10 Highest Paying Monthly Dividend Stocks

1. Orchid Island Capital, Inc. (NYSE:ORC)

Dividend Yield as of August 16: 17.87%

Orchid Island Capital, Inc. (NYSE:ORC) is an American specialty finance company, headquartered in Florida. As monetary policy has shifted towards a more accommodative stance, equity prices for mortgage REITs have strengthened, enabling the company to raise common equity capital through its at-the-market program. During the second quarter of 2024, the company successfully raised approximately $100.7 million, generally at a slight discount to book value. These funds were invested in Agency RMBS assets at highly attractive levels. This influx of new equity capital allowed the company to expand its portfolio by approximately 16.6% during the quarter.

Orchid Island Capital, Inc. (NYSE:ORC) remained confident in its future investments as well. It expects that investment opportunities will continue to be attractive, with the potential for improved total returns if the Feds begins easing monetary policy, especially if the banking sector becomes more active in the Agency RMBS market. Even without such developments, the current investment environment offers appealing total returns, with hedged net interest spreads providing ample support for the current dividend level.

Orchid Island Capital, Inc. (NYSE:ORC) has paid regular monthly dividends to shareholders since its IPO in 2013, which makes it one of the best dividend stocks on our list. In 2013, its cumulative dividends came in at over $4.6 million, which grew to over $81 million at the end of 2023. Over these years, it returned approximately $658 million to shareholders through dividends. Currently, it pays a monthly dividend of $0.12 per share and supports a dividend yield of 17.87%.

While we acknowledge the potential of ORC as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued dividend stock that is more promising than ORC but that trades at less than 7 times its earnings and yields nearly 10%, check out our report about the dirt cheap dividend stock.

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Disclosure: None. This article is originally published at Insider Monkey.