Category Monthly Dividend

Tech giants including Amazon (AMZN), Meta Platforms (META), and Alphabet’s (GOOGL) Google have signed on to a nuclear industry pledge to support tripling nuclear power capacity by 2050.

Alongside an energy conference in Houston this week, the tech firms joined dozens of other financial institutions, countries, and companies from the nuclear industry that have signed the pledge.

The World Nuclear Association said the pledge “recognizes nuclear’s potential to expand beyond traditional grid electricity, providing abundant, continuous energy to support successful and cost-competitive operations for energy users.” The organization said 439 active nuclear reactors currently provide about 9% of the world’s energy.

The tech heavyweights joining the pledge follows a trend of the companies looking to the nuclear industry as a promising power source for their expanding data center footprints to power artificial intelligence products.

That shift has also boosted a number of nuclear companies, as analysts have upgraded the stocks because of their potential to increase revenue as data centers continue to expand. Shares of Constellation Energy Group (CEG), Vistra (VST), Oklo (OKLO), NuScale Power (SMR), and GE Vernova (GEV) were all up in premarket trading.

Alphabet, Meta, and Amazon shares were also each rising Wednesday morning.

Shares of Intel (INTC) are jumping more than 7% in premarket trading Wednesday following a report that Taiwan Semiconductor Manufacturing Company (TSM) has approached U.S. chip designers Nvidia (NVDA), Advanced Micro Devices (AMD), and Broadcom (AVGO) about forming a joint venture to own and run the U.S. chipmaker’s foundry division.

“Qualcomm (QCOM) has also been pitched by TSMC, according to one of the sources and a separate source,” said the report, which cited “four sources familiar with the matter.”

According to Reuters, TSMC, the world’s largest contract chipmaker, has floated running the foundry division, which makes custom chips for other companies. The report, which noted that the talks are at an early stage, said TSMC wouldn’t own more than 50% of the JV. 

Reuters added that the Trump administration has asked TSMC for help in turning around Intel. Intel’s foundry business has been in the spotlight as a potential beneficiary of the Trump administration’s stated goal of ensuring artificial intelligence chips are designed and manufactured domestically.

Intel, TSMC, Nvidia, AMD, Broadcom, and Qualcomm didn’t immediately respond to Investopedia requests for comment.

Intel shares have lost about 55% of their value in the past 12 months entering Wednesday.

Updated on March 11th, 2025 by Nathan Parsh

Investors looking for high-quality dividend growth stocks should first consider the Dividend Aristocrats. These are an exclusive list of 69 stocks in the S&P 500 Index with 25+ years of consecutive dividend increases.

The Dividend Aristocrats are an elite group of dividend growth stocks. For this reason, we created a full list of all 69 Dividend Aristocrats.

You can download your free copy of the Dividend Aristocrats list, 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.

T. Rowe Price Group (TROW) has increased its dividend for 39 years in a row, thanks to its strong brand, a highly profitable business, and future growth potential.

The stock’s dividend yield is 5.2%, which is above the ~1.3% average dividend yield of the broader S&P 500 Index. Taken together, T. Rowe Price stock possesses many of the qualities dividend growth investors typically look for.

Business Overview

T. Rowe Price, Jr., founded it in 1937. In the eight decades since, it has grown into one of the largest financial services providers in the United States. Today, the company has a market cap of ~$22 billion and impressive assets under management.

Source: Investor Presentation

T. Rowe Price ended 2024 with more than $1.6 trillion in assets under management.

The company provides mutual funds, advisory services, and separately managed accounts for individuals, institutional investors, retirement plans, and financial intermediaries. T. Rowe Price has a diverse client base in terms of assets and client type.

This is a challenging climate for asset managers. Some investors have grown weary of higher trading costs and annual fees. The onset of low-cost exchange-traded funds, or ETFs, has successfully lured client assets away from traditional mutual funds that have higher fees. This has caused brokers to lower commissions and fees to retain client assets.

However, company has strong growth potential in the years ahead.

Growth Prospects

T. Rowe Price has several catalysts for future growth. On February 5th, 2025, T. Rowe Price announced its fourth quarter and full-year results for the period ending December 31st, 2024. For the quarter, revenue increased 11% to $1.82 billion, which was $50 million below estimates. Adjusted earnings-per-share were $2.12 compared to $1.72 in the prior year, but this was $0.09 less than expected.

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

During the quarter, assets under management (AUM) of $1.639 trillion were up 19.2% year-over-year and higher by 3.1% sequentially. Market appreciation of $205.3 billion was partially offset by $43.2 billion of net client outflows. Operating expenses of $1.26 billion increased 0.1% year-over-year and grew 6.4% sequentially.

Since 2015, the company has grown earnings-per-share by an average compound rate of 8.1% annually. Moreover, the company performed well in 2020. Asset managers like T. Rowe have low variable costs. As a result, higher revenues, driven primarily by increasing assets under management, allow for margin expansion and attractive earnings growth rates.

Assets under management grow in two basic ways: increased contributions and higher underlying asset values. While asset values are finicky, the trend is upward over the long term. In addition, T. Rowe has another growth lever in the form of share repurchases. The company has shrunk its share count by an annual rate of 1.3% over the last decade.

Competitive Advantages & Recession Performance

T. Rowe Price’s competitive advantage comes from its brand recognition and expertise. The company enjoys a good reputation in the financial services industry. This helps generate fees, a significant driver of revenue. It has built this reputation through strong mutual fund performance.

