12 Monthly Dividend Stocks with Over 5% Yield

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

Dividend Yield as of January 14: 18.62%

Orchid Island Capital, Inc. (NYSE:ORC) is a Florida-based specialty finance company. The company remains optimistic about its future investments, anticipating that attractive opportunities will persist. It expects total returns could improve if the Fed starts to ease monetary policy, particularly if the banking sector becomes more engaged in the Agency RMBS market. Even without these changes, the present investment landscape offers favorable total returns, with hedged net interest spreads effectively supporting the current dividend levels.

Orchid Island Capital, Inc. (NYSE:ORC) has consistently paid monthly dividends to its shareholders since its IPO in 2013, which makes it one of the best monthly dividend stocks with over 5% yield. Starting with cumulative dividends of over $4.6 million in 2013, the company saw this figure rise to more than $81 million by the end of 2023. Throughout this period, it returned around $658 million to shareholders through dividend payments.

Orchid Island Capital, Inc. (NYSE:ORC) currently offers a per-share dividend of $0.12 every month and has a dividend yield of 18.62%.

Orchid Island Capital, Inc. (NYSE:ORC) was a part of 11 hedge fund portfolios at the end of Q3 2024, up from 10 in the previous quarter, according to Insider Monkey’s database. The stakes owned by these hedge funds are worth over $11.7 million collectively.

Overall, Orchid Island Capital, Inc. (NYSE:ORC) ranks first on our list of the best dividend stocks that pay monthly dividends. While we acknowledge the potential for ORC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ORC but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. 

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