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.
Safe Dividend Investing
Podcast 224 - OUTSTANDING STOCKS - ROGERS COMMUNICATIONS - SIMON PROPERTIES GROUP -NOBLE CORPORATION
Welcome to Podcast 224:
This week’s 10 outstanding high dividend stocks are in the attached podcast’s narration and transcript.
5 U.S STOCK SELCTORS USED (1) common shares (2) dividend yield + 5% (3) # shares traded over 1M (4) operating margins +16% (5) share prices + $5.79 (6) weekly share price gain +4%.
QUALIFIERS’ STOCK SYMBOLS & THEIR SCORES: (1) GOGL Score 50(2) NE Score 60 (3) SPG Score 69 (4) BXP Score 56 (5) LXP Score 41.
5 CANADIAN STOCK SELCTORS (1) common shares (2) dividend yield + 5% (3) # shares traded over 300K (4) operating margins +20% (5) share prices $5.79 (6) weekly share price gain +1%.
QUALIFIERS’ & SCORES (1) PXT Score 53 (2) RCI.B Score 63 (3) BCE Score 48 (4) NPI Score 57 (5) BEPC Score 43.
DATA USED FOR ALL STOCK SCORE CALCULATIONS: (1) Price $ (2) Price 4yrs ago $ (3) Book Value $ (4) Advisor Buys # (5) Advisor Strong Buys # (6) Dividend. Yield % (7)Operating Margin % (8) Share Volume Traded # (9) Price/Earnings Ratio.
CNADIAN SCORE CALCULATIONS (K=thousand M=million)
STOCK 1 2 3 4 5 6 7 8 9
PXT| |13.57| 15.48 |25.59 |0|0| 11.3| 34.25| 1M| 12.1x
RCI.B |36.84| 62.37|19.40| 3 |2| 5.45| 24.30|2M |11.2x
BCE |29.90| 60.06| 18.71|1| 0 |5.85| 12.90 |4M| |70,8x
NPI |20.46| 40.42| 16.10| 5| 0 | 5.77|31.61|1M|20.5x
|BEPC |40.40| 51.26 | 3.58| 3 | 0 | 5.58| 5.09|3482K| 0.0x
US SCORE CALCULATIONS
| GOGL | 7.70 |9.97 |9.53 | 1 | 0 | 10.72 |21.92| 4M|13.6x
| NE| 24.77 | 0 | 29.26| 4 | 0 | 7.86 | 23.71 | 2M | 8.3x
| SPG| 163.07 | 132.27 |9.02 | 4 | 0 | 4.81 |5.15|51.47|2M |21.0x
| BXP |67.33 |120.27 |34.22 | 7 | 0 | 5.69 | 29.85 |1M|-2599x
| LXP | 8.58 |12.58 |7.12 | 1 | 0 | 6.18 | 17.13 |2M | 43.8x
For information on my 6 investment books go to www.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
Safe Dividend Investing
31 May 2025
Podcast 224
Greetings to listeners all around the world. Welcome to Safe Dividend Investing’s Podcast # 224, on May 31st of 2025. My name is Ian Duncan MacDonald.
Before I reveal this week’s 5 outstanding US and 5 Canadian high dividend stocks whose share prices gained the most this week, I would like to respond to a question I keep being asked.
There appears to be many out there who want to invest in stocks but fear making a mistake and losing all their money. They want to know how I would start and how I would do it safely.
Achieving financial independence through investing in stocks is the objective. The following is an overview of how this objective can be achieved. My books, of course, get into the details
To invest in stocks, you first need to acquire some money that you can invest. I would suggest that if you lack the ability, discipline and perseverance to save at least $5,000 for your initial safe stock purchase that you should perhaps invest in lottery tickets and dream about winning the big one. $5,000 is enough of a sum to focus you and for you to take stock investing seriously.
You would want to save the initial $5,000 in a savings account of a bank that provides free stock research tools and services for self-directed investors. When the $5,000 is finally accumulated, you are going to transfer it from your savings account to your self-directed stock trading account. You want to keep this money far away from greedy investment advisors. Their charges, fees and commissions would eat up too much of your dividend income.
Long before you make this cash transfer, you would have read my investment books. They show you how to find financially strong stocks with long histories of both paying ever increasing high dividends as well as realizing ever increasing share prices. Your objective is to identify 20 such stocks. 20 stock is enough to safely diversify your risk and yet not requiring too much of your time to monitor them.
Looking at the easily available free research data available on all stocks, plus using the stock scoring software that I supply to my book buyers, you will sort the 20 stocks you have qualified and intend to eventually purchase by their potential to grow and their steady dividends. The “best” stock is the first one whose shares you are going to buy with the $5,000 now in your trading account. You then start to save $5,000 to buy the second stock on your list and keep saving and buying until all 20 are bought. Yes, for some this could take years. Those who already have hundreds of thousands of dollars to invest can divided that mighty sum by 20 and equally invest in the 20 stocks you identified.
For others each of their $5,000 will be easier and easier to acquire because not only are your savings still being deposited into your trading account but also the dividend income arriving from the stocks you have already purchased.
In time your dividend income will compound. You will be making dividend income off the dividends you previously invested.
