Category Monthly Dividend

Updated on April 1st, 2025 by Felix Martinez

Real Estate Investment Trusts, or REITs, give investors a hands-off way to participate in real estate’s economic upside. They have grown in popularity over time as income investors seek alternative strategies to generate portfolio income.

One side effect of the growing popularity of REITs is the emergence of specialized REITs, which focus on only one subsector of the real estate industry. For example, Dream Office REIT (DRETF) is the largest pure-play office REIT in the Canadian market, with a dominant position in office properties.

Dream Office stock has a high 5.6% current dividend yield. And, its dividends are paid monthly, instead of the traditional quarterly payout.

Monthly dividend stocks are rare. You can download our full list of all 76 monthly dividend stocks (along with relevant financial metrics like dividend yields and payout ratios), which you can access below:

The combination of Dream Office REIT’s dividend yield and monthly dividend payments will surely catch the eye of high-income investors.

This article will analyze the investment prospects of Dream Office REIT in detail.

Business Overview

Dream Office REIT is an open-ended Investment Trust that acquires and manages predominantly office properties in major urban areas throughout Canada, but primarily in downtown Toronto. The trust has a market capitalization of $220 million at current market prices. It is part of the Dream Unlimited family of real estate trusts, which also includes Dream Industrial REIT (DREUF).

Dream Office concentrates heavily on office space properties in Toronto. Approximately 82% of its portfolio is in Toronto, and the remainder is spread across multiple markets.

Toronto’s office space fundamentals are favorable, so Dream Office continues to concentrate its investments there.

Source: Investor Presentation

This is a significant change from just a few years ago when the portfolio was more diversified. Dream Office has taken the bold step of significantly decreasing its geographic diversification, but it has very good reasons for doing so.

Toronto has tremendously strong fundamentals for office space, including low (and declining) vacancy rates. This helps drive pricing higher and is why Dream has bet big on Toronto.

Dream Office REIT reported Q4 2024 results with occupancy rates dropping to 81.1% (committed) and 77.5% (in-place), down from 84.5% and 80.9% in Q3. Property values declined to $2.18B from $2.3B. Net rental income rose to $27.3M (Q4 2023: $25.8M), while FFO fell to $14.1M (Q4 2023: $14.6M). Net loss improved to $19.1M from $42.4M, but the distribution per unit was reduced to $0.25 from $0.50.

To strengthen liquidity, the trust sold 438 University Ave and is converting 606-4th Ave in Calgary into residential rentals. At 74 Victoria St, 54K sq. ft. was leased at $28.50/sq. ft., increasing committed occupancy from 46% to 67%, with negotiations underway for 50K more. Renovations are in progress to attract tenants. Year-over-year, in-place occupancy fell from 82.0% to 77.5%, mainly due to lease expirations and reclassifications.

Leasing activity remained strong, with 122K sq. ft. leased in Q4, including 43K in Toronto at $33.45/sq. ft. (5.5% above prior rates). Year-to-date, 710K sq. ft. of leases were executed, with Toronto averaging $33.84/sq. ft. (up 8.1%). Despite market challenges, Dream Office REIT continues to optimize its portfolio, improve occupancy, and enhance financial stability.

Growth Prospects

While Dream Office’s near-term environment remains challenging, we believe the company will return to growth as the operating climate normalizes. We expect annual FFO-per-share growth of ~1.6% over the next five years.

Dream’s growth prospects depend upon high occupancy rates in Toronto and rising rent prices. The trust put in place a strategic plan to capitalize on its new concentration in Toronto and invest for the future. Under this plan, the trust sold billions of dollars of non-core assets, shrinking its portfolio and generating cash proceeds in the process. It used this transformation to improve unit pricing as well as enhance its exposure to downtown Toronto.

The result has been a substantially smaller portfolio, but one that has a much higher rent base, allowing the trust to deleverage and afford it the ability to reduce the trust’s share count. This has not only improved the balance sheet but its funds-from-operations per share as well because the share count has dwindled.

In short, while we don’t see Dream Office as producing huge growth numbers in the coming years, it is well-positioned to continue to grow organically from higher base rents. Toronto’s office space fundamentals are sufficient to support this growth.

Dividend Analysis

Dream Office currently distributes a monthly dividend of C$0.833 per share (C$1 per share annualized). This represents an annualized payout of roughly $0.70 per share in U.S. dollars, good for a 5.6% current yield.

Dream cut its distribution in 2017, and the payout has been rather stagnant since then. Given the manageable payout ratio (expected at 35% for 2025), we don’t see a high risk of a further cut today. However, we do remain wary of the somewhat shaky fundamentals in the office property market.

