Archives April 2025

Updated on April 2nd, 2025 by Nathan Parsh

Thanks to the diverse offerings available in the stock market, investors can buy stock in companies of all shapes and sizes. Companies with market capitalizations of $10 billion or more are considered large-cap stocks, while small-caps have market capitalizations below $2 billion.

However, even smaller companies are trading in the United States. For example, micro-caps generally have market capitalizations of $300 million or less.

Cross Timbers Royalty Trust (CRT) is a micro-cap, and a tiny one at that—its market capitalization is just $74 million. Although its market capitalization is minuscule, its dividend is quite large. Cross Timbers stock has a high dividend yield of 8.1%.

Plus, Cross Timbers pays a monthly dividend. Sure Dividend has compiled a database of 76 monthly dividend stocks (along with important financial metrics such as dividend yields and payout ratios) which you can access below:

 

Despite its high yield and monthly dividend payouts, Cross Timbers has a highly uncertain outlook. The company has a very risky business model, and its annual dividend payouts declined steadily between 2014 and 2020.

Therefore, only the most risk-tolerant investors should consider buying Cross Timbers.

Business Overview

Cross Timbers Royalty Trust was created on February 12, 1991, and it earns money from two sources. First, income is derived from a 75% net profits interest in seven oil-producing properties in Texas and Oklahoma operated by established oil companies.

In addition, income is generated from a 90% net profits interest in gas-producing properties in Texas, Oklahoma, and New Mexico. The primary gas-producing field is the San Juan Basin in northwestern New Mexico.

The trust was created to collect net income and then make distribution payments to unitholders based on that income. XTO Energy, a subsidiary of ExxonMobil (XOM), pays the trust’s net income on the last business day of each month.

CRT’s 75% net profits interest is reduced by production and development costs, while the 90% net profits interest is not subject to these costs. Without production and development costs, the 75% net profits interest income is usually only affected by changes in sales volumes or commodity prices.

CRT had royalty income of $12.5 million in 2022 and $12.3 million in 2023. In 2024, oil comprised 72% of total revenues while gas comprised 28% of total revenue.

On March 27th, 2025, CRT reported financial results for the fourth quarter of the fiscal year 2024.

Oil and gas volumes decreased by 15% and 32%, respectively, over the prior year. In addition, the average realized price of gas declined 34%. As a result, distributable cash flow (DCF) per unit decreased by 51%. The price of oil has fallen below the key technical support of $70 lately, as OPEC is about to begin unwinding its production cuts, but the price of gas has rallied lately due to cold weather.

After factoring in $60,253 in interest income and $158,890 in administrative expenses, distributable income for Q4 2024 was $1.32 million, or $0.2195 per unit, compared to $2.42 million, or $0.4028 per unit, in the same period in 2023. Administrative expenses increased by $129,427. Interest income fluctuations are tied to changes in net profits, expense reserves, and interest rates.

Calculation of Net Profits Income

The following is a summary of the calculation of net profits income received by the Trust:

Source: Company Report

Growth Prospects

One of the major catalysts for Cross Timbers moving forward would be higher oil and gas prices. Falling commodity prices weighed on the income derived by the trust in 2014-2020. On the other hand, thanks to the rally of oil and gas prices to 13-year highs in 2023, CRT achieved an 8-year high DCF per unit that same year. Strong commodity pricing can boost distributable income and, therefore, the share price. However, given that OPEC production cuts are about to unwind, the stock has retreated from levels near the all-time high.

CRT has very minimal operating expenses since it is a royalty trust. This means that its operating leverage is huge when revenue rises. Because of this, oil and gas prices are critical for the trust’s distributable income; hence, its growth is almost entirely dependent upon commodity prices.

The trust has generated an average distributable and distributed cash flow of $1.24/unit annually for the past 10 years, though with a noticeable decrease in the past eight years, until 2022. The distribution trend essentially parallels the trend in oil and gas prices.

Moreover, CRT estimates that the rate of natural production decline of its oil and gas properties is 6%- 8% per year. This is a significant headwind for future returns. We also expect the price of oil to deflate in the upcoming years due to the record number of renewable energy projects under development right now, as most countries are doing their best to diversify away from fossil fuels. As a result, we expect a -5% average annual decrease for distributable cash flow over the next five years.

Dividend Analysis

Since Cross Timbers is a trust, its distributions are classified as royalty income. Since the distributions are considered ordinary income, they are taxed at the individual’s marginal tax rate.

Cross Timbers’ distributions are declared 10 calendar days before the record date, the last business day of each month. The company’s distributions declined steadily between 2014 and 2020, reflecting weak commodity prices, but recovered in 2021 and 2022 thanks to a strong recovery in oil and gas prices.

In 2018, Cross Timber paid cumulative dividends of approximately $1.43 per share. However, 2019 saw distributions fall to $0.88 per share, followed by a further decline to $0.78 per share in 2020.

Fortunately, distributions partly recovered in 2021, as oil and gas prices rallied considerably off the pandemic lows. As a result, CRT offered total distributions of $1.92 per unit in 2023 for an average annual distribution yield of 10.9% in that year.

Moreover, the trust offered an 8-year high distribution per unit of $1.96 in 2022, thanks to the multi-year high oil and gas prices that prevailed throughout last year.

Cross Timbers is undoubtedly a high dividend stock. But its variable payout can swing wildly, depending almost entirely on the direction of oil and gas prices. Based on its distributions in the last 12 months, the stock currently offers an 8.1% distribution yield.

However, we note that the trust is entirely dependent upon commodity prices it has no control over. The trust continues to distribute essentially all of its income, as it has since its inception. Dividend coverage is never going to be strong given that Cross Timbers is required to distribute basically all of its income.

Future distribution growth is reliant upon higher distributable income. As a result, the trust’s distribution growth potential is essentially a bet on oil and gas prices. If commodity prices remain elevated, the trust will keep offering excessive distributions. However, we note the high cyclicality of oil and gas prices and their excessive downside risk off their current levels in the long run, especially given the secular shift from fossil fuels to renewable energy sources.

