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

US non-farm employment seen as critical this month

Major US markets continued to weaken overnight with further losses in US equities while the US dollar fell to the lowest level since last year’s US presidential election.

The S&P 500 fell 1.8% while the Nasdaq dropped 2.6% overnight.

The US dollar dopped to the lowest level since 5 November before recovering later in the session.

The AUD/USD, initially higher, turned lower near the major technical resistance at 0.6400 – the three-month highs. The Aussie ended flat on the day.

The kiwi also reversed at three-month highs and ended the session up 0.1%.

In Aisa, the USD/SGD rebounded from four-month lows at 1.3300, reflecting the overnight bounce in the USD. USD/CNH also recovered from four-month lows.

Looking forward, all eyes are on tonight’s US jobs report. Financial markets are looking for 160k new jobs to be added in February with the unemployment rate forecast steady at 4.0%. The report is due at 12.30am AEDT.

Slowing US credit growth may add to USD weakness

Away from US jobs, the US consumer credit report will also be closely watched. 

After rising sharply to $40.9 billion in December, consumer credit growth probably slowed to $16.0 billion in January.

January’s weak vehicle sales also suggest that the rise of auto loans has slowed.

The USD experienced significant depreciation, with the DXY Index falling by circa 2% Week-To-Date to its lowest level since November 2024.

The next key support level for the dollar index will be its 200-day EMA of 102.57 of the weekly chart.

CNH faces headwinds amid persistent deflation

Tomorrow, the China CPI will be released.

The Chinese New Year calendar mismatch between 2024 and 2025, which artificially produced a high base for February, is mostly to blame for our expectation that CPI inflation would decline to -0.4% y-o-y in February from 0.5% in January.

Due in significant part to a sequential comeback, we anticipate sequential PPI deflation of -2.0% y-o-y in February, up from -2.3% in January, and sequential CPI inflation to slow to 0.1% m-o-m in February from 0.7% in January.

We continue to have a pessimistic view of the CNH due to the possibility of future tariff hikes and the continued corporate propensity to hoard the USD.

As US tariffs increase, we continue to base our forecast on some CNH weakening, with the authorities maintaining the line at 7.50.

USD buyers may look to take advantage near 50-day EMA of 7.2422.

Greenback recovers from four-month lows

Table: seven-day rolling currency trends and trading ranges  

Key global risk events

Calendar: 3 – 7 March  

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.

With its exit from Central America and Colombia, Scotiabank follows the trend of international banks retreating amid rising compliance costs and risks. 

Scotiabank has officially exited retail banking in Panama, Costa Rica, and Colombia, marking the latest move by a major international lender to scale back in the region. The deal, which gives Scotiabank a 20% stake in Banco Davivienda in exchange for its retail operations, highlights a broader trend as mounting compliance costs, de-risking pressures, and shifting profit priorities drive global banks to rethink their presence in Latin America and the Caribbean.

Scotiabank’s exit also fulfills a promise CEO Scott Thomson made in 2023 to refocus on more profitable North American markets. The decision marks the end of a more than decade-long expansion that initially defied the de-risking trend. In 2012, Scotiabank made a bold play for Colombia’s growing financial sector, acquiring a majority stake in Banco Colpatria for $1 billion. It continued its push into the region in 2016, purchasing Citibank’s retail operations in Costa Rica and Panama for $360 million.

But while Scotiabank was expanding, many global banks were already reassessing their footprint in high-risk markets.

“As large international banks that provide payment services to the region face tougher compliance measures, many have made a cost-benefit decision that the material compliance costs from doing business in the region far outweigh the benefits,” says Adrian Stokes, CEO of Quantas Capital in Jamaica. “Therefore, it makes good business sense to stop offering correspondent banking services to regional banks.”

The shift has accelerated in recent years as exiting banks cite a combination of rising compliance costs and concerns over anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations. The US Treasury, the European Union, and the intergovernmental Financial Action Task Force (FATF) have deemed certain markets high risk, making operations more costly. Heightened capital requirements, introduced after the 2008 financial crisis to prevent taxpayer-funded bailouts, have further contributed to the de-risking trend.

Latin America and the Caribbean have been hit hardest, with the former losing an average of 30% of its correspondent banks, according to a 2020 report by the Bank for International Settlements. The Bahamas, Belize, Dominica, Jamaica, and St. Vincent and the Grenadines all lost at least 40% of their correspondent banks between 2011 and 2020, with Trinidad and Tobago landing just below that threshold.

Economic Consequences

The banking pullback has limited access to international finance and credit in regions heavily reliant on remittances, worth 20% to 27% of GDP in Central America, and tourism, which accounts for up to 90% of GDP in some Caribbean nations. In 2022, tourism provided 1.8 million direct jobs and generated an estimated $62 billion for the Caribbean: close to half of the $136 billion in GDP the International Monetary Fund estimates for the region for 2024.

A dearth of correspondent banks reduces access to international finance and credit, increases the transaction cost of cross-border payments, and delays innovation, such as hotels’ attempts to go cashless. For clients, the effects can range from reduced access to trade finance, issues with clearing checks and foreign money transactions, and heightened dollar supply concerns in some countries.

Over the decade since HSBC was fined $1.9 billion for laundering cartel money in Mexico, other banks are still being investigated, including Wachovia and TD Bank, which were fined a record $3 billion last October by the US Treasury Department’s Financial Crimes Enforcement Network.

“The same issues in Central and Latin American markets are magnified in the Caribbean,” says Christopher Mejia, emerging markets sovereign analyst at T. Rowe Price. “Operating costs have to include natural disasters in a more difficult environment than in Central America, and [with] much smaller profits to be had. Banks now take into account reputational risks from privacy laws and rules, especially after the Panama Papers [scandal].”

De-risking has also impacted money transfer organizations (MTOs) such as MoneyGram, PayPal, UAE Exchange, and Western Union. Many have made similar decisions to de-risk from the region.

While Scotiabank will retain its commercial banking operation in Colombia, it serves primarily as a relationship management hub for large private companies looking for international banking advice.

“This is a meaningful shift in how we allocate capital,” Thomson told a media roundtable in December 2023, referring to Scotiabank’s plan to focus on more profitable North American markets. “The return profile of the international bank has not been commensurate with the risk, and it’s been a drag on overall returns.”

Filling The Gap

For customers in the Caribbean and Latin America, the shift amounts to a localization or domestication as the international banks’ operations are picked up by local banks or by large conglomerates in the region.