We currently expect $2.00 in FFO-per-share for this year. The decline reflects softer occupancy compared to last year and higher interest rates, which will suppress the company’s profitability. Still, coverage remains adequate on the current dividend, so we don’t see further cuts as necessary.

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

The 5.6% dividend yield is likely high enough to entice income investors. This is particularly true because Dream pays shareholders monthly instead of quarterly.

Final Thoughts

Dream Office REIT’s high dividend yield and monthly dividend payments make it appealing to income investors. However, its long-term fundamental outlook is rather uncertain in the face of a rising rate environment, and we see humble growth levels in the coming years. Additionally, shares appear overvalued at current prices, which would weigh on total annualized returns.

The 2017 dividend cut looms large for investors, but the dividend yield is now quite hefty following the stock’s recent decline. Further, the current payout is well covered, and we view it as safe, even with softer occupancy levels and rising interest expenses. Overall, though, the stock is not very appealing at this time due to a weak total return potential.

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

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

Updated on April 1st, 2025 by Felix Martinez

Real Estate Investment Trusts, or REITs, are divided into different sub-sectors depending on the operations of the underlying businesses.

Industrial REITs stand out because of their focus on single-tenant properties. While this poses a higher vacancy risk than multi-tenant properties, it can also lead to mispriced assets and attractive buying opportunities.

Dream Industrial REIT (DREUF) is an industrial REIT that may not be well-known to investors because it operates primarily in Canada.

However, Dream Industrial REIT has a high dividend yield of 6.2%, which is about three times the average dividend yield in the S&P 500. The stock pays its dividends monthly.

You can download our full list of all 76 monthly dividend stocks (along with relevant financial metrics like dividend yields and payout ratios), which you can access below:

For retirees and other investors who rely on dividend payments, monthly dividends are far superior to the traditional quarterly payment schedule.

Dream Industrial REIT’s high dividend yield and monthly dividend payments are characteristics that appeal to income investors.

This article will analyze the investment prospects of Dream Industrial in detail.

Business Overview

Dream Industrial is a Canadian-based, industrial-focused Real Estate Investment Trust that operates in two broad divisions:

• Multi-Tenant Properties
• Single-Tenant Properties

This diversification is outstanding among industrial REITs and many other types of REITs with single-tenant properties.

The trust owns and operates a portfolio of 257 geographically diversified light industrial properties, which make up 72 million square feet of gross leasable area predominantly across Canada, with some operations in the United States.

Most of the portfolio’s gross leasable area is in multi-tenant buildings, with the remaining in single-tenant buildings.

Source: Investor Presentation

Dream Industrial is in the process of diversifying its asset mix, but it will likely remain focused on Canada and on industrial properties.

Dream Industrial REIT reported strong financial results for Q4 2024 and the full year, with key performance metrics showing steady growth. Diluted funds from operations (FFO) per unit rose by 1.9% to $1.00 in 2024, and net rental income increased by 6.4% to $355.4 million. The Trust signed over 7.3 million square feet of new leases and renewals, maintaining an occupancy rate of 95.8% as of year-end. Comparative properties net operating income (CP NOI) grew by 4.6%, driven by strong performance in Canada.

The Trust completed over $662 million in acquisitions, adding 1.8 million square feet to its portfolio, and substantially finished four development projects with a 6.3% expected unlevered yield. Net income surged to $259.6 million, a 148.9% increase from 2023, mainly due to fair value adjustments on investment properties and financial instruments. Total assets reached $8.1 billion, with total equity rising to $4.7 billion. NAV per unit improved slightly to $16.79, reflecting the Trust’s overall financial stability.

Dream Industrial REIT continues to see strong leasing activity and rental rate growth. Since Q3 2024, it has transacted 2.9 million square feet of leases, achieving a 22.7% rental rate spread. In Canada, rental rate spreads averaged 45%, while in Europe, fully indexed leases contributed to stable revenue growth. With a resilient urban portfolio and a strong balance sheet, the Trust remains well-positioned for continued cash flow growth and strong returns for unitholders.

Growth Prospects

Dream Industrial REIT’s growth depends on the ability to issue new units or issue debt and invest the proceeds of these capital markets transactions into high-quality industrial real estate assets. The trust is also highly dependent on its ability to source new tenants and renew existing leases in its property portfolio.

With that in mind, investors should note that the trust has had a very strong level of occupancy since its initial public offering.

