Archives May 2025

Amazon (AMZN) reported first-quarter earnings that topped analysts’ expectations, but its outlook disappointed. 

The e-commerce and cloud services giant reported quarterly revenue of $155.7 billion, up 9% year-over-year and above the analyst consensus from Visible Alpha. Net income of $17.1 billion, or $1.59 per share, compared to $10.4 billion, or 98 cents per share, a year earlier, topping Wall Street’s estimates.

“To some extent, we’ve seen some heightened buying in certain categories that may indicate stocking up in advance of any potential tariff impact,” CEO Andy Jassy said.

Online store sales grew 6% to $57.41 billion, beating estimates, while revenue from Amazon Web Services increased 17% to $29.27 billion, slightly below projections of $29.38 billion.

Looking ahead, Amazon forecast second-quarter revenue of $159 billion to $164 billion, roughly in line at the midpoint with the $161.27 billion called for by Wall Street. However, Amazon’s projected operating income of $13 billion to $17.5 billion was largely below the analyst consensus.

CFO Brian Olsavsky said the company issued a wider outlook than it would have otherwise, amid uncertainty about consumer demand in the face of President Trump’s shifting tariff policies.

“It’s hard to tell what’s going to happen with tariffs right now,” Jassy said, adding “there’s maybe never been a more important time in recent memory than trying to keep prices low, which we’re heads down pretty maniacally focused on.”

The CEO said Amazon has taken several steps to keep prices low, including forward buys of inventory, and diversifying its supply chain.

Amazon shares fell about 3% in after-hours trading. The stock was down 13% for 2025 through Thursday’s close.

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

Tom Yeung here with today’s Smart Money. 

In February 2020, photos began circulating of deserted locations in China.  

Empty subway stations… 

Desolate malls… 

There was not a soul to be seen in downtown Beijing, Hong Kong, or Shanghai, as the picture below shows. 

Source

A month later, American pandemic lockdowns began. 

Today, similar images of desolation are coming toward our shores. But instead of empty subway stations and malls, it’s store shelves that will be barren…

Source

That’s because America is quietly running out of Chinese goods. 

On Wednesday, the National Bureau of Statistics revealed that Chinese export orders for April had plunged to their lowest level since the Covid-19 pandemic.  

Container ship arrivals to the Port of Los Angeles are scheduled to decrease 36% later this month. And retailers will eventually burn through the pre-tariff stockpiles they’ve hoarded. 

So, in today’s Smart Money, let’s take a look at what the continued trade war with China means for us as consumers… and, importantly, as investors.  

I’ll also share the date that could spark massive market panic. It’s a lot sooner than you might think. 

The Trade War’s Impact 

Over the next several months, retailers will run out of cheaply imported inventory. Products we take for granted will disappear, and many unexpected items will suddenly become far harder to find.  

The first to vanish will be toys and seasonal kids’ goods, given their relatively quick turnover and reliance on Chinese manufacturers. We could see this impact as soon as next month. 

The next will be fast fashion and low-cost home goods. Then, apparel… footwear… electronic components… household appliances… and so on. Each new month will bring another knife twist to American supply chains, simply because no other country (not even the U.S.) can replace the manufacturing capacity of China on such short notice. 

Of course, I’m only talking hypothetically.  

That’s because President Donald Trump still seems to care about public opinion and stock prices. He backed off full “Liberation Day” tariffs after a major Wall Street selloff, and will almost certainly lighten up on Chinese tariffs once retail panic begins. After all, the president did not win the race to the White House by promising empty store shelves. 

However, that still means a retail panic must first happen.  

Over the past decade, we’ve gotten a good look at how our president operates. He loves to make grand deals. He loves to negotiate. And he loves to look strong to his constituents. 

And that’s worrying because Trump is clashing swords with a leader who also wants to appear strong to his own people. 

That means it’s extremely unlikely we’ll see a sudden “grand deal” with China to bring all tariffs to the 25% to 30% range – the sweet spot where taxes are high enough to incentivize re-shoring, and low enough to keep trade moving. Neither side wants to look weak. 

Instead, the next several months will likely see a second dip before both sides come to the table. Even then, we may only see a hodgepodge of tariff cuts, leaving importers without the confidence to make big orders or rebuild supply chains outside China. That will eventually lead to low inventories, less consumption, and a “W-shaped” recovery. 

So, how should investors prepare for an upcoming “everything shortage”? 

Two Steps to Arm for a Trade War 

First, you must check your portfolio for China-dependent companies and reduce exposure where you can. For instance, with… 

• Retailers. Firms like Amazon.com Inc. (AMZN) and Target Corp. (TGT) import anywhere from 30% to 70% of their total inventory from China. Raising prices to offset tariffs could prove ruinous for their reputations, so they have no choice but to eat the costs and accept lower (or negative) profits. 
• Apparel. Many clothing sellers have surprisingly concentrated supply chains. UGG owner Decker Outdoors Corp. (DECK), for example, sources its entire sheepskin inventory from two Chinese tanneries. 

The next step will be to protect yourself from the second dip of a “W-shaped” recovery. President Trump will likely delay reducing tariffs until something goes wrong, so we’ll probably see a pullback as retail panic sets in.  

That means cutting back on the riskiest of risky bets like short-dated call options… zero-profit startups… even major cryptocurrencies. 

But after that, you need to prepare for a recovery through buying the high-quality winners we’ve long talked about in this newsletter.  

