Category Monthly Dividend

President Donald Trump has imposed tariffs on U.S. trading partners and promised that many more will be implemented. A number of new tariffs are due to go into effect on April 2, which the president refers to as “Liberation Day.”

The tariffs, a cornerstone of Trump’s economic plan, have ever-changing parameters and deadlines. Some tariffs have been used as bargaining chips with other countries, while others are designed to bring manufacturing and jobs back to the U.S. They are also a way the president plans to offset some of the government’s spending.

However, Trump’s on-again, off-again approach to tariff policy has created uncertainty in the economy. Businesses and consumers alike worry that inflation will rise and that the economy could be headed toward a recession, and that uncertainty has weighed on investor sentiment, sending stocks sharply lower in recent months.

Investopedia has worked to gather all of Trump’s tariff proposals. Only those with some level of detail (either the proposed rate or the date it is to be enacted) and documentation are included. This page will be updated regularly as parameters change or more information becomes available.

Tariffs on Countries

A Closer Look

Mexico: President Donald Trump announced trade policies on Mexico before he even took office. Since then, the policy toward our neighbors to the south has changed a number of times.

In the latest move, Trump taxed all items from Mexico at a flat 25% rate but then quickly made exceptions for USMCA goods. Those exceptions cover a bulk of what would be taxed, but Trump has said the exemptions are only temporary and will be lifted on April 2.

Canada: Canada has largely shared Mexico’s plight under Trump’s trade policies but has sometimes faced additional tariffs as Ottawa has hit back. Any non-USMCA items from Canada are taxed at a 25% rate, but that could change on April 2, the president said. Energy resources and potash were later included in tariffs on our northern neighbors and taxed at 10%. More tariffs on the country, such as on dairy and lumber products, could also be enacted on April 2.

Venezuela: While the Venezuelan taxes are geared toward the South American country, they will actually be implemented on others. The 25% tariff will be imposed on goods imported into the U.S. from countries that buy Venezuelan oil. This could include China, the Dominican Republic, India, Malaysia, Russia, Singapore, Spain, and Vietnam.

Oil accounts for more than 80% of Venezuela’s exports and more than 17% of its gross domestic product (GDP), and these tariffs are intended to affect the country’s economy. Trump has targeted Venezuela because he says it is “an unusual and extraordinary threat to the national security and foreign policy of the United States.”

Tariffs on Items, Sectors or Industries

A Closer Look

Reciprocal: If it were to go through as planned, reciprocal tariffs would be the most widespread trade policy thus far. Under this proposal, the U.S. would mirror the tariffs imposed on U.S. exports of that country’s goods. For example, if items from the U.S. were taxed at a 5% rate when they were sent to the U.K., items from the U.K. would be taxed at 5% as they came into the U.S.

However, Trump has already walked back some of his original promises, saying he would be lenient on “a lot of countries.” It’s still unclear whether the reciprocal taxes would be a flat rate for an entire country or imposed on an item-by-item basis. These tariffs are set to kick in on April 2, so more information may be available then.

Automobiles: In his attempt to bring manufacturing back to the U.S., Trump is building a wall around U.S. automaking. The import tax on cars outside of the country will be permanent, and engines, transmissions, electrical components, and other parts are expected to be included. Parts that have been exempt under other tariff proposals that are included in the USMCA have a reprieve here, but it could be temporary, analysts said.

It’s unclear whether this manufacturing play will work. U.S. labor is still more costly than that of other countries. Analysts said that for many companies, it could still be cheaper to pay the tariff than to move vehicle manufacturing operations.

Pharmaceuticals: Trump has mentioned pharmaceutical tariffs in a number of press conferences but has not laid out any specific plans beyond the comments. At one point, Trump said import taxes on medications could be a tax of 25% or higher and could increase over a year to give companies an on-ramp. Prescription drug prices have been a particular area of concern for voters, but like with most tariffs, this could push up the price for those medications.

Elon Musk’s latest move might sound a bit like a math problem.

In a Friday afternoon message on his social media network X, the Tesla (TSLA) CEO said his artificial intelligence company, xAI, had acquired X in an all-stock transaction. The deal values the companies at $80 billion and $33 billion respectively, the latter number which he said reflects a $45 billion value for X and $12 billion of debt. 

Those figures are in line with a recent Bloomberg report of about $1 billion in fundraising at X. Musk’s 2022 acquisition of Twitter, which he renamed X, valued the company at $44 billion. 

“xAI and X’s futures are intertwined,” Musk wrote Friday. “Today, we officially take the step to combine the data, models, compute, distribution and talent. This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”

Musk’s stated valuation for X, which he said has more than 600 million active users, compares with Visible Alpha’s estimates of about $20 billion for Reddit (RDDT) and more than $15 billion for Snap (SNAP). Tech giant Meta Platforms’ (META) estimated market cap is above $1.5 trillion. 

Musk’s other companies include SpaceX, Neuralink and The Boring Company.

Updated on March 28th, 2025 by Bob Ciura

Mortgage Real Estate Investment Trusts (i.e., “REITs”) – often referred to as “mREITs” – can provide a very attractive source of income for investors.

