Category Archives: Dogs of the TSX

TSX 60 In Review: 2020-7

The following is the breakdown of the Dogs of the TSX (here) in week seven, compared to other fundamental ratios. Continue reading

TSX 60 in Review: 2020-6

The following is the breakdown of the Dogs of the TSX (here) in week six, compared to other fundamental ratios. Continue reading

TSX in Review: 2020-5

The following is the breakdown of the Dogs of the TSX (here) in week five, compared to other fundamental ratios. Continue reading

TSX in Review: 2020-4

The following is the breakdown of the Dogs of the TSX 60 (found here) in week one, compared to other fundamental ratios. Continue reading

TSX 60 in Review: 2020-3

The following is the breakdown of the Dogs of the TSX 60 (found here) in week one, compared to other fundamental ratios. Continue reading

TSX 60 in Review: 2020-2

The following is the breakdown of the Dogs of the TSX 60 (found here) in week one, compared to other fundamental ratios. Continue reading

TSX 60 in Review: 2020-1

The following is the breakdown of the Dogs of the TSX 60 (found here) in week one, compared to other fundamental ratios. Continue reading

2020 Dogs of the TSX 60

Below is the Dogs of the TSX 60 for 2020 with the breakdown of the other categories that we track.

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2019 Dogs of the TSX 60

Below is a chart of the performance of the Dogs of the TSX 60 from December 31, 2018 to December 31, 2019.

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On average, as with the Dogs of the Dow, low yield stocks continues to dominate the high yield (Dogs of the TSX 60).  It isn’t supposed to be this way according to the popular literature on this topic.

Our commentary from the January 2019 Dogs of the TSX 60 watch list had the following to say:

“Unlike the Dogs of the Dow, The Dogs of the TSX 60 have the best performers in the ‘high yield’, ‘low p/b’, and ‘low p/e’. Our preference is for stocks within the low yield grouping.”

Our painful adherence to conservatism and safety has seen our pick of low yield stocks doing “alright” compared to the Toronto Stock Exchange.  We introduced the 1,2,3 and 2,3,4 as an alternative to the conventional top ten stocks, as we believe better performance within the low yield stocks would come from the top 2nd, 3rd, and 4th stocks.

While we have observed that low p/e, low p/b, and high yield Canadian stocks performed better in the past, only the low p/b stocks crushed it, especially the top 1,2,3 stock in that grouping with a dumbfounding gain of +79.37%.

Dogs of the TSX 60: October 2019

Below we list the performance of the various categories of the TSX 60 as compared to the Toronto Stock Exchange from January 1, 2019 to October 18, 2019.

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The “Dogs” of the highest yielding category got crushed since our last posting on September 28, 2019.

Dogs of the TSX 60: September 2019

Below we list the performance of the various categories of the TSX 60 as compared to the Toronto Stock Exchange from January 1, 2019 to September 27, 2019.

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The best performing group was the top 1,2,3 stocks which gained +77.56% year to date.  The worst performing group was the top 1,2,3 stocks in the lowest p/e ratio category.

On January 1, 2019, we said the following of the TSX 60:

“Unlike the Dogs of the Dow, The Dogs of the TSX 60 have the best performers in the ‘high yield,’ ‘low p/b,’ and ‘low p/e.’ Our preference is for stocks within the low yield grouping.”

The lowest yielding stocks performed as expected by coming close to matching the index in the top ten and beating the index in the remaining grouping.

The category to beat going forward is the lowest p/b group.

Dogs of the TSX 60: July 2019

Based on the price data of July 24, 2019 (intraday), we have the following average year-to-date (YTD) performance of the respective categories within the Dogs of the TSX 60 as compared to the YTD performance of the Toronto Stock Exchange.

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For each group ([top 10], [1,2,3], or [2,3,4]) we have highlighted the top performing categories.

  • In the top 10 group, the “highest price-to-book” gained +22.90% and was followed by the “lowest p/b” set at +20.52%, exceeding the TSX Index by more than 6.00%.
  • Among the top 1, 2, and 3 stocks, the “lowest p/b” stocks crushed the TSX with gains of +62.02%.  Even the runner-up “highest price-to-book” category pulled out a +28.71% gain.
  • In our preferred grouping (top 2,3, and 4), the “lowest yield” category managed to gain +38.08% which exceeded the runner-up “highest price-to-book” with gains of +28.71%.
  • Severe underperformance was found in the categories of “lowest price-to-earnings” and “highest yield”.
  • We continue to favor stocks found in the “lowest yield” category for the TSX 60 stocks as noted in our January 1, 2019 posting and supported by an exceptional amount of data on the topic.  The “lowest yield” category provides gains that are more consistent than most other categories.

Below is the specific stocks and their respective performance which generated the listed returns for the specific categories (date range is December 31, 2018 to July 24, 2019). Continue reading

Dogs of the TSX 60: March 2019

Based on the closing price data of March 27, 2019, we have the following average year-to-date performance of the respective categories within the Dogs of the TSX 60 as compared to the year-to-data performance of the Toronto Stock Exchange.

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We’ve stated in the past that traditional valuation metrics do better with the Dogs of the TSX 60.  However, the stocks with the lowest p/e ratio aren’t doing so well.  Additionally, the odds on favorite in the highest yield group aren’t pulling in the returns (absent their dividend gains) that we would expect. 

For now, the lowest p/b ratio stocks are taking the lead while the lowest yield stocks are managing to edge out the highest yield stock, overall.  Remember, the highest yielding stocks are supposed to be the leaders in the returns category.  As with the Dogs of the Dow strategy, the highest yielding stocks are turning into also-rans.

Below is the specific stocks and their respective performance which generated the listed returns for the specific categories (date range is December 31, 2018 to March 27, 2019). Continue reading

Dogs of the TSX 60: February 2019

On January 1, 2019, we posted the list of stocks that comprise the Dogs of the TSX 60.  Our closing commentary had the following assessment:

“Unlike the Dogs of the Dow, The Dogs of the TSX 60 have the best performers in the “high yield,” “low p/b,” and “low p/e.” Our preference is for stocks within the low yield grouping.”

Based on the intraday data as of February 22, 2019, we have the following average year-to-date performance of the respective categories as compared to the year-to-data performance of the Toronto Stock Exchange.

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For each group (top 10, [1,2,3], or [2,3,4]) we have highlighted the top performing categories. 

  • In the top 10 category, the “lowest price-to-book” gained +18.67% and was followed by the “highest price-to-earnings” set at +15.00%, exceeding the TSX Index by more than 2.00%.
  • In the top 1, 2, and 3 stocks, the “lowest yield” stocks crushed the TSX with gains of +26.64%.  Even the runner-up “lowest price-to-book” category pulled out a +21.67% run.
  • In our preferred grouping (top 2,3, and 4), managed to gain +18.05% which exceeded the runner-up (“highest price-to-book) with gains of +12.97%.
  • Severe underperformance was found in the categories of “lowest price-to-earnings”, “highest yield”, “highest price-to-book”
  • We continue to favor stocks found in the “lowest yield” category for the TSX 60 stocks.

Below is the specific stocks and their respective performance which generated the listed returns for the specific categories (date range is December 31, 2018 to February 22, 2019). Continue reading

2019 Dogs of the TSX 60

Below is the Dogs of the TSX 60 for 2019 with the breakdown of the other categories that we track. Continue reading