Home Capital Group Dividend Stock Analysis

Money House

So first let me apologize … this article is over 4,000 words. I could have split this analysis into multiple articles, but when I read other blogs I like it when all the information is in one place so I kept this as one big article. Feel free to jump around to the areas you are interested in as there are four general topics:

  • Overall dividend stock analysis of Home Capital Group Inc.
  • Financial strength & stress testing of the company.
  • Why I’d consider investing in the company when I think the housing market is over-valued.
  • Home Capital Group Inc. valuation metrics.
  • Company Description

    Home Capital Group Inc. [TSE:HCG Trend] is a Canadian holding company that operates primarily through its federally regulated subsidiary Home Trust Company, a non-traditional mortgage lender. They are Canada’s largest alternative mortgage lender. Home Capital Group Inc.’s main source of income is from residential mortgage lending, but they also offer non-residential mortgage lending, consumer lending and credit card products. Their mortgages are a mix of uninsured mortgages and securitized mortgages that are insured by Canada Mortgage Housing Corp. or other mortgage insurers. The uninsured mortgages are made with

    … Continue reading Home Capital Group Dividend Stock Analysis

    Canadian Western Bank Dividend Stock Analysis & Portfolio Update

    Vintage Bank Vault

    When I tell people I bought a Canadian bank stock recently, they naturally assume it’s one of the big six: Royal Bank of Canada [RY Trend], Toronto Dominion Bank [TD Trend], Bank of Nova Scotia [BNS Trend], Canadian Imperial Bank of Commerce CIBC [CM Trend], Bank of Montreal [BMO Trend], or National Bank of Canada [NA Trend]. They’d be wrong… as I bought Canadian Western Bank [CWB Trend] which is a smaller lesser known bank stock. In this dividend stock analysis I’ll go over what I like about this company so you can find out why I bought shares.

    Related Articles: The Great Canadian Banking Series: Bank of Nova Scotia Dividend Stock Analysis (Part 2 of 10), The Great Canadian Banking Series: Toronto-Dominion Bank Dividend Stock Analysis (Part 3 of 10), & Canadian Western Bank Dividend Stock Analysis & Portfolio Update

    How I Use Value Line Reports to Quickly Assess A Dividend Growth Stock

    Alex the Formula One Golden Retriever

    Finding the right dividend growth candidates to invest in can be very time consuming. There is so much information out there that it can become overwhelming. Today I’m going to talk about how I use Value Line’s Investment Survey reports to quickly see if a stock I’m interested in, warrants further research and potentially my money.

    Most public libraries will have free access to these Value Line reports, but the Value Line website also provides free copies of these reports for companies in the the Dow 30. Coca-Cola [KO Trend Analysis] a well known dividend growth company happens to be in the Dow 30, so I’ll use their report as an example. The last Value Line Investment Survey report on Coca-Cola was updated on April 25, 2014. You can download the PDF file here to follow along. In this download, I’ve highlighted the areas on the report that I focus on.

    Dividend Yield

    You’ll find dividend yield in the top right hand corner of the report.

    I typically like to see a dividend yield of at least 2.5%,

    … Continue reading How I Use Value Line Reports to Quickly Assess A Dividend Growth Stock

    Coca Cola Company Dividend Stock Analysis

    Cokey Low-key

    Coca Cola Co. is one of those companies that dividend growth investors drool over. The company has been paying out increasing dividends each year for over 50 years. Its products are sold all over through one of the best distribution networks in the world. It has a wide economic moat and Warren Buffet’s company Berkshire Hathaway (BRK.B Trend Analysis) is a significant shareholder in the company.

    For a conservative investor like me, it can be hard to find an entry point in great companies like Coca Cola Co. that I’m comfortable with. They don’t go on sale very often. Coca Cola Co. has been creeping closer to Morningstar’s 5 star price of $36 lately, so I thought now would be a good time to take a closer look at the company.

    10 Year Stock Chart

    Coca Cola Co.’s stock has been on a tear since 2009, but then again most stocks have. Looking at the 10 year return it is average. The 10 year annual average return is 4.4%. If we include the dividend payments over the past 10 fiscal years (Total dividends paid of $7.22) then the total average annual

    … Continue reading Coca Cola Company Dividend Stock Analysis

    Target Corporation Dividend Stock Analysis

    Target old logo

    Two of the blogs I follow (Dividend Growth Investor and Dividend Mantra) recently announced that they bought shares of Target Corporation. I have a similar strategy to these other bloggers, so I thought I should check Target Corporation out too. Target Corporation has been having difficulty with its Canadian expansion plans and they recently announced higher than expected costs. They are also trying to recover from a data breach. Not surprisingly this has caused the share price to drop recently. In cases like these it can be an opportunity to buy quality companies at discounted prices. The trick is to identify if the share price drop is related to short term news, or because of a fundamental shift in the company or industry. I think in the long term Target Corporation will be able to rebound from these events, which is why I thought now would be a good time for a dividend stock analysis and to determine the price I’d be willing to buy at.

