10 Stocks that Pay Dividends Monthly

4. AGNC Investment Corp. (NASDAQ:AGNC)

Number of Hedge Fund Holders: 19

AGNC Investment Corp. (NASDAQ:AGNC) is a Maryland-based real estate investment trust company that invests in residential real estate mortgage markets. The company started paying dividends right after it went public in 2008. It initially issued quarterly dividends but transitioned to monthly payments in 2014 and has maintained this approach ever since. Since its inception, the company has returned $13.4 billion to shareholders through dividends, which makes AGNC one of the best dividend stocks on our list. The company offers a monthly dividend of $0.12 per share and has a dividend yield of 14.02%, as of August 29.

AGNC Investment Corp. (NASDAQ:AGNC)’s business model shows that it isn’t a traditional property-owning REIT. Instead, it’s a more risky approach. Unlike physical properties, which are rarely bought and sold, AGNC Investment’s assets are traded continuously throughout the day. This makes the value of its bond holdings highly sensitive to interest rate changes, whereas property prices tend to be more stable. Moreover, factors like mortgage repayment rates and housing market conditions also come into play. Monitoring the performance of a portfolio of physical properties, such as those held by an apartment REIT, is generally simpler than understanding the complexities of a portfolio made up of mortgage bonds.

Despite these inherent risks, AGNC Investment Corp. (NASDAQ:AGNC) is performing well this year. The stock is up by over 6% since the start of the year. As of June 30, the company managed an investment portfolio valued at $66.0 billion, which included $59.7 billion in Agency MBS, $5.3 billion in net forward purchases or sales of Agency MBS in the “to-be-announced” market, and $1.0 billion in credit risk transfer (CRT) and non-Agency securities, along with other mortgage credit investments.

Insider Monkey’s database of Q2 2024 indicated that 19 hedge funds owned stakes in AGNC Investment Corp. (NASDAQ:AGNC), which remained unchanged from the previous quarter. These stakes have a total value of over $92.7 million.