In this article, we will be taking a look at 10 high-yield monthly dividend stocks to buy in November. To skip our detailed analysis of dividend investing, you can go directly to see the 5 High-Yield Monthly Dividend Stocks to Buy in November.
Each category of stocks has its own benefits and downsides. While growth stocks tend to offer dramatic price appreciations to investors, dividend stocks offer them steady income streams, for instance. This isn’t to say that one stock is objectively better than the other, of course. Rather, it goes to show that stock choices, and resultantly investment decisions, need to be made with great deliberation. This deliberation must also take into account each individual’s personal preferences and what they require most from their portfolios. Income investors, for instance, require steady income streams. And those investing for comfortable early retirements require the same.
For both of the above, dividend stocks like Target Corporation (NYSE:TGT), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and AbbVie, Inc. (NYSE:ABBV) are among the most optimal investment options. In 2021, these stocks have proven to be popular among traders at least all the way up till May, for instance. This reality came in light of many factors, but primarily because of the suffering US 10-year yield. Dropping bond yields thus have been leading to many investors turning their eye towards dividend stocks which are beginning to seem like more attractive assets.
For instance, the DVY iShares dividend ETF constituting major dividend stocks like Exxon Mobil Corporation (NYSE:XOM), rose over 1% in May while the 10-year yield receded under 1.6%. The ETF in question was also 25% higher for the year, according to CNBC. Experts like Steve Chiavarone, who is the portfolio manager at Federated Hermes, have reportedly commented that dividends have been outperforming the S&P 500 on an annualized basis in general.
Chiavarone also noted another advantage of dividend stocks in the same train of thought, stating that the Dow Jones Dividend Select index, when used as a proxy, for instance, was also comparatively cheaper than the S&P 500, trading at a multiple discount of eight to ten, for instance. While these advantages are by no means all there is to dividend stocks, they are enough to build a preliminary case for investing in them.
Investing has become difficult by the day, even for the smart money. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Without further ado, let’s take a look at the 10 high-yield monthly dividend stocks to buy in November.
Our Methodology
While formulating our list below, we have taken into account the number of hedge funds holding stakes in the stocks mentioned, alongside their dividend yields. We have ensured that each stock has a dividend yield of 8% and above, and have ranked them on the basis of their yields, from lowest to highest. Secondly, we have used Insider Monkey’s data collected by tracking 873 hedge funds to list the hedge funds holding stakes in each stock.
High-Yield Monthly Dividend Stocks to Buy in November
10. Broadmark Realty Capital Inc. (NYSE:BRMK)
Number of Hedge Fund Holders: 12
Dividend Yield: 8.1%
Broadmark Realty Capital Inc. (NYSE:BRMK), a mortgage real estate investment trust based in Seattle, underwrites, funds, services, and manages a portfolio of the short-term and first deed of trust loans to invest in residential and commercial properties in the US. The company ranks tenth on our list of high-yield monthly dividend stocks to buy in November. It also offers short-term and first deed of trust loans secured by real estate to fund the construction of residential and commercial properties.
By the end of the second quarter of 2021, 12 hedge funds out of the 873 tracked by Insider Monkey held stakes in Broadmark Realty Capital Inc. (NYSE:BRMK), worth $91.1 million. The previous quarter, 12 hedge funds held stakes in the company worth $98.7 million.
White Brook Capital, an investment management firm, mentioned Broadmark Realty Capital Inc. (NYSE:BRMK) in its first-quarter 2021 investor letter. Here’s what they said:
“Broadmark Realty, Inc (BRMK), was sold because of competition for capital from new positions and other investments in the portfolio. The company will continue to do fine, but better short and long-term investment opportunities were available.”
9. Stellus Capital Investment Corporation (NYSE:SCM)
Number of Hedge Fund Holders: 3
Dividend Yield: 8.13%
Stellus Capital Investment Corporation (NYSE:SCM) is a financials company operating in the asset management and custody banks industry. The company focuses on investments in private middle-market companies and invests through first lien, second lien, unitranche, and mezzanine debt financing. It ranks ninth on our list of high-yield monthly dividend stocks to buy in November.
Stellus Capital Investment Corporation’s (NYSE:SCM) second quarter earnings reported showed an NII of $0.28, beating the previous quarter’s NII of $0.26. The company’s TII was $15.10 million, up 9.13% year over year and beating estimates by $67,470. Stellus Capital Investment Corporation (NYSE:SCM) has also gained 2.21% in the past 6 months and 28.88% year to date.