Bancolombia and Grupo Aval, which together own Banco de Bogotá and the BAC group in Central America, were one and two in their local market until the Scotiabank and Banco Davivienda deal. They have grown substantially in Central America, having acquired Banco Reformador (Grupo Financiero Reformador) in Guatemala for $411 million in 2013. The same year, Bancolombia acquired 40% of Banco Agromercantil, also in Guatemala, for $217 million.

Solutions to de-risking that would keep global payers in the region are not obvious, however. For global banks pinning their hopes on technology as the solution to operational cost and regulatory issues, blockchain and fintech still face the same issues as traditional banks. Neobanks have made a strong push into Mexico, especially Brazil’s Nubank, as have non-traditional financial institutions like Argentina’s Mercado Libre and Ualá. The latter are among roughly 50 firms awaiting verification by the National Banking and Securities Commission (CNBV); the process can take at least 12 months, and is notorious for delays.

The Caribbean is finding its own potential solution in central-bank stable coins, such as the Eastern Caribbean digital currency DCash. But laws are still being put in place across the region’s assortment of jurisdictions and defensive countermeasures to cyberattacks are still insufficient. Cyberattacks are still nascent in the region, so users have not faced the volume that other parts of the world have. A second concern is a brain drain from the region, an International Information System Security Certification Consortium survey in 2021 suggested Latin America needed 530,000 more cybersecurity professionals. “There is no silver bullet to the compliance challenges the region faces,” Stokes argues. “The only sustainable way to solve this issue is for the region to work in unison to improve controls around AML/CFT issues.”

Some governments in the region blame the de-risking trend on inconsistency and shifts in rulemaking by the US Treasury, FATF, and the EU. Added to these issues is the time lag between countries passing laws—that banks then comply with—and the delay in removal from watch lists for months afterward. Some Latin American and Caribbean countries say this amounts to bullying by more developed countries.

Last fall, President José Raúl Mulino of Panama and others warned that companies from countries that did not update their tax haven lists would not be considered for state contracts. Given that the $6 billion-$8 billion, high-speed Panama-David railway project is up for bid, this is not an empty threat.

​The cryptocurrency market is experiencing a significant evolution with the emergence of projects that combine cutting-edge technology and real-world use cases. Coldware (COLD), an IoT (Internet of Things) chain, has taken a bold step in this direction, driving HBAR holdings and attracting the attention of investors and major players in the Web3 revolution. Alongside this, Hedera (HBAR) continues to be a strong contender in the market, and together with Coldware (COLD) they are transforming the landscape of decentralized finance and blockchain solutions.​

Coldware (COLD) and Hedera (HBAR): A Powerful Partnership in Web3

Coldware (COLD) is quickly establishing itself as a leading player in the IoT blockchain space. By integrating IoT solutions with decentralized finance (DeFi) capabilities, Coldware is addressing a significant gap in the market. It offers high scalability, security, and the ability to handle large-scale transaction volumes—making it an attractive alternative to more traditional blockchain systems.

Meanwhile, Hedera (HBAR), with its enterprise-grade governance and focus on scalable solutions for IoT and business use cases, has been gaining significant traction. The partnership between Coldware (COLD) and Hedera (HBAR) is a perfect example of how IoT chains and blockchain networks are aligning to create solutions that are not just about speculation, but real-world applications.

Driving HBAR Holdings

As Coldware (COLD) continues to grow, it is driving more HBAR holdings into the Web3 ecosystem. Hedera’s unique consensus mechanism and enterprise-focused governance make it a perfect partner for Coldware (COLD). With the addition of Coldware’s IoT capabilities, HBAR can provide further scalability and efficiency, positioning both projects as the future of blockchain technology in the Web3 ecosystem.

Hedera’s partnership with Swift and its collaborations with industry giants like Google and IBM underscore its ability to handle high-value transactions and large-scale applications. As more businesses adopt blockchain solutions like Hedera (HBAR) and Coldware (COLD), the demand for IoT-powered blockchain networks will continue to rise.

Coldware’s (COLD) Competitive Edge

Coldware (COLD) stands out in the competitive world of Web3 altcoins by offering real-world utility. As the world transitions towards Web3, platforms like Coldware (COLD) that combine DeFi with IoT technology are poised for massive growth. The ongoing development of the Coldware network and its integration with IoT devices is making it a significant asset for investors looking to participate in the next wave of blockchain innovation.

Coldware (COLD)’s approach to DePIN (Decentralized Physical Infrastructure Networks) allows the platform to provide scalable, secure, and efficient solutions for enterprises looking to adopt blockchain technology for IoT applications. This model, combined with Hedera’s strong governance and enterprise partnerships, positions Coldware (COLD) and Hedera (HBAR) to redefine the landscape of Web3.

Conclusion: Coldware and Hedera Set to Drive the Web3 Revolution

The partnership between Coldware (COLD) and Hedera (HBAR) is a perfect example of how IoT chains and Web3 technologies are coming together to solve real-world problems. With Hedera’s scalability and Coldware’s IoT integration, these two projects are set to lead the next phase of blockchain evolution. Investors looking to gain exposure to Web3 technologies and the IoT space should pay close attention to the growing demand for Coldware (COLD) and Hedera (HBAR) as these projects continue to dominate the market.

For more information on the Coldware (COLD) Presale: 

Visit Coldware (COLD)

Join and become a community member: 

https://t.me/coldwarenetwork

https://x.com/ColdwareNetwork ​

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.

Updated on March 5th, 2025 by Felix Martinez

There are just 69 stocks on the list of Dividend Aristocrats, members of the S&P 500 Index that have raised their dividends for 25+ consecutive years.

We view the Dividend Aristocrats as among the best dividend stocks to buy and hold.

You can download a free list of all 69 Dividend Aristocrats, along with important metrics like dividend yields and price-to-earnings ratios, by clicking on the link below:

 

Disclaimer: Sure Dividend is not affiliated with S&P Global in any way. S&P Global owns and maintains The Dividend Aristocrats Index. The information in this article and downloadable spreadsheet is based on Sure Dividend’s own review, summary, and analysis of the S&P 500 Dividend Aristocrats ETF (NOBL) and other sources, and is meant to help individual investors better understand this ETF and the index upon which it is based. None of the information in this article or spreadsheet is official data from S&P Global. Consult S&P Global for official information.

Ecolab (ECL) is an example of a company that possesses all of these qualities. Ecolab has a long history of growth, and has increased its dividend for over 33 years.

This article will examine the various factors behind Ecolab’s rise to prominence and our current rating of Ecolab stock.