This is because they invest in mortgages that are typically backed by hard assets (commercial and/or residential real estate) with fairly conservative loan-to-value ratios.

Mortgage REITs finance these portfolios with a mixture of equity (that they raise by selling shares to investors) and debt that they generally raise at an interest cost that is meaningfully lower than the interest rates they can command on their real estate mortgage investments.

The result is significant and stable cash flow for the mREIT.

You can download your free 200+ REIT list (along with important financial metrics like dividend yields and payout ratios) by clicking on the link below:

 

Moreover, as REITs they are exempt from having to pay corporate taxes on their net interest income and are required to pay out at least 90% of their taxable income to shareholders via dividends.

This generally means that mREIT shareholders earn very high dividend yields, making mREIT shares an exceptional source of passive income.

Of course, due to their significant amount of leverage, mortgage REITs come with risks that occasionally lead to dividend cuts.

As a result, investors need to be prudent when selecting which mREITs to invest in.

This article will list the 5 highest yielding mortgage REITs in the Sure Analysis Research Database.

Table of Contents

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

#5: AGNC Investment Corporation (AGNC)

American Capital Agency Corp is a mortgage real estate investment trust that invests primarily in agency mortgage–backed securities (or MBS) on a leveraged basis.

The firm’s asset portfolio is comprised of residential mortgage pass–through securities, collateralized mortgage obligations (or CMO), and non–agency MBS. Many of these are guaranteed by government–sponsored enterprises.

Source: Investor Presentation

AGNC Investment Corp. reported strong financial results for the third quarter ended September 30, 2024. The company achieved a comprehensive income of $0.63 per common share, driven by a net income of $0.39 and other comprehensive income of $0.24 from marked-to-market investments.

Net spread and dollar roll income contributed $0.43 per share. The tangible net book value increased by $0.42 per share to $8.82, reflecting a 5.0% growth from the previous quarter.

AGNC declared dividends of $0.36 per share, resulting in a 9.3% economic return on tangible common equity, which includes both dividends and the increase in net book value.

Click here to download our most recent Sure Analysis report on AGNC Investment Corp (AGNC) (preview of page 1 of 3 shown below):

#4: Dynex Capital (DX)

Dynex Capital invests in mortgage–backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non–agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest–only securities.

Source: Investor Presentation

Dynex Capital released its fourth-quarter 2024 financial results, with book value ending the quarter at $12.70 per share and an economic return of 7.4% for the year.

Leverage increased slightly to 7.9x as the company deployed capital into higher-yielding agency RMBS, particularly 30-year 4.5%, 5%, and 5.5% coupons.

The shift from treasury futures to interest rate swaps was a key strategy, enhancing portfolio returns by 200 to 300 basis points and improving net interest spread.

Click here to download our most recent Sure Analysis report on DX (preview of page 1 of 3 shown below):

#3: Ellington Credit Co. (EARN)

Ellington Credit Co. acquires, invests in, and manages residential mortgage and real estate related assets. Ellington focuses primarily on residential mortgage-backed securities, specifically those backed by a U.S. Government agency or U.S. government–sponsored enterprise.

Agency MBS are created and backed by government agencies or enterprises, while non-agency MBS are not guaranteed by the government.

On March 12th, 2025, Ellington Residential reported its fourth quarter results for the period ending December 31, 2024. The company generated a net loss of $(2.0) million, or $(0.07) per share.

Ellington achieved adjusted distributable earnings of $7.8 million in the quarter, leading to adjusted earnings of $0.27 per share, which covered the dividend paid in the period.

Ellington’s net interest margin was 5.07% overall. At quarter end, Ellington had $31.8 million of cash and cash equivalents, and $79 million of other unencumbered assets.

Click here to download our most recent Sure Analysis report on EARN (preview of page 1 of 3 shown below):

#2: ARMOUR Residential REIT (ARR)

ARMOUR Residential invests in residential mortgage-backed securities that include U.S. Government-sponsored entities (GSE) such as Fannie Mae and Freddie Mac.

It also includes Ginnie Mae, the Government National Mortgage Administration’s issued or guaranteed securities backed by fixed-rate, hybrid adjustable-rate, and adjustable-rate home loans.

Unsecured notes and bonds issued by the GSE and the US Treasury, money market instruments, and non-GSE or government agency-backed securities are examples of other types of investments.

ARMOUR’s cash flow has been volatile since its inception in 2008, but this is to be expected with all mREITs. Of late, declining spreads have hurt earnings, leading to a sharp decline in cash flow per share.

Fortunately, ARMOUR is now seeing a measure of recovery, and should continue to see that recovery manifest itself in the coming quarters and years.

Click here to download our most recent Sure Analysis report on ARMOUR Residential REIT Inc (ARR) (preview of page 1 of 3 shown below):

#1: Orchid Island Capital, Inc. (ORC)

Orchid Island Capital, Inc. is an mREIT that is externally managed by Bimini Advisors LLC and focuses on investing in residential mortgage-backed securities (RMBS), including pass-through and structured agency RMBSs.

