid dividends in each year. They did decrease the dividends in 2000, but started to raise them again in 2001 and have increased their dividends every year since. I have made several purchases since 2000 and I have total return of 10.48% per year with 5.51% per year from capital gains and 4.97% per year from dividends.

Dividends are in the good range and the dividend increases are low. The current dividend yield is 4.94% with 5, 10 and historical median dividend yields are 3.93%, 4.06% and 4.28%. The dividend yield has sometimes been in the moderate range (2 and 3% range). The dividend growth over the past 5, 10, 15, 20, 25 and 27 years is at 7.00%, 6.02%, 6.13%, 3.70%, 4.67% and 4.79% per year. For the stock I bought in 2000 my yield is 22.44% on my original cost.

In most years they have covered their dividends with earnings, but they had an earnings loss in 2015 and low earnings in 2016 where dividends were not covered. The 2017 Dividend Payout Ratio is 71.14% with 5 year coverage at 155.65%. The DPR for cash flow for 2017 is 39.08% with 5 year coverage at 34.95%. It is not uncommon for any stock to have a couple of bad earnings years.

Total Return over the years has been mostly quite good. I consider around 8% per year to be a good Total Return. The Total Return on this stock has been over the past 5, 10, 15, 20, 25 and 27 years at 9.38%, 7.91%, 11.19%, 6.53%, 9.30% and 9.01% per year. The portion of this Total Return attributable to capital gain is 5.41%, 4.20%, 6.76%, 3.31%, 5.04% and 4.86% per year. The portion of this Total Return attributable to dividends is 3.98%, 3.70% , 4.42%, 3.22%, 4.25% and 4.15% per year.

The 5 year low, median and high median Price/Earnings per Share Ratios are 18.18, 19.58 and 20.99. The corresponding 10 year ratios are 17.80, 19.10 and 20.74. The historical ratios are 12.31, 14.06 and 16.03. The current P/E Ratio is 16.08 based on a stock price of $53.07 and 2018 EPS estimate of $3.30. This stock price testing suggests that the stock price is relatively cheap.

However the P/E Ratios for the last 5 and 10 years are rather high for a utility stock. The current one is 16.08 is probably moderate for such a stock. It is not a cheap P/E Ratio.

I get a Graham Price of $42.12. The 10 year low, median and high median Price/Graham Price Ratios are 1.23, 1.38 and 1.46. The current P/GP Ratio is 1.26 based on a stock price of $53.07. This stock price testing suggests that the stock price is relatively reasonable and below the median.

The 10 year median Price/Book Value per Share Ratio is 2.00. The current P/B Ratio is 2.22 based on Book Value of $21.059M, Book Value per Share of $23.89 and a stock price of $53.07. The current P/B Ratio is some 11% above the 10 year median ratio. 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 3.40. The current P/S Ratio is 3.99 based on 2018 Revenue estimate of $11,712M, Revenue per Share of $13.29 and a stock price of $53.07. The current P/S Ratio is some 17% above the 10 year ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.

When I look at analysts' recommendations I find Strong Buy (4), Buy (8) and Hold (4). The consensus would be a Buy. The 12 month stock price consensus is $69.45. This implies a total return of 36.07% with 5.20% from dividends and 30.86% from capital gains based on a current stock price of $53.07.

The company via The Canadian Press and CTV News advised that the recent U.S. tax ruling that eliminated a tax break for owners of certain interstate pipelines will have no material impact on its operations.. Jacob Donnelly of Motley Fool says why he likes this stock. See what analysts are saying about this stock on Stock Chase. They mostly like it.

TransCanada Corp is an energy infrastructure company. Its business segments include, Natural Gas Pipelines, Liquid Pipelines and Energy. The company has pipeline and power generation assets in Canada, the United States, and Mexico. Its web site is here TransCanada Corp.

The last stock I wrote about was about was TransAlta Corp (TSX-TA, NSYE-TAC)... learn more. The next stock I will write about will be AltaGas Ltd (TSX-ALA, OTC-ATGFF)... learn more on Friday, March 23, 2018 around 5 pm. Tomorrow on my other blog I will write about Bond Investments... learn more on Thursday, March 22, 2018 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.

TransAlta Corp

Sound bite for Twitter and StockTwits is: Dividend Paying Utility. This stock is cheap for a reason and for a utility the risk is probably unusually high. However, management does seem to be sorting out the company's problems. See my spreadsheet on TransAlta Corp.

I own this stock of TransAlta Corp (TSX-TA, NSYE-TAC). I bought this stock in 1987. It was a utility stock and utility stocks were considered to be good investments. I sold some in 2000 as the stock price was below what I had paid for it. I bought some more in February 2009 because it was relatively cheap and it seemed to be recovering. I sold more in August 2012 as this company was doing poorly again.

The spreadsheet is full of red. This company has not done well recently. Also it must shut down its coal-fired power producers but they have worked out a deal with Alberta to help in this transition. A good thing is that in 2017 they reduced their debt by 20%.