The bottom line for Cross Timbers’ distribution is that it is very unpredictable. While the headline yield is enticing, keep in mind that there is significant variability in any particular month’s payout, depending on commodity prices and production levels. Investors should consider the risk and volatility associated with oil and gas royalty trusts before buying Cross Timbers.

Final Thoughts

Cross Timbers gives investors a unique way to play potentially higher oil and gas prices in the future while realizing monthly income along the way. However, investors should take into account risks and unique characteristics before buying shares of a royalty trust.

Cross Timbers is a micro-cap, meaning it is more volatile and thinly-traded than larger companies. It is also a royalty trust, which carries its own risks.

Finally, Cross Timbers is not a long-term ‘sleep well at night’ dividend growth stock. Future results are dependent upon oil and gas prices and the true amount of reserves in the properties in which it is interested.

As a result, Cross Timbers is only a recommended stock for investors who accept the risks of royalty trusts and micro-caps.

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.

Hello, Reader.

In 1939, the British government wanted to boost public morale before the outbreak of World War II. So, they created a series of posters that featured simple motivational sayings.

The posters were never officially released, but one in the series gained widespread popularity after it was rediscovered in an English bookshop nearly 60 years later.

And there’s a good chance you’ve seen it…

This bright red poster quickly became a global phenomenon. There is even an official “Keep Calm and Carry On” web store, which sells T-shirts, mugs, and phone cases featuring the now iconic phrase.

The message is, indeed, simple, yet effective: We must stay composed in the face of adversity, continuing on as best we can.

And it’s a sentiment I’d like to share today, especially ahead of President Donald Trump’s “Liberation Day” announcements.

Trump is expected to announce a sweeping tariff plan after markets close today. So far, the plan has remained largely a mystery. Even this morning, the administration seemed unsure about the direction it is going to take.

Of course, it can be hard to “Keep Calm and Carry On” against so many unknowns.

But here’s what I do know: The best thing to do to “tariff-proof” your portfolio is to stay away from companies close to the trade war’s ground zero.

Here’s where to look instead…

Keeping Calm…

I recommend sticking with lowly valued, and seemingly “unpopular,” stocks.

Pharmaceuticals would be one such example.

Take Bristol-Myers Squibb Co. (BMY), one of the largest biopharmaceutical companies in the world… and one of healthcare industry’s greatest comeback stories.

As we wrote just yesterday in a weekly update for my paid Fry’s Investment Report service…

Shares of the firm had previously sold off on fears of a three-step patent cliff from cancer drugs Revlimid and Opdivo and heart drug Eliquis. A technical write-off of its 2024 Karuna acquisition only added to the selloff. 

But these cheap prices created an incredible buying opportunity that continues through today. BMY still trades in single-digit price-to-earnings ratios, despite now having one of the best oncology pipelines in the business. It also has growing potential in disorders like schizophrenia and Alzheimer’s disease thanks to its acquisition of Cobenfy last year. In fact, BMY has actually risen this week.

Indeed, many of the pharmaceutical names in my Fry’s Investment Report portfolio are up this week, despite the uncertainty.

Weeks before the threat of Trump’s tariffs arrived, I predicted that the lowly valued pharmaceutical sector would outperform the richly valued S&P 500 index. As I explained at the start of the year…

The pharmaceutical industry is becoming a hotbed of AI-enabled innovation and discovery. Therefore, as AI extends its tentacles into every facet of the drug discovery process, the industry’s profitability could grow considerably. Yet, The NYSE Arca Pharmaceutical Index is trading for just 14 estimated 2025 earnings, or 40% less than the tech-heavy Nasdaq-100 index. I expect that valuation gap to narrow considerably during 2025, as pharmaceutical stocks outperform most tech stocks.

So far, so good on that forecast.

In an otherwise bleak stock market environment, the pharma sector has been outperforming the Nasdaq-100 Index by a wide margin. The NYSE Arca Pharmaceutical Index has advanced 7% year-to-date, compared to the Nasdaq-100’s 7% loss, another richly valued index.

The same can be said for the European markets…

… And Carrying On

Even though shares of European stocks are down this week, they also have been outperforming our own market in 2025, for the most part.

That’s because they carry relatively low valuations.

It’s also because European companies have no “beef” with other countries. So even if they are shut out from the U.S. market in Trump’s latest tariff plans, they are not shut out from South America, Canada, or Asia.

In fact, to the extent that the rest of the world retaliates against the U.S., European companies could become “swing” providers of many products to other countries.

So, before today’s Liberation Day announcements and after, I will continue to “Keep Calm and Carry On.”

And I’ll help my paid-up members do the same by focusing on lowly valued sectors and stocks.

I recommend that you do that same… and the best way to do is by joining us at Fry’s Investment Report.

Click here to learn how to become a member today.

Regards,

Eric Fry

P.S. You’re almost out of time to access what could be the most important financial research of 2025.

For the past few years, Louis Navellier, Luke Lango, and I have been warning about a massive economic divide we call the “Technochasm” – and our predictions have proven alarmingly accurate. Now, we’re sounding the alarm about an even more dramatic acceleration of this trend, driven by AI’s explosive growth.

We have just issued urgent buy alerts on six stocks that could surge in the coming weeks and months, as AI enters turns the Technochasm into an abyss. You can learn more about how this will all play out in the markets and the names of these six stocks by watching this time sensitive video.

Just please don’t delay… this video comes offline tonight at midnight ET.

Written by Steven Dooley, Head of Market Insights, and Shier Lee Lim, Lead FX and Macro Strategist

Aussie, Chinese yuan hit on trade announcement

Global markets shuddered this morning after US president Donald Trump announced the long-awaited next stage of his trade program with a blanket tariff of 10% on all imports into the US.

In addition to the 10% minimum on all countries, Trump announced a series of other tariffs that reflect the restriction on US imports into other countries.

China will see an additional 34% tariff while Japan sees an additional 24% tariff. Australian imports will see the minimum 10% tariff imposed.

US sharemarket futures tumbled on the news. The S&P 500 fell 3.4% while the Nasdaq lost 4.3%.