And the good news is the second leg of the “W-shaped” recovery could happen as soon as next Wednesday, May 7. According to my InvestorPlace colleague Luke Lango, a big event that day could trigger a flood of cash – roughly $7 trillion – to rush back into U.S. stocks. This catalyst could change the entire market and create a summer “panic” like we’ve not seen since 1997. 

This is why he is holding a special 2025 Summer Panic Summit tonight at 7 p.m. Eastern. At this event, Luke will explain why he believes this catalyst on May 7 will be a game-changer. Plus, he’ll share a new set of stocks that he believes are primed to lead the next wave of growth.  

The event starts in just a few hours, so click here now to reserve your spot for the 2025 Summer Panic Summit before it begins. You won’t want to miss what Luke has to say.  

Until next week,  

Tom Yeung  

Markets Analyst, InvestorPlace 

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

USD gains for third-straight session

The greenback was strongly higher for the third session in a row as the US dollar continued to extend a rebound from three-year lows.

The US dollar gained despite a run of poor economic data with Wednesday seeing an unexpected drop in March-quarter GDP while Thursday saw a jump in weekly unemployment claims, up from 223k last week to 241k this week.

The AUD/USD fell 0.3% as the pair continues to find key resistance above 0.6400. Australia goes to the polls in the national election on the weekend.

The NZD/USD was down 0.5% with this pair now down 2.1% from recent highs.

In Asia, the USD/SGD surged higher ahead of the Singapore election with the USD/SGD up 0.5%.

The USD/CNH gained 0.1%.

JPY lower as BoJ holds

The US dollar’s move in Asia was mostly driven by yesterday’s Bank of Japan decision.

The US dollar was higher while the Japanese yen fell sharply after the BOJ decided to keep interest rates on hold at 0.50%.

The JPY’s weakness was clearly seen in the AUD/JPY pair with the Aussie jumping to a one-month high versus the Japanese yen.

The Singapore dollar also hit one-month highs versus the Japanese yen.

US jobs in focus

The highlight tonight will be the US jobs report, due at 10.30pm AEST, with markets looking closely for any signs of cracks in the US labour market.

According to Bloomberg, the market is looking for a lower, 138k result after last month’s higher than expected 228k.

The unemployment rate is forecast to stay steady at 4.2%.

However, shifts in the labour market are historically slow to take effect. As a result, a surprisingly positive result could see the USD extend recent gains tonight.

USD gains ahead of jobs

Table: seven-day rolling currency trends and trading ranges  

Key global risk events

Calendar: 29 April – 3 May

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.

Apple (AAPL) CEO Tim Cook said the Trump administration’s tariffs, if they remain at their current levels, will cost Apple about $900 million in the current quarter that runs through June. 

During the company’s quarterly earnings call Thursday, Cook said a majority of iPhones sold in the U.S. this quarter will come from India, rather than China, with iPad, Mac, Apple Watch, and other products coming mostly from Vietnam.

The comments come amid concerns the company could be particularly hurt by trade tensions with China, where Apple manufactured an estimated 90% of its products until recently. Most Apple products are exempt from President Trump’s 125% “reciprocal” tariffs on Chinese goods, but still affected by the 20% import tax the White House put in place earlier in the year to combat fentanyl trafficking, Cook noted.

Cook also warned the impact of tariffs to Apple’s results could change, given the company is “uncertain of potential future actions” the administration could take. Trump has said he expects tariffs on China “will come down substantially” in trade negotiations but not drop to zero. 

Apple reported fiscal second-quarter revenue and earnings that surpassed analysts’ expectations, with higher-than-expected iPhone sales.

Shares of Apple fell about 4% in extended trading. The stock was down 15% for 2025 through Thursday’s close.

Last call for tonight’s robotics event with Luke Lango … agentic AI is already arriving … did Beijing just crack the door open to talks? … perspective on volatility

In recent Digests, I’ve been highlighting tonight’s humanoids/robotics investment event with our technology expert, Luke Lango.

If you’re still unsure about the scope of this opportunity, here’s the title of one of CNBC’s stories on Tuesday:

“Morgan Stanley says humanoid robots will be a $5 trillion market by 2050. How to play it”

The numbers in the article are eye-opening. From CNBC:

Wall Street continues to double down on its forecasts of a multi-trillion dollar global market for humanoid robots, suggesting it will grow to be significantly larger than the global auto industry by the next couple of decades.

New estimates from Morgan Stanley analysts forecast $4.7 trillion in global humanoid revenue by 2050, which the firm said is double the total revenue of the 20 largest automakers in 2024…

Analysts estimate that global humanoid adoption will accelerate and reach roughly 1 billion units by 2050, the investment bank said.

Elon Musk, Tesla’s CEO, shares this same perspective. Last year, he predicted that Tesla’s humanoid Optimus will “overwhelmingly be the value of [Tesla].”

Here’s more of what he said about humanoids on Tesla’s Q2 2024 earnings call:

• Long-term, Optimus has the potential to generate $10 trillion in revenue
• It won’t be many years before Tesla is making 100 million robots a year
• Musk sees a path for Tesla to be the most valuable company in the world, possibly bigger than the next five companies combined, overwhelmingly due to autonomous vehicles and autonomous humanoid robots.

To add context to Morgan Stanley’s $4.7 trillion market size prediction, in 2024, the market cap of the entire global pharmaceuticals industry was roughly $1.7 trillion.