T. Rowe Price considers its employees to be its most valuable assets. There is a good reason for this, It is critical for an asset management company to have qualified experts and retain top talent. This focus on building a strong brand gives the company competitive advantages, primarily the ability to keep existing clients and bring in new ones.

T. Rowe Price did not perform well during the Great Recession:

• 2007 earnings-per-share of $2.40
• 2008 earnings-per-share of $1.82 (24% decline)
• 2009 earnings-per-share of $1.65 (9% decline)
• 2010 earnings-per-share of $2.53 (53% increase)

As could be expected, T. Rowe Price experienced a sharp decline in earnings-per-share in 2008 and 2009. When stock markets decline, equity investors typically withdraw funds to raise cash.

Fortunately, the company remained profitable throughout the recession, allowing it to raise its dividend each year. T. Rowe Price quickly recovered in the aftermath of the Great Recession. Earnings increased significantly in 2010 and reached a new high by 2011.

Valuation & Expected Returns

We expect T. Rowe Price to produce adjusted earnings-per-share of $9.23 for 2025. Using the recent share price of ~$97, the stock has a price-to-earnings ratio of 10.5. We have a target price-to-earnings ratio of 14. If the stock valuation returns to the fair value estimate, then multiple expansion would add 5.9% to annual returns over the next five years.

The company does have a strong brand, with fairly consistent profitability and earnings growth. Even better, the stock appears undervalued today. We see earnings-per-share increasing at a rate of 3% annually through 2030 due to a combination of the sheer number of AUM and share repurchases.

Therefore, total returns would consist of the following:

• 3% earnings growth
• 5.2% dividend yield
• 5.9% multiple expansion

T. Rowe Price is expected to return 12.9% annually through 2030. T. Rowe Price is a particularly attractive stock for dividend growth. The company has raised its dividend for 39 years in a row. And the dividend is reasonably secure, with an expected payout ratio below 55% for this year.

Final Thoughts

Investors scanning the financial sector for dividend stocks may naturally land on the big banks.

In fact, most Dividend Aristocrats in the financial sector come from the insurance and investment management industries. This speaks volumes about the stability of their business models.

T. Rowe Price is an industry leader and should continue increasing its dividend yearly. The focus on lower fees will continue to be a headwind for the industry. That said, shares of T. Rowe Price earn a buy rating due to expected annual returns.

Additionally, the following Sure Dividend databases contain the most reliable dividend growers in our investment universe:

If you’re looking for stocks with unique dividend characteristics, consider the following Sure Dividend databases:

Published on March 11th, 2025 by Bob Ciura

Blue-chip stocks are established, financially strong, and consistently profitable publicly traded companies.

Their strength makes them appealing investments for comparatively safe, reliable dividends and capital appreciation versus less established stocks.

This research report has the following resources to help you invest in blue chip stocks:

Resource #1: The Blue Chip Stocks Spreadsheet List

 

There are currently more than 500 securities in our blue chip stocks list.

We categorize blue chip stocks as companies that are members of 1 or more of the following 3 lists:

Simply put, blue chip stocks have at least 10 consecutive years of dividend increases.

At the same time, we often recommend income investors consider high dividend stocks, for their elevated dividend yields.

High dividend stocks means more income for every dollar invested. All other things equal, the higher the dividend yield, the better.

The combination of dividend yield and growth, can result in outstanding long-term returns.

In this research report, we analyze 10 blue chip stocks with high dividend yields of 5.0% and greater.

The list is sorted by dividend yield, in ascending order.

Table of Contents

The table of contents below allows for easy navigation.

High Yield Blue Chip #10: Franklin Resources (BEN)

• Dividend History: 45 years of consecutive increases
• Dividend Yield: 6.2%

Franklin Resources is an investment management company. It was founded in 1947. Today, Franklin Resources manages the Franklin and Templeton families of mutual funds.

On January 31st, 2025, Franklin Resources reported net income of $163.6 million, or $0.29 per diluted share, for the first fiscal quarter ending December 31, 2024.

This marked a significant improvement from the previous quarter’s net loss of $84.7 million, though EPS remained lower than the $251.3 million net income recorded in the same quarter last year.

Source: Investor presentation

The past few years have been difficult for Franklin Resources. Franklin Resources was slow to adapt to the changing environment in the asset management industry.

The explosive growth in exchange-traded funds and indexing investing surprised traditional mutual funds.

ETFs have become very popular with investors due in large part to their lower fees than traditional mutual funds. In response, the asset management industry has had to cut fees and commissions or risk losing client assets.

Earnings-per-share are expected to decline in 2025 as a result. The company still maintains a manageable payout ratio of 51% expected for 2025, but if EPS continues to decline, the dividend payout could be in danger down the road.

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

High Yield Blue Chip #9: Enterprise Products Partners LP (EPD)

• Dividend History: 27 years of consecutive increases
• Dividend Yield: 6.4%

Enterprise Products Partners was founded in 1968. It is structured as a Master Limited Partnership, or MLP, and operates as an oil and gas storage and transportation company.

Enterprise Products has a large asset base which consists of nearly 50,000 miles of natural gas, natural gas liquids, crude oil, and refined products pipelines.

It also has storage capacity of more than 250 million barrels. These assets collect fees based on volumes of materials transported and stored.