Its occupancy rate has improved in recent years as the trust continues to take advantage of strong fundamentals in industrial properties. Dream Industrial is focusing on its four long-term growth drivers, in addition to future acquisitions that will build and improve its total portfolio.

Going forward, we expect 1.0% annual FFO-per-share growth each year. For its part, Dream Industrial sees a positive growth outlook for itself.

Source: Investor Presentation

The trust is heavily concentrated in Ontario and Quebec, areas where it has experienced great success in renewal spreads in recent years. It also has contractual rent increases, a natural tailwind to rental growth.

Occupancy remains high and is still increasing, and Dream Industrial is constantly managing its renewals to capture higher rents as quickly as possible. The trust sees powerful, long-term tailwinds in that space, so Dream Industrial is focusing on e-commerce properties.

The trust is positioning itself to be a premier provider of space its tenants need to do business in the coming years. Acquisitions are a major component of the company’s growth plan.

Overall, we see Dream Industrial’s growth outlook as favorable and supportive of long-term funds-from-operations growth. Finally, Dream Industrial has begun to expand in Europe, with an initial portfolio concentrated primarily in the Netherlands, and also in Germany.

Europe is responsible for about 20% of world GDP and holds more than 740 million people. With Dream Industrial just beginning to scratch the surface of possibilities in Europe, the trust has the potential to see a long runway for growth in this region.

Dividend Analysis

Dream pays a current monthly distribution of $0.0583 per share in Canadian dollars. That works out to $0.70 per share annually in Canadian currency. In U.S. dollars, Dream has an annualized dividend payout of $0.49 per share, which represents a current yield of 6.2%.

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

In fact, the distribution has never been cut in the trust’s relatively short operating history, but it has also not been increased for nine years. The stagnant payout may be discouraging for investors looking for dividend growth.

Related: 3 Reasons Why Companies Cut Their Dividends (With Examples)

The dividend payout is covered, as 2024 saw FFO-per-share of $0.60. From a dividend coverage perspective, Dream Industrial is in pretty good shape. For 2025, we are currently estimating a dividend payout ratio of roughly 75%.

Its strong balance sheet is another factor helping to secure Dream Industrial’s dividend payout. Dream Industrial has an investment-grade credit rating of BBB and a manageable level of debt.

Finally, income investors should consider the payout ratio when assessing a dividend’s sustainability. Payout ratios for REITs are always very high because they are required to distribute nearly all of their earnings.

At 75% expected for 2025, Dream Industrial’s payout ratio appears healthy, and we view the dividend payout as safe. Distribution growth may prove to be elusive, but we do not see a cut anytime soon.

Final Thoughts

Dream Industrial REIT’s high dividend yield and monthly dividend payments are two reasons why the company will stand out to income investors.

The stock yields 6.2%, which is relatively appealing. Investors may find the high yield an attractive income possibility.

The REIT has strong fundamentals and a very high occupancy rate. The trust also has the potential for future growth, especially in Europe. Dream Industrial could interest those investors looking for high income and growth potential.

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

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

Updated on April 1st, 2025 by Felix Martinez

Dynex Capital (DX) is a mortgage Real Estate Investment Trust (mREIT) that offers an appealing 15.7% yield, making it a potentially attractive high yield stock.

Dynex Capital also pays its dividends monthly, which is rare in a world where the vast majority of companies pay them quarterly.

There are currently over 76 companies with monthly dividend payments.

You can see the full list of monthly dividend stocks (along with relevant financial metrics such as dividend yields, payout ratios, and more) by clicking on the link below:

Dynex Capital’s high dividend yield and monthly dividend payments make it an intriguing stock for investors, even though its dividend payment has declined in recent years.

However, as with many high-dividend stocks, the sustainability of the dividend is an important consideration. This article will analyze Dynex Capital’s investment prospects.

Business Overview

Dynex Capital is a mortgage Real Estate Investment Trust (REIT). As a mortgage REIT, Dynex Capital invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non-agency MBS, including residential MBS, commercial MBS (CMBS), and CMBS interest-only securities.

Agency MBS have a guaranty of principal payment by a U.S. government agency or a U.S. government-sponsored entity, such as Fannie Mae and Freddie Mac. Non-Agency MBS has no such payment guarantee. Dynex Capital, Inc., was founded in 1987 and is headquartered in Glen Allen, Virginia.