Humanoids are going to dwarf that.

And how about global defense/military spending? According to CNN, that clocks in at $2.7 trillion.

So, these next-gen robots will nearly double that.

***What we’re seeing right now with robotics/humanoids has shades of the earliest days of the internet boom

And though this technology will take years to reach full bloom, the early investment gains have already begun. Luke believes they’re about to accelerate:

If history is any guide, the next 24 months could be even bigger than the last 24 — just as 1998 and 1999 outshone 1995 and 1996 during the Dot-Com Boom.

In fact, my team and I have been tracking the price action of stocks in the AI Boom that started in 2023, relative to the price action of stocks in the Dot-Com Boom, from 1995 to the peak in 1999.

The price trajectories match almost perfectly.

We haven’t seen a setup like this in nearly 30 years, when internet leaders saw gains of 800%, 2,800%, and even 3,000%…

Luke isn’t pulling those numbers from thin air. He’s referring to the gains seen by Cisco, Viavi Solutions, and Qualcomm between 1997 and 1999 (though there are abundant other examples he could have used).

Circling back to tonight, get ready to cover lots of ground: the historical parallels to the 90s… why the AI boom is far from over… why humanoids/robotics are critical for investor portfolios in the years ahead… why May 7^th could mark a mad dash back into the market that Luke wants to front-run… and details about a group of seven small-cap stocks that are poised to benefit from the humanoid boom.

It’s not too late to join. By clicking here, you’ll be instantly registered to attend, and we’ll see you at 7 PM Eastern.

***Ready for AI to do your shopping?

On Tuesday, Bloomberg reported that Mastercard is working with Microsoft so that AI agents can shop for consumers online, even make payments for them.

Here’s Bloomberg:

Under the new program, a shopper could prompt an AI agent — Microsoft’s Copilot, for example — to search for a pair of yellow running shoes in a particular size.

The agent would then search and offer the customer options, and then be able to make the purchase while also recommending the best way to pay.

The AI agent won’t have complete autonomy to buy without the consumer’s input. But it’ll basically tee everything up and await that final green light.

But agentic AI isn’t only on the cusp of transforming shopping.

Here’s The Wall Street Journal from February, discussing AI agents and healthcare:

Grace, Max and Tom…are artificial-intelligence agents: bots that execute tasks end to end.

Already, AI agents can automate the ordering of groceries and filing of expense reports, and now venture-backed companies are designing them for healthcare tasks such as enrolling participants in clinical trials, ensuring proper care after hospitalization and helping doctors quickly learn medical histories when seeing patients for the first time.

And how about AI agent “tutors” that help your child with those pesky math problems?

Here’s PurelyStartup.com:

47% of students fail to grasp algebraic concepts in their first attempt. That statistic isn’t just a number—it represents millions of frustrated students, overwhelmed teachers, and countless lost learning opportunities. 

Some schools are already embracing AI teaching assistants to tackle this challenge…in what’s becoming education’s most transformative shift.

These AI agents for education don’t just explain concepts differently—they adapt to each student’s learning style, provide instant feedback, and offer unlimited patience. 

There are plenty more examples of AI agents impacting different corners of our economy, but you get the idea.

The bottom line is that this technology is racing toward us right now. And these cutting-edge bots are the frontrunners of the full-blown humanoids that aren’t too far behind.

Consider the scope of how this will change your life – and the world around you.

From an investment perspective, we’re effectively at Day 1.

Circling back to Luke and how he recommends investors position themselves, here’s your last reminder to join him tonight (here’s that one-click instant sign-up link again).

***The trade war is already bruising China – but is Beijing softening?

Switching gears, yesterday, we learned that China’s manufacturing activity has nosedived in the wake of the trade war.

China’s Purchasing Managers’ Index fell to 49 (a reading below 50 signals a contraction). And new export orders fell to their lowest since December 2022.

Will it result in trade war concessions?

Here’s The Wall Street Journal:

[The weak data] adds to pressure on Chinese leader Xi Jinping to reach a deal on trade with Trump—though for now the clear message from Beijing is one of resolute defiance in the teeth of what it describes as U.S. bullying.

Earlier this week, we dove into Beijing’s “defiance,” highlighting how Chinese culture places a major emphasis on “saving face.” We saw an example a few days ago when the Chinese Ministry of Foreign Affairs posted a video to social media saying, “China won’t kneel down.”

But are we seeing green shoots?

Yesterday, Chinese state media said there would be “no harm” in having trade talks with the White House. This hints at a softening of Beijing’s position.

In a social media post, Yuyuan Tantian, which is an account affiliated with state media, said:

If the US wishes to engage with China, there’s no harm in it for China at this stage…

If it is talks, the door is wide open. If it is a fight, we’ll see it through to the end.

Seems like an effective tightrope walk of “saving face” while also signaling a willingness to find a deal.

We’re encouraged, but let’s be cautious about reading too much into it. On that note, here’s the WSJ again:

Xi has signaled that Beijing is prepared for a long battle over trade…

[And though various exemptions have been made on both sides] substantive talks on trade between Washington and Beijing don’t appear to be happening.

***Important perspective on recent volatility

As I write Thursday, the market is soaring (mostly the Nasdaq) due to strong earnings from Microsoft and Meta.

But given the volatility we’ve seen over the last two months, tomorrow could bring a “down” day that erases all these gains and more.

So, let’s end today by contextualizing this volatility.

