Category Monthly Dividend

Updated on April 10th, 2025 by Nathan Parsh

Real Estate Investment Trusts – or REITs, for short – can be a fantastic source of yield, safety, and growth for dividend investors. For example, Choice Properties Real Estate Investment Trust (PPRQF) has a 5.4% dividend yield.

Choice Properties also pays its dividends monthly, which is rare in a world where the vast majority of dividend stocks make quarterly payouts.

We currently cover only 76 monthly dividend stocks. You can see our full list of monthly dividend stocks (along with price-to-earnings ratios, dividend yields, and payout ratios) by clicking on the link below:

Choice Properties’ high dividend yield and monthly dividend payments make it an intriguing stock for dividend investors, even though its dividend payment has been largely stagnant in recent years.

This article will analyze the investment prospects of Choice Properties.

Business Overview

Choice Properties is a Canadian REIT with concentrated operations in many of Canada’s largest markets. Given its size and scale and the fact that its operations are solely focused in Canada, it is one of Canada’s premier REITs. The trust has bet big on Canada’s real estate market, and thus far, the strategy has worked.

The company has a high-quality real estate portfolio of over 700 properties, which make up more than 67 million square feet of gross leasable area (GLA).

Source: Investor Presentation

Properties include retail, industrial, office, multi-family, and development assets. Over 500 of Choice Properties’ investments are to their largest tenant, Canada’s largest retailer, Loblaw.

From an investment perspective, Choice Properties has some interesting characteristics, not the least of which is its yield. However, it also has an unusual dependency on one tenant, a lack of diversification that we find somewhat troubling.

While grocery stores are generally quite stable, this level of concentration on what amounts to one tenant is very rare. This lack of diversification is a significant consideration for investors that are looking at Choice Properties.

While it would be preferable for the company to diversify to fix its concentration, that is a slow process. In addition, since the tenant is so dependent upon is generally stable, we don’t necessarily see a huge risk due to the industry struggling. However, this sort of concentration on one tenant is extremely unusual for a REIT, and it is worth noting.

Growth Prospects

Choice Properties has struggled with growth since it came public in 2013. Since 2015,  the trust has compounded adjusted funds-from-operations per share at a rate of just 2.6% per year.

The trust has grown steadily in terms of portfolio size and revenue, but relatively high operating costs and dilution from share issuances have kept a lid on shareholder returns. History has shown Choice Properties can exhibit strong growth characteristics on a dollar basis, but investors have been left wanting once translated to a per-share basis.

Source: Investor Presentation

Dividend Analysis

In addition to its growth woes, Choice Properties’ dividend appears to be shaky for the time being. The expected dividend payout ratio for 2025 is 79%.

While even that payout ratio is high, it is also true that REITs generally distribute close to all of their income, so it is hardly unusual that Choice’s payout ratio is close to 80%. Choice Properties’ current distribution gives the stock a 5.4% yield, which is an attractive dividend yield.

Note: As a Canadian stock, a 15% dividend tax will be imposed on US investors investing in the company outside of a retirement account. See our guide on Canadian taxes for US investors here.

Investors should not expect Choice Properties to be a dividend growth stock, as the distribution has remained relatively flat since May 2017. With the payout ratio as high as it is, and FFO-per-share growth muted, investors should not expect the payout to see a massive raise anytime soon.

Choice Properties has also not cut the distribution, and we don’t see an imminent threat of that right now. But it is worth mentioning that if FFO-per-share deteriorates significantly going forward, the trust will likely have to cut the distribution due to its high payout ratio.

This is particularly true because we see Choice Properties’ borrowing capacity as limited, given its already high leverage. Choice Properties has a debt-to-equity ratio of almost 1.4, which, according to the company, is below that of its industry peers.

In addition, it has large amounts of debt coming due in stages in the coming years, so we see the trust’s debt financing as near capacity today. Choice has steady debt maturities in the coming years, and while they are spread out, the amounts are significant. Choice has no ability to pay these off as they mature, so refinancing appears to be the only viable option.

Should it experience a downturn in earnings, Choice Properties would have to turn to more dilution for additional capital. While we don’t see a dividend cut in the near future, the combination of a lack of adjusted FFO-per-share growth, the high payout ratio, and a high level of debt appears risky.

Final Thoughts

Choice Properties is a high dividend stock and its monthly dividend payments make it stand out to income investors. However, a number of factors make us cautious about Choice Properties today, such as its lack of diversification within its property portfolio and its alarmingly high level of debt.

