Investing

Investing Idea - Dividend Growth

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  • Oct 16th, 2020 5:52 pm
Sr. Member
Oct 31, 2009
564 posts
100 upvotes
Hi all. Can anyone suggest a good website or app that give alerts for ex-date and pay date for US and Canadian dividend stocks? Thanks.
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Dec 14, 2010
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desertfox wrote: Hi all. Can anyone suggest a good website or app that give alerts for ex-date and pay date for US and Canadian dividend stocks? Thanks.
My setup is to build a portfolio on SeekingAlpha, for the stocks that I want to be notified. When dividends are announced, they inform the ex-date and pay date.


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.
Sr. Member
Oct 31, 2009
564 posts
100 upvotes
rodbarc wrote: My setup is to build a portfolio on SeekingAlpha, for the stocks that I want to be notified. When dividends are announced, they inform the ex-date and pay date.


Rod
Hi Rod,

I try to look at the free version and only showed US stocks. Does it include Canadian equities too? Thanks
Sr. Member
Nov 25, 2007
813 posts
463 upvotes
Toronto
I don't have a subscription. I just quickly hit Crtl+A/Ctrl+C and hit esc while the page is loading

Twenty Canadian stocks that display dividend growth and momentum
Emily Halverson-Duncan, CFA
Special to The Globe and Mail
Published 5 hours ago Updated July 6, 2020

What are we looking for?
A pooled portfolio of Canadian income and momentum stocks.

The screen
Investors typically look for stocks with similar attributes, such as a long history of paying dividends, a low valuation, or strong earnings reports, to name a few. While it’s good to know what you want, the one downside to screening for a lot of different metrics is that you can sometimes reduce your stock universe to a very small set of options.
One way to help identify stocks with the characteristics you’re looking for, but without drastically reducing the number of possible companies, is to look at these attributes separately. For example, if you’re looking for dividends but also want stocks with upward momentum potential, you can consider those as two separate styles, and create two portfolios to match each one.
My strategy today is constructed of two different portfolio “sleeves”: dividend growth and momentum. Each sleeve will focus on its respective style only, and then the final portfolio will be a 50/50 combination of the two. The stocks will be selected from the CPMS Canadian Universe, which as of today holds 700 names.
The dividend-focused sleeve ranks stocks based on:
• Five-year dividend growth rate – an annualized number, higher values preferred;
• Expected dividend growth rate – difference between the expected annual dividend rate and the actual dividends paid in the past four quarters, higher values preferred;
• Quarterly earnings surprise – proprietary measure of the difference between expected and actual reported quarterly earnings, high values preferred.
The momentum-focused sleeve ranks stocks based on:
• Quarterly earnings momentum – measured as the growth in the most recent trailing four quarters of earnings relative to the trailing four quarters of earnings lagged by one quarter, higher values preferred;
• Quarterly earnings surprise (as with the dividend sleeve);
• Price change from 12-month high – a momentum factor based on stock price, least-negative values are preferred.

More about Morningstar
Morningstar Research Inc. provides independent investment research in North America, Europe, Australia and Asia. Its research tool, Morningstar CPMS, provides quantitative North American equity research and portfolio analysis to institutional clients and financial advisers. CPMS data cover more than 95 per cent of the investable North American stock market.

What we found
I used Morningstar CPMS to backtest this strategy from January, 2004, to May, 2020. During this process, a maximum of 10 stocks a sleeve were purchased, for a maximum of 20 stocks. Stocks were sold from the dividend sleeve if their five-year annualized dividend growth fell into the bottom half of peers, and from the momentum sleeve if their share price dropped more than 15 per cent below its 200-day moving average. When sold, the positions were replaced with the highest-ranked stock not already owned in that particular sleeve of the portfolio. Over this period, the strategy produced an annualized total return of 14.8 per cent while the S&P/TSX Composite Total Return Index returned 6.5 per cent over the same period.
One thing worth noting is that the strategy’s downside deviation (measures the volatility of negative returns) was 7.7 per cent relative to the benchmark’s downside deviation of 9.6 per cent. Stocks that qualify for purchase into the both sleeves of the strategy today are listed in the accompanying table. As always, investors are encouraged to conduct their own independent research before purchasing any of the investments shown here.
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[OP]
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User avatar
Dec 14, 2010
6080 posts
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desertfox wrote: Hi Rod,

I try to look at the free version and only showed US stocks. Does it include Canadian equities too? Thanks
I have the free version as well. Canadian companies are there, but their ticker is the OTC or US listed ticker. There’s an option to search by the name of the company. That’s how I built my portfolio there.