First, a disclaimer: We each have a unique investment path. We come to today’s market with different ages, investment goals, incomes, net worths, investment timeframes, and so on. So, please do only what’s best for you and your specific investment situation.

But if you have a handful of years left for your stock portfolio to develop, Thomas Yeung offers important perspective.

For newer Digest readers, Thomas is Eric Fry’s lead analyst. In his Investment Report Weekly Update from Tuesday, Thomas began by explaining why we aren’t out of the woods with the trade war, and the potential for empty shelves in the coming months.

But it’s how Thomas ended his update that’s important for long-term investors to remember (equally so for investors who are buying into humanoids/robotics today).

I’ll let him take us out today:

Four years from now, no one will be thinking about tariffs.

Instead, we’ll be talking about artificial intelligence, robotics, and perhaps even how the chaotic rollout of import taxes were good for forcing firms to re-onshore production. 

So, don’t let [a stuttering, uneven] recovery shake you from the market.

Have a good evening,

Jeff Remsburg

While cross-border dealmaking accelerates in Asia, Europe, and the Middle East, US M&A faces mounting headwinds from tariffs, recession fears, and regulatory pushback.

M&A activity got off to a strong start in 2025, with global deal value surpassing $1.2 trillion through April, according to Dealogic. However, more is being spent on less, considering the number of transactions is at a two-decade low. Only 6,955 deals were announced in the first quarter; that’s down 16% from the fourth quarter of 2024.

Mounting recession fears, renewed trade tensions, and shifting political winds are weighing heavily on corporate dealmakers and private equity firms—particularly in the US, where valuations remain flat.

“Deals got done in Q1 but it has been slow and will probably get slower as the year progresses. I have been asking for updated 2025 projections but there is uncertainty in the markets and how the tariffs will play out, and a hesitation to provide those 2025 projections,” says David Acharya, managing partner at Acharya Capital Partners. “I have been hearing similar comments from my peers—senior investment partners with investment committee responsibilities.”

Consider the numbers. As of May 1, Dealogic shows US M&A value is at $575.6 billion. That’s down 1% compared to this time last year. Other regions are on the opposite trajectory: Japan, $42 billion (up 133%); Asia, $251.4 billion (73%); Canada, $52.4 billion (54%); Middle East/Africa, $31.4 billion (51%); and Europe, $257.8 billion (7%).

For the numbers to be where they are, investment banks don’t have many mega deals to boast about. In March, Google’s parent company, Alphabet, purchased cybersecurity startup Wiz for about $32 billion. There was also the $16.4 billion agreement between Constellation and Calpine Corp., as well as the $22.8-billion investment from China’s Ministry of Finance into four state-owned banks. In Europe, Austria’s OMV cut a deal with Abu Dhabi National Oil Co. to merge their respective polyolefins businesses; the combined entity proceeded to buy NOVA Chemicals Corp for $13.4 billion.

Technology, finance, health care, utilities, and oil and gas remain the most vibrant sectors across the globe. Technology and finance both exceeded last year’s three-month period in terms of dollars spent.

“In the US, M&A volume has decreased on a year-on-year basis, while most other markets in Asia and Europe have gone up,” Takashi Toyokawa of Ignosi Partners, says. “I’d expect this trend to continue over the next couple of quarters until there’s some level of certainty in the US.”

For the first quarter, the US Commerce Department announced that the economy shrank for the first time in three years. The 0.3% contraction was fueled by businesses scrambling to strategize in response to President Donald Trump’s confusing trade policy.

“While we’re seeing that deals that have been in the works since last year are still getting across the finish line, the uncertainty driven by the imposition of tariffs in the US and increase in long-term interest rates, which in turn has led to market volatility, has definitely caused potential acquirers to think twice before doing deals,” Toyokawa adds.

The current scenario is in stark contrast to what big banks were expecting at the end of 2024 and the start of 2025.

“The pace of mergers and acquisitions around the world gained momentum [in 2024], and there are signs that deal-making will accelerate in 2025,” Stephan Feldgoise and Mark Sorrell, Goldman Sachs’ M&A co-heads, said in a joint statement back in December.

JPMorgan Chase CEO Jamie Dimon was also bullish. Just days before Trump’s inauguration, the bank boss remarked: “Businesses are more optimistic about the economy, and they are encouraged by expectations for a more pro-growth agenda and improved collaboration between government and business.”

Not anymore. According to The Wall Street Journal, Dimon recently told investors at IMF meetings that a recession is the best-case outcome.

Hopes that a second Trump term would bring looser M&A regulations have also been dashed. The Department of Justice and Federal Trade Commission are proving just as tough as they were during Trump’s first term, as well as under former President Joe Biden. Recent lawsuits blocking Hewlett Packard Enterprise’s $14.3 billion acquisition of Juniper Networks and GTCR’s $611 million Surmodics buyout show that even under Trump, antitrust enforcers aren’t easing up.

The will-they-won’t-they dynamic between U.S. Steel and Tokyo-based Nippon Steel isn’t serving as a useful gauge for how the White House plans on handling M&A regulations, particularly when it’s a cross-border proposal. Under Biden, the deal was blocked due to what the former administration considered national security risks. Trump opposed it last year, but has been indecisive on the matter.

“The market was thinking there would be relief from the harsh anti-merger stance from the Biden administration, not open season on M&A,” Accelerate Fintech’s Julian Klymochko says. “Safe to say, that hasn’t happened.”