We view the stock with a somewhat risky dividend as unattractive for risk-averse income investors. Investors looking for a REIT that pays monthly dividends have better choices with more favorable growth prospects, higher yields, and safer dividends.

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

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

Updated on April 9th, 2025 by Felix Martinez

Mullen Group (MLLGF) has two appealing investment characteristics:

#1: It is offering an above-average dividend yield of 6.7%.
#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 Mullen Group appealing to income-oriented investors. In addition, the company is one of the largest logistics providers in Canada, with an immense network and strong business momentum. In this article, we will discuss Mullen Group’s prospects.

Table of Contents

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Business Overview

Mullen Group is one of the largest logistics providers in Canada.  It started with just one truck in 1949 and has become an immense logistics provider with 40 business units. It is headquartered in Okotoks, Alberta, Canada.

Its network of independently operated businesses provides a wide range of service offerings, including less-than-truckload, truckload, warehousing, logistics, transload, oversized, third-party logistics and specialized hauling transportation.  In addition, the company provides diverse specialized services related to the energy, mining, forestry, and construction industries in western Canada, including water management, fluid hauling and environmental reclamation.

Mullen Group operates in four business segments: Less Than Truckload, Logistics & Warehousing, Specialized & Industrial Services, and the U.S. & International Logistics segment.

The Less Than Truckload segment is the largest first and final-mile network in western Canada and Ontario.

Source: Investor Presentation

This segment is tied to consumer needs and offers delivery services with controlled temperatures throughout the delivery. It has 11 business units, more than 168 terminals, and more than 5400 points of service. This segment performs more than 3 million deliveries every year.

The Logistics and Warehousing segment has 11 business units and is focused on North America.

Source: Investor Presentation

This segment has approximately 20,000 subcontract trucks and operates under an integrated technology platform.

As a logistics company, Mullen Group is sensitive to the underlying economic conditions and, hence, vulnerable to recessions. The company incurred a 22% decrease in its earnings per share in 2020 due to the fierce recession and the supply chain disruptions caused by the coronavirus crisis.

However, thanks to the massive distribution of vaccines worldwide, the pandemic has subsided, and the economy has recovered. As a result, Mullen Group has fully recovered from the pandemic. It exceeded its pre-pandemic profits in 2021 and posted 9-year high earnings per share of $1.20 in 2022.

Mullen reported flat revenue of $1.99 billion for 2024, down 0.3% from 2023, while OIBDA rose 1.2% to $332.2 million. In Q4, revenue was $499.1 million (up 0.1%) and OIBDA increased 7.3% to $85.0 million. Net income for the quarter dropped 35.7% to $18.9 million ($0.21 per share), mainly due to a $9.5 million foreign exchange loss and higher depreciation costs.

By segment, Logistics & Warehousing revenue rose 14.3% to $160.9 million, driven by acquisitions. LTL dipped 0.3% to $189.4 million, and Specialized & Industrial Services dropped 15.3% to $103.8 million due to completed pipeline projects. U.S. 3PL remained nearly flat at $47.5 million. Operating margins improved to 17.0% from 15.9%.

Mullen ended 2024 with $281.5 million in working capital, $126.3 million in cash, and $525 million in undrawn credit. The company repaid $217.2 million in debt and maintains a net debt-to-operating cash flow ratio of 2.24x—well below its 3.5x covenant. Management expects weak freight demand in 2025 but remains focused on disciplined acquisitions and financial stability.

Growth Prospects

Mullen Group tries to grow its earnings in many ways. It seeks opportunities to expand its network, optimize its existing operations, and minimize costs to enhance its operating margins. Overall, management has preferred enhancing operating margins instead of gaining market share at all costs.

On the other hand, the company has failed to grow its earnings per share over the last nine years. In fact, it has incurred an 18% decrease in its earnings per share over this period, primarily due to the depreciation of the Canadian dollar vs. the USD. Investors should also be aware that the company will likely face a fading tailwind from the strong economic recovery from the pandemic, as the aggressive interest rate hikes of central banks in response to sky-high inflation have caused an economic slowdown. Overall, given the solid business model of Mullen Group, its lackluster performance record, and the economic slowdown, we expect approximately flat earnings per share five years from now.

Considering the flat earnings per share, the 6.7% dividend yield, and a -0.5% annualized compression of valuation level, Mullen Group could offer a 6.2% average annual total return over the next five years. This is a modestly expected total return; hence, we recommend waiting for a significantly lower entry point to enhance the margin of safety and increase the expected return from the stock.