In FX markets, trade sensitive currencies fell, with the AUD/USD down 0.9% as it reached one-month lows. The NZD/USD fell 0.7%.

In Asia, USD/CNH jumped 0.6% to near the year’s highs. USD/SGD hit one-month highs.

GBP/USD eyes rebound amid slower UK wage growth

UK wage growth is slowing, with median pay increases dropping to a three-year low at 3.5% in February, down from 4.0% previously.

This supports the Bank of England’s cautious approach to monetary policy, especially as private sector pay is expected to slow further by year-end.

GBP/USD is near four-month highs, while GBP/SGD is near eight-month highs. GBP/AUD however, is near five-year highs.

GBP/USD has followed a corrective decline from 1.2925, still above its 50-day EMA of 1.2770.

Key support levels lie at 1.2790–1.2860, where a rebound could pave the way for further upside, potentially forming a positive inverted head-and-shoulders pattern.

A sustained move above 1.3049 could open the door to 1.3264, while a break below 1.2790 risks further declines toward support at 1.2456.

EUR/USD poised for positive breakout as ECB eyes policy shift

The European Central Bank (ECB) may consider cutting rates in April if inflation data aligns with its 2% target, according to Governing Council Member Rehn.

Both AUD/EUR and NZD/EUR are near eight-month lows.

Looking at EUR/USD, the pair has rebounded from its recent corrective decline, still above its 50-day EMA at 1.0666

A close above 1.0955 would confirm this pattern, potentially opening the way for a significant move toward 1.1697.

However, if EUR/USD fails to hold above 1.0630, it risks further downside toward support near 1.0387.

USD jumps on tariff announcement

Table: seven-day rolling currency trends and trading ranges  

Key global risk events

Calendar: 31 March – 4 April

All times AEDT

Have a question? [email protected]

*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.

Recep Tayyip Erdogan’s unpredictability is one of the few things both his supporters and critics agree on. Over two decades as prime minister and president, he has often made abrupt, consequential decisions with little warning.

Still, the March 19 arrest of Istanbul mayor Ekrem Imamoglu—widely seen as Erdogan’s chief rival and the opposition CHP’s likely candidate in the 2028 presidential race—shocked even seasoned observers. The charges, widely viewed as politically motivated, triggered mass protests, arrests, a media crackdown, and a ban on public gatherings.

The investor fallout was swift. “Billions fled Turkey on the news, and once again investors have learnt to fear the unexpected from Ankara,” said Charlie Robertson, emerging markets analyst at FIM Partners. Within days, Turkey’s stock market plunged, the lira tumbled, and by March 24 the Central Bank of Turkey (CBT) had burned through $26 billion trying to stabilize the currency.

Many were left wondering whether the crisis would derail the anti-inflation strategy being carefully pursued by Finance Minister Mehmet Simsek, Vice President Cevdet Yilmaz, and the CBT, which had successfully restored international confidence after the erratic policies before 2023. Financial officials have tried to steady nerves, saying policies would remain unchanged.

Muhammet Mercan of ING Bank says it’s important to keep things in perspective. He notes that the CBT responded to the volatility with a comprehensive strategy, including initiating lira-settled FX forward sales to address FX demand, raising the ON lending rate to 46%, suspending one-week repo auctions and issuing liquidity bills with maturities of up to 91 days.

“The Lira was the most attractive carry trade opportunity in emerging markets, leading to significant long positions by foreign investors, which were largely unwound. Nonetheless gross reserves of $171 billion as of March 14 remain sufficiently robust,” he says, arguing that the CBT possesses the tools to maintain FX stability.

Mercan is forecasting 2025 inflation of 28.4% and growth of 3.2%, but admits the recent volatility—compounded by the challenges added by US President Trump’s economic policies—“has increased the downside risks to the growth outlook.”

​The bitcoin market is unpredictable, and big moves typically stir investor conjecture. One of the top 10 personal holding addresses transferred 28.1% of its Dogecoin (DOGE) holdings into a new token, attracting market observers. The asset picked? RXS is a groundbreaking platform for tokenising real-world assets. The move raises various questions: Why did this DOGE whale pick RXS? Does Rexas Finance have future potential? Explore this brave decision’s possible causes.

1. The Rise of Rexas Finance in RWA Tokenization

Rexas Finance is pioneering the tokenization of commodities, gold, art, and real estate, giving smaller investors fractional ownership. Rexas Finance democratizes access to these markets, allowing investors to participate without high capital requirements. Blockchain technology provides transparency, security, and worldwide accessibility, which may have prompted this DOGE whale to reallocate cash.

2. Avoiding Whale Dump Centres

A key benefit of Rexas Finance is its deliberate avoidance of VC funding. When early investors extract profits, many VC-funded enterprises see price declines owing to token dumps. Rexas Finance restricts such methods to maintain pricing stability and growth. To this whale, who was cognisant of the hazards of big sell-offs, Rexas Finance may have seemed safer for asset preservation and development.

3. Confident Investors and Successful Presale

Rexas Finance’s record presale performance shows investor confidence. Rexas Finance sold 457,402,901RXS tokens, raising $47,481,038 across all stages. The token price rose 567% from $0.03 in Stage 1 to $0.20 in Stage 12. These numbers suggest a well-received, well-backed business, which may have influenced the DOGE whale’s choice to invest in Rexas Finance.

4. Expect High Post-Launch Returns

The whale’s timing shows post-launch benefits can be huge. Rexas Finance will launch at $0.25 on at least three of the top ten worldwide exchanges on June 19, 2025. Many traders foresee future price increases because to its presale trajectory and rising RWA tokenisation demand. Crypto communities speculate that the DOGE whale joined RXS early to profit from 20x profits.

5. Unique DeFi and Tokenization Tools

Beyond tokenization, Rexas Finance has a rich ecosystem including Rexas Token Builder, which lets firms develop asset-backed tokens, and the QuickMint Bot, which speeds up Telegram token releases. Yield farming, staking, and liquidity pools in its DeFi package boost token utility. Rexas Finance’s vast ecosystem boosts its long-term viability, making it appealing to investors seeking diversity beyond meme coins like DOGE.