    Company information

    Target Corporation is a general merchandis

    Sourced from Yahoo Finance

    Target

    … Continue reading Target Corporation Dividend Stock Analysis

    Potash Corporation of Saskatchewan Inc. Dividend Stock Analysis

    Evaporation Ponds

    Jesse Varner / Foter / CC BY-NC-SA

    Today, I’m taking a break from The Great Canadian Banking Series to look into Potash Corporation of Saskatchewan Inc (Click for a FREE trend analysis of TSE:POT) which I recently purchased. I’m interested in this company for a number of reasons. The first is that Morningstar has it rated as a wide moat stock. Awhile ago I wrote an article about US dividend champions with a wide moat rating from Morningstar. During my research for this article I looked at a few Canadian companies with wide moat ratings and Potash was one of them. Since then it has been on my radar.

    If you look at my portfolio, you’ll notice that it is not the most diversified. I’m working to fix this, so I’ve been looking for a basic material company. This is my second reason.

    The third reason

    … Continue reading Potash Corporation of Saskatchewan Inc. Dividend Stock Analysis

    The Great Canadian Banking Series: Royal Bank of Canada Dividend Stock Analysis (Part 4 of 10)

    Calling out All

    Insight Imaging: John A Ryan Photography / Foter / CC BY-NC-SA

    Welcome to part four of The Great Canadian Banking Series. In this 10 part series I examine the Canadian banking sector to identify good dividend growth candidates. In part two of the series I looked into Bank of Nova Scotia and in part three I looked at Toronto-Dominion Bank. Today I’ll be looking into Royal Bank of Canada.

    Before I start the dividend stock analysis I want to mention to new readers that there is another article that you may want to read first. The other article better explains what I’m looking for in a company from a dividend growth perspective and why I analyze specific company components and ratios. The other article is meant more as an educational tool so that readers can better understand my dividend stock analyses. This dividend stock analysis will look at the company to identify if it is a

    … Continue reading The Great Canadian Banking Series: Royal Bank of Canada Dividend Stock Analysis (Part 4 of 10)

    The Great Canadian Banking Series: Toronto-Dominion Bank Dividend Stock Analysis (Part 3 of 10)

    My Bank, Streetsville: Toronto Dominion/Canada Trust

    bill barber / Foter / CC BY-NC

    Welcome to part three of The Great Canadian Banking Series. In this 10 part series I examine the Canadian banking sector to identify good dividend growth candidates. In part two of the series I looked into Bank of Nova Scotia. Today I’ll be looking into Toronto-Dominion Bank.

    Before I start the dividend stock analysis I want to mention to new readers that there is another article that you may want to read first. The other article better explains what I’m looking for in a company from a dividend growth perspective and why I analyze specific company components and ratios. The other article is meant more as an educational tool so that readers can better understand my dividend stock analyses. This dividend stock analysis will look at the company to identify if it is a good dividend growth candidate to invest in.

    Company Description

    From Google Finance:

    “The Toronto-Dominion Bank is a bank. The Toronto-Dominion Bank and its subsidiaries are collectively known as TD

    … Continue reading The Great Canadian Banking Series: Toronto-Dominion Bank Dividend Stock Analysis (Part 3 of 10)

    The Great Canadian Banking Series: Bank of Nova Scotia Dividend Stock Analysis (Part 2 of 10)

    Bank of Nova Scotia

    Grant MacDonald / Foter / CC BY-NC

    Welcome to part two of The Great Canadian Banking Series. In this 10 part series I examine the Canadian Banking Sector to identify good dividend growth candidates. Today I’ll be looking into Bank of Nova Scotia.

    Before I start the dividend stock analysis I want to mention to new readers that there is another article that you may want to read first. The other article better explains what I’m looking for in a company from a dividend growth perspective and why I analyze specific company components and ratios. The other article is meant more as an educational tool so that readers can better understand my dividend stock analyses. This dividend stock analysis will look at the company to identify if it is a good dividend growth candidate to invest in.

    Bank of Nova Scotia Dividend Stock Analysis

    I chose Bank of Nova Scotia (Click for a FREE trend analysis of TSE:BNS) as the first bank to review, because it is the largest bank

    … Continue reading The Great Canadian Banking Series: Bank of Nova Scotia Dividend Stock Analysis (Part 2 of 10)

    TELUS Dividend Stock Analysis: Good, But I Prefer Rogers Communications

    TelusStore

    Stu pendousmat / Foter.com / CC BY-SA

    Before I start the dividend stock analysis I want to mention to new readers that there is another article that you may want to read first. The other article better explains what I’m looking for in a company from a dividend growth perspective and why I analyze specific company components and ratios. The other article is meant more as an educational tool so that readers can better understand my dividend stock analyses. This dividend stock analysis will look at the company to identify if it is a good dividend growth candidate to invest in.

    TELUS Dividend Stock Analysis

    Canadian Telecom stocks have been dropping in price ever since Verizon Communications announced that they plan to buy WIND Mobile. Rogers Communications and TELUS have been hit the hardest because a larger portion of their income is from wireless communications, which Verizon would compete for. With this recent drop, Rogers Communications is close to my target price, so I thought it would be a good time to review TELUS.

    Company Description

    From Google Finance:

    “TELUS Corporation (TELUS), incorporated on

    … Continue reading TELUS Dividend Stock Analysis: Good, But I Prefer Rogers Communications