Updated on May 5th, 2023 by Bob Ciura
Monthly dividend stocks have instant appeal for many income investors. Stocks that pay their dividends each month offer more frequent payouts than traditional quarterly or semi-annual dividend payers.
For this reason, we created a full list of 84 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:
In addition, stocks that have high dividend yields are also attractive for income investors.
With the average S&P 500 yield hovering around 1.7%, investors can generate much more income with high-yield stocks.
Screening for monthly dividend stocks that also have high dividend yields makes for an appealing combination.
This article will list the 20 highest-yielding monthly dividend stocks.
Table Of Contents
The following 20 monthly dividend stocks have high dividend yields above 5%. Stocks are listed by their dividend yields, from lowest to highest.
You can instantly jump to an individual section of the article by utilizing the links below:
High-Yield Monthly Dividend Stock #20: Modiv Inc. (MDV)
Modiv is Real Estate Investment Trust, which, as its name suggests, aims to pay MOnthly DIVidends to its shareholders. The company acquires, owns, and actively manages single-tenant net-lease industrial, retail, and office properties in the United States, focusing on strategically essential and mission-critical properties with predominantly investment-grade tenants.
As of its most recent filings, the company’s portfolio comprised 46 properties that occupied 3.2 million square feet of aggregate leasable area. Prior to its public listing in 2022, the company Modiv was one of the largest non-listed REITs to raise funds entirely via crowdfunding and the first real estate crowdfunding platform to be entirely investorowned. The company generated $46.2 million in revenues last year and is based in Costa Mesa, California.
On February 23rd, 2023, Modiv reported its Q4-2022 and full-year results for the period ending December 31st, 2022. For the quarter, total revenues came in at $14.4 million, up 63% year-over-year. The $5.6 million increase reflected a larger property portfolio following Modiv’s acquisition spree over the past year, as well as the early termination fee revenue paid by Sutter Health related to its property in Rancho Cordova, California. Excluding the $3.8 million early termination fee revenue, revenues for the quarter would have grown by $1.8 million, or 20% year-over-year.
AFFO was $6.9 million, or $0.68 per diluted share, compared with AFFO of $2.4 million, or $0.27 per diluted share, in the prior-year period. Again, much of the $4.5 million increase ($3.8 million) in AFFO was primarily attributable to the early termination fee discussed above. As a result, the AFFO per share for FY2022 was also quite elevated, coming in at $2.22 compared to $1.52 last year.
Click here to download our most recent Sure Analysis report on Modiv (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #19: Gladstone Capital (GLAD)
Gladstone Capital is a business development company that primarily invests in small and medium businesses. These investments are made via a variety of equity (10% of portfolio) and debt instruments (90% of portfolio), generally with very high yields. Loan size typically ranges from $7 million to $30 million and has terms of up to seven years. The company’s stated purpose is to generate income it can distribute to its shareholders. The company pays its distributions on a monthly basis.
Like any other BDC, Gladstone has no competitive advantages as it operates in a highly competitive environment. It is also dependent upon funding costs and the spreads it can earn on its debt and equity investments. Gladstone is vulnerable to recessions, as some borrowers will likely face liquidity issues during rough economic periods. Indeed, Gladstone cut its dividend during the Great Recession and has not restored it yet.
Gladstone is currently facing strong business headwinds, namely an adverse environment of high interest rates and an economy that has greatly decelerated and may even fall into a recession. As a result, the stock has come under pressure, and thus it is currently offering a nearly 10-year high dividend yield of 9.8%. As BDCs distribute most of their earnings in the form of dividends, the payout ratio of 86% is reasonable for a BDC. However, the high payout ratio of Gladstone and its sensitivity to recessions result in a vulnerable dividend. Nevertheless, thanks to its consistent performance record, Gladstone is fairly attractive from a long-term perspective.
Click here to download our most recent Sure Analysis report on Gladstone Capital (GLAD) (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #18: Gladstone Commercial (GOOD)
Gladstone Commercial Corporation is a REIT that specializes in single-tenant and anchored multi-tenant net leased industrial and office properties across the U.S. The trust targets primary and secondary markets that possess favorable economic growth trends, growing populations, strong employment, and robust growth trends.
The trust’s stated goal is to pay shareholders monthly distributions, which it has done for more than 17 consecutive years. Gladstone owns over 100 properties in 24 states that are leased to about 100 unique tenants and has a market capitalization of $556 million.