Insider Monkey’s data shows that in the second quarter of 2021, three hedge funds held stakes in Stellus Capital Investment Corporation (NYSE:SCM), out of the 873 hedge funds tracked. The total value of their stakes was $4.1 million. In the previous quarter as well, three hedge funds held stakes in the company worth $3.6 million.
8. Pennantpark Floating Rate Capital Ltd (NASDAQ:PFLT)
Number of Hedge Fund Holders: 5
Dividend Yield: 8.6%
Pennantpark Floating Rate Capital Ltd (NASDAQ:PFLT), a business development company, is next on our list of high-yield monthly dividend stocks to buy in November. The company makes secondary direct, debt, equity, and loan investments. It ranks eighth on our list.
As of this July, Oppenheimer’s Mitchel Penn holds a Perform rating on shares of Pennantpark Floating Rate Capital Ltd (NASDAQ:PFLT). The analyst also has a $13 price target on the stock.
The fiscal third quarter of 2021 showed an NII of $0.27 for Pennantpark Floating Rate Capital Ltd (NASDAQ:PFLT), in line with estimates. The company’s earnings report also noted a TII of $20.91 million, beating estimates by $0.11 million. Pennantpark Floating Rate Capital Ltd (NASDAQ:PFLT) has also gained 4.11% in the past 6 months and 27.50% year to date.
Out of the 873 hedge funds tracked by Insider Monkey in the second quarter, five held stakes in Pennantpark Floating Rate Capital Ltd (NASDAQ:PFLT) worth $9.5 million. Comparatively, in the previous quarter, seven hedge funds held stakes in the company worth $10.4 million.
Like Target Corporation (NYSE:TGT), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and AbbVie, Inc. (NYSE:ABBV), Pennantpark Floating Rate Capital Ltd (NASDAQ:PFLT) is a dividend stock to take note of.
7. Prospect Capital Corporation (NASDAQ:PSEC)
Number of Hedge Fund Holders: 11
Dividend Yield: 8.7%
Prospect Capital Corporation (NASDAQ:PSEC), a business development company, specializes in middle market, mature, mezzanine finance, later stage, emerging growth, and other transactions. The company ranks seventh on our list of high-yield monthly dividend stocks to buy in November, and is based in New York.
For the fiscal fourth quarter of 2021, Prospect Capital Corporation (NASDAQ:PSEC) reported an NII of $0.19, beating estimates by $0.01. Additionally, the company’s TII was $157.34 million, up 8.34% year over year. Prospect Capital Corporation (NASDAQ:PSEC) has also gained 0.74% in the past 6 months and 48.82% year to date.
According to Insider Monkey’s data, 11 hedge funds out of 873 held stakes in Prospect Capital Corporation (NASDAQ:PSEC) in the second quarter of 2021, worth $48.1 million. Comparatively, in the previous quarter, seven hedge funds held stakes in the company worth $11.6 million.
6. AGNC Investment Corp. (NASDAQ:AGNC)
Number of Hedge Fund Holders: 19
Dividend Yield: 8.72%
AGNC Investment Corp. (NASDAQ:AGNC), founded in 2008, is a real estate investment trust or REIT. The company ranks sixth on our list of high-yield monthly dividend stocks to buy in November and is based in Maryland, US. Its subsidiaries include Bethesda Securities, LLC.
As of this November, AGNC Investment Corp. (NASDAQ:AGNC) has a Market Perform rating at JMP Securities, placed by analyst Trevor Cranston.
AGNC Investment Corp.’s (NASDAQ:AGNC) third quarter earnings report showed an FFO of $0.75, beating estimates by $0.10. The company’s revenue for the quarter was $279 million, beating the previous quarter’s revenue of $232 million. Finally, AGNC Investment Corp. (NASDAQ:AGNC) also gained 5.13% year to date and 15.65% in the past year.
Around 19 hedge funds out of 873 tracked by Insider Monkey in the second quarter held stakes in AGNC Investment Corp. (NASDAQ:AGNC). The total stake value of the hedge funds was $152 million, roughly. In comparison, in the first quarter 18 hedge funds held stakes in the company worth $168 million, roughly.
Like Target Corporation (NYSE:TGT), Chevron Corporation (NYSE:CVX), Exxon Mobil Corporation (NYSE:XOM), and AbbVie, Inc. (NYSE:ABBV), AGNC Investment Corp. (NASDAQ:AGNC) is a suitable dividend stock pick for income investors.
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Disclosure: None. 10 High-Yield Monthly Dividend Stocks to Buy in November is originally published on Insider Monkey.
