Archives April 2025

Google parent Alphabet (GOOGL) reported first-quarter revenue and profit that exceeded analysts’ expectations, sending shares higher in extended trading Thursday.

The tech titan reported revenue of $90.23 billion, up 12% year-over-year and above the analyst consensus from Visible Alpha. Net income of $34.54 billion, or $2.81 per share, compared to $23.66 billion, or $1.89 per share, a year earlier, also topping Wall Street’s estimates. Google Cloud revenue rose 28% to $12.3 billion, while Search & Other segment revenue grew 10% to $50.7 billion.

Alphabet also raised its quarterly dividend by 5% to 21 cents, and announced an additional $70 billion in stock buybacks.

Alphabet’s Class A shares rose close to 5% in after-hours trading. The stock was down about 16% for 2025 through Thursday’s close.

Alphabet Reiterates Spending Plans as AI Features Expand Reach and Engagement

CEO Sundar Pichai said Search growth was driven by “engagement we’re seeing with features like AI Overviews, which now has 1.5 billion users per month” after launching in May 2024.

On the company’s earnings call, Chief Business Officer Philipp Schindler said the quarter “marked our largest expansion to date for AI Overviews, both in terms of launching to new users and providing responses for more questions.”

Alphabet reiterated its plans to spend $75 billion in capital expenditures this year, most of which is expected to go toward building out the company’s AI infrastructure.

“We do see a tremendous opportunity ahead of us across the organization,” CFO Anat Ashkenazi said, adding that Alphabet ended the quarter with more Cloud demand than it had capacity. The investments in AI infrastructure, “should help us have a more resilient organization, irrespective of macroeconomic conditions,” Ashkenazi said.

Pichai also gave Nvidia (NVDA) a shoutout during Thursday’s call, saying Alphabet’s relationship with the AI chipmaker “continues to be a key advantage for our customers.” Alphabet was the first cloud provider to offer certain Nvidia’s Blackwell GPUs, Pichai said, and will offer its next-generation Vera Rubin chips, which are expected in 2026.

This article has been updated since it was first published to include additional information and reflect more recent share price values.

The wealth gap continues expanding … the winner of onshoring … how our world will appear with humanoids … how to invest today …

Yesterday, the contrast of two headlines on the Wall Street Journal caught my attention…

• “Credit-Card Companies Brace for a Downturn”
• “$1 Trillion of Wealth Was Created for the 19 Richest U.S. Households Last Year”

From the first article:

There are some early warning signs. Consumers are holding off on nonessential splurges such as vacations…

Consumer sentiment has been sinking over the past couple months, fueling concerns that it will cause people to slow their spending.

And from the second:

The wealthiest have gotten richer, and control a record share of America’s wealth…

The growth in wealth of the richest Americans has far outpaced that of all other U.S. wealth groups.

Regular Digest readers are familiar with the term “Technochasm.” Originally coined by our macro investing expert Eric Fry, it describes the widening wealth gap generated from cutting-edge technology and AI.

For as expansive as it is today, the next handful of years will see it explode to a whole new level.

Behind the shift will be a next-gen technology that will transform businesses, homes, society…everything.

It will make day-to-day life far more convenient for some – but at a heavy economic cost for others.

For us investors, it’s important that we see what’s coming, enabling us to position our portfolios appropriately today. That will help us end up on the right side of the expanding Technochasm.

You can be aggressive and take focused, concentrated bets, looking for the multi-bagger winners – the “needle in the haystack”…

Or more conservative, opting for broader ETFs, following John Bogle’s advice of “Don’t look for the needle in the haystack. Just buy the haystack!”

Whichever approach is right for you, the takeaway is the same: It’s time to invest in “embodied AI.” Or as most people call it…

Humanoids.

In our April 16 Digest, we highlighted “the Real Winner of Trump’s Onshoring Push”

And who was it?

The companies that leverage robotics, and the investors who saw the writing on the wall.

This wasn’t a difficult conclusion to support.

Reshoring requires far greater payroll expense, real estate costs, and electricity/energy expense. And as it appears now, if CEOs don’t reshore, they’ll face massive tariffs.

This leaves corporate managers facing a tough tradeoff: eat those added onshoring costs at the expense of profit margins…or pass along those costs to customers at the risk of a drop in demand.

Enter a third option: Replace human workers with robots.

This makes for a much easier comparison…

Humans: massive salary expense, benefits expense, sick days, vacation days, human error on the job…

Robots: one time CapEx expense, marginal yearly maintenance expense, perfect job execution with no need for rest/breaks/benefits/and so on…

Barring policy guardrails, how does a push for onshoring result in anything other than an acceleration of the transition to robotics/humanoids?

Wrapping up that Digest, we quoted our technology expert Luke Lango:

The trade war may have lit the match. But the fire now spreading across this country is an economic one, unleashing a new 21st-century Industrial Revolution powered by AI, fueled by necessity, and backed by policy.

Let’s pick up where we left off.

The state of embodied AI today, and where it’s headed

Let’s go straight to Luke:

Thanks to the incredible advances in AI, robotics, and automation, we now have the technology to revolutionize American manufacturing right now.

Think humanoid robots that don’t just compute but physically act: walking, lifting, building, and problem-solving in the real world.

And this isn’t speculative anymore. It’s real. Consider:

• Tesla(TSLA) is leading the charge with Optimus, its humanoid robot that’s already performing tasks inside its factories.
• Nvidia(NVDA) just launched Project GR00T, a new suite of AI models built specifically for robotics use cases
• Meta(META) launched a humanoid AI division aimed at building the “iOS of robotics”
• Apple(AAPL) is investing in smart home robotics
• Alphabet(GOOG) is funding humanoid robotics startups like Apptronik
• OpenAIis exploring building its own robot
• Microsoft(MSFT) is backing Sanctuary AI, which just completed its first commercial delivery with a humanoid robot

Big Tech isn’t just watching. They’re investing aggressively

Below is a visual on what’s already here:

And this won’t stop with metal or plastic robots.

Mashable reports that Japanese scientists have coated a robotic finger in self-healing human skin – an enormous jump forward for humanoid technology.

(In the graphic below, pretend you didn’t read the closed captioning reference to a “Terminator”)

Source: Mashable

The scope of the coming age of humanoids is far bigger than manufacturing

In past Digests, we’ve featured how companies like Amazon and Walmart are increasingly shifting their warehouse operations to a robotic workforce. That will continue.

But warehouses and manufacturing plants are just the beginning. We’re not far from humanoids impacting our day-to-day lives in countless ways…

Households and Personal Assistance

Household robots are evolving from basic vacuum bots into multifunctional assistants. Get ready for your personal robot assistant to help you with everyday errands like picking up dry cleaning, meal prep, and walking the dog.

But it’s beyond that. The use cases involve functions that don’t readily come to mind.