Gladstone posted fourth quarter and full-year earnings on February 22nd, 2023, and results were much weaker than expected on both the top and bottom lines. FFO-per-share came to 34 cents, which was a nickel behind estimates, and was down from 43 cents in the prior quarter.
Revenue was up 5.4% year-over-year to $37.2 million, but that missed estimates by $1.3 million. Total operating expenses were $26.83 million, which was down from $37.45 million in the prior quarter. The REIT noted that its variable rate debt is seeing ever higher interest expense, which is crimping margins.
Click here to download our most recent Sure Analysis report on GOOD (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #17: Sabine Royalty Trust (SBR)
Hugoton Royalty Trust was created in late 1998, when XTO Energy conveyed 80% net profit interests in some predominantly gas-producing properties in Kansas, Oklahoma and Wyoming to the trust. Net profits in each area are calculated by subtracting production costs, development costs and labor costs from revenues. The trust, which produced 88% natural gas and 12% oil in 2021, has a market capitalization of $84 million.
Due to its pure upstream nature, Hugoton is highly sensitive to the cycles of gas prices. Between April 2018 and October 2020, the costs of the trust exceeded its revenues due to suppressed gas prices. As a result, Hugoton did not offer any distributions during that period. Even worse, when gas prices began to recover in late 2020, the trust had to wait for its revenues to offset past losses. Hugoton resumed paying monthly distributions only in August 2022.
In mid-November, Hugoton reported (11/14/22) financial results for the third quarter of fiscal 2022. Its realized prices of oil and gas recovered thanks to the sanctions of Europe and the U.S. on Russia for its invasion in Ukraine. Therefore, even though oil and gas output decreased, distributable income per unit recovered from $0.00 in the prior year’s quarter to $0.22.
Click here to download our most recent Sure Analysis report on Sabine (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #16: Generation Income Properties (GIPR)
Generation Income Properties, Inc. is an internally managed REIT focused on acquiring and managing income-producing retail, office, and industrial properties. As of December 31st, 2022, the company’s asset base included 13 properties, comprising one industrial, seven retail (including one medical-retail), and five office properties, which are net leased to high-quality tenants in major markets throughout the United States.
These properties, along with a 36.8% tenancy in common interest in a single tenant retail building (approximately 15,300 square feet) leased to La-Z-Boy Company, feature 338,142 leasable square feet and an annualized base rent of $5.43 million.
On March 27th, 2023, Generation Income reported its Q4-2022 and full-year results for the period ending December 31st, 2022. For the quarter, total revenues from operations came in at $1.4 million as compared to $0.94 million in the prioryear period.
This represents a year-over-year increase of 49%, which was driven primarily by the acquisition of properties the company executed over the past four quarters. Operating expenses, including G&A, for the same periods, were $2.26 million and $1.68 million, respectively. Higher operating expenses were driven primarily by increases in G&A expenses, recoverable expenses and depreciation/amortization from recent acquisitions, and compensation costs.
Core AFFO came in at a negative $56,000, or ($0.02) per share, resulting in Core AFFO per share for the year landing at $0.18. At the end of the quarter, 100% of the company’s portfolio was leased, with all rents due collected. We now forecast an AFFO/share power of $0.30 for the fiscal year 2023.
Click here to download our most recent Sure Analysis report on GIPR (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #15: Stellus Capital (SCM)
Stellus Capital Management provides capital solutions to companies with $5 million to $50 million of EBITDA and does so with a variety of instruments, the majority of which are debt. Stellus provides first lien, second lien, mezzanine, convertible debt, and equity investments to a diverse group of customers, generally at high yields, in the US and Canada.
Source: Investor Presentation
Stellus reported fourth quarter and full-year earnings on February 28th, 2023, and results were better than expected on both revenue and earnings. The company noted adjusted net investment income per-share of $1.38, which was five cents better than estimated. Total investment income, which is akin to revenue, was up almost 18% to $75.1 million, and beat estimates by almost $2 million.
The company saw a boost in net assets results from operations of $14.5 million for the quarter, and $33.6 million for the year, which equates to 74 cents per share and $1.72 per share, respectively. The company noted its portfolio of loans is 97% floating rate, while its liabilities are 65% fixed rate. This means that as rates rise, the company has a much larger increase in net interest income, but the reverse is true as well.
Stellus also boosted its monthly dividend to $0.1333 per share, which is a massive 43% increase from the prior level, and represents its highest annualized payout for over a decade.