These financial instruments generate cash flow based on residential loans such as mortgages, subprime, and home-equity loans.

In the fourth quarter of 2024, Orchid Island Capital, Inc. reported a net income of $0.07 per share, a decrease from $0.24 per share in the previous quarter. The company’s book value declined from $8.40 at the end of the third quarter to $8.09 at year-end.

As of December 31, 2024, Orchid Island Capital’s portfolio consisted of approximately $4.2 billion in residential mortgage-backed securities (RMBS), with a net weighted average coupon of 3.5%. The company’s leverage ratio stood at 8.1 times, reflecting its strategy of utilizing leverage to enhance returns.

Click here to download our most recent Sure Analysis report on Orchid Island Capital, Inc. (ORC) (preview of page 1 of 3 shown below):

Conclusion

As you can see from the dividend yields offered by the ten stocks discussed in this article, mREITs can be powerful passive income generators.

However, investors need to be careful before investing in this sector, given that dividend cuts can be common during periods of economic stress. As a result, diversification and a focus on quality are essential.

Additional Reading

You can see more high-quality dividend stocks in the following Sure Dividend databases, each based on long streaks of steadily rising dividend payments:

Alternatively, another great place to look for high-quality business is inside the portfolios of highly successful investors.

By analyzing the portfolios of legendary investors running multi-billion dollar investment portfolios, we are able to indirectly benefit from their million-dollar research budgets and personal investing expertise.

To that end, Sure Dividend has created the following two articles:

You might also be looking to create a highly customized dividend income stream to pay for life’s expenses.

The following lists provide useful information on high dividend stocks and stocks that pay monthly dividends:

AppLovin (APP) shares rebounded Friday morning after losing one-fifth of their value in Thursday trading as the company said it has hired an attorney to investigate recent short seller reports.

The online ad seller said on Friday that it has hired Alex Spiro to “conduct an independent review and investigation” into the recent short seller reports. Spiro has represented a number of high-profile clients in a variety of cases, including Tesla (TSLA) CEO Elon Musk, New York City Mayor Eric Adams, and Jay-Z.

“We are fully committed to defending the Company, its operations, and its reputation from those seeking to manipulate the market through false narratives,” AppLovin CEO Adam Foroughi said in a statement.

AppLovin shares were up around 4% on Friday. They have gained nearly 300% over the last 12 months, but are down sharply from a Feb. 14 record close of $510.13.

Recent Short Reports Have Targeted AppLovin

AppLovin has been the target of three reports from short sellers over the last month, with the latest published by Muddy Waters on Thursday. The latest report called AppLovin’s business practices “scammy,” and said the company could face repercussions from its business partners.

In a pair of reports released last month, short sellers from Culper Research and Fuzzy Panda Research alleged that AppLovin engaged in a range of fraudulent or deceitful practices.

Investopedia has not independently verified the allegations in any of the short reports.

General Motors (GM) shares are likely to remain in the spotlight after tumbling Thursday amid concerns about the potential impact of the Trump administration’s newly announced tariffs on auto imports.

The drop in GM’s stock, along with declines for other leading car manufacturers and parts suppliers, followed President Donald Trump’s announcement late Wednesday that 25% tariffs would be imposed on all foreign-made cars and auto parts. GM’s stock was particularly hard hit because of the number of vehicles it imports, with significant exposure to markets in Mexico and South Korea.

GM shares led S&P decliners on Thursday, falling more than 7% to $47.20. The stock is down more than 20% from its 52-week high set in late November.

Below, we take a closer look at GM’s chart and use technical analysis to identify important price levels that investors may be monitoring.

Bearish Engulfing Pattern Emerges

GM shares have remained under pressure since breaking down below the neckline of a head and shoulders formation in late January.

More recently, a bearish engulfing pattern emerged on the chart following a short-lived upswing that preceded today’s drop on above-average volume. It’s also worth pointing out that the 50-day moving average (MA) recently crossed below the 200-day MA to form a death cross, a chart indicator warning of lower prices.

Let’s identify two important support levels to monitor given the stock’s weak technical outlook and also locate key overhead areas worth watching during potential recovery efforts.

Important Support Levels to Monitor

Further share price weakness could initially see a move down to around $45. The shares may attract buying interest in this area near a horizontal line that connects a range of peaks and troughs on the chart extending back to mid-July last year.

A decisive close below this level sets the stage for a possible drop to $40. Investors may seek to accumulate shares in this region near last year’s prominent early-August swing low, which also aligns with a series of similar prices on the chart throughout the first quarter of 2024.

Key Overhead Areas Worth Watching

During recovery efforts in the stock, it’s worth keeping track of how the price responds to the psychological $50 area. The shares could face resistance at this level near the July, August, and September peaks that sit alongside troughs that formed on the chart in December and January.

Finally, buying above this area opens the door for a rally to around $55. Investors who have bought GM shares at lower levels could seek exit points in this location on a retest of the head and shoulders formation’s two shoulders.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

Updated on March 27th, 2025 by Bob Ciura

In the world of investing, volatility matters. Investors are reminded of this every time there is a downturn in the broader market and individual stocks that are more volatile than others experience enormous swings in price.