The company is structured to have internal management, which is generally positive because it can reduce conflicts of interest. Additionally, when they increase total equity, operating expenses have no material impact. Over time, Dynex’s management team has built a strong track record of generating attractive total returns for shareholders:

Source: Investor presentation

Dynex’s portfolio is structured to be widely diversified across residential and commercial agency securities. This diversified approach creates an attractive risk-to-reward balance that has benefited the company for many years. Over time, the mix of CMBS and RMBS investments has reduced the negative impacts of prepayments on portfolio returns. Furthermore, agency CMBS acts as a cushion in the event of unexpected volatility in interest rates.

Finally, the high-quality CMBS IO are selected for shorter duration and higher yield, with the intended impact of limiting portfolio volatility. A significant portion of Dynex’s Agency 30-year RMBS fixed-rate portfolio has prepayment protection via limits on incentives to refinance.

Management anticipates opportunistically increasing leverage in the high-quality asset portfolio while avoiding credit-sensitive assets that are leveraged with short-term financing. As a result, the company enjoys a highly flexible portfolio that frees management to pivot rapidly to other attractive opportunities as markets remain volatile.

The company reported a total economic return of $0.13 per common share (1.0% of beginning book value) for Q4 2024 and $0.99 per share (7.4% of beginning book value) for the full year. Book value per share stood at $12.70 as of December 31, 2024. Net income was $0.61 per share for Q4 and $1.50 for the year, while comprehensive income reached $0.15 per share for Q4 and $1.30 for the year. The company declared dividends of $0.43 per share in Q4 and $1.60 for 2024. Dynex raised $64.4 million in equity capital in Q4, bringing its total for the year to $332.0 million.

The company reported a 36% increase in interest-earning assets and liquidity of $658.3 million at year-end. Leverage, including TBA securities, stood at 7.9 times shareholders’ equity. Dynex delivered a total shareholder return of 13.7% in 2024 and 27.4% over two years, benefiting from capital deployment amid market volatility. Leadership cited favorable conditions, including a steeper yield curve, lower financing costs, and wide mortgage spreads.

T.J. Connelly was promoted to Chief Investment Officer after serving as Senior Strategy and Research Vice President. With over 25 years of experience in mortgage-backed securities trading and economic research, he will oversee investment, financing, and hedging strategies. He reports to Co-CEO and President Smriti Popenoe, who highlighted his role in driving Dynex’s strong performance.

Growth Prospects

With interest rates rising rapidly and the mortgage market suffering from plummeting demand, Dynex may have a challenging time growing. On top of that, a recession is considered increasingly likely, which could lead to a jump in defaults on Dynex’s investments, posing a further headwind to growth. As a result, when combined with Dynex’s sky-high payout ratio, we expect earnings to decline in the coming years, leading to a likely dividend cut.

Source: Investor Presentation

Finally, Dynex offers several competitive advantages that should enable it to generate strong returns for investors throughout business cycles based on these long-term tailwinds.

Competitive Advantage & Recession Performance

Dynex possesses some competitive advantages, which may bolster investor returns throughout business cycles. These advantages include the accomplished management team with experience in managing securitized real estate assets through multiple economic cycles. Additionally, the trust’s focus on maintaining a diversified pool of highly liquid mortgage investments with the smallest amount of credit risk could be another advantage.

The trust’s normalized diluted earnings per share were quite stable through the last recession, though shares still sold off very heavily, losing about 40% of their market value. Overall, there’s little margin of safety here due largely to the payout ratio being so high, combined with highly volatile earnings-per-share.

Another risk is that prepayment speeds could rise due to seasonal factors. Additionally, the drop in mortgage rates could increase refinancing activity, further cutting into profits.

While some cash-out refinancing is already factored into the company’s prepayment expectations, and their portfolio has been structured to hedge against some of this, there will likely be some lost profits. This explains the company’s recent pattern of dividend reductions since 2019.

Dividend Analysis

The dividend was not fully covered by earnings in fiscal 2024, with negative earnings of -$0.35 in earnings per share compared to a $1.60 per share dividend payout. In 2025, we expect this pattern to repeat itself, with only $1.58 in earnings per share expected to be generated this year. As a result, we expect the dividend to be cut at some point over the next half-decade.

Final Thoughts

Dynex Capital’s high dividend yield and monthly dividend payments make it attractive to high-yield dividend investors. However, we remain extremely cautious about the stock.

The company does not cover its dividend with earnings per share. Furthermore, the riskiness of the business model sets Dynex up for potentially steep losses if the economy slips into recession and defaults rise.

This makes the stock fairly risky. Despite the high dividend yield, investors looking for monthly income have better choices with more favorable growth prospects and safer dividends elsewhere.