Business Overview

Ecolab was created in 1923 when its founder Merritt J. Osborn invented a new cleaning product called “Absorbit”. This product cleaned carpets without the need for businesses to shut down operations to conduct carpet cleaning. Osborn created a company revolving around the product, called Economics Laboratory, or Ecolab.

Today, Ecolab is the industry leader, generating roughly $16 billion in annual sales.

Ecolab operates three major business segments: Global Industrial, Global Institutional, and Global Energy, each roughly equal in size. The business is diversified in terms of operating segments and geography. About 55% of the company’s sales take place outside North America.

In mid-February, Ecolab reported (2/11/25) financial results for the fourth quarter of fiscal 2024. Ecolab delivered a strong fourth quarter and record 2024 performance, with reported diluted EPS up 18% to $1.66 and adjusted EPS rising 17% to $1.81. Sales grew 2% to $4.0 billion, with organic sales up 4%, led by Industrial and Healthcare & Life Sciences. Operating income margins improved, with organic margin reaching 17.4% due to higher sales and strategic investments.

Source: Investor Presentation

Growth Prospects

Ecolab grew its earnings per share by 10.9% per year from 2011 to 2019. However, it declined in 2020 due to the pandemic and in 2022 due to high inflation. We view these headwinds as temporary and expect 10% average annual growth of earnings per share over the next five years.

Source: Investor Presentation

One of the company’s most important growth catalysts is acquisitions. In late 2021, Ecolab acquired Purolite for $3.7 billion in cash. Purolite sells high-end ion exchange resins for the separation of solutions in over 30 countries. It generates annual sales of approximately $400 million.

Ecolab has proven successful at integrating other acquisitions, so we remain positive about the company’s ability to do so in the future. Acquisitions such as these and organic investment have fueled steady earnings growth for decades.

We feel that the company is well-positioned to continue growing. Over the next five years, we expect ECL to grow earnings per share by 10% per year.

Competitive Advantages & Recession Performance

Ecolab’s many competitive advantages include scale, a strong reputation among its customers, and innovation. Ecolab serves more than 1 million customer locations spread across more than 170 countries. The company is not afraid to spend significant resources on research and development of new products and services.

Management refers to R&D spending as its “innovation pipeline.” Ecolab often spends more than $1 billion on this pipeline. Due in large part to this R&D spending, the company has more than 9,000 patents.

Ecolab’s R&D investments and intellectual property help the company stay ahead of the competition. These investments have created an incredibly strong business that can hold up very well even during economic downturns.

For clear evidence of Ecolab’s competitive advantages, look no further than its performance during the Great Recession:

• 2006 earnings-per-share of $1.43
• 2007 earnings-per-share of $1.66 (16% increase)
• 2008 earnings-per-share of $1.86 (12% increase)
• 2009 earnings-per-share of $1.99 (7% increase)
• 2010 earnings-per-share of $2.23 (12% increase)

Ecolab’s growth during the Great Recession was truly remarkable. Not only did the company generate positive earnings growth in each year of the recession, but it achieved double-digit earnings growth in three of those years.

Valuation & Expected Returns

Based on the current trading price of $269 and expected earnings-per-share of $7.55, Ecolab has a price-to-earnings ratio of 35.6. The stock has a ten-year average price-to-earnings ratio of 20. We have a target price-to-earnings ratio of 20. If shares of Ecolab were to return to our target valuation by 2030, this would reduce total returns by 10.7% per year.

The stock is in danger of experiencing a contraction of the valuation multiple, which would negatively impact total returns. Ecolab’s dividend will not likely represent a large portion of total returns. This is because the current dividend yield is just 0.9%. This is lower than the average dividend yield of the S&P 500 Index.

Ecolab’s dividend growth streak now totals 33 consecutive years.

A breakdown of potential five-year returns is as follows:

• 10.0% earnings growth
• 0.9% dividend yield
• 10.7% valuation reversion

We expect Ecolab to offer a total annual return of 0.2% through 2030. Valuation headwinds are likely to wear down most of the company’s potential returns from its earnings and dividend growth prospects.

While Ecolab is an attractive dividend growth stock due to its high rate of dividend increases, it is not as appealing for income investors or value investors.

Final Thoughts

Ecolab is not likely to be an attractive stock for investors interested solely in high levels of income. It is a very strong stock for investors interested in a recession-resistant business and dividend growth.

Ecolab has an excellent record of profitability and growth and is one of the few companies with a dividend growth streak of at least 25 years. That said, today might not be an ideal time to acquire shares in the company due to the lack of meaningful projected returns over the medium term. Therefore, we rate Ecolab’s shares as a Sell.

If you are interested in finding high-quality dividend growth stocks suitable for long-term investment, the following Sure Dividend databases will be useful:

The major domestic stock market indices are another solid resource for finding investment ideas. Sure Dividend compiles the following stock market databases and updates them monthly:

Tom Yeung here with today’s Smart Money.

Do you remember what happened on March 1, 2018?

James Hackett probably does.

On that day, the then-CEO of Ford Motor Co. (F) saw President Donald Trump announce a sweeping round of tariffs targeting steel (25% duties) and aluminum (10%) – two of the most essential raw materials for automakers.

Over the following year, Hackett saw his company lose a fifth of its stock value – driven by a $750 million loss from tariffs and another $1.1 billion from broadly higher commodity prices. Many other importers saw even steeper declines.

But to most investors, March 1, 2018, was relatively unremarkable. The broader S&P 500 would rise 5% over the next 12 months, and high-quality tech stocks like Salesforce Inc. (CRM) and Intuit Inc. (INTU) and Advanced Micro Devices (AMD) would rise 20% … 50%… even 100%.

That’s because top companies can perform well despite interference from the top.

These innovative firms make products that are so essential that no amount of trade wars or late-night presidential tweets can seem to derail them.

Fast forward to today, and we’re watching history rhyme.

Trump has returned to the White House, and tariffs are back on the table – this time in even bigger and broader forms. On Tuesday, tariffs on Chinese goods rose another 10%, while certain non-exempt goods from Canada and Mexico saw a 25% hike. (Yes, things have shifted since then, and they probably will again tomorrow.)

Predictably, the headlines are full of doom and gloom. But for investors, there’s little reason to lose sleep over tariffs – just like in 2018.

That’s because the most successful stock market stories of the next decade will have very little to do with Chinese imports, steel prices, or even the cost of eggs.

Instead, they’ll be about companies that are reimagining the very foundations of our economy, and the ones that have discovered products so desirable that customers will put aside their economic fears to savor those products.

So, in today’s Smart Money, I’ll share more about the industries and companies driving the next decade of wealth creation.

And, most importantly, where you can find them.