Source: Investor Presentation

Enterprise Products Partners reported strong fourth-quarter 2024 earnings, delivering $1.6 billion in net income, or $0.74 per common unit, representing a 3% increase over the prior year.

Adjusted cash flow from operations rose 4% to $2.3 billion, with the company declaring a quarterly distribution of $0.535 per unit, a 4% year-over-year increase.

Enterprise also continued its capital return strategy, repurchasing 2.1 million common units during the quarter and 7.6 million units for the full year, bringing total buybacks under its program to $1.1 billion.

For the full year, the company posted $9.9 billion in EBITDA, moving 12.9 million barrels of oil equivalent per day.

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

High Yield Blue Chip #8: Pfizer Inc. (PFE)

• Dividend History: 16 years of consecutive increases
• Dividend Yield: 6.5%

Pfizer Inc. is a global pharmaceutical company focusing on prescription drugs and vaccines. Pfizer’s top products are Eliquis, Prevnar family, Paxlovid, Comirnaty, Vyndaqel family, Ibrance, and Xtandi. Pfizer had revenue of $63.6B in 2024.

Pfizer reported solid Q4 2024 results on February 4th, 2025. Company-wide revenue grew 21% operationally and adjusted diluted earnings per share climbed to $0.63 versus $0.10 on a year-over-year basis because of stabilizing COVID-19 related sales, growing revenue from the existing portfolio, and lower expenses.

Global Biopharmaceuticals sales gained 22% to $17,413M from $14,186M led by gains in Primary Care (+27%), Specialty Care (+12%), and Oncology (+27%). Pfizer Centerone saw 11% lower sales to $325M, while Ignite revenue was $26M.

Of the top selling drugs, sales increased for Eliquis (+14%), Prevnar (-4%), Plaxlovid (flat), Cominraty (-37%), Vyndaqel/ Vyndamax (+61%), Ibrance (-2%), and Xtandi (+24).

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

High Yield Blue Chip #7: Northwest Bancshares Inc. (NWBI)

• Dividend History: 13 years of consecutive increases
• Dividend Yield: 6.7%

Northwest Bancshares is a bank holding company that offers full-service financial institutions providing a complete line of personal and business banking products, including employee benefits, investment management services, and trust.

Northwest Bank is the leading subsidiary of Northwest Bancshares, and it operates 162 branches in central and western Pennsylvania, western New York, eastern Ohio, and Indiana. Northwest Bancshares has been paying a rising dividend for thirteen consecutive years.

On January 24th, 2025, the company announced the fourth quarter results for the fiscal year (FY)2024. The company reported fourth-quarter 2024 net income of $33 million, or $0.26 per diluted share, reflecting a $4 million increase from the same period in 2023 but a slight decline from the previous quarter.

Adjusted net income (non-GAAP) was $35 million, or $0.27 per diluted share. The company’s net interest margin expanded by 9 basis points to 3.42%, bolstered by an interest recovery. Additionally, the efficiency ratio improved to 61.8%.

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

High Yield Blue Chip #6: Altria Group (MO)

• Dividend History: 55 years of consecutive increases
• Dividend Yield: 6.9%

Altria is a tobacco stock that sells cigarettes, chewing tobacco, cigars, e-cigarettes, and more under a variety of brands, including Marlboro, Skoal, and Copenhagen, among others.

With a current dividend yield of nearly 8%, Altria is an ideal retirement investment stock.

This is a period of transition for Altria. The decline in the U.S. smoking rate continues. In response, Altria has invested heavily in new products that appeal to changing consumer preferences, as the smoke-free category continues to grow.

Source: Investor Presentation

The company also has a 35% investment stake in e-cigarette maker JUUL, and a 45% stake in the Canadian cannabis producer Cronos Group (CRON).

Altria Group reported solid financial results for the fourth quarter and full year of 2024. For the fourth quarter, revenue of $5.1 billion beat analyst estimates by $50 million, and increased 1.6% year-over-year. Adjusted EPS of $1.29 beat by a penny.

For the full year, Altria generated adjusted diluted EPS growth of 3.4% and returned over $10.2 billion to shareholders through dividends and share repurchases.

For 2025, Altria expects adjusted diluted EPS in a range of $5.22 to $5.37. This represents an adjusted diluted EPS growth rate of 2% to 5% for 2025.

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

High Yield Blue Chip #5: LyondellBasell Industries (LYB)

• Dividend History: 13 years of consecutive increases
• Dividend Yield: 7.0%

LyondellBasell is one the largest plastics, chemicals and refining companies in the world. The company provides materials and products that help advance solutions for food safety, water purity, fuel efficiency of vehicles, and functionality in electronics and appliances.

LyondellBasell sells products in more than 100 countries and is the world’s largest producer of polymer compounds. The company, with U.S operations headquartered in Houston, Texas and global operations headquartered in London, generated $40.3 billion in sales last year.

On January 31st, 2025, LyondellBasell posted its Q4 and full year results for the period ending December 31st, 2024. The company posted revenues of $9.45 billion, marking a sequential decline from $10.32 billion in Q3, due to softer demand and lower product pricing across key divisions.

The company posted adjusted EBITDA of $689 million, down from $1.21 billion in Q3, reflecting higher raw material costs, seasonally lower polyolefin demand, and compressed refining and oxyfuels margins amid weaker gasoline crack spreads.