On the magnifying glass on the top right, type the name of the company and select the matching company name - nevermind the ticker.


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.
Deal Addict
Nov 9, 2013
3909 posts
3595 upvotes
Edmonton, AB
Mansech wrote: I don't have a subscription. I just quickly hit Crtl+A/Ctrl+C and hit esc while the page is loading

Twenty Canadian stocks that display dividend growth and momentum
Emily Halverson-Duncan, CFA
Special to The Globe and Mail
Published 5 hours ago Updated July 6, 2020

What are we looking for?
A pooled portfolio of Canadian income and momentum stocks.

The screen
Investors typically look for stocks with similar attributes, such as a long history of paying dividends, a low valuation, or strong earnings reports, to name a few. While it’s good to know what you want, the one downside to screening for a lot of different metrics is that you can sometimes reduce your stock universe to a very small set of options.
One way to help identify stocks with the characteristics you’re looking for, but without drastically reducing the number of possible companies, is to look at these attributes separately. For example, if you’re looking for dividends but also want stocks with upward momentum potential, you can consider those as two separate styles, and create two portfolios to match each one.
My strategy today is constructed of two different portfolio “sleeves”: dividend growth and momentum. Each sleeve will focus on its respective style only, and then the final portfolio will be a 50/50 combination of the two. The stocks will be selected from the CPMS Canadian Universe, which as of today holds 700 names.
The dividend-focused sleeve ranks stocks based on:
• Five-year dividend growth rate – an annualized number, higher values preferred;
• Expected dividend growth rate – difference between the expected annual dividend rate and the actual dividends paid in the past four quarters, higher values preferred;
• Quarterly earnings surprise – proprietary measure of the difference between expected and actual reported quarterly earnings, high values preferred.
The momentum-focused sleeve ranks stocks based on:
• Quarterly earnings momentum – measured as the growth in the most recent trailing four quarters of earnings relative to the trailing four quarters of earnings lagged by one quarter, higher values preferred;
• Quarterly earnings surprise (as with the dividend sleeve);
• Price change from 12-month high – a momentum factor based on stock price, least-negative values are preferred.

More about Morningstar
Morningstar Research Inc. provides independent investment research in North America, Europe, Australia and Asia. Its research tool, Morningstar CPMS, provides quantitative North American equity research and portfolio analysis to institutional clients and financial advisers. CPMS data cover more than 95 per cent of the investable North American stock market.

What we found
I used Morningstar CPMS to backtest this strategy from January, 2004, to May, 2020. During this process, a maximum of 10 stocks a sleeve were purchased, for a maximum of 20 stocks. Stocks were sold from the dividend sleeve if their five-year annualized dividend growth fell into the bottom half of peers, and from the momentum sleeve if their share price dropped more than 15 per cent below its 200-day moving average. When sold, the positions were replaced with the highest-ranked stock not already owned in that particular sleeve of the portfolio. Over this period, the strategy produced an annualized total return of 14.8 per cent while the S&P/TSX Composite Total Return Index returned 6.5 per cent over the same period.
One thing worth noting is that the strategy’s downside deviation (measures the volatility of negative returns) was 7.7 per cent relative to the benchmark’s downside deviation of 9.6 per cent. Stocks that qualify for purchase into the both sleeves of the strategy today are listed in the accompanying table. As always, investors are encouraged to conduct their own independent research before purchasing any of the investments shown here.
gibor365365 wrote: just click on Esc button when page is loading
Thanks for posting.

