Category Monthly Dividend

Below you’ll find featured rates available from our partners, followed by details from our ranking of the best CDs available nationwide.

Rates of 4.50% to 4.65% You Can Guarantee as Long as 2026

The nation’s leading CD rate held its ground today at 4.65%, and you have your choice of two offers for that APY: INOVA Federal Credit Union offers a 5-month term, and OMB lets you extend the APY for 7 months. In both cases, you can lock in your return until this fall.

If you’d rather extend your rate lock until 2026, two top CDs pay 4.60%. Abound Credit Union offers that rate for a 10-month duration, while Vibrant Credit Union matches that APY for 13 months.

Four more nationwide certificates pay at least 4.55%, with the longest term among these being 13 months. Or you could stretch to XCEL Federal Credit Union’s 18-month certificate, which would guarantee a 4.50% return until October of next year.

Microchip Technology (MCHP) shares could remain on watchlists after tumbling Thursday to lead chip stocks lower during a broad post-rally sell-off for U.S. equities. 

Chip stocks such as Microchip, which makes silicon used in everything from consumer electronics to automotive systems, have remained particularly volatile against a backdrop of tariff uncertainty that has weighed heavily on consumer and business confidence, both key customers that drive chipmakers’ earnings.

Microchip shares gave back about half of the previous session’s record gains on Thursday, falling 14% to $38.81. Since the start of the year, the stock has lost around a third of its value, compared to the Nasdaq Composite’s 15% drop over the same period.

Below, we analyze the technicals on Microchip’s weekly chart and identify important price levels that investors may be watching out for.

Price Swings Continue

Selling in Microchip shares has accelerated after the 50-week moving average (MA) crossed below the 200-week MA in early March to form a death cross, a chart pattern that signals lower prices.

More recently, the stock’s volatility has increased significantly since last week’s tariff-induced 25% sell-off, with sizeable swings in both directions. Importantly, this week’s price gyrations have occurred on the highest trading volume since February 2017 as investors take bets on the chipmaker’s next move.

Meanwhile, the relative strength index confirms bearish price momentum, though the indicator remains in oversold territory, potentially attracting short covering and buy-a-bounce investors.

Let’s apply technical analysis to identify important support and resistance levels on Microchip’s chart.

Important Support Levels to Watch

The first lower level to watch sits around $34. This area on the chart would likely attract significant attention near this week’s low, which also closely aligns with the December 2018 trough. A bounce here could indicate the completion of an Elliot Wave pattern with five price swings.

A breakdown below this area could see the shares revisit lower support at the psychological $30 level. Bargain hunters may be on the lookout for buy-and-hold opportunities in this location near the October 2018 swing low and March 2020 pandemic trough.

Key Resistance Levels to Monitor

Upon further upswings, investors should keep tabs on the $50 level. Tactical traders who bought at lower prices may decide to lock in profits in this region near a trendline that connects the February low with a range of corresponding trading activity on the chart between April 2019 and September 2020.

Finally, buying above this level could see Microchip shares climb to around $56. This area on the chart would likely provide overhead resistance near multiple peaks and troughs on the chart stretching back to early 2020.

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.

Major U.S. equities indexes resumed their downtrend on Thursday, ceding some of the big gains posted in Wednesday’s session. Relief over President Trump’s decision to postpone higher tariffs on trading partners around the world gave way to concerns about escalating tensions with China, with the White House confirming that the levy on goods from the country now stands at 145%.

The S&P 500 slid 3.5%. The Dow ended the session 2.5% lower, while renewed weakness among tech stocks pressured the Nasdaq, which fell 4.3%. 

Shares of health care diagnostics and drug discovery services provider Charles River Laboratories (CRL) plummeted 28.1%, the steepest decline of any S&P 500 stock on Thursday. The downturn came after Barclays analysts cut their price target on the stock, suggesting that potential pharmaceutical tariffs could weigh on budgets in the industry and stifle Charles River’s performance.