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

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

Published on March 31st, 2025 by Felix Martinez

Diversified Royalty Corporation (BEVFF) has two appealing investment characteristics:

#1: It is a high yield stock based on its 8.9% dividend yield.
Related: List of 5%+ yielding stocks.

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

You can download our full Excel spreadsheet of all 76 monthly dividend stocks (along with metrics that matter like dividend yield and payout ratio) by clicking on the link below:

Diversified Royalty Corporation’s above characteristics, namely its high yield and monthly dividend payments, make it an attractive candidate for income-oriented investors.

But there’s more to the company than just these factors. Keep reading this article to learn more about Diversified Royalty Corporation.

Business Overview

Diversified Royalty Corporation, based in Canada, is a multi-royalty corporation that acquires royalties from multi-location businesses and franchisors in North America. The company owns the trademarks of Mr. Lube, AIR MILES, Sutton, Mr. Mikes, Nurse Next Door, and Oxford Learning Centers.

The company, formerly known as BENEV Capital, changed its name to Diversified Royalty Corporation in September 2014. Its objective is to acquire predictable, growing royalty streams from diverse multi-location businesses and franchisors.

Diversified Royalty Corporation has been building a diversified portfolio of royalties from multi-locations and franchisors in Canada. It also intends to expand its business model in the U.S. To this end, the company has been promoting its business model at various International Franchise Association events in the U.S. Its expansion efforts bore fruit with Stratus, the company’s first royalty transaction in the U.S.

Stratus is an industry-leading franchisor in commercial cleaning and building maintenance, offering both master franchises and turn-key janitorial unit franchisees across North America. The global commercial cleaning industry is immense and grew by 5.8% annually between 2015 and 2022. It is expected to grow 6.7% per year from 2023 to 2030.

Source: Investor Presentation

Growth Prospects

Diversified Royalty Corporation has exhibited a somewhat volatile and inconsistent performance record, partly due to the effect of the gyrations of the exchange rate between the Canadian dollar and the U.S. dollar. Nevertheless, the company has grown its average earnings per share by 10.2% annually, from $0.07 in 2016 to $0.11 in 2024.

Moreover, the aforementioned royalty acquisition of Stratus will likely prove to be a significant growth driver for the company. Stratus expects to grow from 68 Master Franchisees up to 150 across the U.S. and Canada over the next 5-10 years.

Source: Investor Presentation

Stratus has grown its system sales by an average of 21% per year over the last five years. As its business has ample room for future growth, one can reasonably expect the company to meet or exceed its above growth target over the next decade.

Given Diversified Royalty Corporation’s historical growth record and expected business acceleration thanks to its major recent acquisition, we expect 5.0% average annual growth of earnings per share over the next five years.

Dividend & Valuation Analysis

In contrast to many companies that cut their dividends in 2020-2021 due to the coronavirus crisis, Diversified Royalty Corporation defended its dividend during that downturn. In addition, the company recently raised its dividend by 2%, offering an exceptionally high dividend yield of 8.9%.

However, it is essential to note that the company has kept its dividend unchanged over the last six years. During this period, it has marginally raised its dividend in CAD a few times, but the strengthening of the USD versus CAD has offset these raises.

Moreover, Diversified Royalty Corporation currently has a proforma payout ratio of 100%, which is very high.  Overall, due to the remarkably high payout ratio and the material debt load of Diversified Royalty Corporation, the dividend has a thin margin of safety and may be cut whenever the next recession shows up.

In reference to the valuation, Diversified Royalty Corporation has been trading for 13.7 times its earnings per share in the last 12 months. Given the company’s promising growth prospects, we assume a fair price-to-earnings ratio of 18.0 for the stock. Therefore, the current price-to-earnings ratio is lower than our assumed fair price-to-earnings ratio. If the stock trades at its fair valuation level in five years, it will incur a 4% annualized in its returns.

Taking into account the 5% annual growth of earnings per share, the 8.9% dividend, and a 4% annualized tailwind from valuation, Diversified Royalty Corporation could offer a 17% average annual total return over the next five years. This is a fairly attractive expected return for income-oriented investors, who may consider purchasing the stock around its current price.

Final Thoughts

Diversified Royalty Corporation has an attractive business model. It does its best to add reliable and growing royalty revenues to its income stream, aiming to offer a rising income stream to its shareholders.

Moreover, the company has promising growth prospects ahead. Its recent royalty acquisition of Stratus is the company’s first transaction in the U.S., which is likely to be a significant growth driver in the upcoming years thanks to Stratus’s promising growth potential and the mid-single digit annual growth of royalties from this deal. Moreover, investors should expect similar transactions in the U.S. in the coming years.