For example, I occasionally invest in startups on Angel List. I just read about two different companies building robotics for the blind. One has created a robotic guide dog; the other a guide robot that appears more like a Roomba.

Elder Care

With global populations aging, humanoid robots are stepping in as round-the-clock companions. They’ll be helping seniors manage medications, stay socially connected, and remain mobile.

And it’s not just about taking vitals and dispensing pills. Some humanoids will exist for the purpose of social companionship – literally, reducing loneliness.

Social robots like ElliQ provide camaraderie for elderly individuals living alone. These humanoids can engage in simple conversations, offer reminders, and suggest activities.

Customer Service

Humanoid robots are already appearing in hotels and airports as receptionists, concierges, and information guides.

With natural language processing and facial recognition, they can personalize guest experiences, handle check-ins, and even serve food – all while never calling in sick.

Education

Educational robots can provide one-on-one tutoring, support special needs students, and offer engaging lessons using interactive media. Their consistency and adaptability make them ideal aides for teachers in both traditional and remote classrooms.

I could keep going, but you get the idea.

Humanoids are coming – and they’re going to impact everything.

Consider the spiderweb of investment implications

You have your Big Tech companies working on versions of a finished-product humanoid.

But think of smaller, components companies that are a part of that buildout.

Here’s Luke:

[Consider] AI chipmakers and sensor firms – companies that make the GPUs, LiDAR and vision sensors, and edge processors that enable real-world AI.

There’s also software platforms for robotics. Just like iOS for iPhones, there will be a winner in “robot OS”: platforms that help control fleets of machines in coordinated workflows.

But here too, this is just the start. Investing in humanoids represents a vast ecosystem that’s far too large to cover in one Digest.

So, how can you get started investing today?

We profiled the easiest way back in September.

Regular Digest readers will recall an issue in which I shared part of an internal email from one of our senior analysts, Brian Hunt, to a few members of our leadership team.

Brian described the technological advancements coming (like humanoids), the potential for market volatility, but the even greater potential to make enormous wealth over the next five to 10 years.

With that as our context, here’s Brian from that email with the most effortless way to ride this trend:

If you want to make it simple, easy, and powerful, just look up the five largest AI/robotics ETFs and buy them in equal parts and go to sleep for a while. Maybe throw in some QQQ. 

Ignore the corrections. They will be painful but temporary.

This tailwind will blow with hurricane force.

Now, Brian just described the “buy the haystack” approach to humanoid investing. If you prefer to look for the various “needles,” Luke recently put together a free research video in which he discussed his top robotics stocks for 2025.

And, of course, we’ll be bringing you some of the top ideas from our experts as this technology proliferates.

Perspective on timing

For as quickly as this technology is arriving, we remain a few years out from your kitchen humanoid grilling you a perfect steak while you watch reruns of “The Office.”

But iterative versions will arrive in the next 12 months or so. Think “agentic AI” that can book flights and hotels based on your calendar and preferences… proactively manage your subscriptions or utility bills… and even monitor your portfolio, moving money between your high-yield accounts and your trading account when positions get out of balance.

As to that steak, even though we’re a handful of years away, Luke urges action today:

If you’re an investor, this is your early-in moment…

Because we’re confident that in five years, everyone will be talking about robotics stocks the same way they talk about AI chip stocks today.

But by then, the easy money will have already been made.

You don’t have to go big. But it’s time to consider some starter positions in leading robotics/humanoids companies.

Circling back to The Technochasm

This is already a long Digest. So, we’re going to tackle this aspect of humanoids in an upcoming issue.

But for now, consider this: With humanoids being so capable, how deeply will that cut into our workforce?

Below is a list of jobs – hardly exhaustive – where humanoids be will able to accomplish many (or all) of the related tasks relatively soon…

Tutors, nurses, doctors, factory workers, forklift drivers, Uber drivers, lawyers, financial advisors, personal assistants, editors, customer services agents, telemarketers, accountants, data entry specialists, logistics operators, retail cashiers, truck drivers, security guards, pharmacists, market research analysts, legal assistants, and far more…

Now, if/when humanoids take over those functions, what happens to all that salary expense?

It remains on the balance sheets of the companies selling/utilizing humanoids/robotics, benefiting management and investors.

Might that exacerbate the contrast between the two WSJ articles that opened today’s Digest?

Loads of Americans turn to credit card debt…while a select few Americans watch their wealth explode.

More on this to come…

Have a good evening,

Jeff Remsburg

Below you’ll find featured rates available from our partners, followed by details from our ranking of the best CDs available nationwide.

Rates of 4.50% to 4.60% You Can Guarantee Well Into 2026

Although the best CD rates have been slowly drifting lower, you can still snag a 4.60% return from either T Bank, for a 6-month rate lock, or Abound Credit Union, for a 10-month guarantee. Abound’s offer would secure your rate until February 2026.

A total of 16 CDs pay at least 4.50%, with the longest term among these being 18 months. That CD is available from XCEL Federal Credit Union, and it will lock in a 4.50% rate until October of next year.

All Federally Insured Institutions Are Equally Protected

Your deposits at any FDIC bank or NCUA credit union are federally insured, meaning you’re protected by the U.S. government in the unlikely case that the institution fails. Not only that, but the coverage is identical—deposits are insured up to $250,000 per person and per institution—no matter the size of the bank or credit union.

Consider Longer-Term CDs To Guarantee Your Rate Further Into the Future

For a rate lock you can enjoy into 2027, Lafayette Federal Credit Union is paying 4.28% APY for a full 24 months. Want a longer guarantee with a slightly higher APY? Genisys Credit Union is still offering 4.32% for 30 months.

Savers who want to stash their money away for even longer might like the leading 4-year or 5-year certificates. Though the 4-year rate dropped last week from 4.40%, you can still lock in a 4.28% rate for 4 years from Lafayette Federal Credit Union. In fact, Lafayette promises the same 4.28% APY on all its certificates from 7 months through 5 years, letting you secure that rate as far as 2030.

Multiyear CDs are likely smart right now, given the possibility of Fed rate cuts in 2025 and perhaps 2026. The central bank has so far lowered the federal funds rate by a full percentage point, and this year could see additional cuts. While any interest-rate reductions from the Fed will push bank APYs lower, a CD rate you secure now will be yours to enjoy until it matures.

Today’s Best CDs Still Pay Historically High Returns

It’s true that CD rates are no longer at their peak. But despite the pullback, the best CDs still offer a stellar return. October 2023 saw the best CD rates push above 6%, while the leading rate is currently down to 4.60%. Compare that to early 2022, before the Federal Reserve embarked on its fast-and-furious rate-hike campaign. The most you could earn from the very best CDs in the country then ranged from just 0.50% to 1.70% APY, depending on the term.

Jumbo CDs Top Regular CDs in 4 Terms

Jumbo CDs require much larger deposits and sometimes pay premium rates—but not always. In fact, the best jumbo CD rates right now are no better than the top standard rates in five of the eight CD terms we track.

