12 Monthly Dividend Stocks with Over 5% Yield

5. PennantPark Floating Rate Capital Ltd. (NYSE:PFLT)

Dividend Yield as of January 14: 11.11%

PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) is an American business development company that provides senior secured first lien notes. Many of these loans have floating interest rates, which is reflected in the company’s name. As of September 30, approximately $1.75 billion of the company’s $1.98 billion portfolio, spread across 158 businesses, consisted of first-lien credit. The rest of the portfolio included other types of loans and dividend payouts from the companies in which it invests.

In the fourth quarter of 2024, PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) reported net investment income of over $55.5 million, which grew by 55.3% from the same period last year. The company’s investment portfolio totaled nearly $2 billion and its net assets amounted to over $877 million. Its overall portfolio comprised 158 companies, with an average investment size of $12.6 million and a weighted average yield on debt investments of 11.5%. It was allocated 88% in first-lien secured debt, less than 1% in second-lien secured debt and subordinated debt, and 12% in preferred and common equity. As of September 30, 2024, over 99% of the investments held by PennantPark Senior Secured Loan Fund I LLC, or PSSL, were first-lien-secured debt.

PennantPark Floating Rate Capital Ltd. (NYSE:PFLT), one of the best dividend stocks, has been making regular dividend payments to shareholders since 2011. The company currently pays a monthly dividend of $0.1025 per share and has a dividend yield of 11.11%, as of January 14.

Insider Monkey’s database of Q3 2024 indicated that 7 hedge funds owned stakes in PennantPark Floating Rate Capital Ltd. (NYSE:PFLT), compared with 9 in the previous quarter. These stakes are collectively valued at more than $30.8 million.