Updated on April 10th, 2025 by Nathan Parsh

Primaris Real Estate Investment Trust (PMREF) has three appealing investment characteristics:

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

#2: It is a high-yield stock based on its 6.2% dividend yield.
Related: List of 5%+ yielding stocks

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

You can download our full list of monthly dividend stocks (along with relevant financial metrics like dividend yields and payout ratios), which you can access below:

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

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

Business Overview

Primaris Real Estate Investment Trust is the only enclosed shopping center-focused REIT in Canada. Its ownership interests are primarily in dominant enclosed shopping centers in growing markets. Its asset portfolio totals 15 million square feet and has a value of approximately C$4.6 billion.

Source: Investor Presentation

Like most mall REITs, Primaris REIT is facing a strong secular headwind, namely the shift of consumers from traditional shopping to online purchases. This trend has driven numerous brick-and-mortar stores out of business in recent years and has markedly accelerated since the onset of the coronavirus crisis.

Primaris REIT is doing its best to adjust to the changing business landscape. To this end, the company tries to achieve economies of scale while also enabling and supporting omnichannel integration.

Moreover, Primaris REIT owns and operates shopping centers that constitute the primary retail mode in its markets. The REIT also targets shopping centers with annual sales of at least C$80 million to achieve the critical mass needed to achieve significant economies of scale.

Source: Investor Presentation

Furthermore, Primaris REIT tries to build multi-location tenant relationships to create deeper relationships with its tenants and benefit from such relationships in the long run.

On February 12th, 2025, the company reported fourth-quarter results for the period ending December 31st, 2024.

The trust’s total rental revenue reached $100 million, which was supported by stable occupancy levels and contributions from recently acquired assets.

Same Properties Cash Net Operating Income (NOI) grew 9.1%. Committed occupancy stood at 94.5%, with in-place occupancy at 90.4%. Primaris also saw a 14.5% increase in funds from operations (FFO) per average diluted unit, reaching $0.42, and maintained a solid financial position with $590 million in liquidity and $4.1 billion in unencumbered assets.

Growth Prospects

Thanks to the characteristics of its core markets, Primaris REIT has some significant growth drivers. In its markets, the population and average household income are expected to grow by a low to mid-single-digit growth rate going forward. This means higher revenues for the shopping centers and, hence, higher revenues for Primaris REIT.

Moreover, as occupancy is currently standing below historical average levels, there is ample room for future growth for this REIT. Management is confident in sustained growth in the upcoming years.

On the other hand, investors should never forget the strong secular headwind from the shift of consumers toward online shopping. While Primaris REIT is doing its best to adjust to the new business environment, the secular shift of consumers will almost certainly continue exerting a substantial drag on the business of the REIT. Overall, we find it prudent to assume just a 1.0% average annual growth of FFO per unit over the next five years to be safe.

Dividend & Valuation Analysis

Primaris REIT is currently offering a 6.2% dividend yield. It is thus an interesting candidate for income-oriented investors but the latter should be aware that the dividend may fluctuate significantly over time due to the gyrations of the exchange rate between the Canadian dollar and the USD. Thanks to its decent business model, solid payout ratio of 50%, the trust is not likely to cut its dividend in the absence of a severe recession.

Notably, Primaris REIT has maintained a stronger balance sheet than most REITs to have sufficient financial strength to endure the secular decline of malls and the effect of a potential recession on its business. The company has a decent balance sheet, with a leverage ratio (Net Debt to EBITDA) of 5.8x.

On the other hand, due to the aggressive interest rate hikes and few rate cuts implemented by the Fed in response to high inflation, interest expense is likely to rise significantly in the upcoming years. This is a headwind for the vast majority of REITs, including Primaris REIT. If high inflation persists for much longer than currently anticipated, high interest rates will probably take their toll on Primaris REIT’s bottom line.

Regarding valuation, Primaris REIT is currently trading for only 8.1 times its expected FFO for this year.

Given the headwind from online shopping, we assume a fair price-to-FFO ratio of 9.0 for the stock. Therefore, the current FFO multiple is slightly lower than our assumed fair price-to-FFO ratio. If the stock trades at its fair valuation level in five years, then valuation would add a small amount to total returns.

Considering the 1% annual FFO-per-share growth, the 6.2% dividend, and a slight tailwind from multiple expansions, Primaris REIT could offer a high single-digit average annual total return over the next five years. While not enough to warrant a buy recommendation at this time, investors who prioritize safe income might find Primaris REIT to be an attractive investment option.

