Despite the broader market rally, Mullen Group (TSX:MTL) has slipped nearly 5% so far in 2025. As a result, the stock currently trades at $13.84 per share with a market cap of about $1.2 billion. However, the recent declines have sent its dividend yield above 6%, which could be exactly what income investors are looking for in this volatile market. While some may worry its dividend might not hold up, I see the dip as a buying opportunity amid short-term market noise.
In this article, I’ll walk you through Mullen’s latest financials, the reasons behind its stock slide, and tell you why this monthly dividend stock might still be a reliable pick for long-term income investors.
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Mullen Group stock
If you don’t know it already, Mullen is one of Canada’s largest logistics firms, operating across freight, warehousing, and cross-border logistics. And the current annualized dividend yield is sitting at an attractive 6.1%, paid out every single month. Despite MTL stock declining nearly 5% so far in 2025, it’s still delivering stable business performance.
To understand why this monthly dividend stock has been sliding lately, we need to look at broader industry conditions. Notably, the freight and logistics sector is dealing with soft pricing as shippers currently hold the upper hand in negotiations. While that has weighed on investor sentiment, the company’s latest earnings show Mullen is holding its ground better than many might expect.
What the latest quarter really tells us
In the second quarter, Mullen’s revenue rose 9.1% YoY (year over year) to $540.9 million with the help of recent acquisitions. The Cole Group, acquired in June, and earlier additions like ContainerWorld helped boost its top line by over $50 million. But even if we remove acquisition-related gains and fuel surcharge fluctuations, the company’s revenue from existing operations was still mostly flat, which could be seen as a positive, given the broader industry slowdown.
Still, Mullen’s cash flow from operations remained stable at $77.8 million last quarter, showing that its business continues to generate cash even in a tough market.
Mullen’s focus on long-term planning
Interestingly, Mullen recently raised over $325 million in private placement debt in an oversubscribed offering, giving it a strong balance sheet to work with. These funds not only refinanced existing debt but also gave the company the strength to complete the Cole Group acquisition and set the stage for more deals down the road.
Acquisitions are clearly a key part of its strategy. As the company noted, growth through acquisitions is currently the most practical route in a market where organic demand remains soft. And rather than wait for ideal conditions, Mullen is trying to position itself now to benefit when the market eventually rebounds.
A monthly dividend that still looks dependable
To wrap it up, Mullen Group’s dividend looks safe for now. While its profits have slipped a bit on a YoY basis, the company is still producing stable cash flow, expanding its business intelligently, and keeping a close eye on margins.
At an over 6% yield, paid monthly, this monthly dividend stock offers a steady income stream while also giving investors a shot at upside once freight markets stabilize. Given all these factors, the recent dip in its share price might just be an opportunity for long-term income seekers who can look past near-term volatility.
