Archives April 2025

REITs Could Be Poised To Outperform Market in an Uncertain Economic Climate, UBS Says



Key Takeaways

  • Real estate investment trusts (REITs) have recently generated better returns than the S&P 500—a trend UBS analysts believe will continue.
  • Real estate may be better-insulated from tariffs than other industries represented in the benchmark stock index, UBS analysts wrote in a note Wednesday.
  • REITs with triple net leases and those that lease single-family homes will likely remain stable, the analysts said.

Real estate investment trusts (REITs) have outperformed the broader market and could maintain their edge in an uncertain economic environment, UBS analysts said Wednesday.

REITs—companies that own, operate, or finance income-generating real estate—generated returns about 4 percentage points greater than the S&P 500 index in 2025 through Monday’s close, according to a UBS analysis.

REITs began pulling ahead of the benchmark stock index around March 4, when the Trump administration imposed tariffs on goods from Canada and Mexico and raised import taxes on products from China, UBS said in a research note. REITs could also continue performing better than the broader market because real estate may be better-insulated from tariffs than other sectors represented in the S&P 500, the analysts said.

“This is due in part to the defensive nature of the group; they are backed by real assets, limited international exposure, and should see a delayed impact from tenants,” the note said.

It’s unclear how President Donald Trump’s trade policies will evolve. He announced on Wednesday a 90-day pause on at least some tariffs.

Some REIT Assets Seen as Safer Choices

In such a volatile environment, REITs with self-storage facilities and triple net leases—where commercial tenants are responsible for property tax, insurance, and maintenance expenses—could be more stable choices than others, UBS said. Single-family rental homes, apartments on the coasts, and manufactured homes are also likely to be stable, the analysts said.

The prospect of tariffs and a consumer slowdown may hurt industrial tenants and sap demand for warehouse and cold storage space, UBS said. Shopping centers and other retail properties may also face headwinds, the analysts said.

REITs surged Wednesday, amid broader market gains after Trump announced a pause on some tariffs. Shares of UDR (UDR), which owns apartments, jumped about 8%, while shares of Extra Space Storage (EXR), which rents storage units, added over 7%. Shares of Equity LifeStyle Properties (ELS), which owns manufactured home communities and resorts, rose close to 4%. (Read Investopedia’s live coverage of Wednesday’s market action here.)



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S&P 500 Has Best Day Since 2008 as Trump Pauses Tariffs



Just days after suffering their worst stretch in years, stocks rebounded on Wednesday to notch one of their best days of the 21st century after President Trump announced a 90-day pause on the tariffs that sent stocks across the globe spiraling last week.

The S&P 500 soared 9.5% on Wednesday, its biggest one-day gain since October 2008. The tech-heavy Nasdaq Composite skyrocketed 12.2%—its second-largest daily gain since the turn of the century and its best day since January 2001. The Dow Jones Industrial Average rose 7.8%, its best day since March 2020 and fifth-best since 2000.

Investors breathed a sigh of relief on Wednesday when President Trump implemented a 90-day pause on most of the tariffs that went into effect overnight. Trump shocked Wall Street last Wednesday when he unveiled tariffs that were broader and steeper than investors had expected. Stocks tumbled in the following days as economists warned the tariffs would likely weigh on global growth and stoke inflation

Wednesday’s rally recouped much of the losses the major indexes have suffered in the last week. The Nasdaq, which finished yesterday’s session more than 13% off its pre-“Liberation Day” close, is now down just 2.7%. The S&P 500 has pared its losses from 12.1% to 3.8%, and the Dow closed Wednesday 3.8% off its level before the tariffs were announced. 

“The stock market rebound is a combination of speculative investors needing to cover short positions; less fear of recession and stagflation; and optimism that tariff rates will ultimately end up lower than they are threatened today,” Comerica Bank Chief Economist Bill Adams said.  

The tariff pause comes just days before big banks are slated to kick off first-quarter earnings season, with JPMorgan Chase (JPM) scheduled to report on Friday. Its CEO Jamie Dimon warned in his annual letter to shareholders on Monday that the tariffs would slow down growth, and early Wednesday Dimon called a recession “a likely outcome” of the tariffs. Bank stocks surged in response to the tariff pause Wednesday.