Desirable Industries and Desirable Products

Consider artificial intelligence. It’s no secret that this industry has already changed the market landscape… and will continue to change that of our economy.

Over the next five years, global spending on AI will surge to $800 billion, growing at 30% annually.

Companies pioneering the infrastructure of AI – from Nvidia Corp. (NVDA) with its specialized GPUs to OpenAI and DeepSeek with their groundbreaking language models – will drive productivity gains that dwarf the cost increases that tariffs cause.

That’s not just a theoretical argument. It’s already happening.

Over the past year, U.S. companies added over 160,000 AI-related job postings, even as they slashed positions in older sectors like retail and legacy manufacturing. It’s becoming harder to get through the day without encountering AI. At this point, it’s safe to say that most of us have encountered an AI-powered customer service chatbot.

And the story goes beyond AI.

In 2018, Salesforce, Intuit, and AMD thrived not because they were immune to tariffs, but because their core products – software solutions, financial technology, and advanced semiconductors – were too valuable for businesses and consumers to ignore.

That pattern will only accelerate in 2025 and beyond. Many companies around the world will panic over the next four years as they worry about what Donald Trump will do next.

But firms that make irresistibly desirable products will steam right ahead.

One of our favorite picks in this category is Dutch Bros Inc. (BROS), a drive-through coffee shop chain with a cultlike fanbase. Customers often drive for miles to get to a Dutch Bros location… and some rabid fans have even tattooed the company’s name and logo on themselves.

That’s dedication.

In fact, this Oregon-based company has proved so popular that it’s having no trouble spreading across America. In 2024, the firm opened 151 new stores in 18 states, helping drive a 35% surge in revenues. And they’re planning to open another 160 stores this year.

Eric added the company to the Fry’s Investment Report portfolio last August, and since then shares of this firm have risen 90%.

Incredibly, one-third of that growth has happened within the past two months… after President Trump first floated tariffs.

At Fry’s Investment Report, Eric remains focused on the megatrends that will outlive the tariff noise, and the companies set to prosper within them.

Here’s why this approach is so important…

Ignore the Noise, Focus on the Megatrends

If history teaches us anything, it’s that politics makes headlines – but great products make fortunes.

Investors who panicked over the 2018 tariffs and pulled money out of the market missed out on a golden era for tech stocks. Those who instead focused on transformative trends – cloud computing, mobile software, e-commerce – saw their portfolios surge.

The same principle applies today.

The 2025 Trump tariffs will make noise, but they won’t change the fundamental trajectory of industries driving the next decade of wealth creation.

Semiconductors, AI,  next-generation energy, and advanced healthcare – those sectors will generate trillions in new economic value, completely independent of tariff rates. In addition, some select firms in traditional sectors are also going to succeed, even as rivals stumble.

Of course, there will be pain ahead for those on the wrong side of the trade war. To refer back to Ford, shares of the automaker are down 6% since Trump took office in January, and more losses could be on the horizon.

But let’s not forget the big picture: Many innovative firms are still doing incredibly well, and that’s always what matters in the end.

To learn more about the companies that will continue to weather the tariff storm, click here to become a member of Fry’s Investment Report today.

Getting Prepped for Nvidia’s “Q Day”

My colleague, the Wall Street legend Louis Navellier, certainly isn’t letting the tariff headwinds distract him from the AI boom.

As the AI megatrend quickly evolves, Louis will tell anyone who’ll listen, Nvidia has maintained its king status. And now he is telling us that on March 20, during the company’s first ever “Q Day,” Nvidia may announce a new breakthrough technology that is poised to ignite the next phase of the AI supercycle… and affect nearly every aspect of our lives.

But according to Louis, the media is missing out on the most important part of the story: One tiny small-cap company is positioned to be crucial to Nvidia’s AI reveal, thanks to its technology protected 102 patents.

So, on Thursday, March 13, at 1 p.m. Eastern, he’s holding a special time-sensitive briefing to get you ahead of the news (reserve your spot for this free broadcast by going here). Instead of buying Nvidia now, Louis will reveal six alternative stocks set to benefit from this AI breakthrough – including the one small-cap company that could deliver 10X to 50X gains.

Click here to sign up for the free event.

Regards,

Tom Yeung

Markets Analyst, InvestorPlace

Twenty-five years in the making, the landmark agreement eliminates tariffs on over 90% of goods while reshaping South America-Europe trade ties. 

A quarter-century after negotiations began, Mercosur, the South American trade bloc whose core members are Argentina, Bolivia, Brazil, Paraguay, and Uruguay, has finally signed a trade agreement with the European Union (EU). The deal runs against the grain in an era of growing protectionism and rising deglobalization.

“This agreement is not just an economic opportunity, it is a political necessity,” European Commission President Ursula von der Leyen said at the Mercosur Summit in Montevideo in December, where the pact was signed. “I know that strong winds are coming in the opposite direction, towards isolation and fragmentation, but this agreement is our near response.”

The deal is the EU’s largest ever and Mercosur’s first with a major trading partner.

“European products will enter [the Mercosur] market under much better conditions than US or Japanese products,” Federico Steinberg, visiting fellow at the Center for Strategic and International Studies in Washington, DC, wrote in a paper published on December 6. By eliminating tariffs on over 90% of goods, the agreement is expected to save EU exporters €4 billion annually while granting South American producers preferential access to European markets for competitive agricultural products.

The agreement has two parts. One covers goods, services, public procurement, and intellectual property, focusing on trade issues such as tariffs, with special attention to automobiles, agriculture, and critical minerals.

“Increasing uncertainties in geopolitics” have sparked interest in rare earth minerals, says Charlotte Emlinger, an economist at the Center for Prospective Studies and International Information (CEPII) in the French prime minister’s office. For sensitive items, such as beef exports to Europe, quotas put a lid on inflows.

The second part of the pact addresses broader themes, including human rights and the environment. Along with another 2024 EU trade pact with New Zealand, it breaks new ground by referencing the Paris Agreement on climate change, a detail notably accepted by Argentine President Javier Milei, a global-warming skeptic.

What Is Mercosur And Why Does It Matter?

With a combined GDP of nearly $3 trillion, the four core members of Mercosur—Spanish for “Southern Common Market” in Spanish—would rank as the world’s fifth-largest economy. Some 300 million people live in an area of nearly 15 million square kilometers. The GDP figure doesn’t include Bolivia, which has been approved for membership but is in a four-year “implementation period” to come fully on board.

