Investing

Investing Idea - Dividend Growth

  • Last Updated:
  • Mar 22nd, 2017 1:51 pm
Tags:
None
[OP]
Deal Addict
User avatar
Dec 14, 2010
3898 posts
2678 upvotes
Chance7652 wrote:
Mar 11th, 2017 10:14 am
Hi Rod, Thanks for the feedback on IPL and OHI!

Yesterday, I sold most of my shares in RY and doubled my position in TD on the 5% dip (I didn't time it perfectly but bought while it was lower). This is after I've already bought and sold, but how do RY and TD look from a value point of view?
Compared to historical P/E, both RY and TD are overvalued. However, I would never sell any of them, since my objective is dividend growth - and they have been very shareholder friendly. If a stock on my list becomes overvalued, I simply stop buying it. But I wouldn't sell an income growth machine just because it got expensive. Who knows if by the time it gets fairly valued again it won't be trading higher than when I sold? Not to mention the dividends that I wouldn't be capturing to invest in other fairly valued business during that time. However, there's no one-size-fits-all, and there's nothing wrong locking profits and deploying capital to other businesses that are more attractive from a valuation standpoint. Different approaches, neither better or worse.

Image

Image


Rod
[OP]
Deal Addict
User avatar
Dec 14, 2010
3898 posts
2678 upvotes
513263337 wrote:
Mar 14th, 2017 3:43 pm
Guys, any thoughts on TSE:QSR? Seems to be fairly valued, but nobody talked about it for a long long time in this thread.
Fairly valued and estimated to grow earnings by 21.5% annualized for the next 3 years as per market consensus. Dividends are also estimated to continue to grow. QSR is also my holding on my "Defensive (TSX)" trading model, which screens for companies with recession-proof characteristics and have high Return on Capital and high earnings yield.

Image


Rod
[OP]
Deal Addict
User avatar
Dec 14, 2010
3898 posts
2678 upvotes
dvd5 wrote:
Mar 17th, 2017 10:34 am
AirBoss Announces 4th Quarter and Full Year 2016 Results and Dividend

Increased quarterly dividend by 7.7% to C$0.07 per common share. Stock took a dive today!

Time to load up more?
treva84 wrote:
Mar 17th, 2017 11:33 am
Well, the fundamentals continue to worsen - ongoing decline in sales and earnings. On the plus side, cash flow is growing greatly which will fund dividend increases and buybacks.

I'm disappointed as a shareholder and I want to sell, but I'm going to continue to hold. Personally I won't be buying more until sales / earnings start to grow again. If cash flow growth stops and turns negative quarter over quarter then I'll sell.

BOS stock price is highly influenced by rubber commidity price, which makes it very hard to evaluate valuation and estimate earnings. Although earnings and sales have been declining, I Was happy to see that such company facing these challenges are growing cash flow and dividends, meeting my primary goal to partner with them, while reducing net debt. Airboss had a big client that was generating 40% of rubber compound volume to them, so they clarified that they have not lost market shares with their existing customer base, it's just a lack of volume from their businesses,hence their approach to diversify to other areas - makes sense. They want to enter in non-automative antivibration market, a $6 Billion annual market that would include everything from locomotives rail to marine to aerospace to earthquake vibration or earthquake prevention to anti vibration products to combined distracters et cetera. So, all products that currently use antivibration, it's a different market than what they are in today, and they believe they can leverage the same technology, the exactly the same engineering, and very similar techniques to solve the problems that they have today. In that market, individual customers tend to be smaller, but the margins tend to be significantly higher. And the part price tends to be a lot higher. Diversifying their business makes sense and when the automative market eventually recovers, that would give them a boost. Airboss increased their active customer base by approximately 18%, while maintaining a robust pipeline of new customers in their development funnel for 2017. Defense is the area where they`re seeing the biggest increase of volume, and they are optimistic on how that will continue.

I`ve added more on Friday and they look fairly valued today. They continue to meet my goals of dividend increase - and I wouldn`t sell them until fundamentals deteriorate or they have 5-year of lower earnings. No company is capable of growing earnings perfectly, specially commodity driven ones like Airboss. I`m happy to get paid while waiting.


Rod
Newbie
Mar 18, 2017
1 posts
Hi Rod,

Can we get your analysis on MTY. It looks be growing well and estimated to grow 22% this year. Trading at a PE of 21.8 as well. Would you say that is fairly valued and could be bought at this range?
Sr. Member
User avatar
Jun 15, 2005
805 posts
13 upvotes
rodbarc wrote:
Mar 18th, 2017 10:35 pm
Hi Rod,
curious about your opinion on the current price and valuation of EMP.A? Specifically, for someone who hasn't invested in this stock yet, but sees it as an opportunity?
It's one of your few losses in your portfolio, so it would speak highly if you still consider it a buy.
Sr. Member
May 18, 2015
859 posts
175 upvotes
Ottawa,Ont
jerryhung wrote:
Mar 22nd, 2017 1:49 pm
CJR.B is tanking, -2% and -3% today, 2017 low
added some

ER on April 6th
Im trying to wait until it hits 10 again (if it does)
× < >
Rotate image Save Cancel

Top