Final Thoughts

Primaris REIT is the only REIT in Canada focused on enclosed shopping centers. With a 6%+ dividend yield and a solid payout ratio of 50%, it is an attractive candidate for income-oriented investors’ portfolios.

On the other hand, investors should be aware of the risks of this REIT. Due to its focus on malls, Primaris REIT is vulnerable to recessions, while it also faces a strong headwind due to the shift of consumers from brick-and-mortar shops to online purchases. Only investors who are comfortable with these risks should consider purchasing this stock.

Moreover, Primaris REIT is characterized by exceptionally low trading volume. It is hard to establish or sell a prominent 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.

Updated on April 9th, 2025 by Felix Martinez

Northland Power (NPIFF) has two appealing investment characteristics:

#1: It is offering an above-average dividend yield of 6.3%, which is more than four times the 1.5% dividend 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:

Northland Power’s combination of an above-average and monthly dividend yield makes it appealing to individual investors.

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

Business Overview

Northland Power is an independent power producer that develops, builds, owns, and operates green power projects in North America, Europe, Latin America, and Asia. The company produces electricity from renewable resources, such as wind, solar, hydroelectric power, and clean-burning natural gas and biomass for sale under power purchase agreements and other revenue arrangements. Northland Power owns or has an economic interest in 3.2 gigawatts of generating capacity. The company was founded in 1987 and is headquartered in Toronto, Canada.

Northland Power greatly benefits from a strong secular trend, namely the shift of the entire world from fossil fuels to clean energy sources. This shift has dramatically accelerated since the onset of the coronavirus crisis about three years ago.

The tailwind from this secular trend is clearly reflected in Northland Power’s growth trajectory.

Source: Investor Presentation

The company has expanded from just one country in 2015 to seven countries now. During this period, Northland Power has essentially tripled its generating capacity.

Thanks to its essential nature and high-growth mode of business, Northland Power proved essentially immune to the coronavirus crisis. In addition, thanks to its ability to pass on its increased costs to its customers, the company has proved resilient in the highly inflationary environment prevailing right now.

Growth Prospects

As mentioned above, Northland Power has a major growth driver in place, namely the global shift from fossil fuels to renewable energy sources. This shift has greatly accelerated in the last three years and has decades to run.

It is also important to note that most renewable energy sources had high production costs in the past, and thus, they needed government subsidies to become economically viable. However, thanks to major technological advances, this is not the case anymore. The production cost of solar and wind energy has pronouncedly decreased, and hence, renewable energy sources can easily replace fossil fuels nowadays. To provide a perspective, the cost of solar power has decreased from more than $4 per watt to less than $1 per watt over the last decade.

The primary growth drivers of Northland Power are depicted in the chart below.

Source: Investor Presentation

The company has several growth projects under development right now, with a total capacity of 2.4 GW. As the company’s current generating capacity is only 3.4 GW, it is evident that Northland Power has immense growth potential over the next several years.

Northland Power ended 2024 strong, hitting the high end of its financial guidance. Annual revenue rose to $2.35 billion and net income hit $371 million, reversing a loss in 2023. Adjusted EBITDA increased to $1.26 billion, though Free Cash Flow per share declined to $1.27 from $1.68. Christine Healy officially became CEO in January 2025.

The company advanced key projects, including Hai Long, Baltic Power, and Oneida. Hai Long is over 50% complete and expected to deliver power in late 2025. Baltic Power began offshore construction, targeting full operations in 2026. Oneida is nearly ready and set to go live in early 2025. Northland also completed a 23 MW upgrade to its Thorold facility and expanded its EBSA credit facility.

Northland updated its Dividend Reinvestment Plan, removing the 3% discount and moving to market share purchases. With $1.1 billion in liquidity and strong project execution, the company is well-positioned for continued growth in the clean energy space.

Dividend & Valuation Analysis

Northland Power currently offers an above-average dividend yield of 6.3%, more than four times the 1.5% yield of the S&P 500. The stock is thus an interesting candidate for income-oriented investors, but the latter should be aware that the dividend is affected by the fluctuation of the exchange rate between the Canadian dollar and the USD.

Northland Power has a payout ratio of over 100% but a healthy balance sheet, with a stable BBB credit rating from S&P. Given its promising growth prospects and resilience to recessions, its dividend (in CAD) should be considered safe with some risk if earnings do not improve.

On the other hand, investors should note that Northland Power has failed to grow its dividend meaningfully over the last decade, primarily due to the devaluation of the Canadian dollar vs. the USD. As a result, it is prudent not to expect meaningful dividend growth going forward.

