In our posting from July 15, 2020, we ran the numbers and compared the performance. Below is the latest update of the top ten stocks for anyone who wishes to make new investments in the Canadian stocks that are part of the TSX 60. Continue reading
The following is the breakdown of the Dogs of the TSX (here) in week 29, compared to other fundamental ratios. Continue reading
Income investors seeking dividend may purchase and hold shares based on dividend yield. There is a strategy our team is curious about, one which involves buying shares just to capture the dividend using the shortest possible holding period.
It turns out, that the strategy is called the Dividend Capture Strategy. In short, this strategy is to purchase a dividend paying stock one day prior to the ex-dividend date and selling it on the ex-dividend date.
Critics of this strategy argue that stock prices often drop in accordance with the dividend amount that is paid. While this makes sense, we haven’t seen enough data to support this claim. That is, our team developed a model that can test this theory at the individual level. Below is an example of the Dividend Capture Strategy applied to AT&T (T).
The assumption is that we would buy AT&T one day prior to the last ex-dividend date, July 9, 2020, to capture the $0.52 in dividend. Continue reading
Based on the available data, managers of indexes typically make changes that reflect the peaks and troughs of the respective market conditions. This means that the most stock changes to the index occur when the market is at a high and fewer stock changes occur when the market is at a low.
Below are the changes to the S&P 500 index from 2003 to 2019. The S&P 500 is managed by S&P Dow Jones Indices (here).
see also: S&P 500 additions and deletions
Posted in Additions and Deletions, S&P 500
A question has come in about the use of upside resistance targets. Why bother looking at the upside targets? The case of Boeing (BA) should prove instructive.
On April 15, 2020, we posted upside speed resistance lines for Boeing (BA). At the time, the upside resistance targets were:
Upside resistance targets are reflected in both time and price on a relative basis where a stock, after falling from a major high, will likely experience resistance on the move higher.
Since our April 15, 2020 posting on Boeing, a meaningful reflection of what investors should look for when anticipating the increase in the stock price is highlighted below.
As Boeing has increased from the low of $95.01, the stock price achieved the first upside resistance target at $267.82. Circled in red is the anticipated resistance in the stock price. What this usually means is that the stock price would decline or trade in a range.
For those determined to buy Boeing, regardless of fundamentals, upside resistance targets are a great places to anticipate possible turning points. The flip side to this story is that we generally expect a re-test of the prior low or some semblance of a decline near that level.
Worth noting, when Boeing cracks the upside resistance target of $267.82 then $326.57 becomes the next resistance target and $267.82 becomes the next support level. Prices above the first upside resistance target is generally the best level to buy a stock if it is backed by the fundamental prospects.
The story for Boeing is still unfolding. We’ll update the April 15, 2020 posting at situation continues to evolve.
Posted in BA, Edson Gould, SRL, upside target
Below are the upside resistance targets for Brookfield Property Partners (BPY): Continue reading
Below are the upside resistance targets for Imperial Brands (IMBBY): Continue reading
Below is a chart of Imperial Brands (IMBBY) from 1999 to 2020 reflecting the year-over-year (YoY) percentage change.
Below we outline our technical take on when to consider buying Imperial Brands (IMBBY), if it hasn’t been purchased already. Continue reading
Below are the valuation targets for Imperial Brands PLC (IMBBY) for the next 10 years. Continue reading
Below are the valuation targets for Brookfield Property Partners (BPY) for the next 10 years. Continue reading
This is a follow-up graphical representation of the performance of Morningstar’s Income Bellwethers. In the comparison that we ran, we contrast the high yield with the low yield in a one year period. The period under consideration runs from February 11, 2019 to February 7, 2020.
As the data continues to demonstrate, low yield outperforms high yield. This has been resoundingly shown in our Dogs of the Dow in the period from 1996 to 2019.
Posted in Dogs of the Dow, Income Bellwethers, Morningstar
Below are the downside targets for Tesla Inc. (TSLA) as of July 7, 2020.
Parabolic increases rarely go unchecked. This typically means that a decline to the conservative downside target is the norm, at minimum. However, Tesla has had a history of defying the “norm” when it comes to price change.
see also: TSLA downside targets achieved
Posted in downside, parabolic, Speed Resistance Lines, SRL, TSLA
On this day, Charles H. Dow of the Wall Street Journal, said the following:
“The true currency of commerce is credit. A part of this credit is represented by cash, but the larger part is represented by book entries on the ledgers of banks and merchants, representing the intangible credit of the borrower.”
-George W. Bishop. Charles H. Dow: Economist. Dow Jones Books. 1967.
Posted in Charles H. Dow, credit, On This Day, WSJ
