10 Highest Paying Monthly Dividend Stocks

6. Ellington Credit Company (NYSE:EARN)

Dividend Yield as of August 16: 13.79%

Ellington Credit Company (NYSE:EARN) is an American capital market company. Formerly known as Ellington Residential, the company was originally established as a real estate investment trust (REIT) specializing in residential mortgage-backed securities. Earlier in March, the Board of Trustees approved a major shift in the company’s investment strategy to concentrate on corporate collateralized loan obligations (CLOs). As part of this transition, the company ended its REIT status and rebranded as Ellington Credit Company.

The new business model seems to be working for Ellington Credit Company (NYSE:EARN). In the second quarter of 2024, the company expanded its CLO portfolio to $85.1 million, up from $45.1 million at the end of the previous quarter. As of August 9, 2024, the CLO portfolio had grown to $108 million, accounting for approximately 50% of the capital allocation. The company aims to complete the strategic transformation by the end of the year. During the quarter, the company’s MBS portfolio incurred a modest net loss due to fluctuations in interest rates and spreads. This contributed to a slight overall net loss for the period. However, as the company progresses with its shift from MBS to CLOs, it has seen an expansion in its net interest margin and a reduction in leverage ratios.

Ellington Credit Company (NYSE:EARN) reported a strong cash position in the second quarter of 2024. The company’s cash and cash equivalents jumped to over $118.7 million, from $22.4 million in the previous quarter. It has paid uninterrupted dividends to shareholders since 2013, which makes it one of the best dividend stocks on our list. The company pays a monthly dividend of $0.08 per share and has a dividend yield of 13.79%, as of August 16.