Wednesday’s pause and rally could change the tone of earnings calls in the coming weeks. “This pause may provide companies with a clearer backdrop for their guidance, offering some relief to a market hungry for direction,” wrote Gina Bolvin, President of Bolvin Wealth Management Group, on Wednesday. (Analysts have been expecting tariff uncertainty to cause the number of companies offering sales and earnings guidance to drop sharply this quarter.) 

“However, uncertainty looms over what happens after the 90-day period, leaving investors to grapple with potential volatility ahead,” Bolvin added. 



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Trump Pauses Plans to Curb Nvidia H20 Chip Sales to Chinese Firms, Report Says



Key Takeaways

  • The White House has paused plans to curb sales of Nvidia H20 chips to Chinese firms, NPR reported Wednesday.
  • The development comes after CEO Jensen Huang attended a dinner at Mar-a-Lago last week, where President Trump made an appearance, according to the report.
  • The H20 chip is less powerful than Nvidia’s latest tech, and is tailored to meet existing export restrictions.
  • Nvidia shares surged amid a broader market rally Wednesday after Trump announced a 90-day pause on most of the tariffs his administration announced last week. 

The Trump administration has paused plans to tighten restrictions on sales of Nvidia’s (NVDA) H20 chip to companies in China, NPR reported Wednesday.

The H20 is less powerful than Nvidia’s latest chips and is tailored to meet existing U.S. export restrictions. The White House had been considering curbing Nvidia’s ability to sell the chip in China, but those plans were put on hold after CEO Jensen Huang attended a dinner at Mar-a-Lago last week, where President Trump made an appearance, according to the report.

Nvidia declined to remark on the report, while the Commerce Department did not immediately respond to a request for comment.

Nvidia shares soared over 18% Wednesday amid a broader market rally after Trump announced a 90-day pause on most of the tariffs his administration announced last week. In a Truth Social post, Trump said he felt the pause was needed because “more than 75 countries” had contacted his administration to make trade deals. The pause excluded China, which is instead facing a higher rate as tariffs on goods from the country increase to 125%. (Read Investopedia’s live coverage of today’s market action here.)



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The Crypto Giants About to Disrupt Everything— AurealOne and DexBoss!!


​New blockchain initiatives use crypto pre-sales as their favourite funding strategy to obtain capital through early investor acquisition. During pre-sales, investors can acquire tokens at lower prices than official exchange launch prices, hence unlocking strong potential benefits from a project’s growing popularity. Among various upcoming projects, AurealOne and DexBoss represent two advanced platforms because they promise to enhance user experience specifically for gaming together with DeFi applications.

Unlocking Potential: The Benefits of Crypto Pre-Sales

Pre-sale token acquisition through crypto allows investors to purchase AurealOne and DexBoss tokens at their initial release prices. Investors who take part in pre-sales obtain tokens at discounted prices ahead of public market launches which creates chances for strong gains when the projects establish themselves with investors. The opportunity to invest early provides a strong appeal to searchers of upcoming new cryptocurrencies.

AurealOne: The Future of Gaming on the Blockchain

The AurealOne platform functions as a progressive blockchain system made exclusively for gaming systems and metaverse applications. The platform targets both developers and gamers through its instant transaction processing along with minimal gas charge requirements. Descending from its core, the native cryptocurrency DLUME supports financial operations and functions as in-game currency within all hosted projects on the platform.

Key Features of AurealOne

  1. Lightning-Fast Transactions: The advanced technology of Zero-Knowledge Rollups enables AurealOne to manage efficient and scalable processing of gaming transactions at high speed.
     
  2. User Engagement and Governance: Stakers of DLUME earn rewards and gain governance powers that contribute to active ecosystem development through their holding tokens.
     
  3. Initial Coin Offering (ICO) Structure: The presale consists of 21 defined rounds beginning at $0.0005 in Round 1 with upward price adjustments leading to Round 21 at $0.0045. The ICO seeks to obtain $50 million through its fundraising initiative.
     
  4. Primary Project: Clash of Tiles emerges as the first official game on AurealOne which demonstrates platform features to encourage developers for additional game growth.
     
  5. Community Support: On the web platform, users find an easy method to view their coin balances, which creates transparency and enables increased participation by community members. Security features on the platform come with available support channels that help resolve user issues.

Tokenomics of AurealOne

  • Total Supply: Wide distribution begins with initial allocation to promote future stakeholding and rewards programs for long-term investments.
  • Presale Rounds: For the initial twenty rounds the project distributes one billion tokens per allocation until the final round issues five hundred million tokens. Each price point in the investment rounds operates to attract initial investors.