Among 18-month CDs, both the top standard and top jumbo CDs pay the same rate of 4.50% APY. Meanwhile, institutions are offering higher jumbo rates in the following terms:

• 2 years: Lafayette Federal Credit Union offers 4.33% for a 2-year jumbo CD vs. 4.28% for the highest standard rate.
• 3 years: Hughes Federal Credit Union offers 4.34% for a 3-year jumbo CD vs. 4.32% for the highest standard rate.
• 4 years: Lafayette Federal Credit Union offers 4.33% for a 4-year jumbo CD vs. 4.28% for the highest standard rate.
• 5 years: Both GTE Financial and Lafayette Federal Credit Union offer 4.33% for jumbo 5-year CDs vs. 4.28% for the highest standard rate.

That makes it smart to always check both types of offerings when CD shopping. If your best rate option is a standard CD, simply open it with a jumbo-sized deposit.

Where Are CD Rates Headed in 2025?

In December, the Federal Reserve announced a third rate cut to the federal funds rate in as many meetings, reducing it a full percentage point since September. But in January and March, the central bankers declined to make further cuts to the benchmark rate.

The Fed’s three 2024 rate cuts represented a pivot from the central bank’s historic 2022–2023 rate-hike campaign, in which the committee aggressively raised interest rates to combat decades-high inflation. At its 2023 peak, the federal funds rate climbed to its highest level since 2001—and remained there for nearly 14 months.

Fed rate moves are significant to savers, as reductions to the fed funds rate push down the rates banks and credit unions are willing to pay consumers for their deposits. Both CD rates and savings account rates reflect changes to the fed funds rate.

Time will tell what exactly will happen to the federal funds rate in 2025 and 2026—and tariff activity from the Trump administration has the potential to alter the Fed’s course. But with more Fed rate cuts possibly arriving this year, today’s CD rates could be the best you’ll see for some time—making now a smart time to lock in the best rate that suits your personal timeline.

Daily Rankings of the Best CDs and Savings Accounts

We update these rankings every business day to give you the best deposit rates available:

Important

Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often five, 10, or even 15 times higher.

How We Find the Best CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), the CD’s minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.

Hello, Reader.

Tom Yeung here with today’s Smart Money.

In 1812, the English word unprecedented doubled in use, according to Google’s “Ngram” study of historical books.

America’s war with Great Britain had just begun… Napoleon’s Grand Army invaded Russia… and journalists of the day delighted in reporting these events with eye-catching words. 

The same Google study now finds the word unprecedented in vogue again. The 13-letter word has been used to describe everything from financial crises to technological innovation. The term was uttered in 75% of S&P 500 earnings calls in 2020. 

It’s tempting to call everything President Donald Trump is doing “unprecedented” as well. We’ve never seen America’s executive branch unilaterally raise tariffs to double-digit levels overnight… nor have we seen stocks whipsaw double-digits on a single presidential announcement.

To U.S.-focused investors, this all seems entirely new. 

But experienced investors will have seen similar stories before… just not in America. 

In today’s Smart Money, by drawing parallels to other countries, I’ll explain why President Trump’s hasty actions aren’t as unprecedented as they seem.

Then, I’ll outline our best- and worst- case scenario plans for riding this unpredictable market…

And how you can make sure you’re prepared to profit for both.

History Repeats Itself

In East Asia, strongmen-styled leaders have been around for decades. Many credit the military dictatorship of South Korea for the country’s success in the 1960s and 1970s. Singapore got its start from a 31-year rule by a one-man “democracy.” More recently, we’ve seen similar rulers in Turkey… Poland… Bangladesh… and so on.

President Trump follows a long list of leaders seeking to consolidate power to steer their countries in new directions. 

And the one lesson we can draw is this: 

It’s almost impossible to know who will succeed at the start. 

Some countries start strong… only to devolve into chaos. An investor who bought the Turkish lira in 2014 when the current president was sworn in would have lost 94% of their original investment. Egypt and Zimbabwe remain cautionary tales. 

Despite the odds, some countries do a supreme job at reform, turning them into investment superstars. Singapore was once described as a “swamp-filled jungle,” destined to fail because it lacked any natural resources. The country’s stock market is now the second most valuable in Southeast Asia.

Additionally, many were skeptical that the outspoken President Javier Milei could succeed in Argentina. That South American nation had previously defaulted on 22 International Monetary Fund (IMF) loans, and the “shock therapy” Milei was prescribing (cutting 30% of government expenditures, slashing subsidies, and so on) could have easily killed the patient. 

But we began seeing the first signs of success in mid-2024, when Argentina’s month-to-month inflation fell to single digits and the economy returned to growth.

And things have continued to improve. Two weeks ago, Argentina finally secured its 23rd IMF loan, a highly positive sign of the country’s turnaround efforts.

This unpredictable path of government reform is why I like to think of President Trump’s policies to an asteroid heading toward Earth.

We have no idea whether disaster will hit… or pass us by entirely. 

So, here is what we think of each possible scenario…

How We’re Covering Our Bases

In our best-case scenario, the danger of a great recession (or depression) passes us by entirely. Trump’s tariff wars are resolved, leaving us with no major impact on inflation, supply chains, or long-term investor confidence.

Instead, we’ll see enormous leaps in artificial intelligence, energy innovation, and biotech sending markets to new all-time highs. We might also benefit from the re-onshoring of high-tech industries like advanced chipmaking and solar panel production. 

In this case, we’re sitting on one of the decade’s greatest moments to invest.

But what if President Trump’s plans backfire? 

What if the asteroid remains on course and collides directly with the U.S. economy?

In this case, a lot can go wrong. Perhaps the president misjudges the inflationary impact of the current 125% tariffs on Chinese goods. That would force the U.S. Federal Reserve to tighten rates… triggering a showdown with President Trump. (It may seem like a year ago, but just on Monday, U.S. stocks fell around 3% over fears that President Trump could and would fire Fed Chair Jerome Powell.) 

I wish we could tell you today which path we’re on. 

It would save us all so much trouble to know whether the recession “asteroid” will hit… or not. 

However, the international experience tells us that no one can predict what will happen next. We’ll begin seeing signs of Trump’s successes or failures in the coming months, but anyone saying they’re 100% confident today in the path is being disingenuous. 

And that’s why we’re expecting the best while preparing for the worst – a theme we’ve revisited many times over the past few months.

That is why, in the Fry’s Investment Report portfolio, I’ve made sure my paid-up members are invested in high-growth tech leaders that should surge if American growth remains robust and valuations get back on track.

But I’ve also made sure we’re balancing this risk with countercyclical plays, including energy, international, and value stocks.

To learn more about the companies we’ve got our eyes on to help us survive – and thrive – through these volatile times, click here to learn how to become a member of Fry’s Investment Report today.

Our strategy: Magnificent Seven stocks are out, gold is in, and we’re quietly buying up well-priced stocks (particularly outside the U.S.) when the moments are right. 