By the time you are finished buying all 20 stocks, the value of your growing portfolio will exceed $100,000. You continue to invest your savings and dividends into those same 20 stocks until your dividend income is high enough that you could live off it - if you choose to. You have now achieved the financial independence you sought.
The portfolio’s capital value and the dividend income will continue to grow and keep your income ahead of inflation. This large stock portfolio of stocks generating your income also becomes a financial cushion which in an emergency you could sell off enough shares to cover any urgent need for money.
Since income independence is the long-term goal, it becomes important that some of your stocks be sheltered in a registered retirement savings plan so that your dividend income will not be taxed when you are building your portfolio. You should also be able to realize immediate income tax benefits for having deposited this money there. The bank can set this up for you.
You invested in 20 different stocks to achieve the safety of diversity. The few stocks who might depart from their historic patterns of positive behavior will have a negligible impact on your income or acquired wealth. The strength of your total portfolio is more important than the individual stocks.
When you consider that you may be holding some of these purchased stocks for 30 or more years, the transaction fee of less than $10 each time you purchased your $5,000 worth of stock is negligible, as is the timing of when you buy the stock.
Many new investors fear market crashes. These reoccurring events are caused by speculators impulsively gambling on future share prices in their pursuit of getting rich quick through the buying stocks at a low price and hopefully selling them at a higher price. In a crash, your share price drops could temporarily cause your safe portfolio’s value to drop by 20% to 50%. However, such share price drops are irrelevant when your 20 financially strong stocks continue to have scores over 50 and high dividend yields over 5%. During a market crash you relax and continue to collect your steady dividends and wait for the stock market to recover.
Over the years and decades, the total value of your original portfolio of 20 stocks will increase by many multiples. That initial $100,000 could, in time, increase to over $1,000,000. The important thing to remember is financial independence can only be realized if you start investing now.
STOCK SELECTORS USED THIS WEEK
The U.S STOCK DATA SELCTORS USED WERE
(1) common shares
(2) a dividend yield exceeding 5%
(3) the number of shares traded over 1 million
(4) an operating margin exceeding 16%
(5) a share price exceeding $5.79
(6) a weekly share price gain exceeding 4%.
The 5 US STOCKS THAT QUALIFIED & THEIR SCORES:
5 Matches
(1) Golden Ocean Group (GOGL) Score 50
(2) Noble Corp PLC (NE) Score 60
(3) Simon Property Group (SPG) Score 69
(4) BXP Inc (BXP) Score 56
(5) LXP Industrial Trust (LXP) Score 41
CANADIAN STOCK DATA SELCTORS USED:
(1) common shares
2) a dividend yield exceeding 5%
(3) the number of shares traded over 300 thousand
(4) an operating margin exceeding 20%
(5) a share price exceeding $5.79
(6) weekly share price gain exceeding1%.
The 5 CANADIAN STOCKS THAT QUALIFIED & THEIR SCORES:
(1) Parex Resources Inc (PXT) Score 53
(2) Rogers Communications Inc(RCI.B)Score 63
(3) BCE Inc (BCE) Score 48
(4) Northland Power Inc (NPI) Score 57
(5) Brookfield Renewable (BEPC) Score 43
THE DATA USED IN CALCULATING THE STOCK SCORES FOR THE US AND CANADIAN STOCKS: (1) Price $ .
(2) Price 4yrs ago $
(3) Book Value $
(4) Advisor Buys #
(5) Advisor Strong Buys #
(6) Dividend. Yield %
(7) Operating Margin %
(8) Share Volume Traded #
(9) Price/Earnings Ratio.
*** GO TO THIS PODCAST’S LANDING PAGE FOR THE CHARTS SHOWING THE DETAILED SCORE CALCULATIONS FOR EACH STOCK ***
HIGHS AND LOWS
While identifying and scoring today’s US and Canadian stocks identified on the landing page, I found the following interesting:
The most expensive stock was <Simon Properties >at <$163.07>and <Golden Ocean Group > was the least expensive at <$7.70>.
The most buy recommendations by analysts were for <BXP Inc > with<7> and < Parex Renewables> had <0> recommendations.
There were<2> strong buy recommendations for < Rogers Communications> and < 0>recommendation for the other stocks.
The highest Book Value was for<BXP Inc > at <$34.22> and the lowest was for <Brookfield Renewable > at < $3.58>
The highest number of shares traded of <4 Million> was for both <BCE Inc> and <Golden Ocean Group> and the lowest number was for <Brookfield Renewable> with <348,000> .
The highest operating margin was for <Simon Property Group > at<51.47%> and the lowest was for < BCE Inc> with a <12.90%>.
The best Price-to-Earnings ratio of <8.3x > was for< Noble Corp> and the worse was < minus 2,499.3x > for <BXP Inc >.
The stock with the highest IDM score of <69 > was for < Simon Property Inc>. The Lowest score was a <41> for <LXP Industrial Trust >.
Note #1.In the first 190 Podcasts of Safe Dividend Investing, you can find answers to hundreds of investment questions.
Note #2: In Podcast 210 you can see detailed information on how scores are calculated and why these scoring elements were chosen. To have faith in a score I learned long ago that it was important to understand how it is calculated
Until next week’s podcast this is Ian Duncan MacDonald encouraging you to become a successful, wise, self-directed investor.
Any questions and comments can be sent to imacd@informus.ca.