The only caveats are Diversified Royalty Corporation’s sensitivity to recessions and its exceptionally low trading volume, which makes it hard to purchase or sell a large position in this stock.

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

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

President Donald Trump made seismic shifts to U.S. trade this week that could have long-term effects on the economy and your pocketbook.

On Wednesday, Trump announced a 10% base tariff and additional import taxes on a country-by-country basis. These broad-based tariffs are in addition to goods-specific tariffs on steel, aluminum, and automobiles. The president said that the tariffs are designed to bring manufacturing and business investment back into the country while raising revenue for the federal government.

To quantify the magnitude of these changes, here are three graphs that help explain the new tariff policies.

This Is the Highest Effective Tariff Rate in More Than a Century

The effective tariff rate measures the total taxes levied on imports. It’s a good way to account for all tariff policies that a country has in place.

In the U.S., that rate was 2.4% when Trump took office earlier this year. Economists have worked to enumerate the average effective rate after the announcement of “reciprocal” tariffs this week and have used different calculations, with most ranging between 20% and 30%.

According to researchers at the Yale Budget Lab this week, the effective tariff rate will rise to more than 22% when all the tariff measures announced are enacted. That includes the 11.5% that stems from the new tariffs unveiled this week and is the highest since 1909.

Prices on Goods Will Likely Increase

Most economists agree that tariffs will increase the price of goods for average Americans.

Because importers are being taxed at a higher level when goods are shipped into the country, they often pass on those increased costs to consumers. Yale Budget Lab estimates that, in total, tariffs could cost the typical household $3,800 per year.

However, some items will cost more than others, with leather goods and clothes expected to experience the highest increases.

The Impacts of Tariffs Could Be Felt for a Long Time

In addition to pushing up prices, economists said the tariffs could slow the economy’s growth and raise the chances of a recession.

Trump has said he’s prepared for temporary pain as the global economy adjusts to his new policies. However, economists think the effects could be long-lasting. According to the Budget Lab, tariffs could drag on the country’s gross domestic product (GDP) for years to come.

The full article continues below these offers from our partners.

In Uncertain Times, Cash Is King—But Be Sure You’re Earning a Solid Return

Given the stock market chaos unleashed by the Wednesday announcement of across-the-globe tariffs, holding a solid cash reserve is looking increasingly appealing. But whether you’re holding savings in the bank or are shifting funds from stocks into cash vehicles, it’s important you consider how much you can earn from different strategies.

For an attractive interest rate that involves virtually no risk, the options for safe cash investment come in three main flavors:

1. Bank and credit union products: Savings accounts, money market accounts, and certificates of deposit (CDs)
2. Brokerage and robo-advisor products: Money market funds and cash management accounts
3. U.S. Treasury products: T-bills, notes, and bonds, in addition to I bonds

You can choose just one of these or mix and match products for different buckets of funds or timelines. In any case, you’ll want to understand what each product pays. Below, we lay out today’s top rates in every category and indicate the change from a week ago.

Today’s Best Rates on Cash

This week saw mixed rate movement from different cash instruments. The leading rates for high-yield savings, money market accounts, and all but two CD terms held steady at their previous levels. The best 18-month and 2-year CD returns, however, slipped. The top deposit rate in the nation is now 4.65%, which is available from two different institutions that top our ranking of the best nationwide CDs.

Yields on money market funds at the three major brokerages were generally flat, with Vanguard offering a top rate of 4.23%. Rates on brokerage cash management accounts, meanwhile, held their ground, ranging from 3.83% to 4.00%.

Cash interest rates showed the biggest changes among Treasurys. Although rates on the shortest T-bills saw little to no movement, Treasury lengths of 3 months and up saw rate drops ranging from 5 to 27 basis points. The lowest Treasury rate this week is 3.66%, for a 3-year note, while 20-year Treasury bonds continue to offer the highest return, at 4.44%.

In any case, returns in the 4% range are excellent, and the various options below are likely to be a good fit for almost anyone’s cash savings needs and timeline.

Understanding Your Different Cash Options

Bank and Credit Union Products

Savings Accounts

The most basic place to stash cash is a bank or credit union savings account—sometimes called a high-yield savings account—that lets you add and withdraw money as you please. But don’t assume your primary bank pays a competitive rate. Some banks pay virtually zero interest.

Fortunately, we make shopping for a high rate easy. Our daily ranking of the best high-yield savings accounts gives you 15 options paying 4.35% to 4.60% APY. Note, however, that savings account rates can change at any time.