Adjusted net income for Q4 was $249 million ($0.75 per share), down from $617 million ($1.88) in Q3. For the year, adjusted EPS was $6.40.

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

High Yield Blue Chip #4: Universal Health Realty Income Trust (UHT)

• Dividend History: 40 years of consecutive increases
• Dividend Yield: 7.0%

Universal Health Realty Income Trust operates as a real estate investment trust (REIT), specializing in the healthcare sector. The trust owns healthcare and human service-related facilities.

Its property portfolio includes acute care hospitals, medical office buildings, rehabilitation hospitals, behavioral healthcare facilities, sub-acute care facilities and childcare centers.

Universal Health’s portfolio consists of 76 properties located in 21 states.

On February 26, 2025, Universal Health Realty Income Trust (UHT) reported its financial results for the fourth quarter of 2024. The company achieved net income of $4.7 million, or $0.34 per diluted share, marking an increase from $3.6 million, or $0.26 per diluted share, in the same period of 2023.

This improvement was driven by a net increase in income from various properties, partially offset by higher interest expenses due to increased borrowing rates and outstanding borrowings under the revolving credit agreement.

Funds from operations (FFO) for the quarter were $11.8 million, or $0.85 per diluted share, up from $11.4 million, or $0.82 per diluted share, in the prior year’s fourth quarter.

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

High Yield Blue Chip #3: MPLX LP (MPLX)

• Dividend History: 12 years of consecutive increases
• Dividend Yield: 7.3%

MPLX LP is a Master Limited Partnership that was formed by the Marathon Petroleum Corporation (MPC) in 2012. In 2019, MPLX acquired Andeavor Logistics LP.

The business operates in two segments:

• Logistics and Storage, which relates to crude oil and refined petroleum products
• Gathering and Processing, which relates to natural gas and natural gas liquids (NGLs)

In early February, MPLX reported (2/4/25) financial results for the fourth quarter of fiscal 2024. Adjusted EBITDA and distributable cash flow (DCF) per share grew 9% and 7%, respectively, primarily thanks to higher tariff rates and increased volumes of liquids and gas.

MPLX maintained a healthy consolidated debt to adjusted EBITDA ratio of 3.1x and a solid distribution coverage ratio of 1.5x.

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

High Yield Blue Chip #2: Delek Logistics Partners LP (DKL)

• Dividend History: 10 years of consecutive increases
• Dividend Yield: 10.9%

Delek Logistics Partners, LP is a publicly traded master limited partnership (MLP) headquartered in Brentwood, Tennessee. Established in 2012 by Delek US Holdings, Inc. (NYSE: DK), Delek Logistics owns and operates a network of midstream energy infrastructure assets.

These assets include approximately 850 miles of crude oil and refined product transportation pipelines and a 700-mile crude oil gathering system, primarily located in the southeastern United States and west Texas.

The company’s operations are integral to Delek US’s refining activities, particularly supporting refineries in Tyler, Texas, and El Dorado, Arkansas.

Delek Logistics provides services such as gathering, transporting, and storing crude oil, as well as marketing, distributing, and storing refined products for both Delek US and third-party customers.

On February 25, 2025, Delek Logistics Partners (DKL) reported its financial results for the fourth quarter of 2024. The company achieved an adjusted EBITDA of approximately $107.2 million, an increase from $100.9 million in the same period of the previous year.

Distributable cash flow was $69.5 million, with a coverage ratio of approximately 1.2 times. The Gathering and Processing segment saw an adjusted EBITDA of $66 million, up from $53.3 million in Q4 2023, primarily due to higher throughput from Permian Basin assets and contributions from the H2O Midstream acquisition.

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

High Yield Blue Chip #1: Arbor Realty Trust (ABR)

• Dividend History: 11 years of consecutive increases
• Dividend Yield: 14.0%

Arbor Realty Trust is a nationwide mortgage real estate investment trust (REIT) that acts as a direct lender and operates in two reporting segments: Agency Business and Structured Business. The trust provides loan origination and servicing for multifamily, seniors housing, healthcare, and other diverse commercial real estate assets.

Arbor Realty’s specific focus is government-sponsored enterprise products, although its platform also includes commercial mortgage backed securities (CMBS), bridge and mezzanine loans, and preferred equity issuances.

On February 21, 2025, Arbor Realty Trust reported its financial performance for the fourth quarter of 2024. The company achieved distributable earnings of $0.48 per share, surpassing the quarterly dividend of $0.43 per share.

This marked the 13th consecutive quarter in which distributable earnings exceeded dividends, highlighting Arbor’s consistent profitability. The debt platform originated $1.1 billion in new loans during the quarter, bringing the total originations for the year to $4.2 billion.

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

Additional Reading

If you are interested in finding other high-yield securities, the following Sure Dividend resources may be useful:

High-Yield Individual Security Research

Other Sure Dividend Resources

Updated on March 11th, 2025 by Bob Ciura

There are a number of high-quality investment opportunities available in Canada for purchase by United States investors.

In fact, the TSX 60 – Canada’s stock market index of its 60 largest companies – is full of potential investment opportunities. You can download your list of TSX 60 stocks using the link below:

 

One of the complicated factors of investing in Canadian stocks for U.S. residents is the tax implications.

Are Canadian stocks taxed just like their United States counterparts, or are there significant differences?

Do taxes need to be paid to both the IRS and the CRA (the Canadian tax authority), or just the IRS?