Volatility is a proxy for risk; more volatility generally means a riskier portfolio. The volatility of a security or portfolio against a benchmark is called Beta.

In short, Beta is measured via a formula that calculates the price risk of a security or portfolio against a benchmark, which is typically the broader market as measured by the S&P 500.

Here’s how to read stock betas:

• A beta of 1.0 means the stock moves equally with the S&P 500
• A beta of 2.0 means the stock moves twice as much as the S&P 500
• A beta of 0.0 means the stocks moves don’t correlate with the S&P 500
• A beta of -1.0 means the stock moves precisely opposite the S&P 500

Interestingly, low beta stocks have historically outperformed the market… But more on that later.

You can download a spreadsheet of the 100 lowest beta S&P stocks (along with important financial metrics like price-to-earnings ratios and dividend yields) below:

 

This article will discuss beta more thoroughly, why low-beta stocks tend to outperform, and provide a discussion of the 5 lowest-beta dividend stocks in the Sure Analysis Research Database.

The table of contents below allows for easy navigation.

Table of Contents

The Evidence for Low Beta Stocks Outperformance

Beta is helpful in understanding the overall price risk level for investors during market downturns in particular. The lower the Beta value, the less volatility the stock or portfolio should exhibit against the benchmark. This is beneficial for investors for obvious reasons, particularly those that are close to or already in retirement, as drawdowns should be relatively limited against the benchmark.

Importantly, low or high Beta simply measures the size of the moves a security makes; it does not mean necessarily that the price of the security stays nearly constant. Indeed, securities can be low Beta and still be caught in long-term downtrends, so this is simply one more tool investors can use when building a portfolio.

The conventional wisdom would suggest that lower Beta stocks should underperform the broader markets during uptrends and outperform during downtrends, offering investors lower prospective returns in exchange for lower risk.

However, history would suggest that simply isn’t the case. Indeed, this paper from Harvard Business School suggests that not only do low Beta stocks not underperform the broader market over time – including all market conditions – they actually outperform.

A long-term study wherein the stocks with the lowest 30% of Beta scores in the US were pitted against stocks with the highest 30% of Beta scores suggested that low Beta stocks outperform by several percentage points annually.

Over time, this sort of outperformance can mean the difference between a comfortable retirement and having to continue working. While low Beta stocks aren’t a panacea, the case for their outperformance over time – and with lower risk – is quite compelling.

How To Calculate Beta

The formula to calculate a security’s Beta is fairly straightforward. The result, expressed as a number, shows the security’s tendency to move with the benchmark.

For example, a Beta value of 1.0 means that the security in question should move in lockstep with the benchmark. A Beta of 2.0 means that moves in the security should be twice as large in magnitude as the benchmark and in the same direction, while a negative Beta means that movements in the security and benchmark tend to move in opposite directions or are negatively correlated.

Related: The S&P 500 Stocks With Negative Beta.

In other words, negatively correlated securities would be expected to rise when the overall market falls, or vice versa. A small value of Beta (something less than 1.0) indicates a stock that moves in the same direction as the benchmark, but with smaller relative changes.

Here’s a look at the formula:

The numerator is the covariance of the asset in question with the market, while the denominator is the variance of the market. These complicated-sounding variables aren’t actually that difficult to compute – especially in Excel.

Additionally, Beta can also be calculated as the correlation coefficient of the security in question and the market, multiplied by the security’s standard deviation divided by the market’s standard deviation.

Finally, there’s a greatly simplified way to calculate Beta by manipulating the capital asset pricing model formula (more on Beta and the capital asset pricing model later in this article).

Here’s an example of the data you’ll need to calculate Beta:

• Risk-free rate (typically Treasuries at least two years out)
• Your asset’s rate of return over some period (typically one year to five years)
• Your benchmark’s rate of return over the same period as the asset

To show how to use these variables to do the calculation of Beta, we’ll assume a risk-free rate of 2%, our stock’s rate of return of 7% and the benchmark’s rate of return of 8%.

You start by subtracting the risk-free rate of return from both the security in question and the benchmark. In this case, our asset’s rate of return net of the risk-free rate would be 5% (7% – 2%). The same calculation for the benchmark would yield 6% (8% – 2%).

These two numbers – 5% and 6%, respectively – are the numerator and denominator for the Beta formula. Five divided by six yields a value of 0.83, and that is the Beta for this hypothetical security. On average, we’d expect an asset with this Beta value to be 83% as volatile as the benchmark.

Thinking about it another way, this asset should be about 17% less volatile than the benchmark while still having its expected returns correlated in the same direction.

Beta & The Capital Asset Pricing Model (CAPM)

The Capital Asset Pricing Model, or CAPM, is a common investing formula that utilizes the Beta calculation to account for the time value of money as well as the risk-adjusted returns expected for a particular asset.

Beta is an essential component of the CAPM because without it, riskier securities would appear more favorable to prospective investors. Their risk wouldn’t be accounted for in the calculation.