I try to do that but I never get the timing right!
Keep calm and go long
Sr. Member
Oct 31, 2009
564 posts
100 upvotes
rodbarc wrote: I have the free version as well. Canadian companies are there, but their ticker is the OTC or US listed ticker. There’s an option to search by the name of the company. That’s how I built my portfolio there.

On the magnifying glass on the top right, type the name of the company and select the matching company name - nevermind the ticker.


Rod
Thanks a lot Rod. Entering the Canadian company was the answer not just the ticker.
Deal Addict
Feb 26, 2017
1627 posts
1663 upvotes
This thread has been a bit quiet. I think FAANG + Microsoft & Shopify and momentum is much more popular right now but there still is some good value on some dividend growth stocks right now. Most dividend growth will be paused this year but I'm confident that high quality companies will resume increasing their dividends when our economy rebounds.

Below is a Seeking Alpha Article from an writer that has done pretty well. The article has some pretty good ideas for US dividend growth stocks with higher yields (and lots of Fast Graph charts). The two apartment REITs, AvalonBay Communities (AVB) and Essex Property Trust (ESS) are probably are what looks the most interesting and seem to be trading at lower valuations than Canadian apartment reits.

https://seekingalpha.com/article/435853 ... rket-today

Just to add to the discussion here are some Canadian stock I own that I like right now: bam.a, aqn, cpx, rci.b, enb and sru.un.
Deal Addict
Nov 9, 2013
3909 posts
3595 upvotes
Edmonton, AB
Chance7652 wrote: This thread has been a bit quiet. I think FAANG + Microsoft & Shopify and momentum is much more popular right now but there still is some good value on some dividend growth stocks right now.
I think it was in 2016 or 2017 when rates dropped dividend growth stocks were all the rage, with the argument being people were starved for yield and so they were going to equities to get it.

Essentially the same thing is happening now to a larger degree, but now it's all about tech / momentum, as you mention.

I agree there is good value to be had - I frequently have to remind myself to stay the course; and trust the process.
Keep calm and go long
Deal Addict
Feb 26, 2017
1627 posts
1663 upvotes
treva84 wrote: I think it was in 2016 or 2017 when rates dropped dividend growth stocks were all the rage, with the argument being people were starved for yield and so they were going to equities to get it.

Essentially the same thing is happening now to a larger degree, but now it's all about tech / momentum, as you mention.

I agree there is good value to be had - I frequently have to remind myself to stay the course; and trust the process.
The fomo feeling is real. I feel a bit of regret that I didn't buy more tech right now. Its not terrible but I'm at about 16% tech in my portfolio and my returns would be higher this year if I had more.

I think its important not to chase when investing as it just leads to a lot of reactive moves. There are some people who post here that do well but I think for most people its going to be hard to out perform while trading.
Deal Addict
Nov 9, 2013
3909 posts
3595 upvotes
Edmonton, AB
Chance7652 wrote: I think its important not to chase when investing as it just leads to a lot of reactive moves.
Agreed - I would rather underperform in the short term than blow myself up in the long term because I try to chase returns. The higher prices go as well the lower forward returns are. So it may be fun and thrilling in the short term, but overall it may just lead to reduced long term performance. I constantly have to remind myself to stick my process.

Nonetheless, there are going to be some major secular trends accelerated by the pandemic and the reverberations through society. One thing I constantly wonder is how can I position my portfolio to not be harmed and benefit from these shifts.
Keep calm and go long
Sr. Member
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May 12, 2012
618 posts
683 upvotes
Richmond Hill, ON
Long time reader of this thread.

Curious what everyone's thoughts/feelings are on REITs at the moment. They've taken quite a tumble, often not rebounding to the same degree alongside the market. For example, REI.UN has been struggling to maintain a stock price above $16.50. The company is still making its .12c/share dividend declaration each month. I've been purchasing a lot here and there as my exposure to the sector was nonexistent prior March (aside from a single rental income property).

Cheers!

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