Until next week,

Tom Yeung

Markets Analyst, InvestorPlace

Updated on April 18th, 2025 by Felix Martinez

Income investors seeking to invest in oil and gas stocks may want to consider gaining exposure to the booming Permian Basin. PermRock Royalty Trust (PRT) is an oil and gas producer with all of its properties in the Permian Basin, and the stock currently yields nearly 12.1%.

Beyond its high dividend yield, PermRock also pays monthly dividends, rather than the traditional quarterly distribution schedule. Monthly dividend payments are superior for investors who need to budget around their dividend payments (such as retirees).

There are 76 monthly dividend stocks. You can see the full list of monthly dividend stocks (plus important financial metrics such as payout ratios and dividend yields) by clicking on the link below:

 

PermRock’s double-digit dividend yield instantly appeals to investors. However, as always, investors must understand the underlying business to ensure the dividend payout is sustainable.

This is where oil and gas royalty trusts become especially risky; therefore, only investors with a high risk tolerance should consider purchasing PermRock.

Business Overview

PermRock Royalty Trust is a trust established in November 2017 by Boaz Energy, a company specializing in the acquisition, development, and operation of oil and natural gas properties in the Permian Basin.

The trust owns properties in the Permian Basin. It receives 80% of the net profits from the sale of oil and natural gas produced in its properties and distributes all those net profits in monthly dividends.

According to the EIA, the Permian Basin is the most prolific oil-producing region in the United States. This area spans over 75,000 square miles in West Texas and Southeastern New Mexico. Since its discovery in 1921, it has produced over 30 billion barrels of oil and more than 75 trillion cubic feet (Tcf) of natural gas.

Source: Investor Relations

The properties of the trust have distinct advantages. They consist of long-life reserves in mature, conventional oil fields, characterized by a reliable production profile.

Thanks to the mature nature of these oil fields, production and reserve estimates are highly reliable. This sharply contrasts with the estimates of unconventional fields, which are characterized by a higher degree of uncertainty.

Those reserves are sufficient for approximately 10 years of production at the current production rate. However, the trust can enhance its output through water-flooding techniques, while also discovering new reserves in the area. As a result, management expects the trust to produce oil and natural gas economically for at least 75 years. Such a long reserve life should be sufficient to satisfy even the most demanding investors.

It is also worth noting that remarkably high operating margins characterize the trust’s properties. As the future path of oil prices is highly unpredictable, oil producers must consistently increase their production year after year to sustain long-term earnings.

Growth Prospects

Operating expenses for the quarter were reported at $0.73 million, with capital expenses increasing to $0.71 million, primarily due to drilling activities on a non-operated well in the Permian Shelf. Boaz Energy reserved $826,909 for future capital expenses as of September 30, 2024. These factors, combined with commodity price volatility, continue to impact the Trust’s financial performance and future distributions.

Dividend Analysis

As mentioned above, PermRock Royalty Trust pays a variable monthly dividend depending on its underlying net profits. In 2024, the trust paid a total of $0.42 per share in dividends. Based on this, the stock would have a high dividend yield of 12.1%.

Overall, PermRock Royalty Trust offers an exceptionally high dividend yield. However, investors should keep in mind that dividends may greatly vary from month to month, depending on the underlying oil prices. The extremely weak oil prices of 2019-2020 were a significant challenge for PermRock, which suspended its dividend for five consecutive months in 2020.

Conversely, PermRock Royalty Trust will benefit much more than the larger oil majors if the price of oil rises significantly from its current level. Indeed, the rebound of oil prices from the pandemic has allowed PermRock to resume growing its dividend since last year.

Therefore, the trust is ideal for those who are confident in higher future oil prices and want to gain exposure to the oil boom in the Permian Basin.

In summary, the trust is much more leveraged to the price of oil than the integrated oil companies. Hence, it has much more upside in the positive scenario (higher oil prices) and much more downside in the event of a downturn in the energy sector.

The properties of PermRock are in the Permian Basin, the most prolific oil-producing area in the U.S. However, an oil royalty trust is a poor way to gain exposure to the booming production in this area. We believe investors would be much better off in a traditional oil and gas producer or midstream company. The suspension of the dividend of PermRock for five months in 2020 is a stern reminder of the risk of an oil and gas royalty trust.

Final Thoughts

PermRock Royalty Trust has had a number of challenges in the past few years, including the weak oil price environment and the coronavirus pandemic, which suppressed global oil demand. The trust offers an exceptionally high dividend yield and operates in the most prolific oil-producing area in the U.S., with promising growth prospects.

As we do not expect another downturn in the energy sector in the near term, we believe the trust will offer a consistently high dividend yield. Nevertheless, due to the non-diversified business model of the trust and its dramatic reliance on the price of oil, investors should not allocate a great portion of their portfolio to this stock.

In addition, investors should be aware of the risks associated with investing in such a pure upstream player, as it’s inherently exposed to down side in energy prices.

Moreover, the trust’s short history leaves much to be desired for investors seeking reasonable levels of dividend safety and consistency.

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.

Updated on April 18th, 2025 by Felix Martinez

Pizza Pizza Royalty Corp. (PZRIF) has two appealing investment characteristics:

#1: It is a high-yield stock based on its 6.7% 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 monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:

 

The combination of a high dividend yield and a monthly dividend makes Pizza Pizza Royalty Corp. appealing to income-oriented investors. In addition, the company has a robust business model, with most of its revenues recurring. In this article, we will discuss Pizza Pizza Royalty Corp’s prospects.

Table of Contents

You can instantly jump to any specific section of the article by using the links below:

Business Overview

Pizza Pizza Royalty Corp is a Canadian company that operates in the restaurant industry, primarily through its two brands, Pizza Pizza and Pizza 73. Pizza Pizza Royalty Corp is a unique entity in the Canadian stock market, as it operates as a royalty-based income trust structure.

Pizza Pizza, founded in 1967, is a well-known and established pizza chain in Canada, with a strong presence in Ontario, where it originated. Pizza 73, founded in 1985, is a pizza delivery and takeout brand focusing on Western Canada, particularly Alberta and British Columbia.

As a royalty-based income trust, Pizza Pizza Royalty Corp does not operate the restaurants directly but instead earns royalties from franchisees who operate Pizza Pizza and Pizza 73 locations. The company’s revenue is primarily generated from royalty payments based on a percentage of franchisee sales. This unique business model allows Pizza Pizza Royalty Corp to generate revenue without directly bearing the costs and risks associated with operating restaurants, such as labor, rent, and food costs.

Source: Investor Presentation

Pizza Pizza Royalty Corp’s revenue and profitability are directly tied to the performance of its franchisees. The company’s financial success depends on factors such as franchisee sales, the number of restaurants in operation, and overall consumer demand for pizza and fast-food offerings.