The CAPM formula is as follows:

The variables are defined as:

• ERi = Expected return of investment
• Rf = Risk-free rate
• βi = Beta of the investment
• ERm = Expected return of market

The risk-free rate is the same as in the Beta formula, while the Beta that you’ve already calculated is simply placed into the CAPM formula. The expected return of the market (or benchmark) is placed into the parentheses with the market risk premium, which is also from the Beta formula. This is the expected benchmark’s return minus the risk-free rate.

To continue our example, here is how the CAPM actually works:

ER = 2% + 0.83(8% – 2%)

In this case, our security has an expected return of 6.98% against an expected benchmark return of 8%. That may be okay depending upon the investor’s goals as the security in question should experience less volatility than the market thanks to its Beta of less than 1. While the CAPM certainly isn’t perfect, it is relatively easy to calculate and gives investors a means of comparison between two investment alternatives.

Now, we’ll take a look at five stocks that not only offer investors low Beta scores, but attractive prospective returns as well.

Analysis On The Top 5 Low Beta Stocks

The following 5 low beta stocks have the lowest (but positive) Beta values, in ascending order from lowest to highest. They also pay dividends to shareholders. We focused on Betas above 0, as we are still looking for stocks that are positively correlated with the broader market:

5. Consolidated Edison (ED)

Consolidated Edison is a large-cap utility stock. The company generates nearly $15 billion in annual revenue and has a market capitalization of approximately $36 billion.

The company serves 3.7 million electric customers, and another 1.1 million gas customers, in New York.

Source: Investor Presentation

It operates electric, gas, and steam transmission businesses, with a steam system that is the largest in the U.S.

On February 20th, 2025, Consolidated Edison announced fourth quarter and full year results for the period ending December 31st, 2024. For the quarter, revenue grew 6.5% to $3.7 billion, which beat estimates by $36 million.

Adjusted earnings of $340 million, or $0.98 per share, compared to adjusted earnings of $346 million, or $1.00 per share, in the previous year. Adjusted earnings-per-share were $0.02 ahead of expectations.

For the year, revenue increased 4.0% to $15.3 billion while adjusted earnings of $1.87 billion, or $5.40 per share, compared to adjusted earnings of $1.76 billion, or $5.07 per share, in 2023.

Average rate base balances are now projected to grow by 8.2% annually through 2029 based off 2025 levels. This is up from the company’s prior forecast of 6.4%.

Click here to download our most recent Sure Analysis report on Consolidated Edison (preview of page 1 of 3 shown below):

4. The Hershey Company (HSY)

The Hershey Company, founded in 1894, is a chocolate and sugar confectionary products manufacturer that sells major brands such as Hershey’s, Reese’s, Kisses, Cadbury, Ice Breakers, Kit Kat, Almond Joy, Jolly Rancher, Twizzlers, Heath, and Milk Duds. Hershey primarily operates in North America but has international operations as well.

On February 6th, 2025, Hershey reported financial results for the fourth quarter of fiscal 2024. The North America Confectionary segment (81% of sales) grew its sales 6% over the prior year’s quarter.

Earnings-per-share grew 33%, from $2.02 to $2.69, beating the analysts’ consensus by $0.31, primarily thanks to an effective hedging strategy, which offset the effect of exceptionally high cocoa prices.

Hershey’s earnings-per-share growth stems from several factors. The first one is organic revenue growth, which Hershey has managed to achieve despite the public becoming more conscious about healthy eating habits. The company has also been able to improve its margins throughout the last decade.

Hershey owns well-recognized brands, so price hikes have not been a headwind to increasing the volume of its products. Hershey had also been moderately repurchasing its shares, which has added some additional growth to the company’s earnings-per-share.

HSY has a Beta score of 0.28.

Click here to download our most recent Sure Analysis report on HSY (preview of page 1 of 3 shown below):

3. Northrop Grumman (NOC)

Northrop Grumman Corporation is one of the five largest US aerospace and defense contractors based on revenue.

The company reports four business segments: Aeronautics Systems (aircraft and UAVs), Mission Systems (radars, sensors and systems for surveillance and targeting), Defense Systems (sustainment and modernization, directed energy, tactical weapons), and Space Systems (missile defense, space systems, hypersonics and space launchers).

Northrop Grumman makes the B-2 Spirit, E-2D, E-8C, RQ-4 Global Hawk, MQ-4C Triton, MQ-8B/C Fire Scout, B-21. The company also provides content on the F-35 and F/A-18. It won the contract for the GPI. The company had revenue of over $41.0B in 2024.

Northrop Grumman reported results for Q4 FY 2024 on January 30th, 2025. Companywide revenue was flat and diluted earnings per share rose to $8.66 from a loss of $3.54 on a year-over-year basis. Revenue for Aeronautics Systems rose 11% due to higher volumes in B-21, F-35 programs, and restricted programs.

The total backlog is a record ~$91.5B at the end of the quarter of which $39.7B is funded. The firm won $17.3B in contract awards in the quarter including large ones for restricted programs, TACAMO, F-35, and the Next-Gen OPIR. The company guided for $42.0B to $42.5B in sales and $27.85 to $28.25 earnings per share in 2025.

NOC has a Beta score of 0.21.