Carmax (KMX) shares plunged 17% after the used-car retailer reported lower-than-expected sales and profits for its fiscal fourth quarter. The company opted not to provide specific financial forecasts for fiscal 2026 and stepped away from its previously announced long-term growth targets, noting that macroeconomic factors could affect its timeline for reaching those objectives. Analysts have suggested that tariffs could result in higher prices for new and used vehicles.

After yesterday’s blistering rally for semiconductor stocks, downward pressure on chipmakers resumed on Thursday. A day after securing the S&P 500’s top performance, shares of microprocessor manufacturer Microchip Technology (MCHP) tumbled 13.6%. Shares of power module specialist Monolithic Power Systems (MPWR) also gave back a portion of Wednesday’s strong gains, falling 13.7%.

Warner Bros. Discovery (WBD) shares lost 12.5% after the China Film Administration said it would cut down the number of American films imported into the country as trade tensions escalate between the world’s two largest economies. The entertainment giant announced late last year that it would split its TV business from its streaming and film operations.  

Gold futures prices advanced more than 3% as tariff-related uncertainty boosted demand for the precious metal, which is often seen as a safe-haven investment during periods of economic turbulence. The price uptick helped lift gold-mining stocks. Shares of Newmont (NEM), the world’s top gold producer, notched the strongest gain in the S&P 500, jumping 4.5%.

Shares of fixed-income trading platform operator MarketAxess Holdings (MKTX) advanced 3.5% on Thursday, recovering from a slight decline posted in the prior session. Earlier this week, analysts at Morgan Stanley upgraded MarketAxess stock to “overweight” from “equal weight,” indicating that the need to hedge against risk in the current economic environment could drive additional trading volume for exchanges.

Kroger (KR) shares gained 3.1% on Thursday. When releasing its latest earnings report in early March, the operator of the largest chain of traditional grocery stores in the U.S. said it anticipates a relatively limited impact from tariffs, highlighting plans to diversify its supply chains, negotiate with suppliers, and source products from countries facing lower levies.

In 1913, John D. Rockefeller’s fortune peaked at an estimated $900 million (about $29.3 billion in today’s dollars). In 2024, the Rockefeller family’s estimated net worth was $10.3 billion. What has happened to the money?

Family Trusts

In 1934, John D. Rockefeller Jr. set up irrevocable trusts for his children and then did the same for his grandchildren in 1952. These trusts allowed the largely tax-free transfer of wealth through the generations.

Now, the Rockefeller fortune is divided among about 200 family members. Some of the family’s wealth is also managed by Rockefeller Capital Management, where John D. Rockefeller’s great-grandson, David Rockefeller Jr., is a former chairperson and current board member.

Over the generations, much of the family’s wealth has been contributed to philanthropic causes.

A Philanthropic Legacy

Philanthropy has always been a major part of the Rockefeller legacy. For example, John D. Rockefeller helped establish the University of Chicago by providing a large portion of the initial endowment. Between 1890 and 1910, he contributed $35 million to the university.

From 1901 to 1909, Rockefeller established various institutions and initiatives relating to medicine, education, and public health. In 1901, he founded the Rockefeller Institute for Medical Research (which would eventually become Rockefeller University). By the 1930s, his gifts to the Institute totaled $50 million.

In 1902, he created the General Education Board to promote national education “without the distinction of race, sex or creed.” In 1919, he donated $50 million to the cause to raise academic salaries, which were very low then.

In 1909, he established the Rockefeller Sanitary Commission for the Eradication of Hookworm Disease, which launched a public health campaign across 11 states.

In 1913, Rockefeller incorporated the Rockefeller Foundation with the following statement of purpose: “To promote the well-being of mankind throughout the world.”

Shortly after, he made gifts to the Foundation totaling $35 million. A year later, he did so again, but this time, totaling $65 million. Today, the foundation has a worldwide impact, focusing on energy, food, health, and innovation efforts.