One of the notable features of Pizza Pizza Royalty Corp is its history of paying monthly dividends to its shareholders, which has made it an attractive investment for income-seeking investors. However, it’s important to note that dividend payments are not guaranteed and can be subject to change based on various factors, including the company’s financial performance and management decisions.

Growth Prospects

Pizza Pizza Royalty Corp. is focused on growth through restaurant expansion, digital upgrades, and menu innovation. In 2024, it added 31 new restaurants to its Royalty Pool and plans to grow its network by 3–4% in 2025. The company is improving online ordering and offering more value-driven and health-conscious menu options to attract new customers.

Despite recent sales declines, revenue grew 4.7% year-over-year. With a stable, low-risk business model and ongoing modernization efforts, Pizza Pizza is well-positioned for long-term growth.

The company has a history of selectively opening new locations and working with existing franchisees to renovate and upgrade existing restaurants to meet changing consumer demands and market trends.

However, it’s worth noting that the restaurant industry, like many other sectors, can be subject to challenges such as changing consumer preferences, competitive pressures, and economic fluctuations. Additionally, the franchise business model comes with risks related to the performance of individual franchisees, potential legal and regulatory changes, and other operational challenges.

Source: Investor Presentation

Dividend & Valuation Analysis

Pizza Pizza Royalty Corp. offers an exceptionally high dividend yield of 6.7%, four times the 1.5% yield of the S&P 500. The stock is thus an interesting candidate for income-oriented investors. However, U.S. investors should be aware that their dividend is affected by the prevailing exchange rate between the Canadian dollar and the USD.

The company’s policy is to distribute all available cash to maximize returns to shareholders over time after allowing for reasonable reserves. Despite seasonal variants inherent to the restaurant industry, the company’s policy is to make equal dividend payments to shareholders monthly to smooth out income to shareholders.

The company has a very healthy balance sheet.

Regarding valuation, the company looks undervalued because its current PE of 14x earnings is slightly lower than its ten-year average PE of 14.6x. Based on 2025 earnings expectations of $0.71 per share, the company’s fair value price is $10.37 per share. Currently, the company is trading hands for $9.94 per share.

The current dividend yield of 6.7% is lower than its five-year dividend yield average of 7.43%. Thus, based on the dividend yield average, the company looks to be slightly overvalued at the current price.

Source: Investor Presentation

Final Thoughts

In conclusion, Pizza Pizza Royalty Corp is a unique company in the Canadian restaurant industry. It operates as a royalty-based income trust focusing on pizza brands. Its business model relies on generating revenue from royalty payments from franchisees, and it has a history of paying increasing monthly dividends to shareholders.

The company’s success is closely tied to the performance of its franchisees and overall consumer demand for pizza and fast-food offerings. As with any investment, conducting thorough research, reviewing financial statements, and consulting with a qualified financial professional is essential before making investment decisions related to Pizza Pizza Royalty Corp or any other company.

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.

Kirk Konert is a Managing Partner at AE Industrial, where he sits on the board of several portfolio companies, including Firefly Aerospace, BigBear.ai, and York Space Systems. Firefly became the first private company to land a spacecraft on the moon, beating Elon Musk’s SpaceX to the punch and underscoring the new era of commercialized space exploration.

Global Finance: Congrats on Firefly’s Blue Ghost, which completed its lunar mission in March.

Kirk Konert:  It was a little surreal and unbelievable, watching the Blue Ghost softly land on the moon. Firefly is the first commercial company to have accomplished this feat. So therefore, AE Industrial is the only private equity firm with a portfolio company that has achieved this milestone. There’s a lot of pride on our team. Obviously, we’re not the engineers, but we have helped the company get to where it is today, and we’re excited to play a small part in that.

GF: Are we officially in the era of space privatization?

Konert: I believe so. We are now past the point of asking, “Is this an investable sector for private equity and private investment firms?” We were in this sector earlier than others, but now we’re seeing large blue chip buyout firms taking substantial bets on the space industry, like Advent International with their $6.4 billion acquisition of Maxar, and KKR’s acquisition of OHB SE, a German space and technology company, last year. People are starting to believe that there’s a real opportunity to invest capital. Competition for assets has increased, and that’s a great sign. It’s good to be part of a healthy ecosystem where you have larger buyout firms participating alongside middle market firms like ours.

GF: LPs are growing concerned about their lack of returns. What’s their reaction to potential returns from the space sector?

Konert: Initially, LPs were a little skeptical. They sort of looked at it as an industry that’s in too early of a stage, and riskier than your traditional buyout. So far, we’ve been able to show that’s not necessarily the case. The companies we’re investing in are underpinned by real demand, real contracts and real growth. That’s different than saying, “Hey, we’re investing in a venture company that could make a satellite that could do XYZ.” We’re investing in companies that are not dissimilar to other end markets we focus on, such as defense, aerospace and industrial services. It just happens to be that this is a sector that maybe had a stigma of being a little riskier. But we kind of view space as just another domain, and we’re investing in a way that aligns with what our LPs expect.

GF: How does that pitch go whenever an LP is skeptical?

Konert: We’re always speaking to our existing investors about how we’re spending their capital and managing risk versus return. And for new investors, we present case studies of what we’ve done. American Pacific Corporation, for example, is a specialty materials manufacturer for national security and space programs that we originally bought from a family and improved. We sold it to New Market Corp. last year for $700 million. We also point to Redwire. At the time, we made a picks-and-shovels play for this “space gold rush.” We predicted it would happen and [the IPO] was great for investors. So, we show those success stories and say, “Look, you might see headlines of a rocket blowing up… We’re not investing in that. We’re investing in technology that works.” Also, there’s additional value that investors don’t price into the space market—things like Blue Ghost landing on the moon. We didn’t price that in when we invested in the company. But that’s obviously a huge value creative event and we will benefit from that option value that we didn’t underwrite in our model.

GF: I understand you earned the name Captain Kirk because of your space expertise. What’s the backstory?

Konert: [Laughs] The backstory is maybe not as inspiring as you might think. We were investing in the supply chain for commercial aerospace and defense businesses; there was a space component to those assets. And we started to notice that SpaceX was a line item in our company and thought, “Is this something we want to focus on?” We started digging and saw similarities to what happened in aviation where flying was very expensive, but that cost curve came down substantially. And then asset manufacturing went up substantially. So, we wondered how we can invest in that embedded growth and take a deep dive into that industry. It’s been a decade-long experience to become experts in the sector. But we believe in the mission; it gets us out of bed every day to say we’re investing in technologies that matter for the long term, whether it’s for human exploration to Mars, or protecting critical infrastructure for national security.

GF: What are the key barriers of entry for a company like Firefly in a world where Musk dominates media reaction and SpaceX is mainstream?

