Some of the most successful businesses of our time (and all time in fairness) are effective monopolies (or perhaps part of a duopoly or triopoly) with such dominant market positions they are able to enjoy significant pricing power and generate above-average margins and returns on investment.

This type of situation can be overturned in two main ways: either competition emerges, attracted by the returns on offer, to knock the established businesses off their perch or, alternatively, regulators intervene.

There are continuing attempts by competition authorities to address the power of the Magnificent Seven cohort with several facing regulatory pressures, although to date these have made a limited impact on the dominance of their respective markets.

These businesses are now so embedded into our everyday lives and have such deep pockets and technological advantages that it is very hard for rivals to unseat them.

However, not all monopolies are so successful. For one, you need to have a product or a service for which there is strong and continuing demand.

Just look at the latest sale of rough diamonds by Anglo American (AAL)-owned De Beers which, while not quite the monopoly it was in the 20th century, still controls a big chunk of the diamond market.

The company was forced to cut prices by 10% to 15% in its last auction of 2024 due to sliding demand and competition from artificial or lab-created diamonds.

Hardly the best backdrop for current owner Anglo to try and carve out the business through an IPO or sale, but also an indication of why it doesn’t see a place for the business within the wider group.

Another historically monopolising force, oil producers’ cartel OPEC+, seems to have lost its historic strength amid faltering demand and the discovery of new sources of supply.

The group’s decision to delay its planned output increase by three months to the end of April 2025 barely registered with oil traders.

Dividends are in focus for Martin Gamble this week as he takes a look at the biggest increases in declared FTSE 350 company payouts in 2024 and what lies behind them. We also take the opportunity to reveal the best-performing UK stocks of this year.

Get set for next week when the Shares team will unveil its best stock ideas for 2025. We’ve got some big names featuring in our festive issue too – so make sure you get stuck into the bumper digital magazine when it lands on 19 December.

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