Final Thoughts

Northland Power is thriving right now, with record earnings in 2022. Even better, the company has ample room to continue growing for decades. Moreover, the stock offers an above-average dividend yield of 6.3% and a high payout ratio. It thus combines many positive features suitable not only for income-oriented investors but also for growth-oriented investors.

However, investors should be aware that the stock is highly volatile during periods when its growth decelerates. Therefore, only patient investors, who can ignore short-term pressure and remain focused on the long run, should consider purchasing this stock.

Moreover, Northland Power is characterized by exceptionally low trading volume. This means that it is hard to establish or sell a large position in this stock.

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

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

Updated on April 9th, 2025 by Felix Martinez

Income investors often find high-yielding stocks attractive due to the income they can produce. But sometimes, the need for income can blind investors to the company’s issues. If this is the case, investors can be blindsided when the company cuts its dividend.

The same can be said for monthly dividend-paying companies. Investors might overlook a company’s weak fundamentals when obtaining monthly dividend payments. Monthly dividend stocks can be appealing as they create more regular cash flow for investors.

We cover all 76 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:

But investors shouldn’t buy a high-yield monthly dividend-paying stock simply because of its monthly payments. This is particularly true for oil and gas royalty trusts.

Permian Basin Royalty Trust (PBT) fits the description of a dividend stock with a questionable outlook. Distributions vary on a month-to-month basis based on profitability. Shares yield 5.1% based on its dividends over the past twelve months. We note, however, that dividends are highly volatile and subject to change.

This article will look at Permian Basin’s business, growth prospects and dividend to show why investors should avoid this stock.

Business Overview

Permian Basin holds overriding royalty interests in several oil and gas properties in the United States. The trust is a small-cap stock with a market capitalization of $419 million. The trust has oil and gas-producing properties in Texas.

The trust was established in 1980 and has a 75% net profit royalty interest in the Waddell Ranch properties. These properties consist of over 300 net-productive oil wells, over 100 net-producing gas wells, and 120 net injection wells.

Permian Basin also holds a 95% net profit royalty interest in the Texas Royalty Properties, which consist of approximately 125 separate royalty interests across 33 counties in Texas covering 51,000 net producing acres.

The trust’s assets are static, so it cannot add new properties to its portfolio.

Growth Prospects

As an oil and gas trust, it goes without saying that Permian Basin will perform in direct relation to oil and natural gas prices. Investments like Permian Basin are designed as income vehicles. Higher energy prices will likely lead to higher royalty payments, driving up demand for units. In the same way, lower energy prices will lead to lower dividend payments.

Distributions are based on the prices of natural gas and crude oil. Permian Basin is impacted in two ways when the price of either declines. First, distributable income from royalties is reduced, lowering dividend payments. In addition, plans for exploration and development may be delayed or canceled, which could lead to future dividend cuts.

For the quarter ending September 30, 2024, the Trust reported $8.37 million in royalty income, up from $3.32 million in Q3 2023. This increase was due to the removal of a deficit at Waddell Ranch, which had previously halted royalty payments. The average realized oil prices for Waddell Ranch were $79.91 per barrel and gas prices were $1.19 per Mcf, while Texas Royalty properties saw oil at $79.06 per barrel and gas at $10.54 per Mcf. Delayed proceeds of $2.18 million from June and $267,781 from September were included in the Q3 distribution.

Interest income for Q3 2024 rose to $54,534 from $24,119, driven by longer investment periods. Expenses increased to $367,625 from $139,520 due to higher professional service costs. Distributable income for Q3 2024 was $8.05 million, or $0.17 per Unit, compared to $3.2 million, or $0.07 per Unit, in 2023. Blackbeard’s failure to provide timely production data has caused delays in royalty calculations.

For the nine months ended September 30, 2024, royalty income totaled $23.18 million, up from $14.6 million in 2023. Interest income more than doubled to $122,688, and expenses rose to $1.32 million. Distributable income for the nine months was $21.98 million, or $0.47 per Unit, compared to $13.7 million, or $0.29 per Unit, in 2023. Delays in data from Blackbeard continue to impact distributions.

Source: Investor presentation

Despite disappointing distributions in recent years, which were impacted by high operating expenses on the Waddell Ranch properties, PBT has often increased its distributions. The rally of the oil price has resulted from the recovery of global demand from the pandemic, tight global supply, and the invasion of Russia in Ukraine.

