Category Archives: Dogs of the TSX

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.

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 →

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.

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 →

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.

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 →

The Dogs of the Toronto Stock Exchange 60 largest market cap stocks is continuing the pattern that we observed with the the highest yielding stocks severely underperforming all other categories.

Below is a list of the various stocks within each category and their respective performance since December 13, 2017. Continue reading →

Performance Review

Earlier this year, we did a “2016 Dogs of the TSX” where we outlined the stocks that conformed to the “Dogs of the Dow” strategy based on stocks from the Toronto Stock Exchange.  The Canadian stocks that we reviewed generated the following returns:

• Category 1: +51.59%
• Category 2: +12.52%
• Category 3: +9.71%
• TSX: +18.51%

This was was a smack down of epic proportions. Category 1 outdistanced all other groups by more than double, this includes the Toronto Stock Exchange gain of +18.51%.  Discerning investors should note the overall fundamental attributes of each category as there are some surprising elements to each.  As an example, Category 1 had the following value attributes at the time:

• average p/e: 62x
• average earnings: $0.02
• average p/b: 0.75
• average payout ratio: 398%

All is well in a rising market, however, we’ll continue to review the three categories to confirm that returns are consistent regardless of the market conditions.  This means that the TSE Index needs to be in a declining trend for us to confirm the value to the categories that we’ve created.

2017 Dogs of the TSX

Continue reading →