The EU was already Mercosur’s second-largest trading partner two years ago for goods, accounting for 16.9% of total trade, trailing China but beating the US, according to the European Commission. The EU exported €55.7 billion worth of goods to Mercosur that year, with €53.7 billion going the other way.

Touted as the emerging EU of the South when it was founded in 1991, Mercosur has yet to evolve beyond an imperfect customs union. The original four added Venezuela in 2012 only to suspend it in 2016 for violating political standards; Bolivia rose to full membership last year.  Suriname, Guyana, Colombia, Ecuador, Panama, Peru, and Chile are associated states; they won’t be formally affected by the EU-Mercosur deal.

Intra-regional trade among the four founders jumped four-fold to $16.9 billion between 1990 and 1996, according to the Inter-American Development Bank, but true integration has proven elusive. Internal trade remained at just 10.3% of the global total in 2022, according to data from the Observatory of Economic Complexity, an online database.

Why Now?

The timing of the deal can be linked to efforts by the EU to ensure continued robust and diversified trade in the face of protectionist measures by the US under US President Donald Trump, the growing role of China, and the demise of the World Trade Organization (WTO) as an effective facilitator of international trade integration.

“In the last few years, the geopolitical situation has become more dire for the EU,” says Maximiliano Marzetti, associate professor of Law, Department of International Negotiation and Conflict Management, Lille Economics Management Lab in France, “with the war in Ukraine, Brexit, and the protectionist and aggressive policies of China and the United States. The EU needs new trade partners in a climate of hostility to free trade and also to assert its relevance on the current multipolar international stage.”

Mercosur-EU negotiations date much further back: to 1999, during the period of “peak globalization,” but they remained in low gear until late in the Obama administration, when the US began taking measures to weaken the World Trade Organization.

All members are far from speaking with one voice, however.

Argentina’s self-described “anarcho-capitalist” President Javier Milei has offered harsh words for Mercosur, even as he begins a one-year stint as the group’s president pro tempore. During a speech at the Mercosur summit, Milei described the bloc as “a prison that prevents member countries from leveraging their comparative advantages and export potential.”

A month later, in Davos during the annual meeting of the World Economic Forum, Milei told Bloomberg that he would abandon Mercosur and its Common External Tariff, which preempts side deals, for an accord with the US. “If the extreme condition were that, yes,” he said. “However, there are mechanisms that can be used, even being within Mercosur.”

Uruguay, too, has been exploring an independent deal with China. But “negotiations never started because of Lula’s vision of Mercosur being together,” notes Bartesaghi.

Nor do these piecemeal agreements solve all the problems. The renewed bilateral deal with the EU will not solve associate member Mexico’s problems if it is hit with higher tariffs from its northern neighbor.

“Remember that the US accounts for 80% of Mexican exports and the EU accounts for less than 5%,” says Ashkan Khayami, senior analyst, Latin America Country Risk at BMI, a British multinational research firm. “It’s not really plausible for the EU to replace the US as kind of the main destination, or even a very significant destination, for Mexican exports.”

What’s Next?

Next comes ratification. For Mercosur, this is straightforward. Legislatures must vote, but if one balks, the accord will still apply for those that approve the deal. In Europe, however, the process is complex both bureaucratically and politically.

Prior to December, French farmers were out protesting the Mercosur deal; a resolution against the deal has been filed in the French parliament. Politicians in Poland, Italy, and the Netherlands, too, are raising questions. But observers tend to chalk this up to domestic posturing.

Thanks to the above-mentioned quotas for beef, for example, “that’s just a hamburger per inhabitant,” says Bartesaghi. Paraphrasing a French colloquial saying, “Mercosur is the tree that hides the forest,” Emlinger quips.

While the EU has sovereignty over trade, other treaty issues need member states’ approval. Proponents may therefore try to split the Mercosur text into its two component parts, trade and other. The trade section could presumably be fast-tracked though the European Parliament, where it would need votes representing 65% of constituents. Other sections, including environmental issues, would take the longer, country-by-country route.

“It is likely that the EU will opt, if it can, to split the ratification process,” says Marzetti.

Heritage Auctions partner and Senior Vice President Jim Stoutjesdyk has been named the recipient of the American Numismatic Association’s Presidential Award.

“This award is a fitting tribute for Jim, whose impact at Heritage and in the numismatic community is difficult to measure,” says Jim Halperin, Co-Chairman at Heritage Auctions. “He has as much knowledge and experience as anyone in the hobby and has helped to educate countless young numismatists. His many contributions that have helped Heritage remain the world’s premier auctioneer of coins can not be overstated.”

The award is bestowed upon people and entities who have made notable contributions to the ANA and numismatics. Board presidents have the discretion to make selections throughout their terms to recognize those making a difference in numismatics. Stoutjesdyk was selected for the award by current ANA president Thomas Uram. ANA past president Bob Campbell presented the award to Stoutjesdyk at the recent Long Beach Expo coin show.

“This is an award that is long overdue to a pillar of the numismatic community,” Campbell said. “Jim is a dealer’s dealer who provides liquidity to the rare coin industry and always remembers his roots by giving back to the hobby through his sharing of knowledge with others.”

Stoutjesdyk has enjoyed a long-standing relationship with the ANA, starting with a pair of summer internships at the ANA headquarters while he was in college, where he co-wrote a book about the colonial coins in the ANA Money Museum and learned coin grading from the staff of ANACS. He wrote articles, gave educational presentations, created educational exhibits and won two ANA YN (Young Numismatist) Best in Show awards; in 1987, the ANA named him Young Numismatist of the Year.

Stoutjesdyk has been a fixture at Heritage since his arrival in 1993. He quickly became a vital team member who buys and sells millions of dollars of rare coins each month, pricing the new coins available for sale each day and overseeing the daily operations of the rare coin department. In 2024, Stoutjesdyk was named a partner and owner of Heritage Auctions.

For nearly two decades, Stoutjesdyk has been an instructor at the ANA Summer Seminar, teaching Grading United States Coins, Part 1, and recently served as co-instructor for the ANA’s eLearning Academy as part of its Aristotle’s Vault video forum. He volunteers for one week every July as an instructor at Witter Coin University’s program for young numismatists.

In 2019, the ANA awarded Stoutjesdyk with the prestigious Doctor of Numismatics honorary degree. In 2021, he received the Glen Smedley Memorial Award for his efforts to promote grassroots education and goodwill in the numismatic community.

“I am extremely fortunate to be involved in the hobby of numismatics and be able to turn my passion into my profession,” Stoutjesdyk said. “Being able to handle some of the greatest rarities in numismatics on an almost daily basis is truly a dream come true. I have had a wonderful relationship with the ANA for over 40 years, and I will continue sharing my knowledge with fellow collectors through my teaching at the ANA Summer Seminar and my recent online video series on coin grading topics that has the potential to educate thousands of people.”

