11 Best Stocks That Pay Monthly Dividends in 2024

4. AGNC Investment Corp. (NASDAQ:AGNC)

Number of Hedge Fund Holders: 24

AGNC Investment Corp. (NASDAQ:AGNC) ranks fourth on our list of the best monthly dividend stocks. The Maryland-based real estate investment trust company invests in residential real estate mortgage markets. The company follows a different approach than traditional property-owning REITs. Instead of owning physical properties, its business model revolves around a more risk-oriented strategy. Unlike real estate, which is bought and sold less frequently, AGNC Investment’s assets are actively traded, making the value of its bond holdings highly sensitive to interest rate fluctuations. In contrast, property prices tend to be more stable. In addition, factors such as mortgage repayment rates and housing market conditions influence its performance. Managing a portfolio of physical properties, like those held by an apartment REIT, is typically more straightforward than handling the complexities of mortgage bonds.

As a leveraged and hedged investor in Agency mortgage-based securities (MBS), AGNC Investment Corp. (NASDAQ:AGNC)’s return potential is strongest when the spreads between Agency MBS and benchmark rates are wide and stable, and when interest rates and monetary policy remain less volatile. The company’s year-to-date performance, reflecting a 13.8% unannualized economic return, highlights the advantages of its active portfolio management and the improving macroeconomic conditions. In addition, it ended the quarter with over $507 available in cash and cash equivalents.

AGNC Investment Corp. (NASDAQ:AGNC) initiated its dividend policy with quarterly payouts in 2008 and shifted to monthly dividends in 2014. Since its IPO in May 2008, the company has returned $13.4 billion to shareholders through dividends, which makes it one of the best dividend stocks on our list. Currently, it pays a monthly dividend of $0.12 per share for an attractive dividend yield of 15.43%, as of December 28.

AGNC Investment Corp. (NASDAQ:AGNC) was also a hedge fund favorite at the end of Q3 2024 with 24 funds owning stakes in the company, up from 19 in the previous quarter, as per IM’s database. These stakes have a total value of over $230.3 million. Ken Griffin’s Citadel Investment Group was the company’s leading stakeholder in Q3.