10 Dividend Stocks That Pay More Than the US Average Rental Yield

2. Ellington Financial Inc. (NYSE:EFC)

Dividend Yield: 11.79%

No. of Hedge Funds: 9

Based in Connecticut, Ellington Financial Inc. (NYSE:EFC) is a specialty finance company investing in residential and commercial mortgage-backed securities. The company employs quantitative models and active risk management to optimize portfolio performance. Though the market is filled with tough competitors like AGNC Investment, the company thrives through dynamic asset allocation alongside expertise in structured credit markets.

Ellington Financial Inc. (NYSE:EFC) stands out with an impressive dividend yield of 11.79%, close to two times the U.S. average rental yield of 6.1%, thus becoming part of our list of top 10 dividend stocks. The company saw significant growth in its loan portfolios. It recorded a 39% combined increase in closed-end second lien, HELOC, Prop Reverse, and commercial mortgage bridge loan portfolios. High performances from the Longbridge Reverse Mortgage segment contribute to the company’s high earnings with increased origination volumes and improved margins, garnering shareholders’ confidence in the company.

Ellington Financial Inc. (NYSE:EFC) has limited hedge fund involvement with only nine funds holding positions., as per Insider Monkey’s Q4 2024. Yet the stock maintains a Buy rating from analysts. The 1-year median price target is set at $14.50, reflecting an upside of 8.90% to the current price. Investors interested in locking in dividends should invest in the stock before March 31, 2025.