Click here to download our most recent Sure Analysis report on NOC (preview of page 1 of 3 shown below):

2. Campbell Soup (CPB)

Campbell Soup Company is a multinational food company headquartered in Camden, N.J. The company manufactures and markets branded convenience food products, such as soups, simple meals, beverages, snacks, and packaged fresh foods.

The company’s portfolio focuses on two specific businesses: Campbell Snacks, and Campbell Meals and Beverages. Campbell generated annual sales of $9.6 billion in fiscal 2024.

On March 12, 2024, Campbell closed on its acquisition of Sovos Brands (SOVO) for $23 per share in cash, which represented a total enterprise value of $2.7 billion, and was funded by issuing new debt. Sovos is a leader in high growth premium Italian sauces, and owns the market-leading Rao’s brand.

Campbell Soup reported second quarter FY 2025 results on March 5th, 2025. Net sales for the quarter improved by 9% year-over-year to $2.7 billion. This increase was mostly a result of the Sovos Brands acquisition. Adjusted EPS was 8% lower year-over-year at $0.74 for the quarter, which beat expectations by two cents.

The company repurchased $56 million worth of shares in H1. There remains $301 million remaining under the current $500 million share repurchase program, which is in addition to the existing $205 million remaining on its anti-dilutive share repurchase program.

Leadership updated its full-year fiscal 2025 guidance. Management now estimates that in fiscal 2025, Campbell’s adjusted earnings per share will be down 1% to 4%.

CPB has a Beta score of 0.19.

Click here to download our most recent Sure Analysis report on CPB (preview of page 1 of 3 shown below):

1. General Mills (GIS)

General Mills is a packaged food giant, with more than 100 brands and operations in more than 100 countries. It has returned to growth in the last five years, mostly thanks to the acquisition of Blue Buffalo and the pandemic, which greatly increased food consumption at home.

In mid-March, General Mills reported (3/19/25) results for Q3-2025. Net sales and organic sales fell -5% each over the prior year’s quarter, primarily due to retailer inventory reductions. It was the second-worst decline in the last five years.

Gross margin expanded from 33.5% to 33.9%, as cost savings offset input inflation. Adjusted earnings-per-share decreased -15%, from $1.18 to $1.00, but exceeded the analysts’ consensus by $0.04.

General Mills has grown its earnings-per-share at a 5.2% average annual rate in the last decade. We expect approximately 5.0% annual earnings-per-share growth over the next five years, mostly thanks to Blue Buffalo.

Earnings-per-share will also benefit from a decent amount of share repurchases, as the proceeds from the sale of North American yogurt business will be allocated on share repurchases.

GIS has a Beta score of 0.15.

Click here to download our most recent Sure Analysis report on GIS (preview of page 1 of 3 shown below):

Final Thoughts

Investors must take risk into account when selecting from prospective investments. After all, if two securities are otherwise similar in terms of expected returns but one offers a much lower Beta, the investor would do well to select the low Beta security as they may offer better risk-adjusted returns.

Using Beta can help investors determine which securities will produce more volatility than the broader market and which ones may help diversify a portfolio, such as the ones listed here.

The five stocks we’ve looked at not only offer low Beta scores, but they also offer attractive dividend yields. Sifting through the immense number of stocks available for purchase to investors using criteria like these can help investors find the best stocks to suit their needs.

At Sure Dividend, we often advocate for investing in companies with a high probability of increasing their dividends each and every year.

If that strategy appeals to you, it may be useful to browse through the following databases of dividend growth stocks:

Published on March 27th, 2025 by Bob Ciura

The S&P 500 Index is off to a challenged start to the year. So far in 2025, the S&P 500 Index has declined 3%.

Many dividend stocks are off to much worse starts year-to-date, which could present value and income investors with some compelling buying opportunities.

To begin the search for quality dividend growth stocks, we recommend the Dividend Champions, a group of stocks that have increased their dividends for at least 25 consecutive years.

You can download your free copy of the Dividend Champions list, along with relevant financial metrics like price-to-earnings ratios, dividend yields, and payout ratios, by clicking on the link below:

 

Investors are likely familiar with the Dividend Aristocrats, a group of 69 stocks in the S&P 500 Index with 25+ consecutive years of dividend increases.

Meanwhile, investors should also familiarize themselves with the Dividend Champions, which have also raised their dividends for at least 25 years in a row.

This article will discuss the 3 worst-performing Dividend Champions so far in 2025, along with their expected returns over the next five years.

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The 3 Dividend Champions have been ranked by expected total annual return over the next five years, from lowest to highest.

Beaten Down Dividend Champion #3: Matthews International Corp. (MATW)

• Year-to-Date Performance: -15.6%
• 5-year expected returns: 12.2%

Matthews International Corporation provides brand solutions, memorialization products and industrial technologies on a global scale. The company’s three business segments are diversified.

The SGK Brand Solutions provides brand development services, printing equipment, creative design services, and embossing tools to the consumer-packaged goods and packaging industries.

The Memorialization segment sells memorialization products, caskets, and cremation equipment to funeral home industries.