Money Market Accounts

A money market account is a savings account that adds the ability to write paper checks. If this is a useful feature to you, shop our list of the best money market accounts.

If you don’t need paper check-writing, choose whichever account type—money market or savings—pays the better rate. The top money market account rate is currently 4.40% APY. Again, be aware that money market rates are variable, so they can be lowered without warning.

Certificates of Deposit

A certificate of deposit (CD) is a bank or credit union product with a fixed interest rate that promises a guaranteed return for a set period of time. Generally ranging from 3 months to 5 years, CDs offer a predictable return with a rate that cannot be changed for the duration of the term.

But be aware that it’s a commitment with teeth: If you cash in before maturity, your earnings will be dinged with an early withdrawal penalty. Our daily ranking of the best nationwide CDs currently includes options paying up to 4.65% APY.

Brokerage and Robo-Advisor Products

Money Market Funds

Unlike a money market account at a bank, money market funds are mutual funds invested in cash and offered by brokerage and robo-advisor firms. Their yields can fluctuate daily but currently range from 3.98% to 4.23% at the three biggest brokerages.

Cash Management Accounts

For uninvested cash held at a brokerage or robo-advisor, you can have the funds “swept” into a cash management account where it will earn a return. Unlike money market funds, cash management accounts offer a specific interest rate that the brokerage or robo-advisor can adjust whenever it likes. Currently, several popular brokers are paying 3.83% to 4.00% APY on their cash accounts.

U.S. Treasury Products

Treasury Bills, Notes, and Bonds

The U.S. Treasury offers a wide array of short—and long-term bond instruments. Treasury bills have the shortest duration, ranging from 4 to 52 weeks, while Treasury notes have a maturity of 2 to 5 years. The longest-term option is a Treasury bond, which has a 20- to 30-year maturity. Today’s rates on the various Treasury products range from 3.66% to 4.44%.

You can buy T-bills, notes, and bonds directly from TreasuryDirect or buy and sell them on the secondary market at brokerages and banks. Selling a Treasury product allows you to exit before the bond matures. However, you may pay a fee or commission for secondary market purchases and sales, while buying and redeeming at TreasuryDirect—the U.S. Treasury’s online platform for buying federal government securities—has no fees.

You can also buy Treasury ETFs, which trade on the market like a stock. Treasury ETFs have advantages and limitations, which you can read about here.

I Bonds

U.S. Treasury I bonds have a rate that’s adjusted every six months to align with inflation trends. You can redeem an I bond anytime after one year or hold it for as long as 30 years. Every six months you own the bond, your rate will change.

How We Find the Best Savings and CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs and savings accounts to customers nationwide and determines daily rankings of the top-paying accounts. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000. It also cannot specify a maximum deposit amount that’s below $5,000.

Banks must be available in at least 40 states to qualify as nationally available. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.

Stocks tumbled on Friday, adding to the previous day’s massive losses and capping off one of the worst weeks on Wall Street since the turn of the century. 

Market participants started the week cautiously optimistic that the reciprocal tariffs that were slated to be announced Wednesday would give businesses and investors some much-needed clarity on U.S. trade policy. But investors were caught off guard by the sheer size and scope of the taxes, which are expected to lift the U.S. effective tariff rate to its highest level in more than a century. Economists warn tariffs of that magnitude could slash economic growth and reignite inflation. 

This week’s market sell-off was one of the most punishing in recent memory. Here are some data points that put this very bad week in context: 

• The S&P 500 fell 10.5% across Thursday and Friday, the index’s worst 2-day stretch since March 2020 and its third-worst since the turn of the century. The index’s 9.1% loss this week ranks as the seventh-worst week in the last 25 years.
• The Dow had its sixth-worst week of the 21st century; it fell 7.9% over the week and 9.3% in the last two days.
• The Dow shed 2,231 points on Friday, its third-largest one-day point decline on record. 
• The Nasdaq Composite has dropped 11.4% since Trump’s tariff announcement, also its worst 2-day stretch since March 2020. 
• Shares of Apple (AAPL), the world’s most valuable company, have lost 15.9% of their value since Wednesday’s close, their worst 2-day stretch since September 2008. The rout wiped more than half a trillion dollars off the iPhone maker’s market capitalization. 
• 31 companies in the S&P 500 lost more than 20% this week; 247 companies, or nearly half the index, fell 10% or more. 
• Just 21 stocks in the benchmark index—mostly healthcare companies and utilities—finished the week higher; on Friday, only 14 stocks rose. 
• Nike (NKE) rose 3% Friday, making it the only stock in the blue-chip Dow index to close in the green. Still, shares finished the week 10% lower. 
• Even companies with little to no direct tariff exposure were hammered. Palantir (PLTR), the software company that derives most of its revenue from the federal government, tumbled 14% this week. DoorDash (DASH) and Netflix (NFLX), despite not making or selling any physical products subject to tariffs, dropped about 11% and 8%, respectively. 