The rally of the price of natural gas has resulted from the sanctions of western countries on Russia. Europe, which generates 31% of its electricity from natural gas provided by Russia, is currently doing its best to diversify away from Russia. As a result, there has been a huge increase in the number of LNG cargos directed from the United States to Europe. As a result, the U.S. natural gas market has become exceptionally tight, and hence, the price of U.S. natural gas has rallied to a 13-year high lately. Overall, PBT cannot hope for a more favorable business environment than the current one.

Thanks to the recovery in commodity prices and ongoing geopolitical uncertainty, we expect PBT to continue generating solid results for the foreseeable future.

On the other hand, given the significant cyclicality of these prices, investors should keep conservative growth expectations from PBT. Moreover, PBT suffers from the natural decline of its fields in the long run. During the last six years, its oil and gas production has decreased at an average annual rate of 6% and 2%, respectively. The natural decline of output is a strong headwind for future results.

Dividend Analysis

Royalty trusts are usually owned for their dividends. These investments are not likely to have multiple decades of dividend growth like the more well-known dividend-paying companies such as Johnson & Johnson (JNJ) or Procter & Gamble (PG). That is because trusts like Permian Basin depend entirely on the prices of oil and gas to determine dividend payments.

Listed below are the trust’s dividends per share over the last seven years:

• 2014 dividends per share: $1.02
• 2015 dividends per share: $0.34 (67% decline)
• 2016 dividends per share: $0.42 (24% increase)
• 2017 dividends per share: $0.63 (50% increase)
• 2018 dividends per share: $0.66 (5% increase)
• 2019 dividends per share: $0.42 (36% decline)
• 2020 dividends per share: $0.235 (44% decline)
• 2021 dividends per share: $0.23 (2% decline)
• 2022 dividends per share: $1.1487 (399% increase)
• 2023 dividends per share: $.60 (48% decline)
• 2024 dividends per share: $.55 (8% decline)

Dividends come directly from royalties, so higher oil and gas prices will likely lead to distribution growth. Given this, it shouldn’t come as a surprise that Permian Basin shareholders saw a significant decline in dividends during the 2014 to 2016 oil market downturn.

As oil prices stabilized following this downturn, dividends returned to growth. As you can see, dividend growth was extremely high as energy prices improved.

Annualized, this would come out to a distribution of $0.55 per share for the full year. This would mark a decrease from the prior year, but it would still be significantly higher than the distribution in 2021.

Based on the recent share price, this expected dividend per share yields 5.1%. While the yield compares favorably to the 1.5% average yield of the S&P 500 Index, it is also a good yield for an oil and gas royalty trust, which carries much greater risk than the S&P 500.

Final Thoughts

Monthly dividend-paying stocks can help investors even out cash flows compared with stocks that follow the traditional quarterly payments. Monthly payments can also help investors compound income at a faster rate.

High-yield stocks can provide investors with more income, which is important to those investors living off dividends in retirement. Permian Basin does offer a yield higher than that of the market index.

Investors with a higher appetite for risk might feel that the large dividend raises expected amid favorable commodity prices and the 5.1% yield are a solid tradeoff for the steep declines that occur when energy prices fall.

That said, Permian Basin does offer a monthly dividend but doesn’t provide certainty of what the payment may look like. The dividend payments rely totally on the price of oil and gas. When one or both are down, so are dividend payments. Investors who need a steady, reliable income are strongly encouraged to invest elsewhere.

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.

Constellation Brands (STZ) shares slid in premarket trading Thursday, a day after the alcoholic drinks maker posted a soft outlook for the full year. The company, which imports Corona and Modelo beers from Mexico, also announced plans to sell some of its lower-cost wine brands.

For fiscal 2026, Constellation projected adjusted earnings per share (EPS) of $12.60 to $12.90, below the consensus from analysts surveyed by Visible Alpha. The company also slashed its enterprise net sales projection to a decline of 2% to a rise of 1%. Previously, it had projected an increase of 2% to 4%. It also trimmed its fiscal 2027 to 2028 forecasts.

Those lowered projections, Constellation said, reflects “the anticipated impact” of the reciprocal tariffs announced on April 2 as well as those against Canada on March 4.

Those changes to its outlook came as Constellation posted fourth-quarter adjusted EPS of $2.63 on net sales of $2.16 billion, ahead of analysts’ estimates.

The company also said that as part of a multi-year restructuring, it is also selling some of its lower-cost wine brands. It is keeping those brands “predominantly priced $15 and above” such as Robert Mondavi Winery and Kim Crawford.

Constellation shares were down close to 5% in premarket trading. They’ve lost close to a third of their value in the past 12 months through Wednesday.