DexBoss: Your Gateway to Simplified DeFi

The platform DexBoss brings decentralization in finance (DeFi) to provide analogue financial services across blockchain technology. The platform functions to make DeFi simpler while bringing new users on board and creating better liquidity possibilities for traders.

Key Features of DexBoss-

  1. User-Friendly Interface: The platform caters its services to traders of all experience levels, which delivers straightforward trading experiences that dissolve challenges in understanding DeFi complexities.
     
  2. Liquidity and Advanced Financial Products: DexBoss resolves liquidity problems common to DeFi networks through enormous liquidity reservoirs and combines this with financial products including margin trading and liquidity farming and staking.
     
  3. Real-Time Execution: Order execution on the platform works rapidly which helps users take advantage of trading opportunities in the unpredictable crypto market.
     
  4. $DEBO Token Lifecycle: The DEBO native token has an entire supply of 1 billion units. By the seventeenth round, the presale price will begin at $0.01 and conclude at $0.0505 to reach a funding goal of $50 million.
     
  5. Community Incentives: The platform implements token redemption when combined with burning procedures that control supply while creating long-term value growth which attracts an active user base to the platform.

Tokenomics of DexBoss

  • Allocation: Pre-sale distributions occupy 50% of the total supply, while team incentives receive 10%, liquidity pools obtain 20%, and marketing receives 10%.
  • Transaction Fees: Buybacks are funded by transaction fees which provide benefits to investors who maintain their tokens in the long term.

Smart Moves: Why Investing in AurealOne and DexBoss Could Be Your Next Big Crypto Win

Investing in AurealOne and DexBoss is a strategic move for several reasons:

  • Innovative Technology: The platforms employ blockchain technology to improve user experiences thus attracting investors who search for excellent cryptocurrency investment opportunities.
  • Strong Community Focus: The practice of community governance, together with user engagement, creates dedicated users who form the foundation of lasting business success.
  • Robust Tokenomics: Through strategic presale stages supported by advantageous offers for initial stakeholders the projects maintain strong opportunities for investor compensation as they expand.

Conclusion

AurealOne and DexBoss represent the innovative direction that digital finance continues to follow. The platforms enhance the landscape through their concentration on community dynamics and efficient systems as well as their advanced technological solutions which guide users to examine all possibilities of blockchain technology within gaming and financial domains. The combined strategies and interactive systems of AurealOne and DexBoss position them as promising projects that may soon reach levels of XRP Ripple and can emerge as the next cryptocurrencies reaching the $1 mark.

Crypto Market is volatile, and therefore, investors must be careful when investing in cryptocurrencies. 

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



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Watch These Intel Stock Price Levels Amid Tariff-Induced Price Swings



Key Takeaways

  • Intel shares soared Wednesday amid a huge rally for chip stocks after President Trump announced a 90-day pause on many of the tariffs that had rattled financial markets.
  • Wednesday’s bullish reversal saw the stock reclaim the September low, potentially setting the stage for follow-through buying.
  • Investors should monitor key overhead areas on Intel’s chart near $25 and $35, while also watching a crucial zone of support between $18.50 and $17.

Intel (INTC) shares soared Wednesday amid a huge rally for chip stocks after President Trump announced a 90-day pause on “reciprocal” tariffs.

The stock may also be attracting interest following reports the chipmaker tentatively agreed to form a joint venture with Taiwan Semiconductor Manufacturing Company (TSM) that would run the U.S. company’s foundry business.

While tariff developments will likely continue to drive near-term sentiment in the stock, confirmation of a potential deal with TSMC that ramps up domestic contract chip manufacturing could act as a catalyst for further upside.

Intel shares have outperformed the S&P 500 since the start of the year as of Wednesday’s close, though the stock has lost 44% over the past 12 months amid uncertainty surrounding the chipmaker’s restructuring plans and constant deal speculation. The stock gained 19% on Wednesday to close at $21.53.

Below, we analyze Intel’s monthly chart and apply technical analysis to identify crucial levels that investors may be watching.

Bullish Reversal

After forming a double top between January 2020 and April 2021, Intel shares have trended sharply lower, with a countertrend rally to the 50-month moving average (MA) in December 2023 running into immediate selling pressure.