The Industrial technologies segment is smaller than the other two businesses and designs, manufactures and distributes marking, coding and industrial automation technologies and solutions.

Matthews International reported first quarter FY 2025 results on February 6th, 2025. The company reported sales of $402 million, an 11% decline compared to the same prior year period. The decrease was the result of a 28% sales decline in its Industrial Technologies segment.

Adjusted earnings were $0.14 per share, a 62% decrease from $0.37 a year ago. The company’s net debt leverage ratio rose from 3.6 one year ago to 3.9.

Matthews continues to expect $205 million to $215 million of adjusted EBITDA for fiscal 2025.

The dividend payout ratio for Matthews International has been very conservative and only recently eclipsed one third of earnings. This conservative payout ratio allows Matthews to continue raising the dividend as it has for the last 31 years.

The company has a small competitive advantage in that it is uniquely diversified across its businesses, which allows it to weather different storms on a consolidated basis.

Click here to download our most recent Sure Analysis report on MATW (preview of page 1 of 3 shown below):

Beaten Down Dividend Champion #2: T. Rowe Price Group (TROW)

• Year-to-Date Performance: -16.0%
• 5-year expected returns: 13.6%

T. Rowe Price Group, founded in 1937 and headquartered in Baltimore, MD, is one of the largest publicly traded asset managers.

The company provides a broad array of mutual funds, sub-advisory services, and separate account management for individual and institutional investors, retirement plans and financial intermediaries.

Source: Investor Presentation

Assets under management grow in two basic ways: increased contributions and higher underlying asset values. While asset values are finicky, the trend is upward over the long term.

In addition, T. Rowe has another growth lever in the form of share repurchases. The company has shrunk its share count by an annual rate of 1.3% over the last decade.

On February 5th, 2025, T. Rowe Price announced fourth quarter and full year results for the period December 31st, 2024.

For the quarter, revenue increased 11% to $1.82 billion, though this was $50 million less than expected. Adjusted earnings-per-share of $2.12 compared favorably to $1.72 in the prior year, but missed estimates by $0.08.

For the year, revenue grew 9.8% to $7.1 billion while adjusted earnings-per-share of $9.33 compared to $7.59 in 2023.

During the quarter, AUMs of $1.639 billion were up 19.2% year-over-year and 3.1% sequentially. Market appreciation of $205.3 billion was partially offset by $43.2 billion of net client outflows.

Operating expenses of $1.26 billion increased 0.1% year-over-year and 6.4% quarter-over-quarter.

Click here to download our most recent Sure Analysis report on TROW (preview of page 1 of 3 shown below):

Beaten Down Dividend Champion #1: Target Corporation (TGT)

• Year-to-Date Performance: -20.9%
• 5-year expected returns: 13.6%

Target was founded in 1902 and now operates about 1,850 big box stores, which offer general merchandise and food, as well as serving as distribution points for the company’s e-commerce business.

Target posted fourth quarter and full-year earnings on March 4th, 2025, and results were better than expected on both the top and bottom lines, albeit on reduced estimates. Adjusted earnings-per-share came to $2.41, which was 16 cents ahead of estimates.

Revenue was off 3.1% year-over-year to $30.92 billion, but did beat estimates by $90 million. Comparable sales in the fourth quarter rose 1.5% year-over-year due to strong traffic and digital channel performance.

Management noted apparel and hardline categories saw particular strength.

Source: Investor Presentation

For 2025, Target expects around 1% sales growth and a modest increase in operating margins. However, factors like tariff uncertainties and shifting consumer confidence may pressure short-term profits.

The company remains focused on digital expansion, supply chain improvements, and shareholder returns, including dividend increases and stock buybacks, with $8.7 billion still available under its repurchase program.

Digital comparable sales continue to drive the top line, adding 8.7% in Q4. Same-day delivery grew by more than 25% from the year-ago period.

The company repurchased $506 million worth of shares in Q4, and had $8.7 billion left on its authorization as of year end. The company guided for $8.80 to $9.80 in adjusted earnings-per-share for this year.

Click here to download our most recent Sure Analysis report on TGT (preview of page 1 of 3 shown below):

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The Dividend Champions list is not the only way to quickly screen for stocks that regularly pay rising dividends.

Shares of U.S. and international automakers tumbled on Thursday after President Trump declared a 25% tariff on imported vehicles and, eventually, auto parts. 

Economists and analysts expect the tariffs to dramatically increase costs for both U.S. manufacturers, whose supply chains snake across North America, and consumers.

JPMorgan analysts had estimated Trump’s proposed tariffs on Canadian and Mexican vehicle imports would cost the industry about $41 billion a year if automakers absorbed all of the costs. After Wednesday’s announcement, which applies tariffs to all countries, they doubled their estimate to $82 billion. If manufacturers pass the entire cost of the tariffs along to consumers, JPMorgan estimates car prices will increase by nearly 12%. 

The tariffs announced on Wednesday, the analysts said, were a slight reprieve for U.S. automakers like Ford (F) and General Motors (GM). If tariffs were confined to just Canada and Mexico, their reliance on factories in those countries would have put them at a disadvantage against international manufacturers. But with tariffs applied globally, domestic companies are in a better position to raise prices without losing market share, the analysts said. 