U.S. stock futures are pulling back following yesterday’s historic turnaround on President Donald Trump’s announcement that some tariffs would be paused for 90 days; Asian and European markets rally on the news; inflation is expected to have fallen in March when the Consumer Price Index (CPI) data is released this morning; U.S. Steel (X) shares are tumbling in premarket trading after Trump said he doesn’t want to see foreign ownership of the company; and CarMax (KMX) shares are sinking after the used-car retailer’s Q4 profit and used-vehicle sales come in below analysts’ expectations. Here’s what investors need to know today.

1. US Stock Futures Pull Back Following Historic Rally on Trump’s Tariff Pause

U.S. stock futures are pointing sharply lower after indexes delivered an historic rally on President Donald Trump’s announcement of a 90-day pause on many of his tariffs. Nasdaq futures are 2.3% lower after the tech-heavy index jumped more than 12% Wednesday. Dow Jones Industrial Average futures are 1.4% lower after the blue-chip index added nearly 8% yesterday, rising by almost 3,000 points. S&P 500 futures are down by 1.9% after the benchmark index jumped nearly 10%. Bitcoin (BTCUSD) is slightly lower to trade around $82,000. Gold futures are up 2%. Yields on the 10-year Treasury note are slipping to around 4.3%. Oil futures are down nearly 3%.

2. Overseas Stocks Rally on Tariff Pause

Stock indexes in Asia and Europe are rallying following Trump’s 90-day tariff pause. Japan’s Nikkei and Hong Kong’s Hang Seng, which had ended trading yesterday before Trump’s pause announcement, closed a respective 9% and 2% higher Thursday. The Stoxx Europe 600 index is up 5% as the European Union put its reciprocal tariffs on hold for 90 days in response to Trump’s move.

3. CPI Report Expected to Show Inflation Cooled in March

Inflation is expected to have cooled in March when today’s Consumer Price Index (CPI) reading is released at 8:30 a.m. ET. Economists surveyed by The Wall Street Journal and Dow Jones Newswires forecast that CPI will show prices grew at a 2.6% annual rate in March, down from last month’s 2.8% and the lowest inflation reading since September. Falling energy prices are expected to be behind the inflation slowdown, but economists warned that Trump’s tariff policy stands to potentially undo progress on price pressures.

4. US Steel Stock Tumbles as Trump Pushes Back on Japanese Takeover

Shares of U.S. Steel (X) are plummeting 10% in premarket trading after Trump reportedly said that he doesn’t want foreign ownership of the company. Trump said that he doesn’t want U.S. Steel purchased by “any other place,” Bloomberg reported. Trump pointed to higher steel orders for the company as an indication of its improved footing. Earlier this week, Trump ordered a review of Nippon Steel’s proposed takeover bid after former President Joe Biden blocked the $14.1 billion deal.

5. CarMax Stock Sinks as Q4 Profit Comes Up Short, Firm Pulls Growth Timelines

CarMax (KMX) shares are dropping 8% in premarket trading after the used-car retailer’s fiscal fourth-quarter profit and used-vehicle sales came in below analysts’ expectations. The Virginia-based company reported earnings per share (EPS) of $0.58, while analysts polled by Visible Alpha projected $0.68. CarMax sold a total of 301,811 used vehicles, below estimates of 312,800 units. The company did suspend the timelines for its previously announced long-term growth targets “given the potential impact of broader macro factors.”

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Asian and European stock indexes are rallying after President Donald Trump said he would pause “reciprocal” tariffs for 90 days for all trading partners except China.

U.S. stock futures are pointing lower after major indexes skyrocketed Wednesday. Goods from China entering the U.S. now face a 125% tariff, while Beijing has imposed an 84% levy on U.S. imports. Imports to the U.S. from other markets still face a 10% duty, and economists said the tariffs in place can still do economic damage.

Dow Jones Industrial Average futures are about 1.7% lower after the blue-chip index closed almost 8% higher yesterday, a gain of nearly 3,000 points. S&P 500 futures are falling 2.1% after the index jumped 9.5% for its biggest gain since 2008. Nasdaq futures are down 2.4% after the tech-heavy index surged more than 12% for its biggest gain since 2001.

Japan’s Nikkei and Hong Kong’s Hang Seng, which had ended trading yesterday before Trump’s pause announcement, closed 9% and 2% higher Thursday, while the Stoxx Europe 600 index is up 5%.

The 10-year Treasury yield, which affects borrowing costs on all sorts of loans, is now down to 4.29% after moving as high as 4.52% Wednesday morning, its highest level since mid-February.