More recently, bears drove a brief sell-off below last year’s September low before bulls reclaimed this key level during Wednesday’s bullish reversal, potentially setting the stage for follow-though buying. However, investors should brace for further volatility ahead, with trading volume picking up in the stock since August last year.

Let’s identify key overhead areas to monitor and also point out a crucial zone of support worth watching amid the potential for further tariff-driven volatility.

Key Overhead Areas to Monitor

Follow-through buying from current levels could initially see the shares climb to around $25. This area on the chart may provide selling pressure near a trendline that links multiple peaks and troughs on the chart extending back to mid 1997.

Buying above this level could form part of a longer-term bullish reversal to $35. Investors who have bought the stock’s recent lows may look to offload shares in this region near the 200-month MA and a multi-year horizontal line the links a range of comparable trading activity on the chart between January 1999 and September 2023.

Crucial Zone of Support Worth Watching

During future moves lower in the stock, investors should keep track of a crucial zone of support on Intel’s chart between $18.50 and $17. This region will likely continue to attract significant attention from investors, given it’s the location that marked the stock’s recent low and sits near a range if similar price points stretching back to the late 90s.

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.



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Trump yields to Treasury market – United States


Written by the Market Insights Team

Biggest policy reversal in history

George Vessey – Lead FX & Macro Strategist

It was only a matter of time before markets forced the hand of President Trump. The plunge in equities, including a 20% drawdown in the Nasdaq, left Trump unfazed, holding firm on his aggressive tariff policies. However, it appears it was the intense selloff in US bonds this week that prompted the President to execute one of the biggest economic policy reversals in modern history.

Before the sun set on “reciprocal tariff day” Trump announced a 90-day pause on tariffs for most countries, which saw stock markets roar back with a vengeance. The S&P500 surged over 9% and the Nasdaq over 12% – both staging one of their biggest one-day gains on record. The Magnificent Seven surged as much as 11%, the largest gain since the index’s creation in 2015. Curiously, the recovery in stocks came about three hours after Trump urged Americans to stay calm and continue investing…

Part of the Trump Administrations’ plan was to get rates down, but with long-end yields surging higher on stagflation fears, the White House went from declaring no exemptions, no pauses and negotiations one country at a time to eliminate every trade deficit – to a 90-day pause with tariffs dropping to 10% on the majority of the countries on the original list. Apart from China that is. China now faces 125% levies on all goods exports in response to an earlier move by Beijing.

The tariff pause allows for strategic negotiations, which is good news, but the most critical factor for the global economy remains in escalation mode – this trade war is really only about the US versus China. Will Xi reverse course in attempt to de-escalate? Moreover, markets may be overlooking the fact that a 10% tariff on everything isn’t nothing, and the reality is more uncertainty, and a lack of clarity, for the next three months.

FX markets remain on edge. Safe havens have been sold heavily on the pause news, while those EM and commodity-linked currencies in the firing line of a global trade war have come back strongly. Overnight volatility in the major currencies remains elevated despite tariff reprieve as traders turn focus to today’s release of US inflation data.

Chart of US equity moves

Bond sell-off went too far

George Vessey – Lead FX & Macro Strategist

A mass departure from longer-dated US Treasuries drove yields sharply higher, triggering the most significant selloff in these so-called safe assets since 2020. Rising borrowing costs were delivering yet another blow to the global economy, already strained by President Trump’s aggressive tariff policies.

Interest rate differentials – the gap between two countries’ interest rates – act like magnets for investors’ money and play a key role in shaping exchange rates. We’re now observing a shift in dynamics though. The reversal in the usual relationship between US Treasury yields and the dollar suggests that markets are now demanding higher risk premiums on traditionally safe US assets.

This shift likely stems from concerns about stagflation, reputational damage and missteps in policymaking. Other factors include hedge fund deleveraging, speculation of foreign investors offloading US bonds, and a shift toward cash-like shorter-term securities as risk assets falter.

Higher yields, impacting everything from mortgages to loan rates, are undermining a key objective of Trump’s economic policy – lowering borrowing costs to benefit consumers, as highlighted by Treasury Secretary Scott Bessent.

The bottom line – investors were gripped by concerns that something may break in the financial plumbing as volatility and stress build across markets. It seems the bond sell-off went to far and forced Trump to surrender.