That said, GM is still the most exposed of the car manufacturers that JPMorgan follows. It sources an estimated 40% of its vehicles from Canada and Mexico, and imports from South Korea. Ford, meanwhile, sources just 7% of its cars from America’s neighbors and has no exposure to South Korea. Analysts estimate GM’s “tariff bill” will eventually total $13 billion, while Ford’s could reach $4.5 billion.

International carmakers are now at a significant disadvantage. Ferrari (RACE), for example, manufactures all of its cars in Italy, but sells about 40% of them in America, which JPMorgan points out is also its higher-margin market. International automakers could mitigate costs by increasing their U.S. manufacturing, as South Korea’s Hyundai announced it would earlier this week.

JPMorgan on Thursday lowered its price targets on GM, Ford, and Ferrari stocks by 17%, 15%, and 12%, respectively.

EV Upstarts Are Least Exposed

Electric vehicle makers Tesla (TSLA), Rivian (RIVN), and Lucid (LCID) are among the carmakers least exposed to Trump’s tariffs. All the vehicles they sell in the U.S. are assembled domestically, according to Bank of America Securities analysts. 

Although, like GM and Ford, they do source parts and subcomponents from Canada and Mexico, a fact that Tesla CEO and Trump advisor Elon Musk pointed out on X, the social media platform he owns, on Wednesday. 

“To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk said in response to a post claiming Tesla “could benefit the most” from Trump’s tariffs.

Impact To Parts Suppliers Is Highly Uncertain

Trump’s executive order states that “certain automobile parts,” defined as “engines, transmissions, powertrain parts, and electrical components,” will be subject to tariffs no later than May 3. However, there remains plenty of ambiguity about what exactly falls into those categories, and how suppliers and manufacturers will distribute the tariff burden. 

JPMorgan analysts say suppliers are better positioned than carmakers but remain exposed. Even if they can negotiate deals that shift their tariff burden to manufacturers, they still will suffer from less demand from consumers who are priced out of the market for new vehicles.

Exactly which suppliers will be hit the hardest is difficult to predict with the details currently available, but JPMorgan analysts believe Aptiv (APTV) is the worst-positioned and Gentex (GNTX) the best. 

Suppliers, the analysts note, could offset their tariff costs by doing the opposite of what Trump wants: moving production to less expensive countries, rather than the U.S. Lear (LEA), for example, already has relocated some production from Mexico to Honduras, and that trend could accelerate under the new tariffs. 

Steelcase (SCS) shares soared Thursday, a day after the furniture supplier’s results exceeded forecasts and it gave strong guidance as orders increased.

The maker of ergonomic office chairs and storage systems reported fourth-quarter fiscal 2025 adjusted earnings per share (EPS) of $0.26 on revenue that rose about 2% year-over-year to $788.0 million. Analysts surveyed by Visible Alpha were looking for $0.22 and $785.5 million, respectively.

Orders grew 9%, boosted by a 12% jump in the Americas market. Sales in the Americas were up nearly 5% to $608.1 million, although they fell 7% to $179.9 million internationally. 

CEO Says Well-Positioned as Organizations Require Employees Return to Office

CEO Sara Armbruster called the growth in orders in the Americas “broad-based, driven by most of our customer segments, with especially strong growth from our large corporate and government customers.” Armbruster added that the company will benefit from more organizations requiring employees to return to the office as they drop their work-from-home options.

Steelcase sees current-quarter adjusted EPS in the range of $0.13 to $0.17, while the Visible Alpha outlook was for $0.14. 

Despite today’s 5% advance, shares of Steelcase remain about 15% lower over the past year.

Petco (WOOF) shares jumped Thursday morning as the pet retailer outlined a better-than-expected adjusted earnings forecast for fiscal 2025.

For the full year, Petco expects sales to decline by low single digits, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to rise to a range of $375 million to $390 million, compared to $336.5 million in 2024. Analysts expected the metric to come in at $371.56 million, according to estimates compiled by Visible Alpha.

Petco’s Business ‘Needed Overhauling,’ CEO Says

The retailer is planning to boost profits by cutting costs and operating more efficiently. CEO Joel Anderson said in Wednesday’s earnings call that when he took over last summer, Petco’s “foundational practices were not those of a successful consumer business and needed overhauling,” according to a transcript from AlphaSense.

The average Petco customer “remains discerning,” Anderson said, noting that the chain is reviewing its product portfolio, and plans to dedicate more shelf space to faster-selling brands. The retailer is also looking to improve its margins by “executing more targeted promotions,” Anderson said.

The retailer reported $1.55 billion in sales for the fourth quarter that ended Feb. 1, narrowly below estimates, while comparable store sales grew by 0.5%, below the 0.83% analyst consensus. Petco recorded a net loss of $0.05 per share, 2 cents larger than what analysts had expected.

Petco’s results follow online pet retail rival Chewy (CHWY), which topped estimates in its own fourth-quarter results earlier Wednesday.

Petco shares were up around 5% Thursday morning. They entered the day down just over 35% since the start of 2025.