Rockefeller’s commitment to philanthropy was such that, when he died in 1937, his estate was worth $26,410,837. However, he also passed much of his wealth to his son and other heirs.

Rockefeller’s last surviving grandson, David Rockefeller, continued his commitment to philanthropy in many different ways during his lifetime, including signing the Giving Pledge to give away more than half of his wealth. His son, David Rockefeller Jr., is currently heavily involved in the family’s wealth management and philanthropic giving. He served as chairperson for four different Rockefeller foundations over the years.

The Bottom Line

Many of the foundations established by Rockefeller family members are still going strong today. For example, the Rockefeller Foundation, the Rockefeller Brothers Fund, and the David Rockefeller fund have a combined endowment of over $5 billion. 

David Rockefeller Jr. attributes the family’s philanthropic impact to their commitment to shared values and practices. As he told CNBC, “I think the family has tried its best to live those values, to whom much is given, much is expected.”

The full article continues below these offers from our partners.

Next Rate for Existing I Bonds Can Now Be Calculated

I bonds are so named because they’re calibrated to inflation. Whenever inflation rises, I bonds pay more. If you now own I bonds, there’s a good chance you bought them within the last two to three years, when decades-high U.S. inflation pushed I bond returns to their highest levels.

The annual rate of inflation as tracked by the Consumer Price Index (CPI) has cooled from a high of 9.1% in June 2022 to 2.4% in the March 2025 reading, which was released this morning. As inflation has decreased, I bond rates have also fallen, making them a less competitive savings option.

With the latest CPI reading, Investopedia can now calculate what the next 6-month interest rate will be for existing I bonds, due for release by the U.S. Treasury on May 1. Each year on May 1 and Nov. 1, the Treasury announces new rates for the following six months.

To understand how this works, here’s a quick primer on I bond rates, which consist of two components:

1. The first component is a fixed rate, which is assigned to every I bond based on its issue date. This rate is permanently fixed for the life of your I bond, up to its 30-year maturity date.
2. The second component is the inflation rate, which is adjusted twice a year based on the last six monthly CPI readings.

Adding these two components together gives you a close estimate (within a few basis points) of the 6-month composite rate the Treasury will announce in three weeks.

To calculate your particular I bond’s upcoming composite rate, you’ll need to know your fixed rate, and what the latest inflation component is. In this article, we’ve done the math for you. See below for all I bonds issued since November 2021. By finding your bond’s issue date in the first column, you can see in the last column what your next 6-month rate will be.

Note that while the Treasury is set to announce these new rates on May 1, the month the new rate will begin for you is based on the month your I bond was issued. Only people with I bonds purchased in May or November (of any year) will earn the new rate indicated above on May 1. For other issue dates, the start of the new rate will be delayed according to this schedule.

How Much Will Your New Rate Increase vs. Your Existing Rate?

Because inflation has persisted over the last six months, we calculate that the new inflation component of I bond rates will rise almost a percentage point. So for anyone who bought during the particularly popular I bond period of May through October 2022, their current rate of 1.90% will climb to about 2.84%. You can see how the new rate compares to the current rate for several issue dates below.

Want to know how the upcoming rate compares to past periods? The table below lays out the various 6-month rates each I bond has earned through its life cycle.

Consider Moving Your Money to a CD to Earn More

With new I bond rates for recent issues ranging from 2.84% to 4.14%, you can earn more on your savings elsewhere. For example, dozens of nationally available certificates of deposit (CDs) are paying rates in the mid-4% range, with the nationwide leader offering as much as 4.65% APY.

This means cashing out your I bonds (which you can do after owning them for at least 12 months) and moving the money into a top-paying CD could boost your interest rate by 1 to 2 percentage points, or more, though you’ll incur a penalty if your I bond is younger than five years old. The penalty is equal to three months of your latest interest earnings.

Another reason to swap I bond money for a CD is that it adds more certainty to your future returns. Unlike an I bond, with its rate that changes twice a year, a CD you open today will lock in its APY for the full duration of the certificate term. So if you open a multi-year CD, you’ll know your rate is guaranteed for two, three, or even five years down the road.