U.S. defense contractors like Lockheed Martin (LMT) and Northrop Grumman (NOC) could be relatively insulated from the impacts of the Trump administration’s new tariffs, Morgan Stanley analysts said Friday.

Supply chains for many defense companies have historically been based in the U.S. for national security reasons, the analysts said. Firms that work primarily with the U.S. government also face less pressure from retaliatory tariffs imposed by other countries, they added. 

Morgan Stanley named Lockheed and Northrop, along with L3Harris (LHX), as examples of defense companies that could be well-positioned to weather the new tariff environment. Conversely, the analysts said they expect defense companies with greater exposure to commercial clients like General Dynamics (GD) and Textron (TXT) to feel more pressure. 

Shares of Lockheed and Northrop each fell about 4% in Friday afternoon trading, while L3Harris slid close to 3% amid a broad-based decline. General Dynamics and Textron shares dropped more than 6% and 7%, respectively. (Read Investopedia’s live coverage of today’s market action here.)

Bitcoin prices ticked up Friday, reversing a slide that began when new tariffs were unveiled earlier this week.

Prices for the leading cryptocurrency crept toward $84,000, after sinking below $81,500 Thursday. Bitcoin plunged Wednesday when President Donald Trump announced a package of “reciprocal” tariffs, shocking the markets and sapping investors’ appetite for risk.

The recovery did not extend to several other crypto-related stocks. Shares of Robinhood Markets (HOOD), which facilitates crypto trades, were recently down 11% from Thursday’s close, while shares of Coinbase Global (COIN), a crypto exchange operator, were off by 7%. 

Crypto mining company Mara Holdings’ (MARA) shares lost about 1%. Shares of Strategy (MSTR), a Bitcoin buyer previously known as MicroStategy, were recently more than 3% higher on the day.

Bitcoin remains well below the six figure prices it fetched in February when investors were optimistic that Trump’s policies would bolster cryptocurrency. 

The total market cap of cryptocurrency is around $2.6 trillion, having shrunk from more than $3.7 trillion in late 2024, according to CoinMarketCap data.

President Trump on Friday extended TikTok‘s deadline to be sold or face a ban in the U.S. by another 75 days. The social media platform had previously faced a Saturday deadline, after Trump extended it by 75 days in January.

“My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress. The Deal requires more work to ensure all necessary approvals are signed, which is why I am signing an Executive Order to keep TikTok up and running for an additional 75 days,” Trump said in a post on his Truth Social platform Friday.

The app, which is owned by Chinese social media company ByteDance, has received bids from a number of technology and media companies in recent weeks. Trump told reporters this week that a deal is “very close” to being made, without specifying which is likely to buy TikTok, Bloomberg reported Thursday.

Who Is in the Running To Buy TikTok?

A wide range of potential buyers have reportedly made bids for TikTok in recent months, including Reddit (RDDT) co-founder Alexis Ohanian and “Shark Tank” host Kevin O’Leary.

Amazon (AMZN) has also submitted an offer, according to reports Wednesday, while adtech company AppLovin (APP) on Thursday confirmed its interest in acquiring TikTok’s non-China operations in a regulatory filing.

Trump and some of his advisors reportedly discussed options this week, with contenders including a group led by Oracle (ORCL) and venture capital firm Andreessen Horowitz, according to reports.

It remains to be seen whether the escalating trade war between the U.S. and China after the Trump administration announced new tariffs this week could impact the Chinese government’s willingness to allow a deal.

Why Does TikTok Face a Ban?

Trump had supported a ban of the app in his first term, with a bipartisan effort to ban it or force it to be sold to a U.S. company amid concerns that the Chinese government could access data about TikTok’s 170 million American users, though the company has maintained the Chinese government does not have access to that data.

The ban was eventually passed through Congress, with President Joe Biden signing the bill into law last April. The law survived lawsuits as it was upheld in court rulings, with the Supreme Court in January ruling that the Jan. 19 deadline could remain in place.

The app went dark for U.S. users around 11 p.m. ET on Jan. 18, before restoring service hours later as Trump signed an executive order extending the deadline by 75 days.

UPDATE—April 4, 2025: This article has been updated since it was first published to reflect Trump’s deadline extension.