Konert: You got to give credit to SpaceX for changing the game. It’s the reason why we can invest in the space sector, but there’s always room for other great companies to participate in the market. And I think Firefly is one of them. They serve a specific niche that SpaceX does not serve. And I think that’s how we view it. We can be complimentary to what SpaceX is doing. Their Falcon 9 is not a perfect rocket for the missions that Firefly’s Alpha should be serving. It’s similar to what we’ve seen in legacy businesses. We’re not going to go head-to-head with Lockheed Martin and develop an F35 [fighter jet]. We’re going to find mission areas around that where we can carve out a niche and hopefully grow the entire pie for everyone in the space market. So, I think that’s how we look at SpaceX. We will beat them in some areas.

GF: You already did.

Konert: We did. Healthy competition is good for the incumbent, or the dominant player. Without that, you create complacency and overall stagnation of the market. Great competition creates a bigger, better, healthier market. I think SpaceX welcomes that. Hopefully Elon views it the same way. I think he does based on his view of the world. SpaceX is good at making satellites for Starlink and for their constellation. But our portfolio company, York Space, is better at some mission areas than SpaceX. York is good at making satellites for missions that are more bespoke and custom for national security. That’s a different part of the market where we can both play. We’ll beat them in some places, and they’ll beat us in some places.

GF: Earlier this month, Firefly secured a US Defense Department contract for an on-orbit mission in 2027, but SpaceX benefits from receiving generous US government contracts. What are the roles that regulators play in this sector and is there room for a company like Firefly to score contracts as well?

Konert: Investing in space has a lot of tailwinds as it relates to the US. The pacing threat is China, which is, in some ways, beating us in some areas within the space market. The headlines are one thing. But if you look at the broader community, they’re saying we need to have more investment in space—period. SpaceX will have a role to play. So will other companies like Firefly and York. We think the best solution, the best technology and the best cost will ultimately win the day. From our standpoint, we see a lot of opportunity and we’re also going to continue to find commercial and other markets to play in that can be additional growth areas. So, we see it as a positive that space is so in the forefront of the Trump administration’s mind. There will be more contracts for SpaceX, but I think there’ll be more contracts for the industry overall.

GF: Are there other sectors besides space, like drones or AI, where similar growth is evident?

Kirk: This year, one of our space-related portfolio companies, Redwire, acquired a drone company called Edge Autonomy. Now they have both a low-Earth orbit satellite just above the atmosphere, plus a drone company that’ll operate just below that—full domain expertise within one company. Before that deal, AeroVironment, a major drone maker, bought a space- and defense-tech company called BlueHalo for $4.1 billion.

We have investments in both those areas and see a convergence of it all to some degree. AI is going to be part of every company. Going forward, if you don’t have an AI strategy, you’re probably going to lose. AI will be used for space exploration, too. We used AI for Blue Ghost’s moon landing, for example. It’s also a key component of how you invest in your own portfolio companies. Our strategy is to invest in companies that take AI models and use their domain expertise to apply those models to help the customer. What we’re not investing in is large language models. We’ll let Elon Musk and Sam Altman do that work. We’ll focus on taking their models to apply it to the problems we’re trying to solve in our core sectors.

The Space Boom Is Here

Falling costs, private investment, and new business opportunities are fueling a rapidly expanding space economy poised for major growth.

Read More

Updated on April 19th, 2025 by Felix Martinez

NorthWest Healthcare Properties Real Estate Investment Trust (NWHUF) has three appealing investment characteristics:

#1: It is a REIT so it has a favorable tax structure and pays out the majority of its earnings as dividends.
Related:  List of publicly traded REITs

#2: It is a high-yield stock based on its 7.3% dividend yield.
Related: List of 5%+ yielding stocks

#3: It pays dividends monthly instead of quarterly.
Related: List of monthly dividend stocks

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

 

NorthWest Healthcare Properties Real Estate Investment Trust’s trifecta of favorable tax status as a REIT, a high dividend yield, and a monthly dividend makes it appealing to individual investors.

But there’s more to the company than just these factors. Keep reading this article to learn more about NorthWest Healthcare Properties Real Estate Investment Trust.

Business Overview

NorthWest Healthcare Properties Real Estate Investment Trust is an open-ended real estate investment trust with a portfolio of high-quality international healthcare real estate infrastructure comprised of interests in a portfolio of 186 income-producing properties and 16.1 million square feet of gross leasable area located throughout major markets in Canada, Brazil, Europe, Australia, and New Zealand.

Source: Investor Presentation

The REIT’s portfolio of medical office buildings, clinics, and hospitals is characterized by long-term indexed leases and stable occupancies. With a fully integrated and aligned senior management team, the REIT leverages over 200 professionals across nine offices in five countries to serve as a long-term real estate partner to leading healthcare operators.

NorthWest Healthcare Properties REIT has a high occupancy rate of 96.0% and a weighted average lease duration of about 12.9 years. The long lease duration offers great visibility into future cash flows. The REIT is also highly diversified geographically, and, more importantly, it is somewhat protected from high inflation thanks to contractual rent growth year after year.

Growth Prospects

The healthcare real estate market has many attractive characteristics. Firstly, it is one of the largest industries in the world, accounting for more than 10% of global GDP. Approximately $8 trillion is spent on global healthcare annually. Additionally, healthcare spending is growing at an annual rate of 4%-7%.

Source: Investor Presentation

Moreover, the healthcare industry benefits from favorable demographics, thanks to a growing and aging global population. As the 65+ group continues to grow, it is the group with the greatest spending power, and global healthcare spending is likely to continue growing at a rapid pace for the next several years.

Furthermore, NorthWest Healthcare Properties REIT has built a rapidly growing asset management platform. Thanks to this platform, the trust enjoys fast-growing management fees. While management fees somewhat cooled in the latest quarter, they are likely to remain a material growth driver in the upcoming years.

Overall, NorthWest Healthcare Properties REIT has ample room for future growth thanks to the secular growth of the healthcare industry. On the other hand, high interest rates are likely to take their toll on the trust’s bottom line in the upcoming quarters.

NorthWest Healthcare Properties REIT has reduced its FFO per unit by 6.5% annually on average over the past five years. However, given the above factors, we expect the REIT to grow its FFO per unit by about 2.0% per year on average over the next five years, roughly in line with its historical growth rate.

Dividend & Valuation Analysis

NorthWest Healthcare Properties REIT is currently offering a dividend yield of 7.3%. It is thus an interesting candidate for income-oriented investors, but the latter should be aware that the dividend may fluctuate significantly over time due to the fluctuations in exchange rates between the Canadian dollar and other foreign currencies, as well as the USD.

Moreover, the REIT has an elevated payout ratio of nearly 100%, which significantly reduces the safety margin of the dividend.

Regarding valuation, NorthWest Healthcare Properties REIT is currently trading at only 12.6 times its FFO per unit over the last 12 months. The low valuation has resulted primarily from the expected impact of higher interest expenses on the bottom line and the effect of high inflation on the valuation, as high inflation significantly reduces the present value of future cash flows.