Whether M&A pros find that early-year optimism again remains to be seen. After all, hopes were high that pent-up demand, ample capital, and a business-friendly presidential administration would fuel a wave of consolidations.

Instead, dealmaking momentum has stalled, weighed down by rising market volatility and growing economic uncertainty, Andrew Lucano, co-chair of the M&A practice at law firm Seyfarth Shaw, explained.

“Recent US trade policies have introduced significant unpredictability, triggering market swings and prompting caution among deal participants, especially those with exposure to tariff risk,” Lucano says. “Uncertainty has always been one of the greatest inhibitors of dealmaking, and that’s exactly where we are right now. As a result, many players are adopting a ‘wait and see’ approach, at least in the near term, as they assess the full impact of tariffs and any potential retaliatory measures.”

Updated on April 30th, 2025 by Felix Martinez

Whitecap Resources (SPGYF) has two appealing investment characteristics:

#1: It is offering an above-average dividend yield of ~9%, which is nearly six times the yield of the S&P 500.
#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 an above-average dividend yield and a monthly dividend makes Whitecap Resources an appealing option for individual investors.

But there’s more to the company than just these factors. Keep reading this article to learn more about Whitecap Resources.

Business Overview

Whitecap Resources is an oil and gas company focused on acquiring, developing, and producing oil and gas in Western Canada. The company’s development programs focus on Northern Alberta and British Columbia, Central Alberta, and Saskatchewan. Whitecap Resources is headquartered in Calgary, Canada.

Whitecap Resources has some attractive characteristics. First of all, its assets are characterized by low decline rates. This is paramount in the oil and gas industry, as many producers suffer from high natural decline rates.

Source: Investor Presentation

As Whitecap Resources’ business is focused on oil and gas, it has exhibited a highly volatile performance record due to the dramatic cycles of oil and gas prices. The company has incurred material losses in four of the last ten years. Therefore, investors should carefully identify the stage of the cycle in which this business operates before investing in this stock.

Like almost all oil and gas producers, Whitecap Resources incurred substantial losses ($3.55 per share) in 2020 due to the decline in oil and natural gas prices caused by the pandemic. However, thanks to the widespread distribution of vaccines worldwide, global oil and gas consumption recovered in 2021, and the company returned to high profitability that year.

Whitecap Resources reported strong Q1 2025 results, with revenue rising to $942 million and net income nearly tripling to $163 million. Production averaged 179,051 boe/d—6% higher than last year and above internal forecasts—driven by strong performance from new wells. The company generated $48 million in free funds flow, reduced net debt to $987 million, and returned $107 million to shareholders through dividends.

Whitecap drilled 86 wells during the quarter, with strong results across both unconventional (Montney and Duvernay) and conventional assets. Glauconite and Wapiti wells outperformed expectations, aided by improved drilling efficiency and infrastructure upgrades. Capital spending totaled $398 million.

A merger with Veren Inc. is expected to close by mid-May, creating Alberta’s largest Montney and Duvernay landholder. The combined company will update 2025 guidance post-merger and focus on maintaining a strong balance sheet, delivering stable dividends, and targeting 3–5% production growth per share.

Growth Prospects

Whitecap Resources’ proved reserve lifetime is 12.2 years, which is above the industry’s average of about 10 years. In addition, thanks to the favorable characteristics of its development areas, Whitecap Resources is rapidly growing its reserve base.

Source: Investor Presentation

A double-digit production growth rate is extremely rare in the oil and gas industry. In fact, most oil majors, such as Exxon Mobil (XOM) and Shell (SHEL), have failed to grow their output for several years in a row. This is a key difference between Whitecap Resources and most oil and gas producers.

On the other hand, Whitecap Resources is sensitive to the cycles of the oil and gas industry. This is clearly reflected in the company’s volatile performance record. Over the last eight years, Whitecap Resources has grown its earnings per share by an average annual rate of only 6% and has posted losses in four of those years.

Whitecap Resources currently enjoys strong business momentum, not only due to its high production growth but also because of the Ukrainian crisis and the deep production cuts implemented by OPEC in an effort by the cartel to support oil prices. The price of natural gas has plunged this year, primarily due to an abnormally warm winter, but the cost of oil has remained above average. As a result, Whitecap Resources is likely to continue thriving this year.

Given the positive business momentum, the cyclical nature of Whitecap Resources’ business, and the high comparison base from last year, we expect approximately flat or lower earnings per share over the next five years.

Dividend & Valuation Analysis

Whitecap Resources is currently offering an above-average dividend yield of 8.9%, nearly six times the yield of the S&P 500. The stock is thus an exciting candidate for income-oriented investors, but the latter should be aware that the dividend is not safe due to the cyclical nature of the oil and gas industry.

Whitecap Resources currently has an exceptionally low payout ratio of 59.3% and a solid balance sheet, with a long-term debt-to-capital ratio of 13.7%. As a result, the stock’s dividend has a margin of safety for the foreseeable future.

On the other hand, due to Whitecap Resources’ cyclical business, its dividend is not entirely safe. Additionally, U.S. investors should be aware that the dividend received from this stock is dependent on the exchange rate between the Canadian dollar and the U.S. dollar.