Click here to download our most recent Sure Analysis report on Stellus (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #14: Horizon Technology (HRZN)
Horizon Technology Finance Corp. is a BDC that provides venture capital to small and medium–sized companies in the technology, life sciences, and healthcare–IT sectors.
The company has generated attractive risk–adjusted returns through directly originated senior secured loans and additional capital appreciation through warrants, featuring a last–nine–month annualized portfolio yield of 14.7%.
On February 28th, Horizon released its Q4-2022 and full-year results for the period ending December 31st, 2022. For the quarter, total investment income grew 36.6% year-over-year to $23.1 million, primarily due to growth in interest income on investments resulting from an increase in the average size of the debt investment portfolio and an increase in the base rate for most of the company’s variable rate debt investments.
Net investment income per share (ISS) rose to $0.40, one cent higher compared to Q4-2022. Net asset value (NAV) per share landed at $11.47, 1.6% lower sequentially or 0.8% lower year-over-year. After paying its monthly distributions, Horizon’s undistributed spillover income as of December 31st was $0.68 per share, indicating a considerable cash cushion. The portfolio remained relatively stable, holding 98 businesses at the end of the quarter.
Click here to download our most recent Sure Analysis report on HRZN (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #13: PennantPark Floating Rate (PFLT)
PennantPark Floating Rate Capital Ltd. is a BDC that makes secondary direct, debt, equity, and loan investments.
The fund also aims to invest through floating rate loans in private or thinly traded or small–cap, public middle market companies, equity securities, preferred stock, common stock, warrants or options received in connection with debt investments or through direct investments.
Source: Investor Presentation
It generally invests in the United States and to a limited extent non–U.S. companies. It aims to invest in companies not rated by national rating agencies.
On February 8th, 2023 PennantPark Floating Rate Capital Ltd. announced financial results for the first fiscal quarter ended December 31, 2022. The Board of Directors declared a distribution of $0.10 per share, an increase of 5.3% from the most recent distribution. For the three months ended December 31, 2022 investment income was $31.3 million, which was attributable to $27.6 million from first lien secured debt and $3.7 million from other investments.
For the three months ended December 31, 2021 investment income was $26.3 million, which was attributable to $20.1 million from first lien secured debt and $6.2 million from other investments. The increase in investment income compared to the same period in the prior year was primarily due to the increase in the cost yield of the company’s debt portfolio.
Click here to download our most recent Sure Analysis report on PFLT (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #12: Prospect Capital (PSEC)
Prospect Capital Corporation is a Business Development Company, or BDC, that provides private debt and private equity to middle–market companies in the U.S. The company focuses on direct lending to owner–operated companies, as well as sponsor–backed transactions.
Prospect invests primarily in first and second lien senior loans and mezzanine debt, with occasional equity investments.
Source: Investor Presentation
Prospect reported fourth quarter and full-year earnings on February 8th, 2023, and results were mixed. The company posted net investment income of 23 cents per share, which was two cents better than expected. However, total investment income was $213 million. That was up 21% year-over-year, but missed estimates by about half a million dollars.
Interest as a percentage of total investment income was 89.6%, which was up sharply from 81.1% in the year-ago period, as the company is generating much more interest on its portfolio. This is the result of higher prevailing interest rates.
Click here to download our most recent Sure Analysis report on PSEC (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #11: SLR Investment Corp. (SLRC)
SLRC is a Business Development Company that primarily invests in U.S. middle market companies. The company has five core business units which include cash flow, asset-based, life science lending, equipment finance, and corporate leasing.
The trust’s debt investments primarily consist of cash flow senior secured loans, including first lien and second lien debt instruments. It also offers asset-based loans including senior secured loans collateralized on a first lien basis by current assets.
On February 28th, 2023, SLR Investment Corp. reported its full-year results for the period ending December 31st, 2022. For the year, total investment income totaled $177.5 million, 27.3% higher year-over-year. The increase was primarily due to a larger portfolio as well as an increase in rates. Expenses totaled $102.7 million, 31% higher compared to last year.
The steeper increase in expenses was primarily due to SLR’s cost of borrowing surging. Thus, net investment income grew by a lesser 25% to $76.4 million. On a per-share basis, net investment income grew by just seven cents to $1.48 due to the additional shares utilized to fund the company’s investments.
