Investing

Investing Idea - Dividend Growth

  • Last Updated:
  • Nov 14th, 2018 10:57 am
Newbie
Nov 19, 2017
48 posts
18 upvotes
nikels21 wrote:
Jan 10th, 2018 8:32 am
What transformation exactly are you expecting to happen? Isn't the shaw acquisition integrated already?
I think he's referring to the cost and advertising restructuring the management referred to. The hope is that these will reduce costs, increase income, and improve cash flow, which will contribute to debt reduction, and sustaining of the dividend. Of course, improved cash flow and reduced debt will also make future ventures to increase growth in other areas like digital platforms more possible.

Warren Buffett says a great company at an okay price is better than an ok company at a great price. Both will make you money, but the former moreso than the latter (and neither of these should lose you money). Unfortunately, at this state, Corus is an ok company at a great price (HCG in my opinion was always a great company at a great price when it dropped last year). However, I'd rather go with an ok company at a great price when all the market is currently offering are low/high quality companies at crazy high prices.

Disclaimer: I am overweight HCG

edit: accidentally wrote same sentence twice
Penalty Box
User avatar
Jul 17, 2008
8428 posts
1827 upvotes
Bought CGX 2 months ago when it went bellow 37. Thinking of adding some more
Also thinking of adding a bit more cjr.b

Opinions? Thoughts? I'm a bit concerned when considering the digital content is getting bigger and bigger and people stop going to movies/watching cable.

On a side note: Would NAFTA being terminated increase the US index? And Canada TSX decrease? Want to get some more XAW in my TFSA with 2018 limit increase, but not sure how the US market will be affected if NAFTA is terminated (I'm thinking it would increase?)
Deal Addict
Nov 9, 2013
2490 posts
1142 upvotes
Edmonton, AB
With respect to CJR.B -



They can own all the original content they want, but if no one is buying it they are hooped. The company is facing long term secular headwinds. Moving forward, return to investors will depend on capital allocation by management.
Member
Jun 28, 2016
267 posts
139 upvotes
Messerschmitt wrote:
Jan 11th, 2018 8:37 am
Bought CGX 2 months ago when it went bellow 37. Thinking of adding some more
Also thinking of adding a bit more cjr.b

Opinions? Thoughts? I'm a bit concerned when considering the digital content is getting bigger and bigger and people stop going to movies/watching cable.
I recently started a small position in CGX when it dipped into the 33.50 range. I can't speak to when people will stop watching movies, but I think the current valuation is good if their growth strategies are not a compete flop. If they do flop, then $25-30 is probably the right price, which is why this is a small position.

Answering your question about digital revenues is difficult because CJR.b does not separate these from its tv and radio revenues. So, for example, in its Q1 report, it writes that [radio] "Revenues were relatively flat in the first quarter of fiscal 2018 compared to the prior year as gains in local sales were offset by some softness in national sales and digital revenues." They have a number of platforms for delivering tv and radio content to consumers online, but it's hard to say how much success they're having.

Corus' "portfolio of multimedia offerings encompasses 45 specialty television networks, 15 conventional television stations, 39 radio stations and a global content business, digital assets, book publishing, animation software, media and technology services" but there's not a lot of information about how many customers view content online vs through traditional tv services.
Deal Addict
May 17, 2012
1770 posts
706 upvotes
ontario
CJR.B falling further.... 12% dividend
Deal Expert
User avatar
Sep 19, 2004
21829 posts
3944 upvotes
Waterloo
New CJR.B PT are still ~$11
no matter, -4% it goes, $8.73 low, ouch
shoulda dumped (and shorted) at open yesterday
Lesson learned on a bad ER to cut loss fast (can always re-buy)
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Deal Addict
May 17, 2012
1770 posts
706 upvotes
ontario
jerryhung wrote:
Jan 11th, 2018 12:15 pm
New CJR.B PT are still ~$11
no matter, -4% it goes, $8.73 low, ouch
shoulda dumped (and shorted) at open yesterday
Lesson learned on a bad ER to cut loss fast (can always re-buy)
I had a stop loss yesterday and it sold

eventhough my gut says TV/Radio is dying it's tempting to look for a bottom on this and get back in for the dividend.
Sr. Member
Oct 7, 2011
958 posts
246 upvotes
Toronto
I had CJR.B before and sold it for profit as it went up.