In reference to the valuation, Whitecap Resources has traded at only 5.6 times its earnings per share over the last 12 months, primarily due to the above-average earnings it posted last year. We assume a fair price-to-earnings ratio of 5.0 for the stock. Therefore, the current earnings multiple is higher than our assumed fair price-to-earnings ratio. If the stock trades at its fair valuation level in five years, it will have a headwind of a 2.3% annualized loss in its returns.

Considering the flat earnings per share, the 8.9% dividend yield, and a 2.3% annualized compression of the valuation level, Whitecap Resources could offer an average annual total return of approximately 6.6% over the next five years. This is not a decent expected return, but we recommend waiting for a lower entry point to enhance the margin of safety and increase the expected return.

Final Thoughts

Whitecap Resources has much better prospects for growing its production and reserves than most of its peers and is offering an above-average dividend yield of 8.9%. Thanks to its healthy balance sheet, the company is not likely to cut its dividend in the near future, which is expected to entice some income-oriented investors.

However, the company’s performance record has been highly volatile due to its business cycles. Therefore, investors should wait for a more attractive entry point.

Moreover, Whitecap Resources is characterized by 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.

Editor’s Note: In the late 1990’s, one of the most explosive events happened on Wall Street – the dot-com boom. The internet began to change how we live our daily lives, and now we can’t go a day without using it. But the biggest fortunes weren’t made in the dot-com boom, they were made AFTER it happened…

You see, it took time for the internet to make way into our homes and jobs, and as it did, the companies that benefited from this saw huge gains, as much as 3,000%! And now my colleague, Luke Lango, sees a similar event taking shape for the AI Boom…

On May 7, Luke believes that the $7 trillion that has been sitting on the sidelines will trigger a buying frenzy, benefitting a small group of stocks that he calls the “MAGA 7” (Make AI Great in America). He tells you everything you need to know tonight at 7 p.m Eastern in The 2025 Summer Panic Summit.

Click here to instantly RSVP to the event now!

I’ll turn it over to Luke, where he’ll show you how the AI Boom is following the dot-com boom’s same path…

***************************

Back in late 1994, a little browser called Netscape quietly opened the internet’s doors.

Few noticed then, yet that single event triggered one of the most explosive investment booms of the past century. Between 1994 and 1999, the Dot-Com Boom minted millionaires – and you didn’t need to be early.

In fact, the biggest fortunes weren’t made in the beginning of the boom… but in its second half.

Cisco Corp. (CSCO) became a poster child for the dot-com era. Its stock rallied about 200% during the “first half” of the boom, from early 1995 to mid-1997.

Not bad.

But then, in the “second half,” from summer 1997 to late 1999, Cisco stock went parabolic—soaring 800%.

In simple terms: Cisco tripled in the first two years of the Dot-Com Boom… but delivered a nearly 9X return in the last two:

It wasn’t just Cisco, either.

Viavi Solutions Inc. (VIAV) – like Cisco, a networking solutions provider for the internet buildout – surged about 500% in the first half of the boom… then exploded nearly 3,000% in the second half:

Lather, rinse, repeat for other massive internet stock winners of the 1990s. Semtech Corp. (SMTC), Applied Materials Inc. (AMAT), Oracle Corp. (ORCL), Paychex Inc. (PAYX), Sanmina Corp. (SANM) — all saw their biggest gains after the world started to panic (more on that in a minute), not before.

These stocks were huge winners in the Dot-Com Boom. But why did their biggest moves come late, not early?

Netscape…

Not because of Netscape – but because of what came after.

You see… it took a few years for web browsers such as Netscape to become widespread, but once they did, the stage was set for the acceleration phase of the internet — the period when internet applications we still use today, like Amazon, Google, and eBay – were built atop those browsers.

Those applications went on to change the world.

Right now, the same thing is happening again.

Except this time, it isn’t about the internet.

It’s about AI.

So, in today’s issue… I’m going to show you three more charts that show you just how precisely the AI Boom is following the Dot-Com Boom’s trajectory.

Plus, we’ll discuss why the AI Boom has been taking a beating the last few months…

The catalyst it will take to get the AI Boom back on track…

And how you can get on board before that catalyst hits.

Let’s get going…

3 Charts You Must See Now

The AI Boom began in 2022 when ChatGPT launched—the Netscape moment for this generation. Since then, AI has dominated headlines, and AI stocks have soared.

But make no mistake: We are not at the end of the AI Boom… we are only at the midpoint.

If history is any guide, the next 24 months could be even bigger than the last 24 — just as 1998 and 1999 outshone 1995 and 1996 during the Dot-Com Boom.

In fact, my team and I have been tracking the price action of stocks in the AI Boom that started in 2023, relative to the price action of stocks in the Dot-Com Boom, from 1995 to the peak in 1999.

The price trajectories match almost perfectly.

Take a look…

Across the S&P 500…

The Nasdaq Composite…

And the Russell 2000.

We haven’t seen a setup like this in nearly 30 years…

Like I showed you up top, it was possible to see gains of 800%, 2,800%, and even 3,000%…

It doesn’t matter what you look at — the correlation is very strong — almost identical.

These charts show how we’re poised to keep going up, and quickly.

This time, though, something is different.

Over the past few months, the global trade war has thrown the stock market into chaos.

We’ve seen historic up days followed by devastating crashes.

We’ve logged some of the best one-, two-, and three-day stretches ever in the last three months. We’ve also seen some of the worst one-, two-, and three-day stretches.