The Best Day of the Month to Cash Out I Bonds

Monthly I bond interest payments from the U.S. Treasury are paid right away on the first day of the month, and not again until the first of the next month. So once you’ve collected interest for a particular calendar month, say on the upcoming May 1, there are no additional earnings to be gained by holding the funds any longer during November.

Also, if you’re going to move your I bond funds elsewhere, withdrawing on May 1 allows you to receive the May interest payment and then start earning interest as quickly as possible on that money elsewhere, such as a CD or high-yield savings account.

Even if you simply want to cash out and use your I bond funds, there’s no financial gain from waiting beyond the first of the month for your withdrawal.

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.

Banks must be available in at least 40 states. 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.

Analysts lowered targets for Tesla on Thursday amid concerns that tariffs will weaken the broader auto industry.

UBS cut its target price for Tesla (TSLA) to $190, estimating that the electric car manufacturer’s vehicle deliveries will fall 11% in 2025. Mizuho analysts said tariffs will increase Tesla prices and erode an already-weakening demand, lowering its target price to $375. A consensus analyst estimate puts Tesla shares somewhere in the middle, at around $327, or nearly 30% above Thursday’s closing price, according to Visible Alpha.

“While lower estimates for 2025 are now more broadly expected, we believe the whole trajectory of earnings for [Tesla] remains too high…” UBS wrote in a note Thursday, adding that shares will likely “be volatile but downward sloping.”

Tesla shares and the broader market have oscillated in recent days amid shifts in U.S. trade policy. CEO Elon Musk’s work slashing government spending has also influenced the car maker’s stock prices. Shares finished down more than 7% on Thursday but were still up more than 40% from a year earlier.

Although the Trump administration scaled back tariffs this week on a number of U.S. trading partners, goods from China, including car batteries and their components, are subject to tariffs of more than 100%. Import taxes of 25% remain in effect on cars, which will drive up prices, deter consumers, and potentially reduce Tesla’s 2025 U.S. revenue by 3.5%, Mizuho estimated.

“While a reduction in reciprocal tariffs helps reduce recession/demand destruction risk, we point out that the auto tariffs are sector specific, not subject to individual country trade negotiations,” UBS said. “In our view, they are likely to remain for the foreseeable future.”

Trade Policies May Usher in ‘New Era’ for Auto Industry

Sector-specific tariffs will likely add an average of $5,000 to car costs and depress domestic demand by 9%, according to UBS analysts, who factored in the current 25% tariff on cars and the 25% import tax on parts slated to go into effect early next month. The trade policies may usher in “a new era” for the U.S. auto industry, UBS said.

“Production disruptions are likely…and supply chains that were set up to be optimized over decades may need to be reimagined,” said UBS.

Tariffs may also reduce General Motors’ (GM) domestic annual revenue by 4% and Rivian Automotive’s (RIVN) by 3.5%, Mizuho estimated. Both Mizuho and UBS lowered their price targets for GM and Rivian’s stock, along with several auto suppliers.

General Motors fell 4%, and Rivian shares declined 2.6% on Thursday.

Published on April 9th, 2025 by Felix Martinez

That said, just 76 companies currently offer monthly dividend payments, which can severely limit an investor’s options. You can see all 76 monthly dividend-paying names here.

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

One stock we have yet to review is Sienna Senior Living (LWSCF), a Canada-based company focused on senior living and long-term care (LTC) services. Shares currently offer a substantial yield of 5.7%, which is about 4 times the average yield of the S&P 500 Index.

With such a notable yield and the fact that Sienna’s dividends are paid monthly, the stock appears rather appealing for income-oriented investors who seek a regular stream of substantial payments—especially given that Sienna has never cut its dividend.

This article will evaluate the company, its business model, and its dividend to see if Sienna Senior Living could be a good candidate for purchase. While Sienna reports in CAD, all figures in this article have been converted to USD unless stated otherwise.