Click here to download our most recent Sure Analysis report on SLRC (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #10: Ellington Residential Mortgage REIT (EARN)
Ellington Residential Mortgage REIT acquires, invests in, and manages residential mortgage and real estate related assets. Ellington focuses primarily on residential mortgage-backed securities, specifically those backed by a U.S. Government agency or U.S. government–sponsored enterprise.
Agency MBS are created and backed by government agencies or enterprises, while non-agency MBS are not guaranteed by the government.
Source: Investor Presentation
On March 6th, 2023, Ellington Residential reported its fourth quarter results for the period ending December 31st, 2022. The company generated net income of $11.7 million, or $0.88 per share. The company renamed what was previously called core earnings to adjusted distributable earnings starting in 2022. Ellington achieved adjusted distributable earnings of $3.3 million in the quarter, leading to adjusted earnings of $0.25 per share, which covers the dividend paid in the period. EARN achieved a net interest margin of 1.37% in Q4.
At quarter end, Ellington had $34.8 million of cash and cash equivalents, and $2.9 million of other unencumbered assets. The debt-to-equity ratio was 7.5X. Book value per share declined from the year-ago quarter to $8.40, a 29% decrease.
Click here to download our most recent Sure Analysis report on EARN (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #9: Oxford Square Capital (OXSQ)
Oxford Square Capital Corp. is a BDC specializing in financing early and middle–stage businesses through loans and CLOs.
The company holds an equally split portfolio of First–Lien, Second–Lien, and CLO equity assets spread across 8 industries, with the highest exposure in business services and healthcare, at 36% and 25%, respectively.
Source: Investor Presentation
On March 21st, 2023, Oxford Square reported its Q4-2022 and full-year results for the period ending December 31st, 2022. For the quarter, the company generated approximately $11.9 million of total investment income, up 4.3% from the previous quarter.
The rise in total investment income was due to rising interest rates. Specifically, the weighted average yield of the debt investments came in at 11.9% at current cost, compared to 10.4% during Q3-2022. This increase was partially offset by a lower cash distribution yield from OXSQ’s CLO equity investments, which declined from 16.6% to 13.0% sequentially.
As a result of a higher total investment income and lower expenses, NII amounted to $6.5 million, or $0.13/share, compared to $5.6 million or $0.11 sequentially. Net asset value (NAV) per share was $2.78 compared to $3.34 last quarter. This was due to a decrease in the value of the company’s assets.
Click here to download our most recent Sure Analysis report on OXSQ (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #8: Permianville Royalty Trust (PVL)
Permianville Royalty Trust is an oil and natural gas royalty trust. It owns a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from various oil and gas properties located in Texas, Louisiana, and New Mexico.
The company was formerly known as Enduro Royalty Trust and changed its name to Permianville Royalty Trust in September 2018. As oil and gas royalty trusts are closely correlated to oil and gas prices, royalty trusts like PVL are essentially a bet on commodity prices.
In late March, PVL reported (3/23/23) financial results for the full fiscal 2022. Its average realized prices of oil and gas grew 43% and 79%, respectively, over the prior year thanks to multi-year high benchmark prices, which resulted from the sanctions of Europe and the U.S. on Russia for its invasion in Ukraine. Oil volumes and gas volumes grew 33% and 75%, respectively, thanks to favorable prices. As a result, distributable income per unit nearly quadrupled, from $0.12 to $0.44.
Click here to download our most recent Sure Analysis report on PVL (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #7: Dynex Capital (DX)
Dynex Capital invests in mortgage–backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non–agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest–only securities.
Source: Investor Presentation
Dynex reported its fourth quarter and full year 2022 financial results on 01/30/2023. Book value per common share was $14.73 as of December 31, 2022. The company generated a total economic return of $0.89 per common share, or 6.2% of beginning book value, for the fourth quarter of 2022, and $(1.71) per common share, or (9.5)% of beginning book value, for the full year.
Dynex reported comprehensive income of $1.17 per common share and net income of $0.85 per common share for the fourth quarter of 2022, and a comprehensive loss of $(1.24) per common share and net income of $3.19 per common share for the full year. The company’s realized gains on interest rate hedges included in GAAP net income were $204.8 million for the fourth quarter of 2022 and $690.7 million for the full year.
Leverage including TBA dollar roll positions stood at 6.1 times shareholders’ equity as of December 31, 2022. The company raised equity capital of $92.4 million during the fourth quarter through at-the-market (“ATM”) common stock issuances, bringing total capital raised for 2022 to $246.9 million, net of $3.1 million issuance costs.