Chart of US yield move

Pound recovers with equities, but bonds pose a problem

George Vessey – Lead FX & Macro Strategist

Stress in the bond markets has been evident in the UK too. Yields are rising as worryingly as they are doing in the US and this poses a headache for the UK government’s finances, which is already challenged by tight public finances and a weakening growth outlook. The Bank of England (BoE) has stated the global risk environment has deteriorated, and uncertainty has intensified. The pound has had a torrid week against most peers, especially the yen and swissy, down 2% and 3% respectively before the tariff delay was announced.

What’s interesting is the divergence in yields across the curve. Long-dated yields are rising amid renewed inflation fears driven by escalating US-China trade tensions. For example, the UK’s 30-year gilt yield, rose to its highest level since 1998. In contrast, fears of an economic slowdown has left the 2-year yield relatively unchanged as investors ramp up bets on BoE rate cuts. Markets now price in 93bps of easing this year, including growing expectations of a 50bp cut in May. Meanwhile, if the BoE determines the gilt market is becoming dysfunctional, it may be forced to pause its bond selling programme.

Chart of UK gilt yields

What about the pound? The relief rally in global equity markets, and prospect for stabilization in the UK bond market, is fuel for a recovery in the UKcurrency. GBP/USD is back above $1.28 as risk appetite returns, but the big talking point is GBP/EUR which had suffered its biggest 5-day drop since 2020 and was trading near 1-year lows as traders flocked to the high-liquid appeal of the euro. The pair sharply went into reverse though and now today trading back above €1.17 following Trump’s capitulation to market forces.

Chart of GBPEUR daily changes

More broadly, sterling is becoming increasingly sensitive to market risk. No longer is it being dubbed a tariff safe haven. It continues to fluctuate against most of its peers in line with broader market sentiment and due to the fact the UK will not come away unharmed by a global trade war and economic slowdown.

The direct effect of tariffs looks relatively small because Trump’s regime did not include services exports, which make up the majority of the UK’s nearly £900bn of annual exports. However, lower global demand will hit the already feeble UK economy, which has barely grown over the past six months.

Chart of Uk exports

S&P500 erases losses

Table: 7-day currency trends and trading ranges

Table of FX rates

Key global risk events

Calendar: April 7-11

Table of risk events

All times are in BST

Have a question? [email protected]

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



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Monthly Dividend Stock In Focus: PennantPark Floating Rate Capital


Updated on April 9th, 2025 by Nathan Parsh

At first glance, PennantPark Floating Rate Capital (PFLT) is very appealing to income investors. That’s because PennantPark has a staggering 13.4% dividend yield. In addition, unlike many of its competitors, the company has managed to raise its dividend per share for two consecutive years, following a stagnant dividend for the previous seven years.

PennantPark is one of approximately 140 stocks in our coverage universe with a 5%+ dividend yield. Click here to see the entire list of 5%+ yielding stocks.

Not only that, but PennantPark also pays its dividends each month. This allows investors to compound their wealth even more quickly than a stock that pays a quarterly or semi-annual dividend.

There are currently 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, as is so often the case with sky-high dividend yields, PennantPark’s attractive dividend yield may be too good to be true.

This article will discuss the company’s business model and whether the payout is sustainable over the long term.

Business Overview

PennantPark is a Business Development Company, or BDC. It provides mostly debt financing, typically first-lien secured debt, senior notes, second-lien debt, mezzanine loans, or private high-yield debt. It specializes in making debt investments in middle-market companies. To a lesser extent, it also makes preferred and common equity investments. The most recent balance sheet showed that 90% of the company’s total investments were in first-lien senior secured debt.

Source: Investor Presentation

The company’s portfolio is highly diversified, with no particular industry making up more than 8% of the total mix, and the majority comprising less than 3% of the total.

In addition, the company’s portfolio has a floating rate, which opens up its yields to interest rate volatility. This can be good in times of rising rates but is unfavorable should rates decline.

An overview of the company’s investment philosophy reveals PennantPark prefers middle-market companies with $15 million to $50 million in annual EBITDA and has a high rate of underwriting success.

Only two of the company’s ~160 investments reached the non-accrual stage in the most recent quarter, compared to less than 20 of its investments since inception. PennantPark’s track record of outstanding underwriting is a key advantage, and this outstanding credit quality has helped the company maintain its dividend at the same rate for several years.

Source: Investor Presentation

Above is a sampling of the types of investments the company makes in target companies. Not only are the targets themselves from diverse industries and geographies, but PennantPark has a variety of instruments with which to make its investments.