About Heritage Auctions

Heritage Auctions is the largest fine art and collectibles auction house founded in the United States, and the world’s largest collectibles auctioneer. Heritage maintains offices in New York, Dallas, Beverly Hills, Chicago, Palm Beach, London, Paris, Geneva, Brussels, Amsterdam, Munich, Hong Kong and Tokyo.

Heritage also enjoys the highest Online traffic and dollar volume of any auction house on earth (source: SimilarWeb and Hiscox Report). The Internet’s most popular auction-house website, HA.com, has more than 1,500,000 registered bidder-members and searchable free archives of five million past auction records with prices realized, descriptions and enlargeable photos. Reproduction rights routinely granted to media for photo credit.

Updated on March 6th, 2025 by Bob Ciura
Spreadsheet data updated daily

Monthly dividend stocks are securities that pay a dividend every month instead of quarterly or annually.

This research report focuses on all 77 individual monthly paying securities. It includes the following resources.

Resource #1: The Monthly Dividend Stock Spreadsheet List

 

This list contains important metrics, including: dividend yields, payout ratios, dividend growth rates, 52-week highs and lows, betas, and more.

Note: We strive to maintain an accurate list of all monthly dividend payers. There’s no universal source we are aware of for monthly dividend stocks; we curate this list manually. If you know of any stocks that pay monthly dividends that are not on our list, please email [email protected].

Resource #2: The Monthly Dividend Stocks In Focus Series
The Monthly Dividend Stocks In Focus series is where we analyze all monthly paying dividend stocks. This resource links to stand-alone analysis on each of these securities.

Resource #3: The 10 Best Monthly Dividend Stocks
This research report analyzes the 10 best monthly dividend stocks as ranked by expected total return.

Resource #4: Other Monthly Dividend Stock Research
– Monthly dividend stock performance
– Why monthly dividends matter
– The dangers of investing in monthly dividend stocks
– Final thoughts and other income investing resources

The Monthly Dividend Stocks In Focus Series

You can see detailed analysis on the individual monthly dividend securities we cover by clicking the links below:

1. Agree Realty (ADC)
2. AGNC Investment (AGNC)
3. Atrium Mortgage Investment Corporation (AMIVF)
4. Apple Hospitality REIT, Inc. (APLE)
5. ARMOUR Residential REIT (ARR)
6. A&W Revenue Royalties Income Fund (AWRRF)
7. Banco Bradesco S.A. (BBD)
8. Diversified Royalty Corp. (BEVFF)
9. Boston Pizza Royalties Income Fund (BPZZF)
10. Bridgemarq Real Estate Services (BREUF)
11. BSR Real Estate Investment Trust (BSRTF)
12. Canadian Apartment Properties REIT (CDPYF)
13. ChemTrade Logistics Income Fund (CGIFF)
14. Choice Properties REIT (PPRQF)
15. Cross Timbers Royalty Trust (CRT)
16. CT Real Estate Investment Trust (CTRRF)
17. SmartCentres Real Estate Investment Trust (CWYUF)
18. Dream Industrial REIT (DREUF)
19. Dream Office REIT (DRETF)
20. Dynex Capital (DX)
21. Ellington Residential Mortgage REIT (EARN)
22. Ellington Financial (EFC)
23. EPR Properties (EPR)
24. Exchange Income Corporation (EIFZF)
25. Extendicare Inc. (EXETF)
26. Flagship Communities REIT (MHCUF)
27. First National Financial Corporation (FNLIF)
28. Freehold Royalties Ltd. (FRHLF)
29. Firm Capital Property Trust (FRMUF)
30. Fortitude Gold (FTCO)
31. Gladstone Capital Corporation (GLAD)
32. Gladstone Commercial Corporation (GOOD)
33. Gladstone Investment Corporation (GAIN)
34. Gladstone Land Corporation (LAND)
35. Global Water Resources (GWRS)
36. Granite Real Estate Investment Trust (GRP.U)
37. H&R Real Estate Investment Trust (HRUFF)
38. Horizon Technology Finance (HRZN)
39. Itaú Unibanco (ITUB)
40. The Keg Royalties Income Fund (KRIUF)
41. LTC Properties (LTC)
42. Sienna Senior Living (LWSCF)
43. Main Street Capital (MAIN)
44. Modiv Inc. (MDV)
45. Mullen Group Ltd. (MLLGF)
46. Northland Power Inc. (NPIFF)
47. NorthWest Healthcare Properties REIT (NWHUF)
48. Orchid Island Capital (ORC)
49. Oxford Square Capital (OXSQ)
50. Permian Basin Royalty Trust (PBT)
51. Phillips Edison & Company (PECO)
52. Pennant Park Floating Rate (PFLT)
53. Peyto Exploration & Development Corp. (PEYUF)
54. Pine Cliff Energy Ltd. (PIFYF)
55. Primaris REIT (PMREF)
56. Paramount Resources Ltd. (PRMRF)
57. PermRock Royalty Trust (PRT)
58. Prospect Capital Corporation (PSEC)
59. Permianville Royalty Trust (PVL)
60. Pizza Pizza Royalty Corp. (PZRIF)
61. Realty Income (O)
62. RioCan Real Estate Investment Trust (RIOCF)
63. Richards Packaging Income Fund (RPKIF)
64. Sabine Royalty Trust (SBR)
65. Stellus Capital Investment Corp. (SCM)
66. Savaria Corp. (SISXF)
67. San Juan Basin Royalty Trust (SJT)
68. SL Green Realty Corp. (SLG)
69. Whitecap Resources Inc. (SPGYF)
70. Slate Grocery REIT (SRRTF)
71. Stag Industrial (STAG)
72. Timbercreek Financial Corp. (TBCRF)
73. Tamarack Valley Energy (TNEYF)
74. U.S. Global Investors (GROW)
75. Whitestone REIT (WSR)

The 10 Best Monthly Dividend Stocks

This research report examines the 10 monthly dividend stocks from our Sure Analysis Research Database with the highest 5-year forward expected total returns.

We currently cover nearly 80 monthly dividend stocks every quarter in the Sure Analysis Research Database.

Use the table below to quickly jump to analysis on any of the top 10 best monthly dividend stocks as ranked by expected total returns.

Table of Contents

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

Monthly Dividend Stock #10: Realty Income (O)

• 5-Year Expected Total Return: 7.3%
• Dividend Yield: 5.5%

Realty Income is a retail real estate focused REIT that has become famous for its successful dividend growth history and monthly dividend payments.

