Below is a chart of the performance of the Dogs of the TSX 60 from December 31, 2019 to December 31, 2020.
The Toronto Stock Exchange increased approximately +2.17%. The Low P/E category lost the most while the High P/E category gained the most. Low Yield did not outperform the High Yield group.
In our January 1, 2020 posting, we said the following:
“…preliminary data suggest that the low p/b and high p/e might give your investments an added boost.”
Clearly we were wrong about the Low P/B category which suggests to us that the call on the High P/E category was luck or a fluke and not due to our correct analysis of the data.
Upon further review, the category that seems to show the most consistency is the High P/B. Although not posting the best gains for 2020, the returns over the years have suggested that High P/B can retain their edge. The stocks in the High P/B category are as follows:
The Toronto Stock Exchange is a completely different realm from the shares that are traded in the U.S. However, as we go along, we will attempt to refine the data collection and analysis to better reflect the realities of the Canadian market.
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