Podcast 199 - KRAFT HEINZ CO - UNITED PARCEL SERVICE - TRANSCONTINENTAL INC - PHX ENERGY SERVICES - STELLANTIS NV. Artwork

Safe Dividend Investing

In 2000, I lost $300,000 in mutual funds that an investment advisor had put my lifesavings into.... I lost it because I had entrusted it to an industry that does not educate investors nor encourage them to look closely at what that industry is doing with their money..... I set out to find a better, safer way to invest..... My podcasts relate to what I learned in creating a generous, reliable income and in growing my wealth.... A few of the more important lessons I learned and explore are:.... (1) It is critical that you become a self-directed investor.....(2) If you can not easily measure the risk and potential in an investment, then do not invest in it. This excludes from your portfolio bundled investment devices, like mutual funds, ETFs and Index funds,..... (3) Financially strong companies who have paid “good dividends” for decades will continue to stay strong and continue to pay good dividends because it is both part of their "character" and in their executives selfish interest.....(4) Diversification is critical. Investing equally in the best 20 strong dividend stocks is the ideal.....A portfolio of 20 limits your risk in any one stock to 5% of your wealth..... No matter how strong you think a stock is, do not fall in love with it..... I have lived very well off my steady dividend income for 18 years, through two market crashes and one pandemic. I have watched my portfolio’s capital more than triple from where I started, despite taking out a generous dividend income every year to live on... In charts, for my second investment book,(Safer Better Dividend Investing), I spent months scoring all 628 dividend stocks paying dividends of 6% or greater traded on the TSX, NYSE and the NASDAQ. I discovered dozens of stocks that can provide not only a generous dividend income but outstanding capital growth.....Financial independence is realizable for careful, patient, dividend investors.

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Safe Dividend Investing

Podcast 199 - KRAFT HEINZ CO - UNITED PARCEL SERVICE - TRANSCONTINENTAL INC - PHX ENERGY SERVICES - STELLANTIS NV.

December 14, 2024 • Ian Duncan MacDonald

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Welcome to this week's Safe Dividend Investing's podcast. For greater accuracy, you may want to go to the printed transcript provided with this podcast for the list of 5 outstanding US stocks and 5 outstanding Canadian stocks identified this week. It is interesting to see how scoring these 10 stocks revealed their hidden strengths and weaknesses that were not initially evident.

The first 190 Safe Dividend Investing podcasts answered questions from listeners and readers of my publications. Not wanting to repeat the same material that had already been covered, the weekly podcasts now deal with identifying interesting stocks whose growth in the last week may make them worth considering as possible portfolio acquisitions.

Visit www.informus.ca for information on my six investment guide books and stock scoring software.

IAN
imacd@informus.ca

Ian Duncan MacDonald
Author, Artist, Commercial Risk Consultant,
President of Informus Inc
2 Vista Humber Drive
Toronto, Ontario
Canada, M9P 3R7
Toronto Telephone - 416-245-4994
New York Telephone - 929-800-2397
imacd@informus.ca

Pod 199 - 14 Dec 2024

Safe Dividend Investing-

Greetings to listeners all around the world. Welcome to Safe Dividend Investing’s Podcast # 199, on December 14 of 2024. My name is Ian Duncan MacDonald.

In the 4,000 minutes that were recorded for the first 190 Podcasts of Safe Dividend Investing, you can find answers to hundreds of investment questions. Starting with Podcast 191 I changed my podcast format. Each week I now sift through the 17,000 of stocks traded in North America and bring to your attention the five most outstanding U.S. stocks and the five most outstanding Canadian stocks. Each of these stocks has been scored. Their score appears along with the five criteria that were used in finding them.

If you have not already obtained the stock scoring software that I supply free to those who purchase my investment guidebooks, please visit my website www.informus.ca where you can learn more about it. It has helped many investors quickly sort out the best financially strong stocks with high dividend payouts. While the score is calculated out of a possible 100, the highest score I have ever calculated, out of the thousands I have scored, was a 78. The lowest was a 5. I personally prefer stocks scoring over 50 in my portfolio.

I am not an investment advisor, I am an “investment educator” trying to provide investors with enough insight into judging the value of a stock that they can easily make decisions on which safe stocks to choose for their portfolio.

THE TEN OUTSTANDING US & CANADIAN STOCKS FOR 14 DEC 2024

The following 5 US & 5 Canadian stocks qualified because they exceeded the following criteria.

(1) Trading volume exceeding 1 .26 million in US shares and 70,000 in Canadian shares.

(2) A US and Canada dividend yield percents exceeding 5%.

(3) A weekly price gain exceeding 2% in the US and 0% in Canada.

(4) US share price exceeding $9.03 and exceeding $5.37 in Canada.