Realty Income owns retail properties that are not part of a wider retail development (such as a mall), but instead are standalone properties.

This means that the properties are viable for many different tenants, including government services, healthcare services, and entertainment.

Source: Investor Presentation

Realty Income reported third-quarter 2024 earnings, with EPS at $0.30, missing estimates by $0.06, but revenue of $1.27 billion, a 26% year-over-year increase, beat expectations by $10.01 million. Net income for common shareholders was $261.8 million.

The company generated $915.6 million in Adjusted Funds from Operations (AFFO), or $1.05 per share. Realty Income invested $740.1 million in new properties, achieving an initial average cash yield of 7.4%, while maintaining a portfolio occupancy of 98.7%.

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

Monthly Dividend Stock #9: Agree Realty (ADC)

• 5-Year Expected Total Return: 8.0%
• Dividend Yield: 4.1%

Agree Realty is an integrated real estate investment trust (REIT) focused on ownership, acquisition, development, and retail property management.

Agree has developed over 40 community shopping centers throughout the Midwestern and Southeastern United States.

At the end of December 2024, the company owned and operated 2,370 properties located in 50 states, containing approximately 48.8 million square feet of gross leasable space.

Source: Investor Presentation

On February 11th, 2025, Agree Realty Corp. reported fourth quarter and full year results for Fiscal Year (FY) 2024. The company reported its fourth-quarter and full-year 2024 financial results, highlighting continued investment and steady growth.

In Q4, the company invested $371 million in 127 retail net lease properties and launched eight development projects with $45 million in committed capital. Net income per share declined 5.7% to $0.41, while Core FFO and AFFO per share increased 3.5% and 4.7%, respectively.

The company declared a December dividend of $0.253 per share, up 2.4% year-over-year, and raised $651 million through equity offerings, maintaining a strong balance sheet with a net debt-to-EBITDA ratio of 3.3 times.

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

Monthly Dividend Stock #8: EPR Properties (EPR)

• 5-Year Expected Total Return: 8.5%
• Dividend Yield: 6.6%

EPR Properties is a specialty real estate investment trust, or REIT, that invests in properties in specific market segments that require industry knowledge to operate effectively.

It selects properties it believes have strong return potential in Entertainment, Recreation, and Education. The portfolio includes about $7 billion in investments across 340+ locations in 44 states, including over 200 tenants.

Source: Investor Presentation

EPR posted fourth quarter and full-year earnings on February 26th, 2025, and results were better than expected on both the top and bottom lines.

Funds-from-operations came to $1.23, which was a penny ahead of estimates. Revenue was up 3% to $177 million, beating estimates by $16 million.

Adjusted FFO per-share was down from $1.29 in Q3, but higher from $1.16 in the year-ago period. Revenue was also down from Q3, but higher from the year-ago period.

Property operating expenses were $15.2 million, higher from $14.6 million in Q3, and $14.8 million a year ago. Adjusted EBITDAre of $136 million was lower from $143 million in Q3, but higher from $129 million last year.

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

Monthly Dividend Stock #7: PennantPark Floating Rate Capital (PFLT)

• 5-Year Expected Total Return: 8.5%
• Dividend Yield: 11.1%

PennantPark Floating Rate Capital Ltd. is a business development company that seeks to make secondary direct, debt, equity, and loan investments.

The fund also aims to invest through floating rate loans in private or thinly traded or small market-cap, public middle market companies, equity securities, preferred stock, common stock, warrants or options received in connection with debt investments or through direct investments.

On November 26, 2024, PennantPark Floating Rate Capital reported strong results for the fourth fiscal quarter of 2024, with core net investment income of $0.32 per share. The portfolio grew 20% quarter-over-quarter, reaching $2 billion as the firm deployed $446 million across 10 new and 50 existing companies.

Investments carried an average yield of 11%, reflecting the continued strength of the middle market lending environment. After the quarter, PFLT remained active, investing an additional $330 million at a yield of 10.2%.

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

Monthly Dividend Stock #6: LTC Properties (LTC)

• 5-Year Expected Total Return: 6.3%
• Dividend Yield: 8.7%

LTC Properties is a REIT that invests in senior housing and skilled nursing properties. Its portfolio consists of approximately 50% senior housing and 50% skilled nursing properties.

The REIT owns 194 investments in 26 states, with 31 operating partners.

Source: Investor Presentation

In late February, LTC reported (2/24/25) financial results for the fourth quarter of fiscal 2024. Funds from operations (FFO) per share dipped -8% over the prior year’s quarter, from $0.72 to $0.66, and missed the analysts’ consensus by $0.01.

The decrease in FFO per share resulted primarily from impairment losses. LTC improved its leverage ratio (Net Debt to EBITDA) from 4.7x to 4.3x thanks to various asset sales.

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

Monthly Dividend Stock #5: AGNC Investment Corp. (AGNC)

• 5-Year Expected Total Return: 9.2%
• Dividend Yield: 14.0%

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.

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):

Monthly Dividend Stock #4: STAG Industrial (STAG)

• 5-Year Expected Total Return: 9.6%
• Dividend Yield: 4.0%

STAG Industrial is an owner and operator of industrial real estate. It is focused on single-tenant industrial properties and has ~560 buildings across 41 states in the United States.

The focus of this REIT on single-tenant properties might create higher risk compared to multi-tenant properties, as the former are either fully occupied or completely vacant.

Source: Investor Presentation

In mid-February, STAG Industrial reported (2/12/25) financial results for the fourth quarter of fiscal 2024. Core FFO-per-share grew 5% over the prior year’s quarter, from $0.58 to $0.61, exceeding the analysts’ consensus by $0.01, thanks to hikes in rent rates.

Net operating income grew 9% over the prior year’s quarter even though the occupancy rate dipped sequentially from 97.1% to 96.5%. On the other hand, interest expense increased 25% year-on-year due to high interest rates.

STAG expects core FFO per share of $2.46-$2.50 for 2025.

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

Monthly Dividend Stock #3: Horizon Technology Finance (HRZN)

• 5-Year Expected Total Return: 15.7%
• Dividend Yield: 15.2%

Horizon Technology Finance Corp. is a BDC that provides venture capital to small and medium–sized companies in the technology, life sciences, and healthcare–IT sectors.

The company has generated attractive risk–adjusted returns through directly originated senior secured loans and additional capital appreciation through warrants.

