Week in and week out, the Canadian stock market seems to be setting and breaking its record for all-time highs. As of this writing, the S&P/TSX Composite Index, the benchmark index for the Canadian stock market, is up by a massive 27% from its 52-week low. Despite hitting new highs, there is an eerie air of uncertainty in the market, hinged on several geopolitical factors. The market is still volatile, and there’s no telling when the next bear market might come around.
Granted, it might be a good time to invest in high-quality stocks that offer growth. However, it is always better to prepare for the worst while hoping for the best. Dividend investing can be an excellent strategy to offset potential losses. The right monthly dividend stocks can provide you with regular returns, even when the market and economy go through rough patches.
Even if there is a general decline in share prices, you can count on the best Canadian monthly dividend stocks to get good returns. The TSX has no shortage of monthly dividend stocks, but some warrant more attention than others. Today, I will discuss a logistics business stock that might be just the fit for income-seeking investors.
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Mullen Group
Mullen Group (TSX: MTL) is a monthly-dividend stock that boasts a $1.17 billion market capitalization at the time of writing. It is among North America’s largest logistics providers, with a complete network of businesses operating independently that offer a wide range of services.
The company has been hard at work, building it logistics business, making acquisitions, and reinforcing its capital structure. MTL stock also pays its investors $0.07 per share each month, translating to a 6.28% annualized dividend yield.
Dependable monthly income
Through its various segments, MTL offers less-than-truckload (LTL), logistics and warehousing, international and local freight, and specialized services for several industries. The kind of services it provides and the high demand for them allow Mullen Group to support its regular monthly distributions.
However, Mullen Group’s stock has not had the best performance on the stock market of late. As of this writing, MTL stock trades at $13.38 per share, down by 16.68% from its 52-week high, and its performance has been bumpy over the last six months. Despite the economy not being in the best shape, it managed to pay out its monthly distributions without fail.
The dip in MTL stock’s share prices can be attributed to factors outside its control. The pricing power across the logistics industry is weak across the board, and there is a lot more supply than demand. Yet, MTL has managed to continue acquisitions, completing the deal to bring Cole Group under its banner just last month.
The acquisition has helped MTL stock’s revenue grow by 9.1% in the second quarter (Q2) of fiscal 2025 compared to the same period last year. However, the profitability fell year over year, with its adjusted operating profit before depreciation and amortization declining by 2.1%. Its adjusted net profit fell by over 43%. Despite the reported losses, the company’s doing much better than expected.
Foolish takeaway
Mullen Group has not been overcautious during this time. Instead of waiting for the industry to rebound to make any moves, it is busy with acquisitions. The company has acquired several businesses that further strengthen its network and set itself up for better cash flow and revenues in the future.
It is only a matter of time until the freight industry recovers to a better position. When that finally happens, Mullen Group stock will be well-positioned to improve its margins and continue supporting its high-yielding monthly dividends. I feel it can be a good investment at current levels.