The dividends have been declining since 2014. They cannot currently cover their dividends, especially since they had an earnings loss in 2017 and are expected to have an earnings loss again in 2018. Analysts expect that the dividend will not be covered by earnings until 2019.

The dividends are covered by Funds from Operations (FFO) and Adjusted Funds from Operations (AFFO). According to the company their FFO for 2017 is $2.97 and dividend coverage is 5.73% with 5 year coverage at 23.37%. More people now look at AFFO rather than FFO. The AFFO for 2017 is $0.97 and the coverage is 16.49% with 5 year coverage at 78.06%.

Long Term Total Returns are not great. I have total returns going back 30 years and until you hit 15 years, the total returns are negative. This is because the stock price has been fall from its high of just over $33.00 in 2007. This current price is $7.18 with a price of $7.45 at the end of 2017.

The total return loss for years 5, 10 years is at 7.96% and 9.07% per year. The total return for years 15, 20, 25 and 30 are 2.33%, 1.27%, 6.33% and 6.22% per year. You have these positive returns because of dividends. This is a reason to buy dividend stocks.

The portion of the Total Return attributable to capital loss for the years 5, 15, 15, 20, 25 and 30 years are 13.20%, 13.92%, 5.39%, 5.39%, 2.42% and 2.17% per year. The portion of the total return attributed to dividends for these years are 5.24%, 4.85%, 7.73%, 6.65%, 8.75% and 8.38% per year.

The 5 year low, median and high median Price/Earnings per Share Ratios are -10.53, -11.56 and -12.39. They are negative because of recent earnings losses. The 10 year ratios are better at 12.01, 15.04 and 18.07. The historical ratios are 14.88, 16.29 and 21.19. The current P/E Ratio is negative 143.60 based on a stock price of $7.18 and 2018 EPS estimate of an earnings loss of $0.05. The P/E Ratio for 2019 is $39.89 based on a stock price of $7.18 and EPS estimate for 2018 of $0.18. This is all nonsense and no bases to do any stock price testing.

Since this is a utility stock, I have Adjusted Funds from Operations information going back some 7 years. The Price/AFFO Ratio for 5 years are 7.16, 10.28 and 15.40. The 7 year values are 7.16, 10.28 and 13.83. The current P/AFFO Ratio is 6.03 based on 2018 AFFO estimate of $1.19 and a stock price $7.18. This stock price testing suggests the stock price is relatively cheap.

I get a Graham Price of $5.79. The 10 year low, median and high median P/GP Ratios are 1.13, 1.30 and 1.47. The current P/GP Ratio is 1.24 based on a stock price of $7.18. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year Price/Book Value per Share Ratio of 1.66. The current P/B Ratio is 0.87 based on a Book Value of $2,384M, Book Value per Share of $8.28 and a stock price of $7.18. The current P/B Ratio is some 48% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

Also the current P/B Ratio is below 1.00. That means that the potential breakup value of the company is higher than the market cap of this company or the stock price. This by itself suggests that the stock price is cheap.

Using a dividend yield test does not work well on stocks where the dividends have been decreasing. The historical dividend yield is 5.72% and the current dividend yield is 2.23%. The current dividend yield is based on dividends of $0.16 and a stock price of $7.18. The current dividend yield is some 51% below the historical one. The current dividend yield is also below the 5 and 10 year median dividend yields of 6.71% and 5.39%. Any testing with dividend yield is going to show a stock price that is relatively expensive.

I get a 10 year median Price/Sales (Revenue) Ratio of 1.70. The current P/S Ratio is 0.89 based on 2018 Revenue estimate of $2,265M, Revenue per Share of $7.87 and a stock price of $7.18. The current P/S Ratio is some 46% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations I find Buy, (2), Hold (6) and Underperform (1). The consensus would be a Hold. The 12 month stock price is $8.22. This implies a total return of 16.71% with 14.48% from capital gains and $2.23% from dividends.

Thomas Auclair on Simply Wall Street says not to buy this stock for its dividend, but it may be an interesting play otherwise. Andrew Walker on Motley Fool talks about this stock as a unloved stock for contrarians. The company provided fourth quarter information for Cision. They seem to be turning the company around. See what analysts are saying about this stock on Stockchase. The most recent entry is November 2017 and most say positive things about the company.

TransAlta Corp is engaged in the production and sale of electric energy in Alberta, Canada. It also has an energy trading and marketing business as well as it owns transmission lines and coal mines. Its web site is here TransAlta Corp.

The last stock I wrote about was about was Enbridge Inc. (TSX-ENB, NYSE-ENB)... learn more. The next stock I will write about will be TransCanada Corp (TSX-TRP, NYSE-TRP)... learn more on Wednesday, March 21, 2018 around 5 pm. Tomorrow on my other blog I will write about Reviewing Stocks... learn more on Tuesday, March 20, 2018 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.