“The market discipline that forced Trump to blink was not only a bear market in equities but also and more importantly the spike in bond yields and credit spreads (especially HY) and the risk of a disorderly collapse in the dollar,” economist Nouriel Roubini wrote in a post on X. “So Trump blinked and decided for the 90 days tariff pause.”

Countries are reacting to widespread tariffs proposed by the U.S.—and there are two distinct approaches.

Some countries are attempting to negotiate deals with the U.S. in hopes of lowering tariffs. While none has been successful yet, President Donald Trump paused his most extreme tariffs Wednesday just hours after they had been implemented in an effort to make tailored deals with each country, the administration said.

Others retaliated in the early hours of the day, enforcing their own additional tariffs on U.S. goods. In response to the largest retaliation, Trump ratcheted the import duties on Chinese goods. Other countries that answered Trump’s tariffs with import taxes of their own did not see any U.S. response yet.

Here are the countries taking these different approaches.

Retaliating

Several countries are responding to Trump’s tariffs with additional import taxes on U.S. products. Trump has said that if countries retaliate, he will increase the “reciprocal” tariffs on that country.

China

China had already planned a 34% retaliatory tariff last week. In response, Trump ratcheted up tariffs on Chinese goods to 104% and those went into effect early Wednesday morning.

The Chinese government responded by raising its levy on U.S. goods to 84%.

“The U.S.’s practice of escalating tariffs on China is a mistake on top of a mistake, which seriously infringes on China’s legitimate rights and interests and seriously damages the rules-based multilateral trading system,” China’s Ministry of Finance said.

In response, Trump increased tariffs on Chinese goods to 125% instead of giving the country a reprieve, as with most others.

“As I repeatedly said, China is the most imbalanced economy in the history of the modern world and they are the biggest source of the U..S.’s trade problems.” said Treasury Secretary Scott Bessent in a press conference with reporters after the increased tariffs were announced.

European Union

European Union officials voted Wednesday to implement retaliatory tariffs on U.S. goods.

The bloc’s tariffs will affect around $23.2 billion in U.S. exports, according to Bloomberg, and are in response to the steel and aluminum tariffs previously implemented, according to a statement released by officials.

“The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy,” the statement said. “The EU has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficial.”

The tariffs will be implemented on April 15 and could be suspended should the two governing bodies reach a deal.

Canada

The U.S.’s neighbors to the north also focused on auto tariffs, implementing a 25% import tax on American-made vehicles. These tariffs, like the U.S. counterparts, exclude USMCA automobiles.

“We are responding today with, and we responded throughout with, carefully calibrated and targeted counter-tariffs,” Canadian Prime Minister Mark Carney reportedly said during a press conference.

Canada was included in the countries with a base tariff of 10% under the pause announced Wednesday by Trump, Bessent said, but it was not immediately clear what that meant for tariffs announced previously on the country that were not included in the “reciprocal” framework.

Negotiating

Treasury Secretary Scott Bessent said 70 countries had called to negotiate trade deals at the beginning of the week. Trump has posted on Truth Social that he has met with or had calls with several countries.

Below are some countries that are confirmed to be making an attempt to negotiate lower tariffs.

Japan

Japanese government officials have been in talks with Trump since the beginning of the week, according to reports.

The country seeks to negotiate down the 24% tariff that the U.S. is charging on Japanese imports. Japan has long been an economic ally, with the U.S. importing $148.2 billion of goods from Japan last year.

Bessent has said Japan will likely “get priority” because they came forward quickly.

Vietnam

Vietnam’s first attempt at a deal was dismissed by Trump’s trade adviser Peter Navarro early in the week but it reportedly is still attempting to negotiate with the administration.

Many companies moved their manufacturing out of China in recent years as wages have increased and tariffs put on China in Trump’s first administration increased costs. Nike, for example, sources large portions of its shoes and apparel from Vietnam, according to its most recent annual report.

Bloomberg reported that a top Vietnamese official has headed to Washington for negotiations.

South Korea

On Tuesday, Trump wrote on the social media site Truth Social that he had “a great call” with South Korean Acting President and Prime Minister Han Duck-soo.

“We have the confines and probability of a great DEAL for both countries,” Trump wrote. “Their top TEAM is on a plane heading to the U.S., and things are looking good.”

The U.S. levied a 25% tariff on South Korean goods when widespread tariffs went into effect in the early hours Wednesday.

Update, April 9, 2025: This article was updated to include information about President Donald Trump’s pause on “reciprocal” tariffs.