Not exact matches
Alcohol is the second - most - attractive
sector, with a recent 12 - month gain of 7.6 % and a 2.2 %
average yield.
It also has an
average yield of 3.9 %, and while North American sales are flat, it has the most emerging - market potential of the three
sectors.
An above -
average dividend
yield (the MSCI Canada Energy Index is
yielding an annualized dividend of 3.6 % versus 2.9 % on the overall MSCI Canada index, according to Bloomberg data as of July 31, 2017) and lower price volatility could make energy a more attractive
sector for income - seeking investors in a low
yield world.
Taking this key metric into account, I ran a screen for dividend payers in the energy and materials
sector, trading on a major U.S. exchange with
yields better than the 10 - year Treasury and an even more sustainable payout ratio of less than 25 % — lower than the S&P 500
average.
Conversely, banks are trading at a significant discount to the wider market — and yet, as a
sector, banks are paying an
average dividend
yield which is similar to what's on offer from tobacco stocks.
I was adding to consumer staples companies when that
sector was weak (dollar cost
averaging), sticking to my philosophy and buying better
yields.
ROYAL BANK OF CANADA $ 105 (Toronto symbol RY; Conservative Growth and Income Portfolios, Finance
sector; Shares outstanding: 1.5 billion; Market cap: $ 157.5 billion; Price - to - sales ratio: 3.9; Dividend
yield: 3.5 %; TSINetwork Rating: Above
Average; www.rbc.com) acquired Los Angeles - based City National Bank in November 2015 for $ 5.5... Read More
NEWELL RUBBERMAID INC. $ 45 (New York symbol NWL; Aggressive Growth and Income Portfolios, Consumer
sector; Shares outstanding: 267.1 million; Market cap: $ 12.0 billion; Price - to - sales ratio: 2.0; Dividend
yield: 1.7 %; TSINetwork Rating:
Average; www.newellrubbermaid.com) is buying Jarden Corp. (New York symbol JAH), which makes a wide... Read More
The fund invests in a portfolio of 412 stocks in all
sectors except real estate, all of which pay higher - than -
average dividend
yields.
BANK OF MONTREAL $ 77 (Toronto symbol BMO; Conservative Growth and Income Portfolios, Finance
sector; Shares outstanding: 642.5 million; Market cap: $ 49.5 billion; Price - to - sales ratio: 2.9; Dividend
yield: 4.3 %; TSINetwork Rating: Above
Average; www.bmo.com) is Canada's fourth - largest bank, with $ 672.4 billion of assets.
CANADIAN PACIFIC RAILWAY LTD. $ 226 (Toronto symbol CP; Conservative Growth Portfolio, Manufacturing & Industry
sector; Shares outstanding: 145.0 million; Market cap: $ 32.8 billion; Price - to - sales ratio: 5.1; Dividend
yield: 1.0 %; TSINetwork Rating: Above
Average; www.cpr.
The first thing that draws our attention are the
sectors with above
average dividend
yields, particularly in telecommunications (6 %), followed by real estate (4.5 %) and utilities (3.4 %).
It isn't a surprise that
yield focused
sectors pay high
yields, nor is it surprising and
sectors with below
average dividends are primarily high growth industries and commodity stocks.
As a result, the
sector has a below -
average yield and the smallest percentage of dividend payers in the index.
C.R. BARD INC. $ 215 (New York symbol BCR; Conservative Growth Portfolio, Consumer
sector; Shares outstanding: 73.5 million; Market cap: $ 15.8 billion; Price - to - sales ratio: 4.5; Dividend
yield: 0.5 %; TSINetwork Rating: Above
Average; www.
ADRs $ 29 (New York symbol CAJ; Conservative Growth Portfolio, Manufacturing & Industry
sector; ADRs outstanding: 1.1 billion; Market cap: $ 31.9 billion; Price - to - sales ratio: 1.1; Dividend
yield: 4.5 %; TSINetwork Rating: Above
Average; www.canon.
BCE INC. $ 56 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities
sector; Shares outstanding: 840.3 million; Market cap: $ 47.1 billion; Price - to - sales ratio: 2.2; Dividend
yield: 4.6 %; TSINetwork Rating: Above
Average; www.bce.ca) is Canada's largest telephone provider, with 5.0 million customers in Ontario and Quebec... Read More
The
average yields of bonds in the S&P 500 Bond Index have also fallen but only by 25 basis points during this time frame, helped in part by the inclusion of the energy bond
sector.