First-lien secured debt is the preferred instrument given its favorable repayment position, but the company will do revolvers and equity injections as well. This is primarily a floating debt investment firm, however.

Growth Prospects

PennantPark has a track record of successful investments. However, its exposure to floating-rate instruments has caused its average portfolio yield to fall over the past several years. The yield on PennantPark’s portfolio peaked at just over 9% at the end of 2018, but the company faced declines in the subsequent years.

As PennantPark’s portfolio is comprised of floating rate instruments – mostly tied to LIBOR – it benefits when interest rates are increasing. Low rates over the past decade suppressed the company’s investment income, but the potential for higher rates is a future catalyst. To an extent, that has come true in 2022-2023 with rising rates.

The company reported its financial results for the first quarter of the fiscal year 2025 on February 11th, 2025. The company’s investment portfolio reached $2.2 billion, with net assets at $962.7 million and a GAAP net asset value per share of $11.34, reflecting a slight improvement of $0.03 per share from Q4 2024. The company’s regulatory debt-to-equity ratio stood at 1.4x, and its debt investments had a weighted average yield of 10.3%. PFLT achieved a net investment income of $30 million during this period, translating to $0.37 per share. Core net investment income was $0.33 per share.

The company continued to actively invest in middle-market loans actively, deploying $607 million in new investments and realizing $26.7 million from sales and repayments. Its portfolio consisted of 159 companies with an average investment size of $13.8 million. Additionally, PennantPark Senior Secured Loan Fund I LLC (PSSL), an unconsolidated joint venture, saw its investment portfolio grow to $1.046 billion, with investments in 118 companies at a weighted average yield of 11.4%.

Total expenses more than doubled to $37 million, driven by higher debt-related costs and base management fees.

Dividend Analysis

PennantPark pays a monthly distribution of $0.1025 per share. The stock has a very attractive annualized dividend yield of 13.4%. Even better, it makes monthly dividend payments, so investors receive their dividends more frequently than they would on a quarterly schedule.

Related: The 10 Highest Yielding Monthly Dividend Payers

However, it is also important to assess whether the dividend is sustainable. Abnormally high dividend yields could indicate that the dividend is in danger. We would expect a BDC to have a high yield, but the more than 13% yield is high even by BDC standards.

PennantPark Floating Rate also has a highly leveraged balance sheet and a payout ratio that often nears or exceeds 100% of earnings. While the company can probably sustain this model while the economy is running smoothly—as the stable dividend over the past decade has shown—it may collapse if the economy experiences a significant and prolonged downturn that causes its loans to underperform.

Despite an increase in 2023, shareholders should certainly not expect a distribution increase in the near term given how close the payout is to earnings today. PennantPark’s ability to grow its portfolio and average yields while controlling expenses will determine if the distribution is sustainable.

The company’s NII is expected to cover distributions this year, but just barely given that the projected payout ratio is 93%. Thus, we aren’t expecting a dividend cut, but add that if credit quality deteriorates, or if rates move down, PennantPark’s earnings will suffer and a dividend cut may become a reality. We note this hasn’t happened yet, but risks have risen for PennantPark given the way its portfolio is constructed with floating-rate instruments. Rates remain stable at the moment, but could be cut if growth slows. However, we don’t see the dividend as being at risk of being cut today. That said, it’s something investors should monitor continuously.

Final Thoughts

The old saying “high-risk, high-reward” seems to apply to PennantPark. It certainly has an attractive dividend yield on paper, but if interest rates move lower, there could be dividend concerns down the road.

If everything goes according to plan, the stock’s yield alone could generate nearly double-digit total returns on an annual basis.

The company faces an elevated level of risk. If PennantPark does not grow investment income, it could be forced to reduce the dividend at some point in the future, but we do not currently forecast that.

Still, investors should tread carefully, and only those with a higher risk tolerance should consider buying PennantPark despite the very high yield.

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.

Thanks for reading this article. Please send any feedback, corrections, or questions to [email protected].





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Monthly Dividend Stock In Focus: RioCan Real Estate Investment Trust


Published on April 9th, 2025 by Nathan Parsh

Real estate investment trusts, or REITs, can offer highly attractive income yields. They are required to pay the majority of their profits as dividends to their shareholders.

