Monday, August 21, 2006

Will this high dividend, low PE stock portfolio outperform?

I have used the Globe Investor stock screen to come up with a group of TSX-listed common stocks that have both a high dividend yield, above 4% and a a relatively low PE (15 or lower). To make sure I'm not getting ones that have dubious cash-flow/earnings issues or accounting practices, I've also added a cash-flow filter, ensuring that the price/cash-flow is also 15 or lower.

Of the 1,075 common stocks that this screen picks up without any defined parameters (except for common stocks), the aforementioned screening yields some 15 securities, meaning this screen is picking up well under 2% of those common stocks. I'm going to track over the next while, so see if they outperform the broader index, the S&P/TSX60 index, which is currently at 12,044.83. We'll track the performance of this model portfolio, over time.

Here is the list of the 15 stocks, name, followed by symbol, and latest price (market close August 18, 2006):
  • Amerigo Resources, ARG, $2.26
  • BCE Inc., BCE, $27.48
  • Circa Enterprises, CTO, $1.30
  • Destiny Resource Services, DSC, $9.90
  • Goodfellow Inc., GDL $26.50
  • MCAP, MKP, $10.05
  • Norbord, NBD, $9.09
  • Pacific Northern Gas, PNG, $17.44
  • Revenure Properties Company, RPC, $14.00
  • Rothmans, ROC, $20.10
  • Russell Metals, RUS, $27.88
  • Seamark Asset Management, SM, $6.50
  • Taiga Building Products, TBL, $2.03
  • Viceroy Homes, VLH.A, $5.17
  • Weyerhaeuser, WYL, $65.63
We'll check back in anywhere from a month or longer, to see how they're all doing ..


The Confused Capitalist

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