Source: Investor Presentation

On October 29th, 2024, Horizon released its Q3 results for the period ending September 30th, 2024. For the quarter, total investment income fell 15.5% year-over-year to $24.6.7 million, primarily due to lower interest income on investments from the debt investment portfolio.

More specifically, the company’s dollar-weighted annualized yield on average debt investments in Q3 of 2024 and Q3 of 2023 was 15.9% and 17.1%, respectively.

Net investment income per share (IIS) fell to $0.32, down from $0.53 compared to Q3-2023. Net asset value (NAV) per share landed at $9.06, down from $9.12 sequentially.

After paying its monthly distributions, Horizon’s undistributed spillover income as of June 30th, 2024 was $1.27 per share, indicating a considerable cash cushion.

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

Monthly Dividend Stock #2: Itau Unibanco (ITUB)

• 5-Year Expected Total Return: 16.5%
• Dividend Yield: 9.1%

Itaú Unibanco Holding S.A. is headquartered in Sao Paulo, Brazil. The bank has operations across South America and other places like the United States, Portugal, Switzerland, China, Japan, etc.

On November 5th, 2024, Itaú Unibanco reported third-quarter results for 2024. The company reported recurring managerial result for the third quarter of 2024 was approximately $2.1 billion USD, reflecting a 6.0% increase from the previous quarter.

The recurring managerial return on equity stood at 22.7% on a consolidated basis and 23.8% for operations in Brazil.

Total assets grew by 2.6%, surpassing $590 billion USD, while the loan portfolio increased by 1.9% globally and 2.1% in Brazil for the quarter, with year-on-year growth rates of 9.9% and 10.0%, respectively.

Key drivers included personal, vehicle, and mortgage loans, which saw quarterly growth rates of 3.1%, 3.0%, and 3.9%, respectively.

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

Monthly Dividend Stock #1: Ellington Credit Co. (EARN)

• 5-Year Expected Total Return: 16.8%
• Dividend Yield: 15.0%

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.

Source: Investor Presentation

On November 12th, 2024, Ellington Residential reported its third quarter results for the period ending September 30th, 2024. The company generated net income of $5.4 million, or $0.21 per share.

Ellington achieved adjusted distributable earnings of $7.2 million in the quarter, leading to adjusted earnings of $0.28 per share, which covered the dividend paid in the period.

Net interest margin was 5.22% overall. At quarter end, Ellington had $25.7 million of cash and cash equivalents, and $96 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):

Other Monthly Dividend Stock Resources

Each separate monthly dividend stock has its own unique characteristics. The resources below will give you a better understanding of monthly dividend stock investing.

The following research reports will help you generate more monthly dividend stock investment ideas.

Monthly Dividend Stock Performance
In February 2025, a basket of the monthly dividend stocks above generated negative returns of -18.4%. For comparison, the Russell 2000 ETF (IWM) generated negative returns of -8.3% for the month.

Notes: Data for performance is from Ycharts. Canadian company performance may be in the company’s home currency. 

Monthly dividend stocks under-performed the Russell 2000 last month. We will update our performance section monthly to track future monthly dividend stock returns.

In February 2025, the 3 best-performing monthly dividend stocks (including dividends) were:

• Extendicare Inc. (EXETF), up 24.8%
• San Juan Basin Royalty Trust (SJT) , up 18.9%
• EPR Properties (EPR), up 16.4%

The 3 worst-performing monthly dividend stocks (including dividends) in the month were:

• Mullen Group Ltd. (MLLGF), down 10.9%
• Savaria Corp. (SISFX), down 13.7%
• Exchange Income Corp. (EIFZF), down 15.4%

Why Monthly Dividends Matter
Monthly dividend payments are beneficial for one group of investors in particular; retirees who rely on dividend stocks for income.

With that said, monthly dividend stocks are better under all circumstances (everything else being equal), because they allow for returns to be compounded on a more frequent basis. More frequent compounding results in better total returns, particularly over long periods of time.

Consider the following performance comparison:

Over the long run, monthly compounding generates slightly higher returns over quarterly compounding. Every little bit helps.

With that said, it might not be practical to manually re-invest dividend payments on a monthly basis. It is more feasible to combine monthly dividend stocks with a dividend reinvestment plan to dollar cost average into your favorite dividend stocks.

The last benefit of monthly dividend stocks is that they allow investors to have – on average – more cash on hand to make opportunistic purchases. A monthly dividend payment is more likely to put cash in your account when you need it versus a quarterly dividend.

Case-in-point: Investors who bought a broad basket of stocks at the bottom of the 2008-2009 financial crisis are likely sitting on triple-digit total returns from those purchases today.

The Dangers of Investing In Monthly Dividend Stocks
Monthly dividend stocks have characteristics that make them appealing to do-it-yourself investors looking for a steady stream of income. Typically, these are retirees and people planning for retirement.

Investors should note many monthly dividend stocks are highly speculative. On average, monthly dividend stocks tend to have elevated payout ratios. An elevated payout ratio means there’s less margin for error to continue paying the dividend if business results suffer a temporary (or permanent) decline.

As a result, we have real concerns that many monthly dividend payers will not be able to continue paying rising dividends in the event of a recession.

Additionally, a high payout ratio means that a company is retaining little money to invest for future growth. This can lead management teams to aggressively leverage their balance sheet, fueling growth with debt. High debt and a high payout ratio is perhaps the most dangerous combination around for a potential future dividend reduction.

With that said, there are a handful of high-quality monthly dividend payers around. Chief among them is Realty Income (O). Realty Income has paid increasing dividends (on an annual basis) every year since 1994.

The Realty Income example shows that there are high-quality monthly dividend payers around, but they are the exception rather than the norm. We suggest investors do ample due diligence before buying into any monthly dividend payer.

Final Thoughts & Other Income Investing Resources

Financial freedom is achieved when your passive investment income exceeds your expenses. But the sequence and timing of your passive income investment payments can matter.

Monthly payments make matching portfolio income with expenses easier. Most personal expenses recur monthly whereas most dividend stocks pay quarterly. Investing in monthly dividend stocks matches the frequency of portfolio income payments with the normal frequency of personal expenses.

Additionally, many monthly dividend payers offer investors high yields. The combination of a monthly dividend payment and a high yield should be especially appealing to income investors.

But not all monthly dividend payers offer the safety that income investors need. A monthly dividend is better than a quarterly dividend, but not if that monthly dividend is reduced soon after you invest. The high payout ratios and shorter histories of most monthly dividend securities mean they tend to have elevated risk levels.

Because of this, we advise investors to look for high-quality monthly dividend payers with reasonable payout ratios, trading at fair or better prices.

 

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