WELLS FARGO & CO. $ 53 (New York symbol WFC; Income Portfolio, Finance
sector; Shares outstanding: 4.9 billion; Market cap: $ 259.7 billion; Price - to - sales ratio: 3.0; Dividend
yield: 2.9 %; TSINetwork Rating:
Average; www.wellsfargo.com) is the third - largest U.S. bank by assets ($ 1.92 trillion as of March 31, 2018), after J.P....
CANADIAN TIRE CORP. $ 170 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer
sector; Shares outstanding: 63.1 million; Market cap: $ 10.7 billion; Price - to - sales ratio: 0.9; Dividend
yield: 2.1 %; TSINetwork Rating: Above
Average; www.canadiantire.ca) owns 501 Canadian Tire stores across Canada.
THOMSON REUTERS CORP. $ 51 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer
sector; Shares outstanding: 711.6 million; Market cap: $ 36.3 billion; Price - to - sales ratio: 3.2; Dividend
yield: 3.5 %; TSINetwork Rating: Above
Average; www.thomsonreuters.com) has agreed to sell 55 % of its Financial & Risk (F&R) business to a..
GENUINE PARTS CO. $ 89 (New York symbol GPC; Income Portfolio, Manufacturing & Industry
sector; Shares outstanding: 146.7 million; Market cap: $ 13.1 billion; Price - to - sales ratio: 0.8; Dividend
yield: 3.2 %; TSINetwork Rating:
Average; www.genpt.com) sells replacement auto parts through 1,100 outlets under the NAPA banner; and the company's distribution... Read More
AMERICAN EXPRESS CO. $ 91 (New York symbol AXP, Conservative Growth Portfolio, Finance
sector; Shares outstanding: 860.1 million; Market cap: $ 78.3 billion; Price - to - sales ratio: 2.6; Dividend
yield: 1.5 %; TSINetwork Rating:
Average; www.americanexpress.com) is one of the world's largest issuers of payment cards.
IGM FINANCIAL INC. $ 37 (Toronto symbol IGM; Conservative Growth Portfolio, Finance
sector; Shares outstanding: 240.6 million; Market cap: $ 8.9 billion; Price - to - sales ratio: 2.7; Dividend
yield: 6.1 %; TSINetwork Rating: Above
Average; www.igmfinancial.com) had $ 155.8 billion in assets under management as of March 31, 2018.
LOBLAW COMPANIES LTD. $ 65 (Toronto symbol L; Conservative Growth Portfolio, Consumer
sector; Shares outstanding: 379.0 million; Market cap: $ 24.6 billion; Price - to - sales ratio: 0.5; Dividend
yield: 1.8 %; TSINetwork Rating: Above
Average; www.loblaw.ca) operates 1,084 supermarkets under a variety of banners: Loblaw, Zehrs, Provigo, Real Canadian Superstore and No... Read More
TRANSCONTINENTAL INC. $ 27 (Toronto symbol TCL.A; Aggressive Growth Portfolio, Consumer
sector; Shares o / s: 77.0 million; Market cap: $ 2.1 billion; Price - to - sales ratio: 1.0; Dividend
yield: 3.1 %; TSINetwork Rating:
Average; www.tctranscontinental.com) is a leading printer of advertising flyers, magazines, books and newspapers.
GENERAL ELECTRIC CO. $ 14 (New York symbol GE; Income Portfolio, Manufacturing & Industry
sector; Shares outstanding: 8.7 billion; Market cap: $ 121.8 billion; Price - to - sales ratio: 1.0; Dividend
yield: 3.7 %; TSINetwork Rating: Above
Average; www.ge.com) is a leading maker of industrial machinery, including jet engines, power plant equipment and... Read More
BRIGGS & STRATTON CORP. $ 21 (New York symbol BGG; Conservative Growth Portfolio, Manufacturing & Industry
sector; Shares outstanding: 42.9 million; Market cap: $ 900.9 million; Price - to - sales ratio: 0.5; Dividend
yield: 2.7 %; TSINetwork Rating: Above
Average; www.
SAPUTO INC. $ 43 (Toronto symbol SAP; Aggressive Growth Portfolio, Consumer
sector; Shares outstanding: 386.2 million; Market cap: $ 16.6 billion; Price - to - sales ratio: 1.4; Dividend
yield: 1.5 %; TSINetwork Rating:
Average; www.saputo.com) is Canada's largest producer of dairy products, including milk, butter and cheese.
INNERGEX RENEWABLE ENERGY INC. $ 15 (Toronto symbol INE; High - Growth Dividend Payer Portfolio, Utilities
sector; Shares outstanding: 108.6 million; Market cap: $ 1.6 billion; Dividend
yield 4.4 %; Dividend Sustainability Rating: Above
Average; www.innergex.com) operates 31 hydroelectric plants, 21 wind farms and one solar power field.