Given the material debt load of the REIT, we assume a fair price-to-FFO ratio of 11.0 for the stock. Therefore, the current FFO multiple is higher than our assumed fair price-to-FFO ratio. If the stock trades at its fair valuation level in five years, it will result in a 1.4% annualized loss.

Taking into account the 2% annual FFO-per-unit growth, the 7.3% dividend, and a 1.4% annualized compression of valuation level, NorthWest Healthcare Properties REIT could offer a 7.9% average annual total return over the next five years. This is a modest expected return, especially for the investors who expect inflation to subside swiftly to its normal levels. Nevertheless, the stock is suitable only for investors who are comfortable with the risk associated with the trust’s substantial debt load.

Final Thoughts

NorthWest Healthcare Properties REIT has the advantage of operating assets in the global healthcare industry, which enjoys strong and reliable secular growth. Despite its high payout ratio of over 100%, the stock is offering an exceptionally high dividend yield of 7.3%. Hence, it is an attractive candidate for the portfolios of income-oriented investors, particularly given that the stock is expected to yield a return of 7.9% per year over the next five years.

On the other hand, investors should be aware of the risks associated with the REIT’s weak balance sheet. If high inflation persists for much longer than currently anticipated, high interest rates will greatly burden the REIT. Therefore, only the investors who are confident that inflation will soon revert to normal levels should consider purchasing this stock.

Moreover, NorthWest Healthcare Properties REIT is characterized by exceptionally low trading volume. This means that it is 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.

Bitcoin is considered digital gold by many—a store of value with the potential for long-term appreciation. However, for many bitcoin holders, it isn’t just something to be tucked away in cold storage. Increasingly, it’s being used as collateral to unlock liquidity without having to sell. This growing use case—Bitcoin-backed loans—enables individuals to tap into the value of their BTC to fund everything from real estate purchases to business operations and even everyday expenses, all while avoiding the generally taxable event of selling. 

Bitcoin lending has become a powerful financial tool for crypto-native individuals and institutions alike. But as the market matures, a critical question emerges: is custodial or non-custodial infrastructure better? Each option offers distinct advantages and risks, and understanding the differences is essential for anyone looking to responsibly leverage their BTC. Additionally, it’s helpful to know which platforms are building the most popular solutions for non-custodial borrowing, such as Rocko, and custodial borrowing, like Ledn.

Why borrow against Bitcoin?

Before diving into the mechanics of lending models, it’s important to understand why someone might borrow against their Bitcoin in the first place.

• Liquidity without selling: BTC holders often expect long-term appreciation. Borrowing allows them to access USD/fiat or stablecoins without reducing their exposure.
• Tax efficiency: Selling Bitcoin can trigger capital gains taxes. Loans backed by BTC are typically non-taxable events, preserving long-term investment status.
• Flexible use cases: Borrowers use BTC loans to:
  • Purchase real estate
  • Fund businesses or cover operational costs
  • Make everyday purchases
  • Reinvest in other opportunities or assets

This versatility has led to the rise of various lending platforms catering to different user preferences, particularly around how BTC is stored and managed during the loan process.

Custodial vs. non-custodial lending: What’s the difference?

At the heart of Bitcoin lending is a fundamental question: Who controls the BTC during the loan?

• Custodial Lending: The borrower deposits Bitcoin with a third-party custodian, typically a centralized platform, who holds the collateral and facilitates the loan. Platforms like Ledn and Unchained fall into this category.
• Non-Custodial Lending: Borrowers retain control over their funds through smart contracts or cryptographic systems. The BTC is held in multi-signature wallets or trustless systems where no single party can unilaterally access the collateral. This is typically facilitated through DeFi lending platforms like Rocko and Lava.

Each model has its own pros and cons; appealing to different user types depending on risk tolerance, technical comfort, and priorities around transparency and control.

The case for non-custodial lending

Non-custodial lending is gaining popularity as Bitcoin holders look for more trustless and transparent alternatives. Rather than handing over their assets to a company that operates behind closed doors, borrowers can interact directly with smart contracts or multi-sig systems that execute terms programmatically and transparently.

Advantages:

• No custodian risk: Users maintain partial or full control over their funds. There’s no risk of a centralized custodian freezing or mismanaging the collateral.
• Transparency: Terms, balances, and positions are transparent and visible onchain.
• Competitive rates & flexible terms: By removing intermediaries, non-custodial protocols can offer lower interest rates and more favorable loan terms. Some platforms even offer open-ended loans without strict monthly payment requirements.

Challenges:

• Higher complexity: Non-custodial platforms often require users to understand wallets, smart contracts, and collateral management.
• Limited BTC-native support: Because Bitcoin doesn’t natively support smart contracts in the same way Ethereum does. Generally, DeFi-based BTC lending often relies on wrapped versions or cross-chain solutions which can increase complexity for borrowing.

Notable options:

• Rocko: A rising player in the space, Rocko simplifies non-custodial borrowing by aggregating rates from various protocols. Instead of interacting with complex DeFi interfaces or comparing terms manually, Rocko provides a simple-to-use interface where users can compare many rates to ensure they get the lowest one and receive the loan directly to their exchange account. Because Rocko aggregates options from DeFi lending protocols, borrowers also benefit from flexible loan terms such as open-ended loan terms and no monthly minimum payments. Rocko abstracts away the complexity of DeFi while preserving the trust-minimized nature of non-custodial loans.
• Lava: A new lending platform that offers non-custodial BTC-backed borrowing through innovative discreet log contracts (DLCs). This structure leverages programmable contracts directly on the Bitcoin network to help bitcoin owners get liquidity. Lava’s novel approach, however, is generally limited to short-term loans and may not be ideal for those who wish to borrow for longer periods.

The custodial lending experience

For users who prioritize seamless fiat onramps, custodial lending remains a popular choice. These platforms often integrate features like ACH transfers for loan funds, easy-to-understand interfaces, and institutional-grade custody solutions.

Advantages:

• User-friendly experience: Borrowers typically interact with web or mobile apps that resemble traditional fintech platforms.
• Fiat integration: Platforms can send USD or other fiat currencies directly to a user’s bank account.
• Support and guidance: More handholding for newer users unfamiliar with crypto infrastructure.

Drawbacks:

• Custodian risk: Users must trust the platform to manage funds safely. History has shown (e.g., BlockFi, Celsius) that this trust can be misplaced and lead to loss of funds for users.
• Opaque lending practices: Many platforms don’t disclose how user funds are lent out or what risk controls are in place.
• Higher interest rates: Centralized intermediaries may charge more due to overhead, cost of capital, and profit margins.