Click here to download our most recent Sure Analysis report on DX (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #6: SL Green Realty (SLG)
SL Green is a self-managed REIT that manages, acquires, develops, and leases New York City Metropolitan office properties. In fact, the trust is the largest owner of office real estate in New York City, with the majority of its properties located in midtown Manhattan. The trust has a market capitalization of ~$1.5 billion and is Manhattan’s largest office landlord, with more than 40 buildings totaling nearly 30 million square feet.
The coronavirus crisis, which has harmed several SLG tenants, has significantly impacted SL Green. Office space occupancy in New York is near historic lows, as demand has waned, at least in part, due to increased working from home. However, with New York City’s employment rates steadily improving, the company anticipates increased demand for office space in the future.
SL Green also benefits from its trophy assets, such as 450 Park Avenue and 245 Park Avenue, where the company can command high rents from tenants and where demand remains high. The company’s regular asset sales of non-core assets aim to further strengthen the portfolio, which should help with demand and occupancy rates in the long run.
Source: Investor Presentation
In December 2022, SL Green reduced its dividend by 12.9% to $0.2708 per month. Despite ongoing interest rate challenges, the current payout appears to be manageable. We expect SL Green to generate $5.40 in FFO per share in 2023, resulting in a dividend payout ratio of ~60%.
Click here to download our most recent Sure Analysis report on SL Green Realty Corp. (SLG) (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #5: Ellington Financial (EFC)
Ellington Financial Inc. acquires and manages mortgage, consumer, corporate, and other related financial assets in the United States. The company acquires and manages residential mortgage–backed securities (RMBS) backed by prime jumbo, Alt–A, manufactured housing, and subprime residential mortgage loans.
Additionally, it manages RMBS, for which the U.S. government guarantees the principal and interest payments. It also provides collateralized loan obligations, mortgage–related and non–mortgage–related derivatives, equity investments in mortgage originators and other strategic investments.
Source: Investor Presentation
On February 23rd, 2023, Ellington Financial reported its Q4-2022 and full-year results for the period ending December 31st, 2022. Due to the company’s business model, Ellington doesn’t report any revenues. Instead, it records only income.
For the quarter, gross interest income came in at $89.8 million, 14.2% higher quarter-over-quarter. Higher gross interest income was primarily driven primarily by a larger residential transition loan portfolio at higher rates. Adjusted (previously referred to as “core”) EPS came in at $0.42, two cents lower versus Q3-2022.
For the year, EPS came in at $1.68, down 8.2% compared to fiscal 2022. The higher cost of funds was only partially offset by higher asset yields. Ellington’s book value per share declined from $15.22 to $15.05 during the last three months, with its dividend exceeding the underlying earnings. The monthly dividend remains at $0.15, nonetheless. Management commented that as they continue to rotate the portfolio into higher reinvestment yields, dividend coverage should resume.
Click here to download our most recent Sure Analysis report on EFC (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #4: AGNC Investment Corporation (AGNC)
American Capital Agency Corp is a mortgage real estate investment trust that invests primarily in agency mortgage–backed securities (or MBS) on a leveraged basis.
The firm’s asset portfolio is comprised of residential mortgage pass–through securities, collateralized mortgage obligations (or CMO), and non–agency MBS. Many of these are guaranteed by government–sponsored enterprises.
It currently generates $1.2 billion in annual net revenue.
Source: Investor Presentation
AGNC reported its Q4 2022 results on Jan. 30, 2023. The company generated $1.17 in comprehensive income per common share, comprised of: $0.93 net income per common share, $0.24 other comprehensive income (“OCI”) per common share on investments marked-to-market through OCI, and $0.74 net spread and dollar roll income per common share, excluding estimated “catch-up” premium amortization cost.
This result includes $0.11 per common share of dollar roll income associated with the Company’s $19.0 billion average net long position in Agency mortgage-backed securities (“MBS”) in the “to-be-announced” (“TBA”) market, and excludes $(0.01) per common share of estimated “catch-up” premium amortization cost due to change in projected constant prepayment rate (“CPR”) estimates.
The company reported $9.84 tangible net book value per common share as of December 31, 2022, which increased $0.76 per common share, or 8.4%, from $9.08 per common share as of September 30, 2022..
Click here to download our most recent Sure Analysis report on AGNC (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #3: PermRock Royalty Trust (PRT)
PermRock Royalty Trust is a trust formed in November 2017 by Boaz Energy, a company that is focused on the acquisition, development and operation of oil and natural gas properties in the Permian Basin. The Trust derives all its cash flows from profits from the sale of oil and natural gas production from these properties and distributes dividends monthly.