The S&P 500 has been whipped around like a rag doll. Tech stocks have been hit the hardest. The VIX—Wall Street’s “fear index” — recently flashed levels last seen at the depths of the COVID crash and the global financial crisis.

It has been one of the most volatile three-month stretches in stock-market history.

It’s caused thousands and thousands of investors to give up on the AI Boom.

But is it that different?

The May 7 “Trigger”

Think back again to the Dot-Com Boom: The market has been here before.

In 1998, global currencies were in turmoil, Russia defaulted, and Long-Term Capital Management collapsed. Pundits whispered the Dot-Com Boom was finished.

It wasn’t.

Right in the middle of that chaos, the biggest tech rally in history take off.

I believe history is about to repeat itself.

That’s because, on May 7, I believe President Donald Trump and a message coming out of Washington will help trigger a $7 trillion panic in the markets as investors on the sidelines – and all the cash they’re holding – rush to jump back in as opportunities open up.

This crucial economic event ties together everything happening now — the stock market chaos, the trade war headlines, the AI Boom, and every single investor’s portfolio.

This feels the same as 1997 — the panic, the fear, the headlines. Beneath it all, however, a massive opportunity is quietly forming.

When the powers that be in Washington take the stage on May 7, they could light the spark.

Tonight at 7 p.m. ET, I’m hosting a free urgent briefing (automatically reserve your spot by clicking here) to prepare you for what I’ve been calling The 2025 Summer Panic.

I’ll walk you through the historical parallels, show you why the AI Boom is far from over, and reveal what could happen on May 7 — and how to position yourself.

For reasons I’ll explain tonight, a crucial economic event that President Trump is pushing hard for is set to ignite this rally in a small specific group of stocks as soon as May 7.

All you need to do is click this link to immediately RSVP.

During that free broadcast, I’ll make sure you have all the details on the seven small companies I’ve identified as the biggest potential winners of The 2025 Summer Panic…

Again: Tonight, 7 p.m. ET. Clear your calendar. What happens next could go down in history.

Click here to sign up now.

Sincerely,

Luke Lango

Updated on April 30th, 2025 by Felix Martinez

Real estate investment trusts, or REITS, are often a favorite of investors looking for generous dividend yields, as these companies are required by law to distribute the vast majority of income to shareholders in the form of dividends.

Even better, many REITs distribute dividends on a monthly payment schedule, which enables regular cash flows. This can be a good opportunity for investors who need consistent, monthly payments.

You can see all 76 monthly dividend stocks 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:

 

Slate Grocery REIT (SRRTF) is a Canadian-based real estate investment trust that began paying a monthly dividend in 2014. The stock currently yields 8.5%, which is almost six times the yield of the S&P 500 Index.

This article will evaluate the trust and its dividend to determine if Slate Grocery could be a good candidate for income-oriented investors.

Business Overview

Slate Grocery is an open-ended mutual fund trust headquartered in Toronto and listed on the Toronto stock exchange. U.S. investors can purchase the stock over-the-counter.

Although it is based in Canada, Slate Grocery primarily focuses on purchasing, owning, and leasing a portfolio of real estate properties in the United States.

Source: Investor Presentation

Slate Grocery’s portfolio of 116 properties is anchored almost exclusively by grocery stores. The trust has more than 15 million square feet of properties. As of the most recent quarter, the portfolio was valued at $2.4 billion.

Slate Grocery REIT reported solid Q4 and full-year 2024 results, driven by strong leasing activity and rent growth. CEO Blair Welch emphasized the REIT’s ability to grow NOI through favorable leasing spreads and successful refinancing of $633.5 million in debt, despite tight credit markets.

The REIT posted 4.3% same-property NOI growth and completed 2.7 million square feet of leasing for the year. New leases averaged 28% above prior rents, and portfolio occupancy remained stable at 94.8%. In-place rents remain well below market averages, offering room for future growth.

Q4 rental revenue rose 3%, NOI increased 3.3%, and net income jumped 204%. However, FFO and AFFO declined due to reduced leasing volume. With a strong portfolio and units trading below their net asset value (NAV), the REIT sees continued opportunities for value-driven investors.

Growth Prospects

Slate Grocery counts among its tenants some of the largest grocery stores in the country.

Source: Investor Presentation

Walmart Inc. (WMT), Kroger Corporation (KR), and Walgreens (WBA) are Slate Grocery’s three largest tenants. The first two names account for more than 18% of the total portfolio, which comprises a significant number of properties with just two tenants.

Beyond Walmart and Kroger, however, no tenant accounts for more than 5% of the portfolio, providing Slate Grocery with a good amount of diversification amongst its clients. Only Walmart and Kroger contribute at least 9.0% of annualized base rents.

Additionally, Slate Grocery leases properties to six of the top seven U.S. grocery chains by market share. This means that the trust’s properties are visited by millions of people each week.

Expanding beyond just grocery stores, Slate Grocery has amongst its tenants 20 of the 25 largest consumer good distributors in the world, including Amazon.com Inc. (AMZN), Home Depot (HD), Lowe’s Companies (LOW), and CVS Health Corp. (CVS).

The rise of e-commerce purchasing channels has changed the nature of the retail business. While this has impacted many types of retail companies, grocery stores have weathered these changes better than most.

The resilience of grocery stores can be attributed to their shift to online ordering to drive sales to their businesses. The COVID-19 pandemic accelerated this transition, as grocery stores, along with many other businesses, had to adapt their operations under strict social distancing guidelines.