Popular custodial platforms:

• Ledn: Ledn is a custodial crypto lending platform that offers BTC and ETH-backed loans as well as wealth management services. One unique feature is that it allows borrowers to choose whether they want their collateral to be lent to others or not, which impacts the interest rate they pay. Ledn also offers accounts that allow users to deposit crypto and earn interest—although the interest is generated through lending the crypto which carries risk.
• Unchained: A bitcoin-focused company, Unchained uses collaborative custody (multi-sig) for its loan which helps the borrower keep partial control of their BTC. This option appeals to users who want to retain some control while working with a regulated institution. One downside is they don’t offer loans to most consumers and instead are focused on institutions.

Looking ahead: The rise of non-custodial Bitcoin lending

As the Bitcoin lending ecosystem continues to mature, non-custodial solutions have gained market share vs custodial solutions—particularly among users who value transparency, self-custody, low interest rates, and flexible loan terms. Platforms like Rocko are leading the charge by offering innovative tools that preserve the principles of Bitcoin—sovereignty, transparency, and decentralization—while still delivering usable, real-world financial services.

For those comfortable with crypto infrastructure, non-custodial borrowing offers a powerful and increasingly accessible way to leverage BTC without surrendering control. At the same time, custodial platforms still serve an important role for users seeking simplicity and fiat connectivity.

In the end, the growth of both models is a sign of a maturing market—one where Bitcoin isn’t just a store of value, but a foundational asset for a new generation of financial tools.

Updated on April 19th, 2025 by Felix Martinez

Investors seeking stable and dependable cash flow may find it advantageous to invest in companies that offer regular dividend payments on a monthly basis. These companies provide a more frequent and consistent source of income as opposed to those that distribute dividends quarterly or annually.

Opting for such companies allows investors to maintain a steady stream of income that meets their financial requirements on a regular basis.

We have identified a total of 76 companies that currently offer a monthly dividend payment. While the number may be modest, it is significant enough to allow you to peruse and select the ones that align with your investment preferences.

You can see all 76 monthly dividend-paying names here.

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

 

Richards Packaging Income Fund (RPKIF) is a Canadian trust that specializes in packaging containers and associated components.

The stock is currently offering a dividend yield of ~5%, which, although not tremendous, is still more than three times the 1.5% yield of the S&P 500 Index.

Given that Richards Packaging’s distributions are paid on a monthly basis and the trust has maintained or increased its distributions for the past 14 years, the stock appears rather appealing to distribution growth investors seeking a regular stream of dependable payments.

Business Overview

Richards Packaging Income Fund, established on February 26, 2004, as a limited-purpose, open-ended trust, is committed to investing in distribution enterprises across North America.

Through its subsidiaries, each of which specializes in a distinct area, the trust serves a vast clientele of over 17,000 regional businesses, including those in the food, beverage, cosmetics, and healthcare industries.

Its primary revenue stream comes from the distribution of over 8,000 diverse types of packaging containers and healthcare supplies and products sourced from a network of more than 900 suppliers, as well as its three specialized manufacturing facilities.

Source: Annual Report

Amidst the COVID-19 pandemic, the trust experienced a significant boost, as the surge in e-commerce orders due to lockdowns and other restrictions resulted in a spike in demand for containers and healthcare supplies. Thus, revenues in fiscal 2020 soared by 46% to C$489.2 million, compared to C$334.2 million in fiscal 2019.

Since then, the trust’s subsidiaries have managed to strengthen their market position, maintaining a robust revenue base. Nevertheless, there are indications of a reversal in the pandemic’s impact, as evidenced in the trust’s results.

Richards Packaging reported a 4.3% decline in full-year revenue, totaling $104.8 million, driven by weaker demand for food and beverages and slower sales of healthcare capital. Adjusted EBITDA fell by $1.1 million to $15.3 million (14.6% of sales), and net income dropped $3 million to $8.6 million, or $0.79 per unit. Despite the revenue decline, the company maintained a strong free cash flow of $7.3 million and paid off all remaining debt.

In Q4, revenue declined 3.7%, primarily due to a $3 million decrease in healthcare sales and $1.9 million in food and beverage sales. Adjusted EBITDA reflected this revenue drop but was partially offset by a $1 million gain on lease adjustments. Net income declined by $0.27 per unit, primarily due to lower earnings, the revaluation of contingent liabilities, and exceptional items.

Looking forward, Richards is focused on returning to growth through tuck-in acquisitions and expects 2%–5% organic revenue growth in 2025. With healthcare now over 52% of its product mix and no outstanding debt, the company is well-positioned to navigate macroeconomic uncertainty and continue creating long-term value.

Growth Prospects

Richards Packaging Income Fund’s growth is being powered by the trust’s underlying businesses, as well as accretive acquisitions or dispositions of its assets.

In 2020, for instance, the trust acquired Clarion Medical Technologies, a leading Canadian provider of medical, aesthetic, vision care, and surgical equipment and consumables. In late 2022, Richards Canada sold the Rexplas manufacturing facility to a strategic supplier, who will continue to produce bottles to meet the trust’s needs.

Over the years, the trust has grown steadily under this strategy. More precisely, over the last nine years, the trust’s revenues have grown at a compound annual growth rate (CAGR) of 8.3%.

The dividend per unit (DPU) has grown at a slower pace, partly due to the depreciation of the exchange rate between CAD and USD. DPU has grown at a compound annual growth rate (CAGR) of 4.6% over the past nine years.

Management outlined its focus for 2025, stating that the primary goal is to sustain core revenue growth within the range of 2% to 5%, provided the economy does not face a recession.

Management also affirmed that acquisitions would continue to play a significant role in the trust’s strategic direction. However, organic growth is expected to slow down compared to past levels due to the likelihood of reduced demand for the trust’s packaged products during an economic downturn.

Dividend Analysis

Richards Packaging Income Fund has paid monthly distributions since its inception. Payouts were temporarily suspended during the Great Financial Crisis and were then resumed at a lower rate.

On the bright side, since then, the trust has either maintained the monthly distribution at a stable level or increased it.

As a result, the trust’s payout ratio has improved notably during this period. It was 62% in 2012 and 59% in 2024. Therefore, we believe the trust is to turn more favorable toward resuming distribution growth moving forward. This is also signaled by the fact that the trust has begun paying special distributions to distribute its earnings surplus.

In March 2022, March 2023, and March 2024, special distributions of US$0.539, US$0.275, and US$0.266 were paid, respectively.

At its current annualized rate of C$1.23 (approximately $0.95), the trust yields approximately 5%. It used to yield up to 11% in previous years, but the yield has declined gradually following the stock’s steady gains against a relatively stagnant distribution.

Final Thoughts

Richards Packaging Income Fund has demonstrated decent growth over the years, with accretive acquisitions, strategic dispositions, and the organic expansion of its underlying businesses contributing to satisfactory DCFU growth.

The trust’s current yield may not be sufficient to meet the needs of some investors seeking substantial income. That said, its prospects for significant distribution hikes and special distributions are promising, given the consistent improvement in the stock’s payout ratio.

In any case, we believe that the trust’s base monthly distribution is very safe, and the stock is likely to cater to investors who seek regular distributions with growth potential.

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.