6. Smart Contract and Security Audits

Serious investors prioritise security. Rexas Finance’s blockchain architecture is secure thanks to Certik-audited smart contracts. With hackers and rug pulls rising, this extra protection may have reassured the DOGE whale to trust RXS.

7. Strategic Major Listings

Rexas Finance is listed on major cryptocurrency tracking services. These listings promote market visibility and liquidity. The whale’s investment in RXS may indicate faith in the project’s credibility and capacity to attract investors after its exchange debut.

8. Rising RWA Tokenization Interest

Real-world asset (RWA) tokenization is gaining popularity among institutional investors. This move reflects the growing idea that blockchain technology can transform physical asset ownership and trading. Rexas Finance is leading this movement, therefore the DOGE whale’s choice may indicate a strategic shift to a more attractive crypto sector.

9. Investor Rewards: $1 Million Giveaway

Each of the top 20 winners of Rexas Finance’s $1 million promotion received $50,000 in RXS. This project has expanded community and investor interaction with over 1.6 million entries. This promotional effort may have attracted the DOGE whale, recognizing Rexas Finance’s marketing strength and user adoption potential.

10. Diversifying Beyond Meme Coins

Dogecoin has been lucrative, but its reliance on community hype and speculative trading makes it volatile. The whale may diversify into utility-driven assets by transferring 28.1% of holdings into Rexas Finance. Rexas Finance’s deflationary concept and real-world use cases contrast with DOGE’s inflationary supply model, which may have affected the decision.

Conclusion: A Value-Driven Investment Strategy

This major DOGE whale move into the Rexas Finance shows a cryptocurrency trend. Meme coins like Dogecoin are still popular, but investors—especially those with large holdings—are increasingly seeking assets with usefulness and long-term development potential. Rexas Finance’s investor-friendly ecosystem, novel RWA tokenization, and security make it a tempting choice. The market will watch Rexas Finance’s performance before its June 19, 2025 launch. Early investors, including this DOGE whale, may profit from its presale success. More than just another crypto business, Rexas Finance might transform digital finance with 20x returns and growing popularity.

For more information about Rexas Finance (RXS) visit the links below:

Website: https://rexas.com

Win $1 Million Giveaway: https://bit.ly/Rexas1M

Whitepaper: https://rexas.com/rexas-whitepaper.pdf

Twitter/X: https://x.com/rexasfinance

Telegram: https://t.me/rexasfinance ​

Disclaimer: The views and opinions presented in this article do not necessarily reflect the views of CoinCheckup. The content of this article should not be considered as investment advice. Always do your own research before deciding to buy, sell or transfer any crypto assets. Past returns do not always guarantee future profits.

Updated on March 31st, 2025 by Felix Martinez

AGNC Investment Corp (AGNC) has an extremely high dividend yield of above 15.1%. In terms of current dividend yield, AGNC is near the very top of our list of high-yield dividend stocks.

In addition, AGNC pays its dividend each month rather than quarterly or semi-annually. Monthly dividends allow investors to compound dividends even faster.

There are 76 monthly dividend stocks in our database. You can download our full Excel spreadsheet of all monthly dividend stocks (along with metrics that matter like dividend yields and payout ratios) by clicking on the link below:

 

That said, investors should also assess the sustainability of such a high dividend yield, as yields in excess of 10% are often a sign of fundamental business challenges. Double-digit dividend yields often signal that investors do not believe the dividend is sustainable and are pricing the stock in anticipation of a cut to the dividend.

This article will discuss AGNC’s business model and whether the stock appeals to income-oriented investors.

Business Overview

AGNC was founded in 2008 and is an internally managed REIT. Unlike most REITs, which own physical properties that are leased to tenants, AGNC has a different business model. It operates in a niche of the REIT market: mortgage securities.

AGNC invests in agency mortgage-backed securities. It generates income by collecting interest on its invested assets, minus borrowing costs. It also records gains or losses from its investments and hedging practices.

Agency securities have principal and interest payments guaranteed by either a government-sponsored entity or the government itself. They theoretically carry less risk than private mortgages.

Source: Investor Presentation

The trust employs significant amounts of leverage to invest in these securities, boosting its ability to generate interest income. AGNC borrows primarily on a collateralized basis through securities structured as repurchase agreements.

The trust’s goal is to build value via monthly dividends and net asset value accretion. AGNC has done well with its dividends over time, but net asset value creation has sometimes proven elusive.

Indeed, the trust has paid over $48 of total dividends per share since its IPO; the share price today is just over $9.40. That sort of track record is extraordinary and is why some investors are drawn to the stock.

In other words, the trust has distributed cash per-share to shareholders of nearly five times the stock’s current value.

AGNC reported its Q4 2024 results on January 27th, 2025. The company reported a comprehensive loss of $0.11 per share, including $0.10 net income and $(0.20) in other comprehensive loss. Net spread and dollar roll income totaled $0.37 per share. Tangible net book value fell 4.6% to $8.41, while $0.36 per dividend share was declared. The economic return on tangible equity was -0.6% for the quarter.

AGNC’s $73.3B portfolio included $65.5B in Agency MBS and $6.9B in TBA securities. Leverage remained 7.2x, with $6.1B in unencumbered cash and MBS (66% of tangible equity). The company issued $511M in stock via ATM in Q4, totaling $2.0B for 2024. Full-year economic return reached 13.2%, with $1.44 in dividends per share.

Management expects a strong 2025 as the Fed eases policy. CEO Peter Federico highlighted stable MBS spreads and attractive returns, while CFO Bernice Bell noted $0.37 per share in spread income and $6.1B in liquidity, supporting continued shareholder returns.

Growth Prospects

The major drawback to mortgage REITs is that rising interest rates negatively impact the business model. AGNC makes money by borrowing at short-term rates, lending at long-term rates, and pocketing the difference. Mortgage REITs are also highly leveraged to amplify returns.

It is common for mortgage REITs to have leverage rates of 5x or more because spreads on these securities tend to be quite tight. AGNC currently has a leverage ratio of 7.2x.