Business Overview

Sienna Senior Living provides senior housing and long-term care (LTC) services in Canada. The company offers a range of senior living options, including independent and assisted living, memory care, long-term care, specialized programs and services, and management services.

As of its latest filings, Sienna owned and operated a total of 94 properties, including 40 retirement residences, 42 LTC communities, and eight senior living residences. The company also manages only an additional 12 senior living residences. Sienna generates around $621 million in annual revenues.

Source: Investor Presentation

Although Sienna Senior Living primarily deals in real estate, its performance is not as closely linked to the real estate market as one might assume. Unlike other types of real estate properties, such as retail, commercial, or industrial, Sienna’s tenants are mainly seniors who allocate a portion of their pensions for assisted living services. This results in a more stable and durable stream of income for the company, as seniors require long-term care and are less likely to move out of their homes quickly. There is a sense of community as well, which also contributes to this concept.

Furthermore, assisted living properties like those provided by Sienna Senior Living are more critical from a socio-economic standpoint. These properties provide essential care and support to seniors who may not be able to live independently due to their health or other factors. As a result, the government is more likely to provide support to these types of properties during times of crisis.

For example, during the pandemic, the Canadian government fully funded vacancies for Sienna’s Ontario and British Columbia residents, who make up the majority of the company’s rental revenue. This government assistance helped the company weather the pandemic and continue to provide essential care to its residents while retaining robust financials.

Growth Prospects

Sienna Senior Living has identified three key growth drivers: expanding its property portfolio, increasing rental rates, and optimizing occupancy rates. In line with this strategy, Sienna is currently developing a 147-suite retirement residence as part of a campus of care project in Brantford, Ontario. Additionally, a 150-suite retirement residence in Niagara Falls is scheduled to be completed at the end of 2023. As Canada’s senior population continues to grow, Sienna is well-positioned to meet the rising demand for assisted-living properties.

With over 861,000 people aged 85 and older recorded in the 2021 census and this age group growing at a rate of 12% since 2016, Sienna enjoys a long runway of highly predictable demand growth. In fact, by 2050, the 85-and-older population is expected to surpass 2.7 million people, providing Sienna with an excellent opportunity to capitalize on this growing market.

Source: Investor Presentation

Published on April 9th, 2025 by Felix Martinez

Flagship Communities Real Estate Investment Trust (MHCUF) has two appealing investment characteristics:

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

#2: It 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:

Flagship Communities REIT’s combination of favorable tax status as a REIT and a monthly dividend make it appealing to individual investors.

But there is more to the company than just these two factors. Keep reading this article to learn more about Flagship Communities REIT.

Business Overview

Flagship Communities REIT is one of the Midwest region’s most prominent developers of residential manufactured housing communities. Its communities are located throughout Kentucky, Ohio, Indiana, Tennessee, Arkansas, Illinois, and Missouri. With 28 years of experience developing and managing manufactured housing communities, Flagship has developed expertise in real estate, financing, and community management.

The manufactured housing industry has generated consistent performance over the last 25 years.

Source: Investor Presentation

Flagship Communities REIT reported solid growth in both Q4 and full-year 2024. Q4 rental revenue rose 26.6% to $23.8 million, with same-community revenue up 15.5%. Net income surged to $25.2 million from a $1.5 million loss a year earlier. Funds from operations (FFO) per unit increased 30.6% to $0.384, while adjusted funds from operations (AFFO) per unit rose 45.3% to $0.375. Same-community NOI margin improved to 68.8%.

For the full year, rental revenue grew 24% to $88.1 million, and net income jumped 59% to $103.5 million. FFO per unit was $1.29, up 8.9%, and AFFO per unit reached $1.167, a 12.4% increase. Same-community occupancy remained stable at 84.8%. Flagship ended the year with a net asset value (NAV) of $670.8 million and reduced its debt-to-gross book value to 38.1%.