This guide will tell you exactly what the tax implications of investing in Canadian securities are before discussing the most tax-efficient way to buy these stocks and directing you to other investing resources for further research.

Table of Contents

You can jump to a particular component of this guide using the links below:

Capital Gains Tax Implications for Canadian Stocks

Capital gains taxes are the most simple components of investing in Canadian stocks. There are two cases that need to be considered.

The first is when you’re investing in Canadian companies that are cross-listed on both the Toronto Stock Exchange and the New York Stock Exchange (or another U.S. securities exchange). In this case, your best decision is to purchase the USD-denominated shares of Canadian stocks.

In this case, calculating and paying the capital gains tax that you pay on your investments is exactly the same as for “normal” United States stocks.

The second case to consider is when you’re investing in companies that trade exclusively on the Toronto Stock Exchange. In other words, this case covers stocks that trade in Canada but not on any United States exchange.

In order to buy these stocks, you’ll be required to convert some money over to Canadian dollars to purchase these investments.

The capital gains on which you’ll pay tax will require some manual calculations because they will be the difference between your cost basis and your sales price – both measured in US Dollars.

The cost basis of your investment, as measured in US Dollars, will be based on your Canadian Dollar purchase price and the prevailing exchange rates at the time of the investment.

Similarly, your sale price (measured in US Dollars) will be determined by multiplying your Canadian Dollar purchase price by the prevailing exchange rate at the time of sale.

Once you understand how to calculate the capital gains on which you’ll be required to pay tax on, the calculation of the capital gains tax is the same as for U.S.-domiciled securities.

There are two different rates for capital gains, depending on your holding period:

• Short-term capital gains are defined as capital gains on investments held for 1 year or less and are taxed at your marginal tax rate.
• Long-term capital gains are defined as capital gains on investments held for more than 1 year and are taxed at 15% (except for investors that are in the highest tax bracket, who pay a long-term capital gains tax rate of 20% – still significantly lower than the equivalent short-term capital gains tax rate).

Although this may seem complex, capital gains taxes are actually the most simple tax component of investing in Canadian stocks.

The next section discusses the tax treatment of Canadian dividends before later describing the most tax-efficient way for investors to purchase these stocks.

Dividend Tax Implications for Canadian Stocks & The Dividend Tax Treaty

Dividend taxes are where owning Canadian securities becomes more complicated from a tax perspective.

The reason for this is two-fold.

First, the Canadian government actually claims some tax on dividends paid to United States residents (and residents of all other non-Canadian countries).

More specifically, the Canadian tax authority, which is called the Canada Revenue Agency, generally withholds 30% of all dividends paid to out-of-country investors.

Fortunately, this 30% is reduced to 15% thanks to a tax treaty shared by Canada and the United States. This also comes with additional complicating factors which are explained in Publication 597 from the IRS:

“Dividends (Article X). For Canadian source dividends received by U.S. residents, the Canadian income tax generally may not be more than 15%.

A 5% rate applies to intercorporate dividends paid from a subsidiary to a parent corporation owning at least 10% of the subsidiary’s voting stock. However, a 10% rate applies if the payer of the dividend is a nonresident-owned Canadian investment corporation.

These rates do not apply if the owner of the dividends carries on, or has carried on, a business in Canada through a permanent establishment and the holding on which the income is paid is effectively connected with that permanent establishment.”

For all practical purposes, the only actionable knowledge that you need to know about the withholding rates on Canadian dividends is that the Canada Revenue Agency withholds 15% of every dividend paid to you from a Canadian corporation. Canada has its own form that can be submitted to request a refund of withholding tax.

The second reason why Canadian dividends are complicated from a tax perspective is their treatment by the IRS. As most readers know, quarterly dividend income generated by equity investments is taxable on your U.S. tax return.

What makes this complicated is that U.S. investors may be eligible to claim a credit or deduction against your local taxes with respect to the non-resident withholding taxes.

While this tax credit is beneficial from a financial standpoint, it adds an additional layer of complexity when investing in Canadian stocks.

For this reason, we recommend working with a tax professional to ensure that you are appropriately minimizing the taxes incurred by your investment portfolio.

Many of these tax headaches can be avoided by investing in Canadian dividend stocks through retirement accounts, which is the subject of the next section of this tax guide.

Note: Canadian REITs may still have taxes deducted in a retirement account.

Owning Dividend Stocks in Retirement Accounts

If you have the contribution room available, owning Canadian stocks in U.S. retirement accounts (like a 401(k)) is always your best decision.

There are two reasons for this.

First of all, the 15% withholding tax that is normally imposed by the Canada Revenue Agency is waived when Canadian securities are held within U.S. retirement accounts. This is an important component of the U.S.-Canada tax treaty that was referenced earlier in this tax guide.

The second reason why owning Canadian stocks in retirement accounts is the best decision is not actually unique to Canadian investments, but its worth mentioning nonetheless.

The remainder of the “normal” taxes that you’d pay on these Canadian stocks held in your retirement accounts will be waived as well, including both the capital gains tax and dividend tax paid to the IRS.

This means that holding Canadian stocks in United States retirement accounts has no additional tax burden compared to owning domestic stocks. In other words, owning Canadian stocks in a U.S. retirement account is the same as holding U.S. securities in the same investment account.

