I’d Put $7,000 in This Monthly Income Legend Before It Recovers

A monthly income legend is a screaming buy and well-positioned for a strong recovery.

Dividends count as income and people who rely on them prefer frequent payouts rather than quarterly. Investing in monthly income stocks is useful for budgeting purposes. This way, the timing of dividend payments can align with your recurring living expenses.

If you have $7,000 in free cash to invest, consider putting it in one of Canada’s leading and largest logistics companies. Mullen Group (TSX: MTL) was founded in 1949 and is now a TSX monthly income legend. The industrial stock started paying quarterly dividends in 2012, then shifted to monthly payments in 2013. It hasn’t missed a payment since.

At $14.25 per share, MTL is down by only 0.20% year-to-date. The lucrative 5.9% dividend yield compensates for the weakness, although recovery is imminent following the strong quarterly results.

Person uses a tablet in a blurred warehouse as background

Source: Getty Images

Business overview

Mullen provides transportation, warehousing, and distribution services throughout North America. The $1.3 billion company operates across Canada and the United States and derives revenue from four distinct business segments. Allied services include environmental reclamation, fluid hauling, and water management. 

The Less-Than-Truckload (LTL) business operates the largest final-mile network in western Canada and Ontario, extending across the border. LTL delivers 3 million shipments of consumer goods annually. Mullen’s Logistics & Warehousing (L&W) segment provides transportation and logistics solutions. Its development is ongoing.

The Specialized & Industrial Services (S&IS) segment serves Canada’s natural resources and infrastructure sectors. S&IS offers specialized services to businesses in western Canada related to construction, energy, forestry, and mining. Under the U.S. & International Logistics segment is HAUListic, a business unit with a proprietary integrated transportation management platform. This Chicago-based 3PL (Third-Party Logistics) has a network of independently owned and managed Station Agents.

Tariff headwind

Like with most companies, the on-again, off-again tariff issue is a headwind in 2025. Fortunately, tariffs did not materially impact freight demand in the first quarter. However, according to Murray K. Mullen, Chairman and Senior Executive Officer of the Mullen Group, a prolonged stalemate can potentially impact freight demand and the economy.

In the three months ending March 31, 2025, revenue increased 7.5% to $497.1 million compared to Q1 2024, while net income declined 20.3% year-over-year to $17.7 million. The L&W segment accounted for 20.2% ($151.8 million) of total revenue. Mullen said the 39 business units faced difficult circumstances but generated results close to or at par with 2024 levels.

Successful growth strategy

The Mullen Group is growth-oriented, and acquiring companies is the foundation of its growth strategy. Since going public in 1993, it has acquired 87 companies of various sizes, including established name brands. In April 2025, the company acquired the Cole Group, a top customs brokerage and trade consulting firm.  

Given the current market conditions, Mullen believes that acquisitions are the only plausible way to grow. “Our thesis remains that acquisitions are the only viable means of growth in this market, and we will continue to look at opportunities that add long-term value for our shareholders,” he added. Market analysts recommend a ‘strong buy’ rating for the transportation conglomerate.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mullen Group. The Motley Fool has a disclosure policy.

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