In a rising interest-rate environment, mortgage REITs typically see the value of their investments reduced. Higher rates usually cause their interest margins to contract, as the payment received is fixed in most cases, whereas borrowing costs are variable.

Interest rates surged to 23-year highs last year as central banks around the world hiked rates aggressively to reduce inflation. The trust’s book value contracted in recent quarters as a result of these moves.

Overall, the high payout ratio and the volatile nature of the business model will harm earnings-per-share growth. We also believe that dividend growth will be anemic for the foreseeable future.

On the bright side, inflation has finally moderated in most developed countries, including the U.S. As a result, the Fed just began reducing interest rates and expects to reduce them much further, from 4.75%-5.0% to 2.75%-3.0% by 2026. If inflation does not rebound, the Fed will likely execute as per its guidance.

In that case, AGNC will enjoy a strong tailwind in its business, as its borrowing costs will decrease and its interest margins will expand.

Dividend Analysis

AGNC has declared monthly dividends of $0.12 per share since April 2020. This means that AGNC has an annualized payout of $1.44 per share, which equals an extremely high current yield of 15.1% based on the current share price.

Source: Investor Presentation

High yields can be a sign of elevated risk. AGNC’s dividend does carry significant risk. AGNC has reduced its dividend several times over the past decade.

We do not see a dividend cut as an imminent risk at this point, given that the payout was fairly recently cut to account for unfavorable interest rate movements and that AGNC’s net asset value appears to have stabilized.

Management has taken the necessary steps to protect its interest income, so we don’t see another dividend cut in the near term, particularly given that the Fed’s expected interest rate reductions over the next three years will provide a tailwind to AGNC.

In fact, the payout ratio remains below 90% of earnings for the foreseeable future. If this proves correct, there will be no reason to cut the payout.

However, with any mortgage REIT, there is always a significant risk to the payout, and investors should keep that in mind, particularly given the volatile behavior of interest rates in recent years.

Final Thoughts

High-yield monthly dividend-paying stocks are extremely attractive for income investors, at least on the surface. This is particularly true in an environment of low interest rates, as alternative sources of income generally have much lower yields. AGNC pays a hefty yield of 15.1% right now, which is very high by any standard.

We believe the REIT’s high yield is safe for the foreseeable future, but given the company’s business model and interest-rate sensitivity, this is hardly a low-risk situation.

While AGNC should continue to pay a dividend yield many times higher than the S&P 500 Index average, it is not an attractive option for risk-averse income investors.

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.

Trump reveals his reciprocal tariff plan … do we need to worry about a recession? … your last chance to get Louis Navellier’s AI picks … a huge opportunity in natural gas

Coming into today, here’s where we stood with tariffs…

• Last week, President Trump signed an executive order putting a 25% tariff on all cars and light-duty trucks imported into the U.S.
• Trump had imposed a 20% tax on all Chinese imports.
• The administration had signaled it will add imports of beer and empty aluminum cans to its 25% tariffs on derivative aluminum products.

As we’re going to press, President Trump has just revealed the details of his master reciprocal tariff plan. We’re rushing to get today’s issue out, so here’s the quick recap of what we’ve learned.

First, Trump confirmed that the 25% tariff on non-U.S.-made cars will begin tomorrow.

As to new tariffs, Trump said that his administration will be “charging a discounted reciprocal tariff.”

Specifically, they’ve tallied the combined rate of all foreign tariffs on U.S. goods plus indirect financial impositions (currency manipulation and trade barriers). Based on that total amount, the U.S. will impose a reciprocal tariff of half that amount. Trump referred to this as “kind” reciprocal.

Trump also clarified that the U.S. will impose a minimum baseline tariff of 10% on all countries.

Here’s the “Liberation Day Reciprocal Tariffs” list from The White House:

Trump made his overall goal clear after delineating the various country-specific tariffs, saying:

If you want your tariff rate to be 0%, build your product here in America.

So, where do we go from here?

Here’s what our hypergrowth expert Luke Lango wrote earlier this week about the likely path. From his Innovation Investor Daily Notes:

We think that, despite all the intense and hostile rhetoric out there right now, everyone will rush to the negotiating table to quickly strike new trade deals in April.

We expect the tough talk to turn into a soft walk. Deals get done when the stakes are this high — and we fully expect the U.S., Canada, the EU, and others to come to the table and hammer out a flurry of new trade agreements in the next few weeks.

Consequently, we believe that most of these tariffs won’t last more than a few weeks and that by late April, most of this tariff drama will be in the rearview mirror. 

That means the trade war hysteria should cool down in the next few weeks.

And once that happens? This market should rip higher.

Let’s not forget — this selloff isn’t about what has happened. It’s about fear. Fear of what might happen. And if that worst-case scenario never shows up, the fear unwinds, and equities snap back hard.

There’s a lot to unpack from Trump’s announcement today. We’ll bring you the analysis and action steps from our analysts over the coming days.

I will note that stock futures are down big as I write with the Nasdaq off more than 2%.

Stay tuned.

To what extent do we need to worry about a recession?

On Monday, both Goldman Sachs and Moody’s Analytics raised their probabilities of a recession.

Goldman upped the odds from 20% to 35%. Moody’s went from 15% at the start of the year to 40%.

Meanwhile, if we look at the Atlanta Fed’s GDPNow tool, its latest estimate predicts a 3.7% economic contraction in Q1.

How seriously do we need to take this?

Let’s go to legendary investor, Louis Navellier, editor of Growth Investor:

The Atlanta Fed now expects the U.S. economy to contract in the first quarter – and that rattled Wall Street.

The primary reason why GDP growth is forecast to be negative in the first quarter is due to a big trade deficit, which is because of all the dumping of imported goods and an increase in gold inventory…

So, the trade deficit is now deducting a whopping 4% from first-quarter GDP growth. In other words, excluding the trade deficit, the U.S. economy is still growing.

I should also add that none of the economic tea leaves signal a recession.

Both Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell recently stated that the U.S. economy is “healthy.”

Louis also highlights some recent, positive economic reports.

For example, we just saw a surprising jump in existing home sales.

He also notes that the Trump administration is soliciting trillions in onshoring which, if successful, would boost GDP growth.