Note from Ben Reynolds: A reader recently had this to say regarding withholding tax: “From a practical perspective, those taxes are actually often withheld regardless of the treaty or law involved. This has happened to me at two different brokerages, Etrade and Schwab. In both cases, the stock was traded OTC. Never have I had a problem with an ADR, and that’s at Fidelity, Etrade, and Schwab, but with OTC Canadian stocks, you can count on 15% withholding on dividends. In my efforts to get to the bottom of this, I was able to talk to a trader at Schwab Global, who told me the issue was with the vendor that Schwab uses in Canada, who is the one who actually holds the shares. They withhold the tax, and Schwab has attempted to get them to stop that, but has been unsuccessful.”

You now have a solid, fundamental understanding of the tax implications of owning Canadian stocks as a U.S. investor. To summarize:

• Capital gains taxes are very similar to those incurred when buying United States-domiciled stocks
• The Canadian government imposes a 15% withholding tax on dividends paid to out-of-country investors, which can be claimed as a tax credit with the IRS and is waived when Canadian stocks are held in US retirement accounts.

The remainder of this article will discuss a few highlight sectors of the Canadian stock market before closing by providing additional investing resources for your use.

Where the Canadian Stock Market Shines

There are two broad sectors in which the Canadian stock market shines in terms of having excellent investment opportunities.

The first is the financial services sector. The “Big 5” Canadian banks are some of the most stable stocks in the world and are often rated as the world’s most conservative financial institutions.

There are broad, fundamental reasons for this, which largely have to do with the government’s treatment of delinquent borrowers. In Canada, a borrower is legally required to repay a mortgage even if they leave the house.

Canadians also benefit from the Canada Mortgage and Housing Corporation (CMHC), which provides mortgage insurance to borrowers who are unable to meet certain minimum down payment requirements.

With all of this in mind, Canada’s Big 5 banks are excellent investment opportunities when they can be acquired at attractive prices. They are listed below:

• The Royal Bank of Canada (RY)
• The Toronto-Dominion Bank (TD)
• The Bank of Nova Scotia (BNS)
• The Bank of Montreal (BMO)
• The Canadian Imperial Bank of Commerce (CM)

The other Canadian stock market sector that stands out is the energy sector.

Canada is an oil-rich country that houses some of the world’s most dominant energy businesses, including:

• Suncor (SU)
• Canadian Natural Resources Limited (CNQ)
• Enbridge (ENB)

While fossil fuels are on the decline, we believe there is still upside in certain high-quality energy stocks as they transition from oil-first business models to more diversified systems that incorporate multiple forms of energy, including renewables.

Final Thoughts & Other Investing Resources

As this guide shows, the tax implications of investing in Canadian stocks for U.S. investors are not as onerous as they might seem.

With that said, Canada is not the only international stock market that investors should consider searching through for investment opportunities.

Alternatively, you may look through these indices and decide that international investing is not for you.

Fortunately, Sure Dividend maintains several databases of domestic stocks, which you can access below:

• The Complete List of Russell 2000 Stocks: if you’re looking to invest in smaller companies with more growth opportunities, the Russell 2000 Index is the place to look. It is the most widely-quoted benchmark for small-cap stocks in the United States.
• The Complete List of NASDAQ-100 Stocks: the NASDAQ-100 is composed of approximately 100 of the largest non-financial companies that trade on the NASDAQ stock exchange.
• The Complete List of Wilshire 5000 Stocks: the Wilshire 5000 is often called the “total stock market index” because it contains essentially every publicly-traded security in the United States.

Searching for stocks with certain dividend characteristics is another useful method for finding investment opportunities.

With that in mind, the following Sure Dividend databases are quite valuable:

The last technique we’ll recommend for finding investment ideas is by looking into certain sectors of the stock market.

Sure Dividend maintains the following sector-specific stock market databases for your benefit:

Dick’s Sporting Goods (DKS) shares lost ground Tuesday when the athletic equipment retailer posted full-year projections mostly below forecasts as it dealt with a “dynamic macroeconomic environment.”

The company sees fiscal 2025 earnings per share (EPS) of $13.80 to $14.40, and revenue of $13.6 billion to $13.9 billion. Analysts surveyed by Visible Alpha were looking for $14.82 and $13.89 billion, respectively. In addition, the midpoint of Dick’s outlook of a 1% to 3% rise in comparable store sales also missed estimates. 

Executive Chairman Ed Stack said in a CNBC interview that there’s “just a bit of an uncertain world out there right now.” Stack added that “if tariffs are put in place and prices rise the way that they might, what’s going to happen with the consumer?”

Dick’s Q4 Results Top Estimates

The forecast offset the retailer’s strong fourth-quarter results. Dick’s reported EPS of $3.62 and revenue of $3.89 billion. Both were better than expected. 

Comparable store sales jumped 6.4%, and CEO Lauren Hobart explained that gave Dick’s “the largest sales quarter in company history.”

Despite today’s roughly 3.5% decline, shares of Dick’s Sporting Goods are up about 13% year-over-year.

Americans can’t shake their inflation fears.

Two-thirds of U.S. adults say inflation is their biggest financial concern, according to a survey released Monday by Northwestern Mutual, and more than half believe inflation will increase this year.

More than half of respondents to the survey said inflation is rising faster than their household income: Over 80% said they have experienced higher grocery bills in the last three months; nearly seven in 10 experienced elevated utility costs; and 60% have had sticker shock at the gas pump. The survey, conducted in mid-January, was taken by more than 4,600 American adults.