Operationally, Flagship expanded its portfolio with seven new communities and added 112 lots, with the potential for 638 more in coming years. Post year-end, it refinanced $45 million of debt with two new 10-year, interest-only loans. Flagship remains well-positioned for future growth with $14.3 million in liquidity and no major debt maturities until 2030.

Thanks to its solid business model, Flagship Communities REIT has enjoyed consistent rent and occupancy growth in recent years.

Source: Investor Presentation

Growth Prospects

Flagship Communities REIT has three growth drivers in place. It tries to grow its funds from operations (FFO) per unit by raising its rental rates every year, increasing its occupancy rate, and reducing its operating expenses.

Flagship Communities REIT added seven communities and 112 lots to its asset portfolio during 2024. It thus grew its revenue, net operating income, and FFO over the prior year.

It is also worth noting that Flagship Communities REIT operates in a highly fragmented market with great opportunities for consolidation. The top 50 investors are estimated to control about 17% of manufactured housing lots for rent. Therefore, there is ample room for future growth.

Given the solid business model of Flagship Communities REIT but also the sensitivity of its results to the gyrations of the exchange rate between the Canadian dollar and the USD, we expect the REIT to grow its FFO per unit by about 2.0% per year on average over the next five years.

Dividend & Valuation Analysis

Flagship Communities REIT currently offers a dividend yield of only 3.8%.  In fact, most REIT unitholders own stakes in these companies primarily because of their attractive dividends. Therefore, the dividend yield of Flagship Communities REIT is likely to render this stock suitable for most investors.

Investors should also be aware that Flagship Communities REIT’s dividend may fluctuate significantly over time due to the fluctuation of the exchange rates between the Canadian dollar and the USD.

Flagship Communities REIT’s dividend yield has resulted primarily from the company’s exceptionally low payout ratio, currently at 45%. The trust could offer a more generous dividend to its unitholders, but it prefers to preserve funds for acquiring and developing new properties.

We also note that Flagship Communities REIT has a material debt load on its balance sheet. Its net debt is currently $299 million, which is 78% of the stock’s market capitalization.

Considering the 3.8% dividend and assuming that Flagship Communities REIT will grow its FFO per unit by 2.0% per year on average over the next five years, the stock could offer a 5.8% average annual total return over the next five years. This is an unattractive expected return; hence, we recommend waiting for a much lower entry point before purchasing the stock.

Final Thoughts

Flagship Communities REIT has a solid business model and ample room for future growth. However, the stock offers a dividend yield of 3.8%. While Flagship Communities REIT seems to have promising growth prospects thanks to the highly fragmented structure of its markets, the stock seems fully valued right now. Therefore, investors should wait for a significant correction before purchasing it.

Moreover, Flagship Communities REIT is characterized by extremely low trading volume. This means that it is hard to establish or sell a large position in this stock.

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

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

Updated on April 10th, 2025 by Nathan Parsh

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

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

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

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

This article will analyze the investment prospects of Choice Properties.

Business Overview

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

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

Source: Investor Presentation

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

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

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

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

Growth Prospects

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

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

Source: Investor Presentation

Dividend Analysis

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

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

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

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

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

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

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

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

Final Thoughts

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

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

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

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

Updated on April 9th, 2025 by Felix Martinez

Mullen Group (MLLGF) has two appealing investment characteristics:

#1: It is offering an above-average dividend yield of 6.7%.
#2: It pays dividends monthly instead of quarterly.
Related: List of monthly dividend stocks

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

The combination of an above-average dividend yield and a monthly dividend makes Mullen Group appealing to income-oriented investors. In addition, the company is one of the largest logistics providers in Canada, with an immense network and strong business momentum. In this article, we will discuss Mullen Group’s prospects.

Table of Contents

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

Business Overview

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

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

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

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

Source: Investor Presentation

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

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

Source: Investor Presentation

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

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

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

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

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

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

Growth Prospects

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

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

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