Some Tricks, Some Bad Treats: Fall TSX Winners and Losers

There are a lot of things to like about the third-largest telecom company in Canada, Telus Corporation (TSX: T)(NYSE: TU). The stock has moved up as of late, including a 3% single-day increase on October 25. Telus makes it to the list of TSX winners this fall. Here is a look at winners and losers.

Winners

TSX investors will likely have been rewarded by a solid couple of months. Out of 163 TSX companies trading on higher volume, 100 of them (61%) have traded up on high volume and 63 have traded down. Owning stock in Open Text Corp. (TSX: OTEX)(NASDAQ: OTEX) or Constellation Software Inc. (TSX: CSU) would have produced gains greater than 11% in four weeks.

Meanwhile, gains for Colliers International Group Inc. (TSX: CIGI)(NASDAQ: CIGI) and Intertape Polymer Group Inc. (TSX: ITP) were bigger — both are up over 12%.

Intertape has made a remarkable comeback since 2008, when the stock traded for one dollar. Its current price is now 20 times higher. In recent weeks, this $1.2 billion tape company is rallying after a price correction in the summer. The company has increased sales and revenue in the last four consecutive quarters. The stock is still far below the 200-day moving average, despite the double-digit percentage increase as of late. The dividend is currently at 3.4% and looks pretty solid, making this stock even more enticing.

Losers

Peyto Exploration & Development Corp. (TSX: PEY) continues to fall. It has dropped 48% year to date and 16% in the last four weeks. It is too risky to buy this stock now, in my opinion, as it is showing no signs of stabilizing.

Several other energy stocks have taken a beating as of late, such as Enbridge Income Fund Holdings Inc. (TSX:ENF). Enbridge Income Fund is the stock you buy when you want a larger dividend out of Enbridge Inc.; it has free cash flow to pay the 7% dividend, while Peyto’s high yield is more in jeopardy.

Middle-of-the-pack Telus

Amid the ups and downs, Telus is creeping up, roughly middle of the pack among the TSX recent market gainers. It has momentum on its side now that the stock has hit an all-time high. Even at these levels, a long-term hold of this stock is still a good investment. Others agree that although the company’s bottom line is complicated, spending “every dime that’s coming in,” I personally think Telus is a great stock because of the dividend, which is currently 4.19%.

The $0.49 per share quarterly dividend payment has increasing by roughly 10% per year for nearly 10 years. That’s nice. Also, Telus tends to have a monthly stock change that is biased to the upside. Telus moves up 1% per month (median), and often 3-4% increases for the month, which is capital appreciation that adds to the dividend income.

All things considered, Telus is a core holding — a winning proposition.