A Vancouverite’s journey to financial freedom.
I have not studied Shaw Comm., but promise will check it out when I get a chance.
As for BCE, I see that it’s up to $36.xx. It may go up even further in the short-term due to take-over rumours, but its yield is very low historically speaking. The rumours are already priced in to the stock, but if the they don’t materialize, the stock will likely plummet. The upside versus downside ratio isn’t attractive to me at this price.
I’m a Telus shareholder. Telus is growing faster and better managed than BCE. BCE has been a below average acquirer over the years. Having said that, they’re buying back shares and increasing dividends recently. I will bite at around $29-$30.
I agree with your observatiion on BCE. I wonder if BCE is suffering from over-diversification.
CAE is a significatnt player in the simulator market. They have just finished acquisition of a rival business. What risk do I take on if I were to invest in CAE at this point?
CAE? Sorry, I don’t follow this company.
David, I had a quick check at Shaw. The company increased its dividends this Feb from 15 cents to 25 cents. Last year, they bought back around 2.3% of their outstanding shares. Revenues rose 11%. Long-term debt declined 5%.
Dividend yield at 2.16% is decent. Quantitatively speaking, they’re not too bad.
Shaw’s profitability has a volatile history. I’d be more comfortable with a wider margin of safety. P/E of 20 is too expensive for me, although I haven’t figured a good entry point.
This isn’t related to your post, but I just wanted to compliment you on your site design. I really like the look! I guess being a programmer helps! Keep up the good work.
-CrunchMoney
Thank you for the encouragement. Although I like to be humble about it, I’m not a great programmer to begin with. This site is a result of a WordPress template, a bunch of downloaded plug-ins and some light-weight HTML editing.
By the way, I love your articles at www.crunchmoney.com, especially the one about asset allocation and return. I’m adding it to my blogroll.
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I like the globeandmail article, “Looking for a sure thing? Dividends point the way” article.” A good companion read to your recent blog on Dividend Investment.
I have a growing interest in dividend paying stocks. Can you suggest a couple sites that cover dividend stock analysis for starting investors?
What is your view on Shaw Commun. (SJR.B) in the long term? Stats shows a 39.83% 10-year growth rate.
Another novice question. What does a merger or take-over usually do to an originally average-performance dividend stock? More specifically, I am thinking about BCE and ACE. There has been rumours of take-over bids for Bell Canada. And CAE has just acquired Engenuity Technologies, which I believe is an exciting merger from the technology perspective.
Thank you for your postings. I really enjoy reading them.