Enbridge Inc.

Sound bite for Twitter and StockTwits is: Dividend growth utility. Not surprising that most testing shows the stock price as cheap. This is not surprise and stock price has been declining recently. A recent purchase has stressed the balance sheet. This is core stock hold for me. I will not be buying more because I own enough. I also will not be selling. See my spreadsheet on Enbridge Inc.

I own this stock of Enbridge Inc. (TSX-ENB, NYSE-ENB). I first bought this stock in 2005 and then bought more in 2008 and 2009. This stock was on the Dividend Achievers, the Dividend Aristocrats list and also on Mike Higgs' list of Canadian Dividend Growth stocks. Enbridge is considered to be a low risk stock.

The outstanding shares of this company were increased by 79% in 2017. This was mainly due to the merger with Spectra Energy Corp. The company's outstanding shares have increased by 16.06% and 9.08% per year over the past 5 and 10 years. When the outstanding shares are increasing you need to look at per share values to know what the real growth in the company is.

Dividends were usually in the moderate range (2 to 3%), but lately they have been in the good range (over 4%). The current dividend is 6.52%. The 5, 10 and historical dividend yields are 3.48%, 3.27% and 3.49% respectively. Price has been going down lately. Price and yield move in the opposite directions.

I have dividend information go back 27 years. The dividend growth over the past 5, 10, 15, 20, 25 and 27 years are 16.38%, 14.65%, 13.11%, 11.68%, 9.49% and 8.76%. The last dividend increase was in 2018 and it was for 10%. Dividends increase in 2017 by 13.82% and so far in 2018 by 11.23%.

However, they cannot afford their current dividends. The Dividend Payout Ratio is 146% with 5 year coverage of 165%. Analysts do not expect the dividends to be covered by EPS until around 2020. This can cause the company problems in the short term. The DPR ratio for CFPS is high for 2017 at 59%. The 5 year coverage is good at 36%. (For CFPS the preferred DPR ratio is 40% and lower.)

The Total Return for the periods of 5, 10, 15, 20, 25 and 27 are 6.62%, 13.49%, 14.89%, 13.17%, 17.52% and 11.38%. The portion of this Total Return attributed to capital gain is 2.70%, 9.41%, 10.72%, 9.49%, 12.02% and 8.10%. The portion of this Total Return attributed to dividend is 3.92%, 4.08%, 4.17%, 3.68%, 5.50% and 3.28%.

The 5 year low, median and high median Price/Earnings per Share Ratios are 26.67, 30.94 and 35.21. The 10 year corresponding ratios are 21.17, 25.57 and 29.96. The historical ratios are 17.73, 18.07 and 20.78. I find these quite high for a utility stock, especially the most recent ones. The current P/E Ratio is 17.38 based on a stock price of $41.18 and 2018 EPS estimate of $2.37. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $41.39. The 10 year low, median and high median Price/Graham Price Ratios are 1.51, 1.82 and 2.13. The current P/GP Ratio is 0.99 based on a stock price of $41.18. This stock price testing suggests that the stock price is relatively cheap.

The 10 year median Price/Book Value per Share Ratio is 2.95. The current P/B Ratio is 1.28 based on Book Value of $54,455M, Book Value per Share of $32.13 and a stock price of $41.18. The current P/B Ratio is some 56% below the 10 year median. This stock price testing suggests that the stock price is relatively cheap.

The historical median dividend yield is 3.49%. The current dividend yield is 6.52% based on dividends of $2.68 and a stock price of $41.18. The current yield is some 87% above the historical median yield. This stock price testing suggests that the stock price is relatively cheap.

I get a Price/Sales (Revenue) Ratio of 1.40. The current P/S Ratio is 1.48 based on 2018 Revenue of $47,300M, Revenue per Share of $27.91 and a stock price of $41.18. The current ratio is some 5% above the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.

When I look at analysts' recommendations I find Strong Buy (1), Buy (9) and Hold (6). The consensus would be a Buy. The 12 month stock price is $56.47. This implies a total return of 37.98% with 31.72% from capital gains and 6.26% from dividends based on a stock price of $42.87.

Jason Phillips of Motley Fool thinks now is the time to buy this stock. Daniel Acker of Bloomberg in the Globe and Mail talks about sell off and recovery due to after the U.S. eliminated a tax break for owners of certain interstate pipelines. Enbridge says it does not expect any material change to its financial guidance because of this. Sam Bishop on Simply Wall Street says analysts sees the company doing well over the next 3 years. See what analysts are saying about this stock on Stock Chase. They mostly like this stock.

Enbridge Inc. serves the oil & gas industry. Its key activity involves gathering and transportation of crude oil and natural gas. Its web site is here Enbridge Inc.

The last stock I wrote about was about was Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF)... learn more. The next stock I will write about will be TransAlta Corp (TSX-TA, NSYE-TAC)... learn more on Monday, March 19, 2018 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.

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