INNERGEX RENEWABLE ENERGY INC. $ 15 (Toronto symbol INE; High - Growth Dividend Payer Portfolio, Utilities
sector; Shares outstanding: 108.6 million; Market cap: $ 1.6 billion; Dividend
yield 4.4 %; Dividend Sustainability Rating: Above
Average; www.innergex.com) operates... Read More
Sirius hinted at their displeasure / disagreement, and I'd concur: Just look at bund
yields, the market flight to safety, and stable / rising NAVs elsewhere in the
sector... Somehow, DTZ lowered valuation to EUR 421 per sqm, based on
average rent of EUR 4.21 per sqm per mth — a gross
yield of 12 % on rented space.
The
average yield for a bond in the high
yield sector now is around 6.3 %.
The dividend
yields within this
sector are above
average when compared to the wider market, largely because of the high -
yielding telecom plays.
But the
sector remains on my radar, as I suspect it's now close to a consolidation point where a dividend /
yield - driven REIT business model takes over (
average large - cap dividend
yield's now only 2.2 %), which could trigger a new wave of investor sentiment & demand.
This means dividends are low priority right now — the actual
average sector yield's more like 0.7 %, if I count the majority of companies with a zero dividend.
Looking ahead,
sector performance will increasingly depend now on property management & development skills, and on raising dividends towards
average global REIT
yields.
NUTRIEN LTD. $ 59 (Toronto symbol NTR; Aggressive Growth Portfolio, Resources
sector; Shares outstanding: 643.8 million; Market cap: $ 38.0 billion; Price - to - sales ratio: 1.7; Dividend
yield: 3.2 %; TSINetwork Rating:
Average; www.nutrien.com) is the new firm formed by the merger of Agrium (old symbol AGU) and rival fertilizer... Read More
LOBLAW COMPANIES LTD. $ 56 (Toronto symbol L; Conservative Growth Portfolio, Consumer
sector; Shares outstanding: 413.5 million; Market cap: $ 23.2 billion; Price - to - sales ratio: 0.5; Dividend
yield: 1.8 %; TSINetwork Rating: Above
Average; www.loblaw.ca) is Canada's largest food retailer, with about 1,200 stores.
OF SASKATCHEWAN $ 34 (Toronto symbol POT; Aggressive Growth Portfolio, Resources
sector; Shares outstanding: 834.7 million; Market cap: $ 28.4 billion; Price - to - sales ratio: 4.5; Dividend
yield: 5.8 %; TSINetwork Rating:
Average; www.potashcorp.com) has offered to buy leading German fertilizer producer K+S AG for around $ 8.6 billion... Read More
LOBLAW COMPANIES LTD. $ 48 (Toronto symbol L; Conservative Growth Portfolio, Consumer
sector; Shares outstanding: 412.7 million; Market cap: $ 19.8 billion; Price - to - sales ratio: 0.4; Dividend
yield: 2.0 %; TSINetwork Rating: Above
Average; www.loblaw.ca) is Canada's largest food retailer, with roughly 1,200 stores.
GREAT - WEST LIFECO INC. $ 36 (Toronto symbol GWO; Conservative Growth and Income Portfolios, Finance
sector; shares outstanding: 989.9 million; Market cap: $ 35.6 billion; Price - to - sales ratio: 0.8; Dividend
yield: 4.3 %; TSINetwork Rating: Above
Average; www.greatwestlifeco.
An
average utility stock
sector fund might be close to a 4 %
yield and a 6 % capital gain, as an illustration of how to use the
sector figures.
[Note also: Two companies end up unfairly ranked from a P / B perspective: i) Patrizia has an external EUR 10 billion of Assets under Management (AUM), which isn't reflected in its NAV, and ii) Grand City has an 8.4 %
yield — presuming convergence with the
sector average, it would be much more reasonably priced].
Again, we're looking at a real bargain here — the
sector enjoys a 6.8 % portfolio
yield, while the weighted
average yield edges up to 7.0 % — presumably assisted by the purchase discounts larger companies manage to capture.
Their stocks have outperformed other major
sectors over the past five years, and are historically high -
yield with
average dividends of about 2.4 percent.
As of April 28th, the
average dividend
yield in the retail REIT
sector was 8.7 %.
Therefore, investors seeking to purchase properties over $ 6 million have higher
yielding alternatives available to them in the industrial or office
sector, in which similar properties have an
average CAP rate of 8.55 percent.
The real estate
sector carries an
average dividend
yield of 3.6 percent, versus that of the S&P 500 at 2.1 percent, she noted.