Investing

Most oversold dividend stocks right now?

  • Last Updated:
  • Dec 11th, 2017 9:21 pm
[OP]
Deal Addict
May 18, 2015
1118 posts
261 upvotes
Ottawa,Ont

Most oversold dividend stocks right now?

Just looking to get some peoples opinions on what they think is oversold. Enb, maybe corus, any others?
42 replies
Deal Expert
User avatar
Sep 19, 2004
20483 posts
3162 upvotes
Waterloo
Disclosure: I own most, sadly all near 52w lows. Usually are 5~10% yields
ENB
ENF
CJR.B
ALA/ALA.R

Low enough
PKI
KEY
EIF

Near 52w highs - don't own those as they're "high" for me
PPL
CHR
TRP


Obviously falling knife can fall further :(
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Newbie
Jun 28, 2017
57 posts
14 upvotes
LB just dropped nearly 8% and might continue to drop for a couple days. If you have strong risk tolerance, it could be a good time to buy. They are a major Canadian bank, just increased their dividend, and their own audit brought the mortgage issue to light so it doesn't seem to have been intentionally shady. Other than the mortgage issue, the ER was pretty strong. I don't own the stock and I don't have much experience in investing.
Member
Jun 28, 2016
237 posts
112 upvotes
Ismellofhockey wrote:
Dec 5th, 2017 11:33 pm
LB just dropped nearly 8% and might continue to drop for a couple days. If you have strong risk tolerance, it could be a good time to buy. They are a major Canadian bank, just increased their dividend, and their own audit brought the mortgage issue to light so it doesn't seem to have been intentionally shady. Other than the mortgage issue, the ER was pretty strong. I don't own the stock and I don't have much experience in investing.
They say the audit could cost more than their annual earnings in shady mortgage buybacks. I may still be interested if it goes low enough, but it hasn't even tested its summer low yet. I certainly would not call it oversold after such a small sell off. I'm also a bit doubtful when a company tells me that as many as 5% of its mortgages might be fraudulent, but definitely nothing shady was going on. No sir. No improper practices here.
Newbie
Jun 28, 2017
57 posts
14 upvotes
It's not 5% of all its mortgages, is it? I understood that it was 5% of the mortgages it sold off to a particular third party. As for summer lows, the news has only had an impact on half a session so far. Tomorrow may drag the stock down to $51. Would you buy then? You'd be getting a bank that has grown profits quite a bit over the past two quarters since it last was at that price.
Newbie
Sep 18, 2016
97 posts
23 upvotes
LB is not oversold
"Just because it's illogical doesn't mean it can't continue to move up"
Deal Fanatic
Feb 15, 2006
6898 posts
1484 upvotes
Toronto
Home Capital dropped much more compared to LB. LB will be volatile in the coming days. The whole story hasn't come out yet, so it's hard to say if it will fall a lot further.
Deal Addict
Feb 9, 2009
4644 posts
2332 upvotes
LB story wont be as big as people seem.

Yes there is about 90 mil of mortgages that may have document issues ... will blow over a few days, wont be nearly as big as Home Capital as they hid some of the issues and OSC came after them... here LB is at least being more open about it.

Like someone else lets see what happens, this isn't going to go down 50% or anything...
Member
Jun 28, 2016
237 posts
112 upvotes
Ismellofhockey wrote:
Dec 6th, 2017 12:08 am
It's not 5% of all its mortgages, is it? I understood that it was 5% of the mortgages it sold off to a particular third party. As for summer lows, the news has only had an impact on half a session so far. Tomorrow may drag the stock down to $51. Would you buy then? You'd be getting a bank that has grown profits quite a bit over the past two quarters since it last was at that price.
CBC tells me

If the same ratio holds true in the branch network, the bank warned that another $124 million of problematic loans could be uncovered, "although the definitive amount will only be determinable upon completion of the audit."

All in all, the bank expects the total price tag for mortgage buybacks "to be in the range of $304 million."

In addition, the bank also said that the same audit uncovered an additional $91 million worth of mortgages that shouldn't have been sold to the unnamed buyer but were. And there was yet another mortgage-related revelation, too — the audit "identified a number of mortgage loans that were also inadvertently portfolio insured while they may not have been eligible for insurance."


90 million of mortgages have been discovered so far, but, apparently, despite absolutely nothing shady going on, no sir, they expect to find hundreds of millions of more errors in their mortgages, improperly insured mortgages... etc... I'm not sure what sort of error could cause this, but, until they're a bit more transparent on that score, I remain deeply dubious about this whole process. At least HCG fired the people breaking the rules. Laurentian is claiming that no one is responsible, and this was somehow just simple, human error, which was so pervasive that it may have snuck into up to 5% of their mortgage portfolio.
Deal Addict
Jan 20, 2016
1434 posts
554 upvotes
Houston, TX
There is the common problem with MSM - they overblow the news (or just fake them, like ABC last Friday) and have zero responsibility.

The LB problem IS overblown, imo. OK, there are SOME (like 5%) of mortgages they SOLD to 3rd party (and this it's NOT equal to their mortgage at all!). And even more, those 5% of sold mortgages have signs of documents used for them are not good enough, but this do NOT equal to default on them.
Let's put it in other way. 5% of borrowers in a packet sold to other holder, used some fraud on documents to OBTAIN a mortgage (assets overseas, working for cash, tax avoidance...you name it). But they are a GOOD borrowers as they are paying their mortgage in time, in full and (probably) have more equity then it was back in time.

E.g. from DEBT prospective, their mortgages are GOOD after all.

Even not close to HCG. Good buying opportunity imo.
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Deal Fanatic
Feb 15, 2006
6898 posts
1484 upvotes
Toronto
Bought LB at just over $55. Hope it pops back up soon.
Deal Addict
User avatar
Mar 31, 2007
3879 posts
754 upvotes
Alaris Royalty (AD) is 8.89%
Altagas (ALA) is a bit over 7.55% and is somewhat capped by its purchase of WGL Holding in the US which is expected to be approved H1 next year. If you buy this, grab the subscription receipts which are cheaper than normal shares, still have the dividend, if the acquisition fails you get $31 a share, if it succeeds then you just converted to common shares at a discount.
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