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 239 - ANALYZE & SCORE 3 STOCKS ALONG WITH ME -INSW -JACK & JAKK
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Welcome to Safe Dividend Investing's Podcast 239- (13 September 2025)
Ian Duncan MacDonald has started to write another investment book on stocks traded on the New York Stock Exchange and the NASDAQ. It will be called “2025 Edition – America’s 200 Strongest High Dividend Stocks – Analyzed and Scored”. It is being written for investors who fear making investing in individual stocks because they fear losing the savings, they may have spent a lifetime accumulating.
Ian's books always show investors an easy, safe way to pick financially strong companies who pay high dividends . Stocks that can provide a generous, reliable, growing income while also increasing the value of their portfolio.
Unlike mutual funds and other investment vehicles where investors have no control over their investment, self-directed investors who create a manageable portfolio of 20 stocks from the 200 analyzed and scored stocks will know exactly what they are invested in and why they chose each stock for their portfolio.
Ian is inviting those wanting to gain self-confidence in self directed investing to follow along in his podcasts over the next few months as he scores and analyzes a sampling of financially strong, high dividend stocks from his new book. You may want to refer to the written transcript that accompanies each podcast.
Today he is scoring, comparing and analyzing;
(1) International Seaways IJnc (stock symbol - INSW)
(2) Jack In The Box Inc (stock symbol - JACK )
(3) JAKK Pacific Inc ( stock symbol - JAKK)
For more information on self-directed investing go to my website www.informus.ca or listen to the previous 237 weekly podcasts. The first 160 podcasts are devoted to answering questions from investors just like you.
Ian Duncan MacDonald
Author and Commercial Risk Consultant,
President of Informus Inc
2 Vista Humber Drive
Toronto, Ontario
Canada, M9P 3R7
Toronto Telephone - 416-245-4994
imacd@informus.ca
Safe Dividend Investing
13 September 2025
Podcast 239
Greetings to listeners all around the world. Welcome to Safe Dividend Investing’s Podcast # 239, on September 13th of 2025. My name is Ian Duncan MacDonald and I am an author of six investment books.
I continue to work on my new investment book to be called “2025 Edition – America’s 200 Strongest High Dividend Stocks – Analyzed and Scored”. Like all my other investment books it is being written for those who fear investing in the stock market because they believe they could lose the savings that they may have spent a lifetime accumulating.
My objective is to show you how easy it is to identify financially strong companies that will provide a generous, reliable, growing, monthly dividend income but also grow the total value of your portfolio.
Self-directed investors are unlike those who blindly entrust their life savings to so called “investment professionals” (whose hidden agendas and incentives may not be in an investor’s best interest). A self-directed investor not only saves thousands of dollars in investment fees, charges and commissions but they understand the strength of what they chose to carefully invest in.
As a self-directed investor you would gain free access to stock research tools available on the internet. These tools immediately allow you to narrow your search from the thousands available down the 20 financially strongest, paying high dividends.
This selection process is like what I am now going through in selecting the 200 financially strongest, high-dividend stocks for this new book. I began my search by entering the following criteria into my bank’s free stock selector program:
(1) The stocks listed on the New York Stock Exchanges or the NASDAQ.
(2) Only common shares are wanted. Preferred shares are excluded.
(3) The stocks must have a dividend yield percent of 5 percent or more.
(4) The share price must be $5 or greater.
(5) Their Operating Margin must be 3% or more.
The 200 stocks that have appeared offer readers a wide enough choice to select the 20 best for their portfolio. 20 is enough to give a portfolio a safe diversification, yet small enough for an investor to easily create and manage their portfolio.
This week I have chosen to review from the 200 selected stock ”whose company name begins with the letters I and J. By scoring and analyzing these 3 stocks along with me, you can see how you could confidently build your own strong portfolio of 20 high dividend stocks.
The three stocks selected for analysis this week are:
(1) International Seaways Inc (stock symbol – INSW). It is a New York, NY, based, US crude oil and petroleum tanker company.
(2) Jack In The Box Inc (stock symbol – JACK) is a San Diego, California based US hamburger franchise restaurant chain with 2,200 locations.
(3) JAKKS Pacific Inc (stock symbol - JAKK) is a Santa Monica, California, US, based manufacturer and marketer of toys and consumer products.
To help investors compare stocks. I freely supply my IDM stock scoring software, on request, to those who purchase any of my 6 books from Amazon.com. Each book details how the scoring system works and even shows how to calculate scores manually without the software.
The first data element to be considered and scored is the stock’s current share price. A high share price is an indication of strength. It is a stock in demand.
The highest share price of the three was INSW at $46.28, the two lower were JACK at $18.42 and JAKK at $17.48. (All amounts are in US dollars).
Thesecond element is the stock’s share price 4 years ago. in August of 2021, JACK led a with a share price $102.85. However, over the last 4 years it has now lost 80% of its value. INSW has almost tripled its value from the $16.07 it was 4 years ago while JAKK showed over a 20% increase from the $13.97 it was at.
A stock whose share price is growing is sign of strength. A shrinking share price is a warning sign to consider.
The third element is the book value of the shares. Book value is the financial evaluation of company’s worth as calculated by accountants. INSW with a book value $37.73 had the highest book value but JAKK’s book value of $21.80 was better because it was a quarter higher than its current share price of $17.48. JACK’s had a book value of minus $45.24 which was about a third lower than its current price.
Strong stocks whose book value is close to their current share price or even exceeding the share price indicate the stock is strong. It can make the purchase of that stock seem like a real bargain with increased odds the share price will increase.