(5) A US Operating Margin Exceeding 11% and 1% in Canada

The 5 US stocks were:

1. Stellantis NV (STLA: NYSE)...........................SCORE = 57

2.The Kraft Heinz Company (KHC: NYSE)……..SCORE = 68

3. The AES Corporation (AES:NYSE) …………….SCORE = 55

4. UGI Corporation (UGI: NYSE)………………… SCORE = 56

5. United Parcel Service Inc (UPS: NYSE)……….SCORE = 67

The 5 Canadian stocks were:

1. Peyto Exploration and Dev (PEY: TSX)..SCORE = 59

2. Transcontinental Inc (TCL.A: TSX) …….SCORE= 60

3. Paramount Resources (POU: TSX)……..SCORE = 61

4. PHX Energy Services (PHX: TSX) …,….SCORE = 45

5. Cardinal Energy (CJ: TSX)………………..SCORE = 43

While scoring these US and Canadian stocks I found the following interesting:

The most expensive stock, was United Parcel Service at $128.76. Cardinal Energy was the least expensive at $6.37. United Parcel Service also had the most buy recommendations by analysts with 12. The least number of recommendations were for Cardinal Energy. It had none. The only stock with a strong buy recommendation was Transcontinental Inc.

The highest Book Value was also for Kraft Heinz at $40.66 and the lowest was the AES Corporation at $3.72, which also had the highest number of shares traded at 10,761,415. The lowest number of shares traded was for PHX Energy Services with 23,886.

The highest dividend yield percentage was for Stellantis NV with 11.84%. When Stellantis appeared last week the dividend yield was 12.10%. The lowest dividend yield was Transcontinental at 4.98%.

The highest operating margin was Cardinal Energy at 28.33% and the lowest was for Transcontinental at 7.45%.

The highest price to earnings ratio was 28.5x for Kraft Heinz and the lowest, at 2.9x, was Stellantis NV.

The stock with the highest IDM score was Kraft Heinz with a score of 68 and the lowest score was Cardinal Energy with a 43.

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Scoring stocks gives you an objective measure to compare and judge the potential and value of each stock. It is strongly recommended just before you purchase any stock that you always do your due diligence and score the stock to make sure you have a good understanding of its current strength.

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As I see it, investment companies work hard to convince the public that they could never invest profitably without allowing the financial industry to nibble away at a client’s life savings for the rest of their lives. The objective of advisors is to transfer as much money from your pocket to the pocket of the financial institution that employs them.

I knew 24 years ago that I had to find a better way to invest when I saw a $300,000 loss in the mutual funds an investment advisor had put my life savings into. Since then, I have learned if you are patient and disciplined you can easily grow your portfolio as a self-directed investor without paying hundreds of thousands of dollars in fees over your lifetime to the investment industry parasites.

My early research quickly showed me that most investors are speculators. They see their wealth destroyed when their bet on a stock increasing in price falls below their purchase price. With such speculative churning encouraged by the investment industry, it became obvious that no one can accurately predict future share prices.

I became a successful self-directed investor by carefully selecting and buying 20 strong, high dividend stocks through my bank’s online self-directed investment platform.

Why have I never been disappointed in my income or my capital gain from my 20 stocks? Because my financially strong stocks have paid ever increasing dividend payments out of their company profits.

While share prices are determined by impulsive speculators making guesses, my dividend payouts are the result of the wise revenue and expense decisions made by the experienced managers of the companies whose shares I own. Looking at freely accessible records that go back for decades, anyone can easily see before they buy a share how the stock’s fluctuating share price has had almost zero impact on a stock’s rising dividend payouts.

What do I do when a market crash comes along, and the share price of my stocks, like all stocks, may drop by 50%? I relax and do nothing because I live off my dividends. Those dividends are paid throughout the crash as regularly as they have always been paid by these strong stocks. I know from experiencing the last three market crashes that eventually the share prices of my 20 financially strong stocks will recover and grow to new record high values. During the crash I pay my monthly bills with my dividend dollars just as I have always done.

The idea the investment industry promotes that your portfolio must shrink in value after you retire is false. The value of my portfolio has grown by several multiples into the 7 figures and is still growing.

I go for years without selling any of the stocks in my portfolio while realizing a dividend income of 6 to 8 percent each year of the value of my portfolio. The share prices of these 20 strong companies can also increase by about 12% most years. These rising share prices often cause the company’s managers to proudly increase their dividend payouts to maintain their stock’s historically high dividend yield percentages. That has kept my dividend payouts well ahead of inflation. You can also build a strong dividend portfolio.

Until next week’s podcast this is Ian Duncan MacDonald encouraging you to become a successful self-directed investor.

Any questions and comments can be sent to imacd@informus.ca.