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Most oversold dividend stocks right now?

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  • Jan 9th, 2018 1:17 pm
Deal Addict
May 18, 2015
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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?
44 replies
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Sep 19, 2004
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where I belong
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
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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
284 posts
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Ismellofhockey wrote: 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
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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.
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Sep 18, 2016
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LB is not oversold
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Feb 15, 2006
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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 Guru
Feb 9, 2009
12381 posts
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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
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Ismellofhockey wrote: 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
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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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Feb 15, 2006
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Bought LB at just over $55. Hope it pops back up soon.
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Mar 31, 2007
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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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Apr 23, 2009
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AD is stuck at below $20 for a long time now. Although I don't see dividend cut ahead (at least not in neat term), the stock hasn't moved much in past 2 years.
RiCHC3 wrote: 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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Apr 12, 2012
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ruchir wrote: AD is stuck at below $20 for a long time now. Although I don't see dividend cut ahead (at least not in neat term), the stock hasn't moved much in past 2 years.
Not only that but their book value has been dropping too.
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May 18, 2015
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I have come across some smaller caps that seem oversold. ZCL and BOS
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Jul 12, 2008
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I think enb for sure (I own it) if you look at its historic price/dividend yield and its performance compared to other similar stocks/the market as a whole over the last 12 - 18 months.
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Feb 15, 2006
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Edit: Ah, my bad. Forgot AAV is not a dividend stock. So the following is just an oversold stock.
==
AAV went down the last few days, then this news today:

Globe/wire say Advantage Oil seen as survivor

2017-12-08 09:12 ET - In the News

The Globe and Mail reports in its Friday edition that Advantage Oil & Gas is one of the best-performing Canadian energy producer since the oil crash three years ago. A Bloomberg dispatch to The Globe says that Advantage owes its success to a concentration on producing natural gas from a prime land position in Alberta's Montney shale formation and production costs that are among the lowest in the industry, chief executive officer Andy Mah told the news agency. Advantage had corporate cash costs of 73 cents per thousand cubic feet of gas equivalent last quarter.

Mr. Mah says that the company was an early adopter of a philosophy that junior and intermediate energy companies need to structure themselves to be able to generate long-term profitability and corporate returns, rather than simply develop an asset and sell themselves to a major within five years. While shares of Advantage are down 7.8 per cent since July, 2014, that is enough to outperform both the energy index and the price of natural gas, which has slid 23 per cent. "There are probably going to be less of those peaks than valleys, and you have to be able to make money in the valleys," Mr. Mah said. Advantange close Thursday at $5.09, down 31 cents.

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