Slate Grocery’s tenants pivoted quickly to the point where 100% of the portfolio now provides omnichannel distribution, with most fulfilling e-commerce purchases from neighborhood store locations. The trust also has a presence in 23 of the country’s top 50 metropolitan areas.

Inflation has been a headwind in many industries, but the majority of lease agreements have built-in rental escalators, which have helped offset the increased expenses of the trust. Moreover, while many REITs are struggling to cover their interest expense amid nearly 23-year-high interest rates, Slate Grocery has a strong interest coverage ratio.

With top-name tenants, multiple ways for customers to purchase goods, and a strong footprint of properties, Slate Grocery should continue to see solid growth rates moving forward.

Dividend Analysis

That growth should enable Slate Grocery to continue paying its dividend, which currently yields an annualized rate of 8.5%. On the other hand, Slate Grocery has frozen its dividend over the last five years.

While investors seeking dividend growth may be disappointed, it is worth noting that the dividend has not been reduced since the second monthly distribution in 2014. Slate Grocery’s annualized dividend is $0.864.

The REIT currently has a payout ratio of 95%, which is very high for a REIT. Given also the healthy balance sheet of the REIT and its decent growth prospects, the dividend appears to have a meaningful margin of safety in the absence of a severe recession.

Final Thoughts

Monthly dividend-paying stocks can provide more consistent cash flows. Additionally, Slate Grocery offers an exceptionally high yield, which appears safe for the foreseeable future. High-quality tenants also back the trust in some of the largest metropolitan areas in the U.S.

Slate Grocery’s tenants have adapted to the changing retail landscape by embracing e-commerce to drive sales. Investors might find the combination of all these characteristics an attractive investment opportunity.

Additional Reading

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.

Arab Bank is this year’s Best Bank in the Middle East. CEO Randa Sadik shares how investments in technology and the next generation of clients spurred its growth.

Global Finance: What factors shaped Arab Bank’s results last year?

Randa Sadik: Arab Bank posted a robust performance in 2024, underpinned by broad growth across geographies and business segments. Our solid results were backed by a well-diversified expansion in core banking income with interest and non-interest revenue contributing to sustainable growth in net operating profit.

Arab Bank’s strategic emphasis on expanding beyond its home market continued to pay off, with strong momentum in the high-growth GCC region and international markets. Our global network and digital transformation were key in driving value across corporate, consumer, and wealth management banking segments.

The results underscore the effectiveness of our long-term strategy, which hinges on geographic and income stream diversification to ensure resilience and capture cross-market opportunities.

GF: What digitalization milestones did Arab Bank reach?

Sadik: We advanced our cloud-native applications and accelerated our API-driven development. AI agents will also boost this process by integrating more value-added services for our customers.

For our corporate business, we reengineered our credit origination and approval process to enable end-to-end digital flows that process new credit applications faster, starting in GCC countries. We also revamped our Trade Finance Corporate platform’s user interface and added new services.

We continued our focus on enhancing Arabi Next, our SME digital app, and, among many other things, launched digital onboarding for SME customers in Jordan – a major regional differentiator – alongside a new tailored digital loyalty program and an E2E SME cards management offering. We routed 91% of all SME transactions in Jordan through various digital channels.

Finally, the bank launched Omnify, a Banking as a Service [BaaS] platform. It lets companies embed Arab Bank APIs in their digital apps and enables the bank to leverage opportunities for new open banking regulatory frameworks.

GF: What is Arab Bank doing to reach the next generation of customers?

Sadik: We offer a well-rounded and fully integrated value proposition. We understand that young customers expect much more than traditional banking. They seek personalized, digital-first experiences that align with their dynamic lifestyles and evolving requirements.

Our youth-focused programs begin early. The Junior program starts by instilling financial awareness in children and evolves toward offering tailored banking experiences to teenagers. The Shabab program focuses on youth and young adults, helping them build a solid financial future via fee-free banking, exclusive lifestyle benefits, and a holistic financial proposition. The centerpiece of engagement with this key segment is our Arabi Mobile app, which delivers seamless, end-to-end digital journeys spanning onboarding, investments, and credit facilities.

Equally important is our dedication to sustainability. Through initiatives in financial literacy, continuous innovation, and environmental responsibility, we are staying relevant to younger generations and actively shaping a more inclusive and sustainable future.

GF: What role did AI play in your 2024 performance, and what will it contribute in 2025?

Sadik: Alongside our digital achievements, Arab Bank continued its ambition to become an AI-first organization, capitalizing on our rich data set to automate and personalize AI-based flows to assist our staff in their daily tasks and speed up their decisioning process, affording our customers both richer and more personalized customer engagement and autonomous drive.

By 2024, Arab Bank had over 20 AI-ML models in production covering a range of applications, from gaining better customer insights to improving our risk-based decision-and-detection process. Most of our models were developed internally under a robust governance framework. Still, we also injected third-party AI-based offerings, which let us benefit from the scale effect of market data, such as for customer service chatbots, cyber threats, and fraud alerts.

For 2025, we will continue to deploy these models while embedding generative-AI use cases to automate routine tasks, digitalize risk management, and enhance customer-facing personalized services. As a prerequisite, we provide Arab Bank staff with an effective learning and development program to capitalize on this new opportunity.

The most material examples include, but are not limited to, providing internal chatbots to front-line staff to access product and policy information faster, supporting their training needs, and allowing for a fast decision process