This is why many retirees and other income investors like to invest in REITs, although not all REITs are equally well-liked. It can make sense to look for REITs outside of the US, as there are attractive and reliable dividend payers in other countries as well. This includes RioCan Real Estate Investment Trust (RIOCF), for example, which is a Canadian REIT.

RioCan REIT is a somewhat special REIT because it pays monthly dividends. While some other REITs also pay monthly dividends, most offer quarterly dividend payments to their owners.

There are currently just 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:

 

RioCan REIT offers a dividend yield of 7.5% at current prices, five times the S&P 500’s yield of 1.5%.

The above-average dividend yield and RioCan’s monthly dividend payments make the REIT worthy of research for income investors. This article will discuss the investment prospects of RioCan REIT in detail.

Business Overview

RioCan is a real estate investment trust that was founded in 1993 by Ed Sonshine, making it one of the first REITs in Canada overall. RioCan is headquartered in Toronto, Canada, and is one of the largest REITs in the country. The company currently has a market capitalization of $3.5 billion.

The REIT invests in commercial properties with a retail real estate focus. Still, the company has been diversifying its asset base in recent years, which is why RioCan describes its portfolio as retail-focused and increasingly mixed-use.

Some of the REIT’s headline numbers can be seen here:

Source: Investor Relations

RioCan focuses on large urban markets, where demand for properties is generally higher, and average rents are higher as well. Thanks to urbanization, people are moving into these markets, which is why the longer-term outlook for these properties is positive. More than half of its properties (by square footage) are located in the Greater Toronto Area.

RioCan owns nearly 180 properties, with about 32 million square feet of net leasable area. On top of that, there’s a huge pipeline of high-quality assets that RioCan plans to develop over time, although this will take years.

While retail REITs can be vulnerable to recessions and other macro shocks when they have a focus on (lower-quality) malls where tenants aren’t resilient, RioCan’s focus is different. Many of its tenants are necessity-based, i.e. drug stores, grocers, and so on. These tend to remain resilient during recessions, which is why there is little risk that RioCan’s tenants will default or run into trouble in a big way.

Under its RioCan Living brand, RioCan also offers residential real estate. Like in the commercial portfolio, the focus here is on high-class assets in the largest and fastest-growing markets. While average lease yields in the residential space are lower relative to commercial assets, residential real estate is very resilient; thus, the buildout of this business lessens some of the risk with RioCan.

In addition, rent growth in the residential space is higher than in many other real estate markets; thus, the residential business could allow for an improved organic growth rate in the future.

On February 18th, 2025, RioCan reported fourth-quarter results.

The company reported new leasing spread of 36.7%, boosting the blended leasing spread to 18.7%. Approximately 4.8 million square feet of leases were completed in 2024, with 1.5 million square feet dedicated to new leases. Committed occupancy was a record high 98.0%, while retail in-place occupancy was also a record at 98.7%. Strategic leasing, particularly in grocery and essential uses, resulted in new grocery store leases, further enhancing RioCan’s portfolio.

Financially, RioCan’s FFO per unit for the quarter grew 5.2% year-over-year to $0.34. Net income of $125.6 million compared favorably to a loss of $117.7 million in the same period of 2023.  The company’s financial stability remains strong with a payout ratio of 76%, liquidity of $1.7 billion, and unencumbered assets of $8.1 billion.

Looking ahead, RioCan projects FFO per unit to be between $1.89 and $1.92 for 2025, with a payout ratio of ~60%. The company expects moderate Commercial Same Property NOI growth of close to 3.5%.

Growth Prospects

RioCan has grown its funds from operations-per-share at a solid pace in the past and targets 5% to 7% annual FFO-per-share growth in the coming years.

This funds from operations growth was made possible by several contributing factors. First, the company can increase its same-property rents over time:

Source: Investor Presentation

We see that leasing spreads have been in the 5% to 10% range per year in the recent past before surging last year. While leasing spreads will likely not be as high as the level seen over the past few years going forward, it can be expected that RioCan’s high-quality assets and underlying market growth will allow for ongoing solid lease rate growth at existing properties. Growing rents at existing properties allow for positive same-property net operating income growth, an essential driver for the company’s FFO.

Second, RioCan’s development pipeline and asset purchases should increase the company’s cash flows going forward. RioCan targets a payout ratio of 55% to 65% of its funds from operations via dividends, which means that considerable additional cash is retained. That cash can be used to finance the development of new projects, while using it for acquisitions is another possibility. It should be noted that this is a much lower payout ratio than many of the monthly dividend-paying stocks in our coverage universe.