Now it's back in my rador with the huge drop. But I'm not convinced it's a good price to buy. We all know the ways companies place ads are shifting and the latest shift really hurt CJR.B. The problem is figuring out if those shifts will continue to hurt companies like CJR.B, or if it's oversold and it's a good buy in point.

I like HCG better, especially with the recent drop. It is really undervalued. I believe HCG has a more solid business where the parameters surrounding its business profit, is more contained than the business CJR.B is in.
Jr. Member
Aug 20, 2016
167 posts
124 upvotes
good news for Corus shareowners.
When it reaches $4 Shaw will take it private.
[OP]
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Dec 14, 2010
4825 posts
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jimmyho56 wrote:
Jan 9th, 2018 12:09 pm
Hi Rod, do you have any dividend stocks you suggest for an RESP? I don't see any posts specifically related to dividend stocks for an RESP. Thank you.
On my RESP I only hold growth stocks, since the goal is not to live off the dividends. The timeframe (20 years) is also shorter than a typical account meant for retirement. I will do a few posts regarding some of the growth stocks that I have, and will start that with a recent analysis that someone asked me for, about Shopify. Stay tuned.


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:

Investing strategy based on dividend growth

Trading strategy based on Graham principles.
Newbie
Feb 11, 2009
41 posts
23 upvotes
Richmond Hill
Hi Rod,

Can we still add CJR.B around 9?
Thank you.
Member
Mar 6, 2017
219 posts
92 upvotes
What do you guys think of NVIDIA? it reached $225 today and its basically ATH but I'm considering this stock even at this price I feel it could go over $1000 if this whole cryptocurrency, self driving car thing blows up in the next 5 years. Company looks stable too. I feel like worse comes to worse it just doesn't move that much but I don't see it dropping down...
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Jul 17, 2008
8428 posts
1827 upvotes
dpacto wrote:
Jan 12th, 2018 6:39 pm
What do you guys think of NVIDIA? it reached $225 today and its basically ATH but I'm considering this stock even at this price I feel it could go over $1000 if this whole cryptocurrency, self driving car thing blows up in the next 5 years. Company looks stable too. I feel like worse comes to worse it just doesn't move that much but I don't see it dropping down...
Why would drivereless cars and especially AI use GPU vs CPU?
[OP]
Deal Addict
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Dec 14, 2010
4825 posts
4141 upvotes
yazon wrote:
Jan 12th, 2018 10:13 am
Hi Rod,

Can we still add CJR.B around 9?
Thank you.
I'm averaging down a bit. Sentiment has been negative for a while, since their revenue is closely tied to earnings, the lower revenue this quarter only reinforces that sentiment that this is a dying business. Corus is a well managed business, with a solid balance sheet, higher margin than their peers in this industry and and enough cash flow to sustain the high yield, with a payout ration of approximately 87%. So I'm not worried about the high dividends (they are sustainable), at least for this year - let's monitor revenue and earnings through FY18, specially on typically strong quarters, like Q2 and Q4.

Remember, 2 years when Corus announced the transformational acquisition of Shaw Media, they stated three financial objectives until their transformation matures. One was to take out $40 million to $50 million of cost in 18 to 24 months: Corus exceeded that significantly, both in terms of the amount and the timing. The second one was stated that Corus was going to de-leverage the balance sheet to 3.5 times by end of fiscal 2017. Corus achieved that a quarter early last year and then they announced their goal to de-leverage it to 3 times for the fiscal 2018 - but then, on this quarter, they announced that they might not achieve the 3 times goal given that revenues on this quarter missed expectations. But they are still making progress, and now are being penalized for setting a goal too aggressive on previous quarter - mostly on factors that they cannot control. The third objective was to maintain a dividend as current level of $1.14 for Class B shares. Management reinforced that they will continue to maintain this objective for Fiscal 2018. My goal is based on income and the growth of that income, so it meets my goals to continue partnering with them until their new strategies give enough fruits to reflect on revenue and earnings growth. But Corus belongs to a business that have been facing several challenges, beyond their control, and only time will tell how they will handle it accordingly. The only way to grow as they used to grow is to adapt and have the strategies in place that can reflect higher revenue if they do a good job following the trend on how content is delivered and doing the right partnerships to monetize this delivery or their own content. That takes time. I will wait at least a year or two before evaluating my partnership with them.


Rod
Build a comprehensive portfolio based on Investing and Trading strategies. Check out these threads and join the discussion:

Investing strategy based on dividend growth

Trading strategy based on Graham principles.

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