The fourth and fifth elements are how many investment analysts have given the stock a “buy” and a “strong buy” recommendation. My research indicates that analysts are only at best about 50% accurate in predicting future stock prices. However, their predictions are considered because they do motivate some speculators to buy or sell stocks which can impact share prices.
INSW led this scoring element with 4 buy recommendations. JACK had 2 buy recommendations and JAKK had none. There were 1 strong buy recommendations for both JACK and JAKK. I define a strong buy as an analyst’s predicted share price that is at least 50% higher than its current share price.
The sixth element was the dividend yield percent. JAKK was highest, with a dividend yield of 5.72%. INSW’s dividend yield was 1.04% and JACK’s has stopped paying dividends. Since dividends are paid out of profits, high dividends are usually a good indicator of a company’s financial strength. However, sometimes a weak company will pay an unusually high dividend to desperately hold onto or attract shareholders who do not consider all the information elements in choosing the stocks for their portfolio.
The seventh element was the operating margin. It reveals the amount of money left over after operating expenses are deducted from revenues. The higher the operating margin percentage, the stronger the stock. INSW’s operating margin of 34.37% was highest followed by JAKK at 6.78%. JACK’s was at 0.61%.
To drive up their operating margins, good managers focus on increasing revenues by raising prices and adding new products while reducing expenses. It is wise to compare operating margins of other companies in the same industry to get an idea of what a normal operating margin for a company in that industry would be.
The eighth element was the stocks’ share trading volume. High trading volumes usually, but not always, indicate rising prices for a stock in high demand. JACK’s traded 179,032 shares that day. INSW traded 59,535 shares traded, while JAKK had only 21,904 shares traded. A sudden high volume of shares traded can indicate either high demand or rejection of that stock by investors. Further investigation may be required.
The final element was the price-to-earnings ratio. It is not unusual to see hot speculative stocks with ratios of 300 to 1 or even in extreme cases 1,000 to 1. I always think of price-to-earning as indicating how many months of profits it would take to earn back the money invested in buying a stock. The lower the ratio the better.
JAKK had the best Price-to-Earning’s ratio at 5.2x. INSW’s Price to Earnings ratio was also good at 9.6x. JACK’s at minus 5.4 would be of concern.
When all these sub-elements were entered into the IDM scoring software the total grand score for JAKK was 59, INSW’s was 56 and JACK’s was 28 .
The IDM scoring software grades stocks between 0 and 100. The highest score I have ever calculated was an 86. Few stocks score over 70. The lowest score was a 3.
I personally avoid adding stocks to my portfolio that score under 50. (Most stocks score under 50).
The higher the score, the stronger the stock appears to be. However, the highest score may not always be your best choice for a portfolio. A score in the fifties might be paying a much higher dividend yield and be a better income producing choice than a score of 70. That is why it is always recommended that you always take the time to check historical share prices and dividend payouts going back, year by year, to 1999.
While you are looking for a healthy upward trend over the 25 years. It would be unusual to see consecutive increases each year. However, over several years you would want to see a healthy upward trend.
You also want to confirm that the executives of the company believe in consistently sharing their profits with their shareholder/owners by paying dividends. Once such a dividend habit is established, you will often see these managers increasing dividend payouts at a much faster rate than the share prices which are controlled by speculators. While managers have limited influence on share price their dividend increases keep your income ahead of inflation.
When I did a price and dividend history check of the three stocks, I found that INSW was not listed on the stock exchange until 2016. Its share price debuted at $13.95 with no dividend payout. It was not until 2020 that it first paid a dividend of $0.06. By then its share price and climber to $23.44. Its share price climbed to $45.00 in 20.23 with a dividend payout of $0.12 In 2024 the share price dropped to $35.79 while still paying a dividend payout of $0.12.
JACK’s share price in 1999 was $25.25 but it did not pay a dividend until 2014 when its dividend payout was $0.20. In 2016 the share price had reached $111.00 and the dividend payout was $0.40. In 2024 its share price had dropped to $42.38 and its dividend payout was $0.44.
JAKK’s share price in 1999 was $186.25 but a dividend payout did not appear until 2011 when $1.00 was paid. There was a dividend payout of $0.70 in 2013 and the no more dividend payouts for the next eleven years. During those years the share price dipped as low as $3.82 in 2020 but climbed to $25.79 by 2024.
The final historical stock record to check is to do a Google search for each stock which includes their company name, their stock symbol and the words “complaints” and “legals”. There were no recent lawsuits filed against the companies. However, Jack In The Box had many complaints filed with the Better Business Bureau about food quality and unprofessional staff,
The perfect stock does not exist. However, if you had to make a choice which one of these 3 stocks would you choose? By showing that you can make such a choice, you have demonstrated that you do have an ability to analyze stocks.
While scoring stocks helps protect your investment, the safety of your portfolio is also greatly increased when you invest equally in 20 strong stocks. With 20 stocks only 5% of what you have invested in any one stock would ever be at risk. Furthermore, because you would be generating between 6% and 8% in annual dividend income and also generating an annual portfolio capital gain, most years, of 9% or more, the odds of you ever realizing a significant loss in your total portfolio are highly unlikely.
By investing your dividends back into the 20 stocks in your high dividend portfolio you can expect to see your portfolio doubling within 5 years. This is due to the compounding benefit of earning new dividends from your re-invested dividends.
FOR MORE INSIGHTS INTO SAFE INVESTING VISIT my website www.informus.ca and all listen to all 239 of my weekly “SAFE DIVIDEND INVESTING” podcasts.
Until next week’s podcast this is Ian Duncan MacDonald encouraging you to become a successful, wise, self-directed investor.