Put it all together and here’s Louis’ bottom line:

The U.S. is not at risk of falling into a recession.

But Louis is seeing opportunity in certain AI stocks that have imploded due to recession fears

Here’s Louis in yesterday’s Digest:

Remember, markets are manic. Wall Street has ignored a lot of great AI news lately.

[Despite AI earnings growth], investors have only focused on the negatives lately (mainly tariffs). The media only adds fuel to the fire in situations like this, because every setback in talks, and every ensuing pullback, is covered like it’s a full-blown crisis.

This has sent the prices of many world-class AI stocks into correction territory. As a result, we’re now facing a grossly oversold stock market where phenomenal companies like NVIDIA are trading at incredible discounts.

To Louis’ point, NVDA is down 27% from its January high.

And the Magnificent 7 stocks as a whole (a proxy for mega-tech AI leadership) have fallen into an official bear market.

It’s gotten so bad that bears have renamed the “Mag 7s” the “Lag 7s.”

But as we’ve been tracking here in the Digest, Louis, along with our global macro expert Eric Fry and our technology expert Luke Lango, have been urging investors to use this selloff as a chance to buy into tomorrow’s AI leaders.

This is even more important considering how AI is exploding our nation’s wealth gap.

Last week, Louis, Eric, and Luke provided a roadmap for the best way to invest in AI today in light of “The Technochasm”

This is their term to describe the widening wealth divide generated from cutting-edge technology and AI.

In their presentation, they detailed three critical steps investors must take now to stay on the right side of this growing tech divide, along with a basket of top-tier AI stocks.

Here’s Luke with what happened the last time our three analysts provided a Technochasm-themed basket of recommendations:

We called the Technochasm in 2020. So, believe us when we tell you that this is a chasm that companies and individuals either leap across or fall into. There is no middle ground.

Those who listened to us in 2020 banked ~1,350% from Freeport-McMoRan Inc. (FCX) in 11 months, ~1,000% from Nvidia (NVDA), and upward of 1,200% from Fulgent Genetics Inc. (FLGT) in under two years.

Peanuts, maybe, compared to what’s ahead.

For investors, this creates a once-in-a-generation opportunity.

If you missed last week’s free presentation, you can watch it right here. Please note that today is the last day it’ll be available.

Don’t miss this opportunity in natural gas

We’re tracking a disconnect brewing in the natural gas market that’s setting up a buying opportunity.

Gas prices are rising, but natural gas stocks are falling. In the background, demand is climbing as inventories drop.

Eventually, this should result in high-quality natural gas stocks shooting higher to reflect today’s bullish imbalance.

Eric, editor of Investment Report, highlighted this opportunity on Monday.

To establish context for his research, let’s begin by comparing the First Trust Natural Gas ETF (FCG) to the price of natural gas (a 4-week rolling average). FCG holds oil/gas heavyweights including ConocoPhillips, Hess, EQT Corporation, Occidental, and Diamondback Energy.

In the chart below, notice how FCG’s price (in green) has gone nowhere over the last two months while the price of natural gas (in black) has jumped around 35%.

From a basic “supply/demand” perspective, the rising price of natural gas makes sense – our nation’s supply levels are falling due to demand.

Here’s Eric:

U.S. natural gas in storage, relative to seasonal three-year average levels, has been dropping sharply for nearly a year.

The most recent reading showed storage levels 14% below average levels for this time of year.

Against this backdrop, U.S. natural gas demand is on track to surpass supply by a wide margin over the next two years, which should reduce stockpiles even further below three-year average levels.

Exports to foreign countries are behind much of the inventory drawdown

In February, the amount of gas flowing to U.S. export plants hit a record high. March’s export volumes are likely to set another record.

Better still, forecasts call for a continuation of the bullish imbalance between supply and demand after including U.S. exports. Here’s Eric with details:

Looking down the road, the U.S. Energy Information Administration (EIA) predicts LNG exports will grow by 2.1 Bcf/d in 2026, due to new export facilities…

Unlike domestic demand spikes that occur during exceptionally cold winters or hot summers, LNG export demand is relatively constant. Once in place, it remains in place and continues to consume domestic gas supplies…

As such, this source of demand puts continuous upward pressure on natural gas prices, especially if domestic gas production fails to keep pace.

The EIA is predicting that exact scenario. Although the agency expects domestic production to increase by 3.6% during the next two years, that figure is well below the 5.8% demand growth the agency predicts.

All the pieces are in place for higher stock prices for leading natural gas plays.

So, why aren’t prices already higher?

Part of the answer circles us back to the new segment we began last week…

Uncertainty has weighed on the oil patch

Last Friday, we began a new running segment: “Uncertainty Watch.”

Behind the segment is a lack of confidence in the direction of our economy that has begun to lead some consumers to hold off on purchases, and some corporate planners to hold off on major cap ex expenditures. Much of it stems from President Trump’s tariff plans, which have been unclear up until this afternoon.

This uncertainty has hit the oil sector. Last week, the Federal Reserve Bank of Dallas released the results of its quarterly survey of anonymous oil executives.

Here’s one such response highlighting the effect of uncertainty:

As a public company, our investors hate uncertainty. This has led to a marked increase in the implied cost of capital of our business, with public energy stocks down significantly more than oil prices over the last two months.

This uncertainty is being caused by the conflicting messages coming from the new administration.

Now, an astute reader might say, “Wait, oil and gas aren’t the same thing. I can understand oil stocks being down, but why are natural gas stocks lower, especially considering the supply/demand imbalance?”

Here’s Eric:

Tumbling crude oil prices probably deserve most of the blame…

For starters, falling crude prices cast a pall over the entire fossil fuel sector. In addition, most major natural gas producers also produce significant volumes of crude oil.

As a result, the shares of almost every North American natural gas producer have been sliding lower, no matter how little crude each company produces.

So, we’ll see how this all shakes out. But what we know for certain is that there’s a disconnect between natural gas prices and leading natural gas stocks. History shows this divergence will eventually close.