RioCan’s healthy balance sheet also allows the REIT to finance some of its future investments via debt. The company’s capital recycling activity of selling non-core assets also generates cash that can be used to pay for the development of new and attractive properties in RioCan’s pipeline.

Dividend Analysis

RioCan REIT is seen primarily as an income investment like many other REITs. And rightfully so, as the company offers an attractive dividend yield of 7.5%, based on a monthly dividend payout of CAD$0.0965. At the current exchange rate to USD, shares of RioCan REIT are trading at USD$10.95.

With FFO of USD$1.13 for 2025 and projected dividends of USD$0.81, the payout ratio is projected to be 72%. This indicates that the dividend is relatively safe, as that is not a high payout ratio for a REIT, as many peers operate with much higher payout ratios.

When FFO keeps growing per share, even in a tough economic environment, there is little reason to worry about the dividend as coverage improves over time, all else equal.

The strong balance sheet further indicates that there is little reason to worry about a dividend cut. RioCan’s debt to assets stand at only 48%, which is relatively conservative for a REIT.

Final Thoughts

RioCan REIT is one of Canada’s largest and oldest REITs that operates with a retail-focused portfolio but that has been expanding in the mixed-use and residential space in recent years. The REIT offers an attractive dividend yield approaching 8%.

The focus on high-quality assets in large and growing markets means that RioCan’s portfolio is likely positioned well for the long run, as rents should continue to climb over time, as they have done in the past.

With its strong high-quality asset base and a well-covered dividend, monthly-paying RioCan REIT has merit as an income investment at current prices.

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.

Thanks for reading this article. Please send any feedback, corrections, or questions to [email protected].





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US shares in historic gains on tariff pause; Aussie, kiwi surge – United States


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

Aussie best as global markets surge

Global markets roared higher in a historic move overnight after US President Donald Trump announced a 90-day pause in the implementation of the most severe tariffs on the majority of trading partners. However, President Trump raised tariffs on China to 125%.

The benchmark S&P 500 jumped a massive 9.5%. This was the index’s eighth-best percentage performance in history and the best outside of the Great Depression and Global Financial Crisis eras.

In FX markets, the Australian dollar led the charge higher, with an incredible 3.2% gain, moving the market back towards key resistance at 0.6185.

The NZD/USD also gained strongly, up 2.0%, with this market near resistance at 0.5680.

The moves in Asia were more muted with the USD/JPY up 0.9% after the decision.

The USD/SGD fell 0.9% while the USD/CNH turned sharply, down 1.1%, as the market quickly fell from the all-time highs seen on Wednesday morning.

Chart showing AUD/USD one-year, daily close

Asia positioning as US exceptionalism declines

Will the US economy’s recent outperformance fade in the face of tariffs and trade uncertainty? Here are some possible ramifications for Asia markets as the “US exceptionalism” narrative fades.

China, ASEAN, and India have the least connected stock markets with the US, while Korea, Taiwan, and Japan have the most correlation.

It’s not surprising that MSCI China has outperformed year-to-date despite being at the centre of the tariff storm since China authorities’ choice to deleverage the economy a few years ago has delinked Chinese stocks from the US-led global asset cycle.

The attention yesterday was on China’s offshore RMB as the CNH fell to its lowest level since 2010, but the Chinese currency later recovered.  

The next key support for USD buyers lies with 50-day EMA 7.2816 for USD/CNH.

Chart showing USD/CNH and its 50- 100- and 200- weekly moving averages

FX remains key on tariff talks says Japan’s Kato

According to Bloomberg, Japan’s Finance Minister Katsunobu Kato said in parliament that currency may come up in trade negotiations with the US.

According to Kato, tariffs that are based on “brinkmanship” have the potential to depress Japan’s economy.

USD/JPY rebounded from six-month lows at 144.00 – this level now becomes support. Next key resistance levels are 50-day EMA 149.91 and 200-day 151.17.

Chart showing correlation of FX vs 2025 Fed easing expectations

Aussie, kiwi surge overnight

Table: seven-day rolling currency trends and trading ranges  

Table: seven-day rolling currency trends and trading ranges

Key global risk events

Calendar: 7 — 11 April

Key global risk events calendar: 7 -- 11 April

All times AEDT

Have a question? [email protected]

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



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