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 225 - OUTSTANDING STOCKS -BXP - NOBLE CORP -NORTHLAND OIL -KILROY ROYALTY -PAREX RESOURCES - IMPORTANCE OF HISTORICAL TRENDS
Welcome to Podcast 225:
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 + $10.35 (6) weekly hare price gain +8%.
QUALIFIERS’ STOCK SYMBOLS & THEIR SCORES: (1) NE Score 72 (2) NOG Score 69 (3) APA Score 59 (4) KRC Score 66 (5) BXP Score 57.
5 CANADIAN STOCK SELCTORS (1) common shares (2) dividend yield + 5% (3) # shares traded over 421K (4) operating margins +27% (5) share prices $1.61 (6) weekly share price gain +1%.
QUALIFIERS’ & SCORES (1) PXT Score 62 (2) FRU Score 58 (3) HWX Score 50 (4) SOBO Score 50 (5) NPI Score 53,
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| 14.84| 22.86 |25.49|0|0| 10.36| 26.23| 1.5M| 13.3x
FRU |12.40| 9.57|6.71| 3 |0| 8.71| 58.82|628K |12.6x
HWX|6.57| 4.46| 2.94|3| 0 |6.70| 47.87 |390k| |7.8x
SOBO|36.11| 0| 17.17| 1| 0 | 7.58|36.25 |1M|18.7x
NPI |20.75| 41.43 | 16.10| 5 | 0 | 5.78| 32.55|418K| 20.8x
US SCORE CALCULATIONS
| NE | 27.64 |24.89 |29.26 | 4 | 0 | 7.24 |20.75| 3M|9.2x
| NOG| 28.75 | 19.24 | 23.41| 1 | 2 | 6.26 | 41.74 | 1M | 4.5x
| APPA| 18.50 | 22.63 |14.45 | 3 | 1 | 5.41 |23.82||7M |6.7x
| KRC|34.92 |73.34 |45.59 | 3 | 0 | 6.19 | 28.99 |2M|20.8x
| BXP| 72.12 |123.17 |34.22 | 7 | 0 | 5.29 | 29.79 |2M | -2,751.3x
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
7 June 2025
Podcast 225
Greetings to listeners all around the world. Welcome to Safe Dividend Investing’s Podcast # 225, on June 7 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 from a reader. She has asked me to better explain why “Price Trend”, the third element used in my stock scoring matrix, is so important. I suspect that others may also have the same question.
The Price Trend element compares the current share price of a stock to its share price 4 years ago. This historical comparison results in 3 possibilities.
The historic share price could be higher, or it could be lower. If it is a newer company that was not listed in the stock market four years - then the Price Trend score would be zero.
To build a strong portfolio, you seek stocks with high dividends and increasing share prices. Rising share prices not only increase the capital value of your portfolio but they can also cause executives to increase dividend payouts to maintain the attraction to investors of their historical high dividend yield percent.
If the current price of the stock was less than the price it was 4 years ago its score would reflect that while the stock did exist 4 years ago, it would be given a low score. For example, if the current share price is 50.5% lower than the share price 4-years ago if would receive a score of only 1. The score then scales up from this low starting point. For example, if the current share price was 99.50% greater than the historical price 4 years ago, it would receive the maximum score for this element of 10. My books display the scores for the other 6 levels
The maximum possible score a stock can achieve when all 11 scoring elements are calculated is 100. After scoring thousands of stocks, the highest score I have ever calculated for was an 85 and the lowest was a 3.
Why is how long a company has existed so critical?
Back in the dark ages, Before Computers, in the nineteen sixties, when as a commercial credit reporter I was sent out every day to assess eleven businesses one of the critical questions, I needed answer to was the company’s starting date. These reports were for risk managers and risk managers recognized that the longer a business has been established the greater the chance that it will continue to survive.
They also recognized how difficult it was for a new business to establish itself in a competitive marketplace. Buyers are creatures of habit. They prefer to buy from sources they are familiar with and trust.
It takes great effort to convince a buyer to try a new product. This is why, when you go shopping at Costco’s, you may find a half dozen food sampling stations tempting you. These food manufacturers are trying to convert you from your current source of supply to what they have to offer.
When I created new products, I not only priced them at about a third less than the established supplier in the marketplace, but I also provided much better quality and faster service. I was also very generous about allowing prospective client to try the product free of charge before buying it.
Later in my life, when I managed the largest commercial collection operation in the country, I was able to observe that the majority of the thousands of collection claims we received were new businesses established within the last few years. These failed businesses had been unable to establish a large enough customer base to offset their expenses .
They usually did not go formally bankrupt. They usually just abandoned the business and walked away. To the collectors they were classified as limited companies out-of-business without seizible assets. The companies we collected for wrote these uncollectable claims off to bad debt.
When we subsequently built a computerized national commercial risk information database of 2,200,000 businesses, I was able to statistically see that about 20% of the businesses whose file we opened this year would disappear within 5 years.
In the mid nineteen seventies IBM, then the leading computer company in the world, laughed Bill Gates out of their offices when he proposed they buy his newly incorporated company, a penny stock called Microsoft. They laughed at the very idea that consumers would want personal computers.
The trend of share prices and dividend payouts is so important that I made sure in my last two investment books that, in addition to the 4 year historical element in the scoring matrix, I also show share prices and dividend payouts, year-by-year, back to 1999.
Your search is for stocks whose executives have shown that they know how to make high profits year-after-year and from which they want to pay ever higher dividends to shareholders like you.
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 $10.35
(6) a weekly share price gain exceeding 8%.
The 5 US STOCKS THAT QUALIFIED & THEIR SCORES:
5 Matches
(1) Noble Corp Plc (NE) Score 72
(2) Northern Oil & Gas Inc (NOG) Score 69
(3) APA Corp (APA) Score 59
(4) Kilroy Realty Corp (KRC) Score 66
(5) BXP Inc (BXP) Score 57
CANADIAN STOCK DATA SELCTORS USED:
(1) common shares
2) a dividend yield exceeding 1%
(3) the number of shares traded over 421,000
(4) an operating margin exceeding 27%
(5) a share price exceeding $1.61
(6) weekly share price gain exceeding1%.
The 5 CANADIAN STOCKS THAT QUALIFIED & THEIR SCORES:
(1) Parex Resources (PXT) Score 62
(2) Freehold Royalties Ltd(FRU)Score 58
(3) Headwater Exploration Inc (HWX) Score 50
(4) South Bow Corp (SOBO) Score 50
(5) Northland Powe Inc (NPI)Score 53
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 <BXP >at <$74.12>and < Headwater Exploration> was the least expensive at <$6.57>.
The most buy recommendations by analysts were for < BXP> with<7> and <Parex Resources > had <No> recommendations.
There were<7> strong buy recommendations for < BXP> .
The highest Book Value was for< Kilroy Realty Corp> at <$123.17> and the lowest was for < Headwater Exploration> at < $2.94>
The highest number of shares traded of <6.6million > was for <APPA Corp>and the lowest number was for < Headwater Exploration> with <390 thousand> .
The highest operating margin was for <Freehold Royalties > at<58.82%> and the lowest was for <Noble Corporation > with a <20.75%>.
The best Price-to-Earnings ratio of <4.5x> was for <Northern Oil & Gas> and the worse was < minus 2,751.3x > for <BXP >.
The stock with the highest IDM score of <Noble Corporation > was for < 72>. The Lowest scores,<each with a 50>, were <Headwater Explorations and South Bow Corporation>.
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.