Eric recommended his favorite way to play this to his Investment Report subscribers. I won’t reveal it out of respect for subscribers, but here’s Eric referencing it:

At less than eight times earnings, its share price seems substantially undervalued, relative to both its peer group and to its “hidden” earnings potential from its holdings in the Delaware Basin chunk of the Permian.

But all that means is that this company currently offers a great buying opportunity.

Bottom line: U.S. natural gas is “Buy,” which means this natural gas play is a “Strong Buy.”

For more on joining Eric in Investment Report, click here.

We’ll keep you updated on all these stories here in the Digest.

Have a good evening,

Jeff Remsburg

April is shaping up to be a pivotal month, with inflation data, labor market signals, and growth indicators shaping central bank expectations. Markets will be monitoring for shifts in policy guidance, particularly from the US Federal Reserve and European Central Bank, which will drive risk sentiment heading into the summer months.

Download our Global FX Outlook for April to help ensure your business is prepared for potential market shifts and their impact on your currency exposures.

Currency moves in March

The US dollar fell to five-month lows last month, pressed by a slowdown in key US data, reaching levels last seen before President Trump’s election victory. Across the Atlantic, the euro was one of the largest beneficiaries with the EUR/USD up 4.4% in the first week of March before easing as the month progressed.

The British pound was another winner helped by a reluctance to cut interest rates from the Bank of England, which saw the GBP/USD touch 1.3000 – the highest level since November. Down under, the Australian dollar remains broadly stuck in a two-cent range hampered by worries about the Chinese economy and, unsurprisingly, trade issues.

Key market themes to watch

The historic German debt announcement may have just marked the bottom of the economic cycle in Europe. However, Germany is finally addressing the structural weaknesses that have interfered with growth and if executed effectively, this could drive productivity, investment and a shift in the broader European economic outlook.

Meanwhile the USD posted its worst month in over a year with a drawdown of 3.2% in March. While the currency’s fall is primarily market-driven, history suggests that Trump’s favorability ratings tend to follow a similar trajectory. A strong dollar has often coincided with confidence in his economic policies, while weakness signals investor skepticism.

Uncertainty surrounding tariff policy and fears of an economic slowdown have kept US equity markets in drawdown territory, with the S&P 500 down around 7% from its recent peak. But comments from President Trump on his tariff plans and flash PMI data called into question these fears, helping stocks rebound and the dollar rise across the board. Where is the US economy in the business cycle? This is a question without a definite answer…for now.

FX market insights: A delicate balance

As we enter April, markets will be navigating a delicate balance between inflation concerns, growth trajectories, and central bank policy decisions. The month will be packed with inflation releases from the US, Eurozone, Germany, and China, making price pressures a central theme. US CPI (April 10) and PCE prices (April 30) will be crucial in determining the Fed’s policy stance. If inflation proves sticky, rate-cut expectations could get pushed further out.

April also features several key central bank rate decisions, which raise questions about any potential cuts on the horizon. The Fed’s March meeting minutes (released on April 10) will offer insight into inflation concerns and whether policymakers are aligned with Powell’s cautious stance on cuts, while the European Central Bank and Bank of Canada will announce rate decisions mid-month. Any hints at rate cuts could boost risk appetite.

April is set to be a month of pivotal shifts and opportunities in the global FX landscape. With inflation data, central bank decisions, and market sentiment all in play, staying informed is crucial. Download the Global FX Outlook for April to navigate these complexities and position your business for success amidst this evolving foreign exchange landscape.

Want more insights on the topics shaping the future of cross-border payments? Tune in to Converge, with new episodes every Wednesday.

Plus, register for the Daily Market Update to get the latest currency news and FX analysis from our experts directly to your inbox.

South Africa’s banking industry found itself in an uproar the night of March 16, when the heir apparent of its largest bank—and the continent’s—quit to take the helm of a crosstown rival.

Kenny Fihla, group deputy CEO of Standard Bank, CEO of its South African unit, and considered next in line to succeed CEO Sim Tshabalala, resigned that night; next day, he was named group CEO of rival Absa Bank.

Stung by the unexpected move, Standard Bank dispatched Fihla on paid leave until June 13, shortly before he is to assume his new position. In a statement, the lender admitted that his departure was a “heavy blow.”

Over a two-decade career at Standard Bank, Fihla rose to head its flagship corporate and investment banking division, where he presided over a doubling of headline earnings to R20.5 billion ($1.1 billion). Last September, he was appointed group deputy CEO.

His decision to jump ship is a major plus for Absa Bank. Under the stewardship of interim Group CEO Charles Russon for the past six months, Absa is hoping for stability at the corner office after a prolonged period of turmoil.

“Kenny is a recognized leader with substantial Pan-African banking experience, has relationships across the banking and financial ecosystem, and a proven track record to drive results in complex environments,” Sello Moloko, Absa board chairman, said. Fihla, who will take over on June 17 subject to regulatory approval, has a tough job ahead.

Considered a sleeping giant, Absa posted a 5% decline in headline earnings for the first half of last year. It rebounded in the second half, closing the year with a 10% increase, to R22.1 billion. Return on equity posted marginal growth, from 14.4% in the first half to 14.8% in the second half of the year.

While the bank posted growth across all business units, including its regional operations, the rate of growth has been sluggish. Case in point is the number of customers, which increased by a mere 4% to 12.7 million across its 10 markets. Corporate and Investment Banking, a critical unit, posted 6% growth in earnings. Fihla, whose appointment has thus far been received with enthusiasm, has committed to bringing a new dynamism to Absa, promising “forward-thinking strategies.”

Updated on March 31st, 2025 by Felix Martinez

Atrium Mortgage Investment Corporation (AMIVF) has two appealing investment characteristics:

#1: It is a high-yield stock based on its  10.1% dividend yield.
Related: List of 5%+ yielding stocks.
#2: It pays dividends monthly instead of quarterly.
Related: List of monthly dividend stocks

You can download our full Excel spreadsheet of all 76 monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:

 

Combining a high dividend yield and a monthly dividend could make Atrium Mortgage Investment Corporation appealing to income-oriented investors. In addition, the company is the leading non-bank lender in Canada, and thus, it has a reliable business model. In this article, we will discuss Atrium Mortgage Investment Corporation’s prospects.