Another fresh reading, from the New York Fed, indicates that Americans in February anticipated inflation getting worse over the next 12 months.

“Economists often talk about how inflation is ‘sticky,’ meaning it takes time to reverse a broad economic cycle,” said Northwestern Mutual Chief Field Officer John Roberts. “Our study findings show that inflation is sticky at the individual level too—it remains top of mind for people, and they get reminded of it often in their daily lives.”

The next big read on inflation, the Consumer Price Index report for February, is scheduled for release Wednesday morning. (Here’s what to expect.) The National Retail Federation’s monthly tracker of retail sales indicated a slight retreat in February from January.

Tesla (TSLA) shares tumbled 15% on Monday to lead S&P decliners, closing below their Election Day level for the first time.

Shares in the electric vehicle maker soared after Donald Trump’s victory in the Nov. 5 presidential election amid expectations that CEO Elon Musk’s close relationship with the president would benefit the company. However, since hitting an all-time high on Dec. 18, the stock has plunged 55% amid mounting investor concerns that Musk’s role as leader of the Department of Government Efficiency could hurt the Tesla brand and sales. Recent sales numbers from China and Europe have been weak, while uncertainty about the impact of tariffs on automakers also weighs on sentiment.

The stock, which has lost ground in each of the last seven weeks, fell an additional 3% in extended trading Monday after Musk said in an interview with Fox Business that he is running his businesses “with great difficulty.” Nonetheless, Musk added that he expects to remain in the Trump administration for another year.

Below, we break down Tesla’s weekly chart and apply technical analysis to point out key price levels worth watching out for amid the stock’s heighted volatility.

Stock Falls Below 200-Week Moving Average

Since a shooting star marked the stock’s record high in mid-December, Tesla shares have trended sharply lower, with the price falling below the closely watched 200-week moving average in Monday’s trading session.

Moreover, increasing volumes have accompanied the recent drop, signaling selling participation by larger market players, such as institutional investors and hedge funds.

While the relative strength index (RSI) confirms bearish momentum with a reading below 50, the indicator has moved into a region that has typically corresponded with bounces in the stock stretching back to May 2022.

Let’s identify several key support and resistance levels on Tesla’s chart that investors may be monitoring.

Key Support Levels to Monitor

Tesla shares fell 15.4% to close Monday’s regular trading session at $220.15.

The first level to track sits around $215. This area, currently near Tuesday’s projected opening price, could find support from a series of lows from May to July 2022 and the “shoulders” of an inverse head and shoulders pattern that formed on the chart over a twelve-month period between October 2023 and 2024.

Further downside could see the shares tumble to the $165 level. Investors may seek buying opportunities in this region near the April 2023 pullback low, which also closely aligns with an array of prices positioned just above the bottom of the inverse head and shoulders pattern.

Major Resistance Levels to Watch

During recovery efforts in the stock, it’s worth watching how the price responds to the $265 level, a location on the chart that may provide overhead resistance near the inverse head and shoulders’ neckline.

Finally, a convincing close above this level could see Tesla shares revisit the psychological $300 area. Investors who have bought recent weakness may look to lock in profits near a range of prominent peaks that developed on the chart between January 2021 and July 2023.

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.

U.S. stocks had their worst day of an already bad year on Monday as investors raced into safe-haven assets amid growing recession fears. 

The S&P 500 fell 2.7% on Monday, its biggest one-day drop since December. The index has notched only two worse days in the current bull market, which began in late 2022: December 18, 2024, when the Federal Reserve scaled back its rate cut forecast, and August 5, 2024, when the unwinding of a popular leveraged trade briefly sank U.S. equities. 

The last six days have been particularly punishing. The S&P 500 fell nearly 1.8% last Monday when President Trump confirmed a 25% tariff on Canadian and Mexican imports would go into effect the following day. In the five days since, stocks have fallen another 4% despite Trump again partially delaying those tariffs. The S&P 500’s 5.7% decline between last Monday and today stands as the index’s worst 6-day stretch since September 2022. 

Stocks were rattled Monday by comments the President made over the weekend. Trump, in an interview with Fox News aired on Sunday, declined to say whether he expects the U.S. to enter a recession this year. Instead, he said the economy would experience “a period of transition” as his tariffs take effect. The comments echoed his address to Congress last week, in which he said there would “be a little disturbance, but we’re OK with that.”

Is the S&P 500 In Store For a Correction?

It’s been 340 trading days since the S&P 500 last corrected, an abnormally long time. According to research from LPL Financial, since 1929, the average time between S&P 500 corrections has been about 173 days.

Monday’s sell-off brought the S&P 500 closer to a correction than any other pullback in the last year. Stocks fell about 8.4% from peak to trough during their August slump, and they retreated about 4% during their December pullback. With Monday’s losses, the S&P 500 has fallen 8.6% off its all-time high from three weeks ago.

The recent slump, however, has been a much swifter decline than the last correction, which played out over three months, from July 31 to October 27, 2023. The S&P 500 fell 10.3% in that time. It was, however, a short-lived correction; the index rebounded on October 30, the next trading day, and resumed its bull run. 

Updated on March 10th, 2025 by Bob Ciura
Spreadsheet data updated daily

The Russell 2000 Index is arguably the world’s best-known benchmark for small-cap U.S. stocks.