The trust reported third quarter 2022 results for the period ending September 30th, 2022. Net profits income received by the trust was $3.53 million for the quarter, compared to $2.27 million in Q3 2021. Significant increases in oil and natural gas sales prices led to a strong year-over-year improvement, offset by a reduction in sales volumes.
The average realized sale price of oil ($/Bbl) was $107.75 during the quarter, a 59% increase compared to the price of $67.82 in the prior year period. The average realized sale price of natural gas also shot up massively, from $4.29 to $8.95 per Mcf.
Distributable income for the trust came to $3.36 million, up from $2.10 million in Q3 2021. Distributable income per unit of $0.28 was up from $0.17 in the prior year period. The trust paid out all distributable income to shareholders as distributions, for a payout ratio of 100%.
Click here to download our most recent Sure Analysis report on PRT (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #2: ARMOUR Residential REIT (ARR)
ARMOUR is a high dividend REIT that invests primarily in residential mortgage–backed securities that are guaranteed or issued by a United States government entity including Fannie Mae, Freddie Mac and Ginnie Mae.
ARMOUR reported Q4 results on February 15th, 2023. It generated comprehensive income available to common stockholders of $39.5 million or $0.27 per common share. Net interest income of $11.6 million and net interest margin of 2.59% were up 38 basis points from the prior quarter.
Source: Investor Presentation
Distributable Earnings available to common stockholders was $38.8 million, which represents $0.27 per common share. It raised $174.2 million of capital by issuing 30,721,405 shares of common stock at $5.67 net proceeds per share, after fees and expenses, through an at the market offering program. The company repurchased 449,700 shares of common stock, at an average cost of $5.01 per share, pursuant to existing authorization.
Click here to download our most recent Sure Analysis report on ARMOUR Residential REIT (ARR) (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #1: Orchid Island Capital (ORC)
Orchid Island Capital, Inc. is a Real Estate Investment Trust, or REIT, operating in the mortgage industry. Mortgage REITs differ from most other REITs. For example, traditional REITs typically own a portfolio of physical real estate, which they lease to tenants to collect rental income.
Orchid is an externally managed REIT (by Bimini Advisors LLC) that invests in residential mortgage-backed securities (RMBS), either pass-through or structured agency RMBSs, which are financial instruments that collect cash flow based on residential loans such as mortgages, including subprime, and home-equity loans.
Source: Investor Presentation
Interest rates are increasing and likely will continue to rise in the coming year. Short-term bond yields have risen, sometimes offering a higher yield then longer-term bonds. This is known as an inverted yield curve, which can be a precursor to a recession. Because of this, the stock price for ORC has fallen 37% over the past 12 months.
Shares had fallen so much that the trust executed a 1-for-5 reverse stock split on August 30th, 2022.
Orchid Island Capital announced fourth-quarter results on February 23rd, 2023. The company reported Q4 net income of $34.9 million, or $0.95 per share, which consists of a net interest income of $2.4 million, or $0.06 per common share. Total expenses were $5.9 million, or $0.16 per common share.
Net realized, and unrealized losses were $38.4 million, or $1.04 per common share, on RMBS and derivative instruments, including net interest income on interest rate swaps.
Book value per common share came in at $11.93, while the total return of 8.67% comprised of a $0.48 dividend per common share and a $0.51 increase in book value per common share.
Click here to download our most recent Sure Analysis report on ORC (preview of page 1 of 3 shown below):
Monthly dividend stocks could be more appealing to income investors than quarterly or semi-annual dividend stocks. This is because monthly dividend stocks make 12 dividend payments per year, instead of the usual 4 or 2.
Furthermore, monthly dividend stocks with high yields above 5% are even more attractive for income investors.
The 20 stocks on this list have not been vetted for dividend safety, meaning each investor should understand the unique risk factors of each company.
That said, these 20 dividend stocks make monthly payments to shareholders, and all have high dividend yields.
If you are interested in finding high-quality dividend growth stocks and/or other high-yield securities and income securities, the following Sure Dividend resources will be useful:
Monthly Dividend Stock Individual Security Research
High-Yield Individual Security Research
Other Sure Dividend Resources
Thanks for reading this article. Please send any feedback, corrections, or questions to firstname.lastname@example.org.