Business Overview

Atrium Mortgage Investment Corporation is a non-bank lender that provides residential and commercial mortgage services in Canada. The company offers various types of mortgage loans, such as land and development financing, construction and mezzanine financing, and commercial term and bridge financing services for residential, multi-residential, and commercial real estate properties. Atrium Mortgage Investment Corporation was founded in 2001 and is headquartered in Toronto, Canada.

Atrium Mortgage Investment Corporation invests in commercial and residential mortgages from customers who cannot borrow funds from traditional banking channels. To reduce its risk, the company has a diversified mortgage portfolio and does its best to maintain a disciplined underwriting policy.

A typical loan in the company’s portfolio has an interest rate of 6.99%- 12.99%, a duration of 1-2 years, and monthly mortgage payments. Atrium Mortgage Investment Corporation’s mortgage portfolio currently has a weighted average interest rate of 10.93%, consisting of 88% residential and 12% commercial mortgages.

Source: Investor Presentation

The company tries to reduce operating expenses and provide stable dividends to its shareholders with minimum volatility. To this end, it maintains a high-quality mortgage portfolio characterized by a conservative underwriting policy.

Thanks to its prudent management, Atrium Mortgage Investment Corporation has offered consistent returns to its shareholders over the last decade. During this period, the company’s return on equity has steadily remained 600-800 basis points above the yield of the Canadian government’s 5-year bond.

Thanks to its solid business model, Atrium Mortgage Investment Corporation has proved extremely resilient throughout the coronavirus crisis. This is impressive, as the pandemic would normally be expected to affect the company’s borrowers, who cannot borrow funds from large financial institutions. The resilience of Atrium Mortgage Investment Corporation to the pandemic is a testament to the strength of the company’s business model.

The company reported strong 2024 financial results, with a net income of $47.9 million and earnings per share of $1.06 (basic) and $1.05 (diluted), despite this being a 7.1% decline from 2023. The company maintained a high-quality mortgage portfolio, with 96.7% in first mortgages and an average loan-to-value ratio of 61.9%. A special dividend of $0.16 per share was declared, payable on March 19, 2025, bringing the total dividend for the year to $1.0625 per share.

Atrium reduced Stage 2 and 3 loans from $129.7 million in Q3 to $79 million in Q4 while expanding its credit facility by $25 million to $340 million and raising $28.8 million through an oversubscribed equity offering. Revenues declined 1.3% to $97.3 million, and total assets fell slightly to $864.3 million. The mortgage portfolio ended the year at $863.2 million, down from $876.7 million due to higher repayments.

With a weighted average interest rate of 9.98% and strategic shifts toward lower-risk lending, Atrium remains well-positioned for 2025. The company anticipates reduced competition from non-bank lenders and increased funding capacity to support growth. Following an OSC review, Atrium restated its 2023 cash flow statement without impacting overall financials.

Growth Prospects

Atrium Mortgage Investment Corporation has performed remarkably over the last nine years. Management’s focus on minimizing operating expenses and providing stable returns to shareholders has certainly paid off.

On the other hand, the company has posted essentially flat earnings per share over the last nine years. Therefore, investors should not expect meaningful earnings growth going forward. In other words, Atrium Mortgage Investment Corporation’s reliable performance comes at a price: lackluster growth prospects.

Given Atrium Mortgage Investment Corporation’s rock-solid business model and lackluster performance record, we expect approximately flat earnings per share five years from now.

Dividend & Valuation Analysis

Atrium Mortgage Investment Corporation is currently offering an exceptionally high dividend yield of 10.1%, many times the 1.3% yield of the S&P 500. The stock is thus an interesting candidate for income-oriented investors, but U.S. investors should be aware that the dividend they receive is affected by the prevailing exchange rate between the Canadian dollar and the USD.

Atrium Mortgage Investment Corporation has an elevated payout ratio of over 100%. However, it is in a strong financial position, with its interest expense currently consuming slightly less than 25% of its total interest and dividend income. As a result, the company is not likely to cut its dividend significantly anytime soon.

It is also remarkable that Atrium Mortgage Investment Corporation has maintained a solid dividend record over the last decade.

Source: Investor Presentation

Overall, shareholders should rest assured that Atrium Mortgage Investment Corporation’s base dividend is safe, and the company will likely continue paying a special dividend year after year.

On the other hand, the company has hardly grown its dividend in USD over the last ten years due to the depreciation of the Canadian dollar versus the USD. Given the low single-digit growth rate of the dividend in Canadian dollars, it is prudent for U.S. investors to expect minimum dividend growth going forward.

In reference to the valuation, Atrium Mortgage Investment Corporation has been trading for 10.2 times its earnings per share for the last 12 months. Given the company’s resilient business model and lackluster growth prospects, we assume a fair price-to-earnings ratio of 12.0 for the stock. Therefore, the current earnings multiple is slightly lower than our assumed fair price-to-earnings ratio. If the stock trades at its fair valuation level in five years, it will enjoy a 1.9% annualized return gain.

Taking into account the flat earnings per share, the 10.1% dividend yield, and a 1.9% annualized expansion of valuation level, Atrium Mortgage Investment Corporation could offer a 12% average annual total return over the next five years. This is a good expected total return, but we recommend waiting for a lower entry point in order to enhance the margin of safety and increase the expected return from the stock.

Final Thoughts

Atrium Mortgage Investment Corporation is characterized by prudent management and a defensive business model. In addition, the stock is offering an exceptionally high dividend yield of 10.1%. The company has an elevated payout ratio of 100% but a strong balance sheet and a consistent dividend record. As a result, its dividend should be considered safe, though investors should not expect meaningful dividend growth anytime soon. Overall, the stock seems undervalued right now.

Moreover, Atrium Mortgage Investment Corporation is characterized by extremely low trading volume. This means that it may be hard to establish or sell a large position in this stock.

Don’t miss the resources below for more monthly dividend stock investing research.

And see the resources below for more compelling investment ideas for dividend growth stocks and/or high-yield investment securities.