Small-cap stocks have historically outperformed their larger counterparts. Accordingly, the Russell 2000 Index can be an intriguing place to look for new investment opportunities.

You can download your free Excel list of Russell 2000 stocks, along with relevant financial metrics like dividend yields and P/E ratios, by clicking on the link below:

 

Table Of Contents

Russell Index Overview & Construction

The Russell 2000 Index is a subset of the Russell 3000 Index.

FTSE Russell maintains the Russell 3000 Index, which is comprised of the 4000 largest publicly traded U.S. companies. Note the confusing naming structure; the Russell 3000 actually has 4000 securities in it.

The index is reconstructed annually and updated quarterly with new IPOs (Initial Public Offerings).

The Russell 3000 Index is broken down into the following subgroups (which despite its name includes 4000 securities):

• Russell 1000: The 1000 largest Russell 3000 Index companies
• Russell 2000: Companies ranked 1,001 – 3,000 in size
• Russell Microcap Index: Companies ranked 2,001 – 4000 in size (overlaps with the Russell 2000)

How To Use The Russell 2000 Stocks List To Find Investment Ideas

Having an Excel document that contains financial information on each Russell 2000 stock can be tremendously useful.

This document becomes far more powerful when combined with a knowledge of how to manipulate data within Microsoft Excel.

With that in mind, this article will provide a tutorial on how to implement two actionable investing screens from the Russell 2000 Stocks List.

The first screen that we’ll implement is for stocks trading at price-to-earnings ratios below 15. These are small-cap stocks trading at attractive valuations and should avoid the valuation risk that accompanies investing in overpriced securities.

Screen 1: Small-Cap Value Stocks With Price-To-Earnings Ratios Below 15

Step 1: Download the Russell 2000 Stocks List near the beginning of this article.

Step 2: Highlight all columns.

Step 3: Go to the “Data” tab, then click “Filter.” See the image below for a walk through of steps 2 and 3.

Step 4: Go to the P/E ratio column, click the filter arrow, go to numbers filter, click between, and set to between 0 and 15. See the image below for a guide to this step.

The remaining stocks in this spreadsheet are Russell 2000 stocks with price-to-earnings ratios below 15 and positive earnings.

In the next screen we’ll show you how to implement an investing screen for Russell 2000 stocks that have high-dividend yields and reasonable payout ratios.

Screen 2: High-Yield, Reasonable Payout Ratio Small-Cap Stocks

Step 1: Download the Russell 2000 Stocks List at the link above, and set the columns to “Filter” (see steps 2 and 3 of screen 1).

Step 2: Go to the Dividend Yield column, click the filter arrow, go to numbers filter, click “greater than or equal to,” and add in 0.05.

Step 3: Go to the Payout Ratio column, click the filter arrow, go to numbers filter, and select “between,” and set to between 0 and 0.60. See the image below for a walk through of steps 2 and 3.

The remaining stocks in this spreadsheet have dividend yields of 5% or more and payout ratios below 60%.

This screen reveals small-cap dividend stocks with reasonable payout ratios for further research.

You now have a solid understanding of how to use the Russell 2000 stocks list to find investment ideas.

The remainder of this article will briefly describe the merits of investing in the Russell 2000 Index before explaining other resources that you can use to find investment ideas.

Why Invest In Stocks From The Russell 2000 Index

As mentioned previously, the Russell 2000 Index contains the domestic U.S. stocks that rank 1,001 through 3,000 by descending market capitalization.

The Russell 2000 is an excellent benchmark for small-cap stocks. The average market capitalization within the Russell 2000 is currently ~$3 billion.

Why does this matter? There are a number of advantages to investing in small-cap stocks, which we explore in the following video:

Small-cap stocks have historically outperformed large-cap stocks for two reasons.

Firstly, small-cap stocks tend to grow more quickly than their larger counterparts. There is simply less competition and more room to grow when your market capitalization is, say, $1 billion when compared to mega-cap stocks with market caps above $200 billion.

Secondly, many small-cap securities are outside the investment universes of some larger institutional investment managers. This creates less demand for shares, which reduces their prices and creates better buying opportunities.

For this reason, there are typically more mispriced investment opportunities in a small-cap index like the Russell 2000 than a large-cap stock index like the S&P 500.

Investors with a value orientation should keep this in mind when searching for their next purchase opportunity.

Russell 2000 Monthly Performance

The Russell 2000 ETF (IWM) generated negative total returns of -8.3% in February 2025. IWM under-performed the S&P 500 ETF (SPY), which generated negative total returns of -1.3% last month.

While the evidence points towards small-cap stocks outperforming over the long run, that has not been the case over the last decade when comparing IWM to SPY.

Over past 10 years, the S&P 500 ETF generated annualized total returns of 12.70% per year, versus 6.87% annual total returns for the Russell 2000 ETF.

This is a counter-intuitive finding, as many investors would expect small-cap stocks to outperform large-caps in a bull market.

We believe the extremely strong performance of large technology companies over the last decade is at least partially responsible for the superior performance of the large-cap S&P 500 relative to small caps over that time frame.

Final Thoughts & Further Reading

The Russell 2000 Index List is an excellent place to look for small-cap investment opportunities. However, it is not the only place where excellent investments can be found.

If you’re looking for exposure to stable large-cap stocks with solid dividend growth prospects, the following databases will prove more useful than the Russell 2000 Index List: