12 Monthly Dividend Stocks with Over 5% Yield

4. Ellington Financial Inc. (NYSE:EFC)

Dividend Yield as of January 14: 12.80%

Ellington Financial Inc. (NYSE:EFC) is an American specialty finance company, based in Connecticut. The company acquires and manages a range of financial assets, including those related to mortgages, consumers, corporations, and other financial sectors. Its primary objective is to provide attractive, risk-adjusted total returns to its shareholders by investing in opportunities that are anticipated to offer suitable rewards for the risks involved.

In the third quarter of 2024, Ellington Financial Inc. (NYSE:EFC)’s investment portfolio grew as the company leveraged its strong balance sheet to expand its high-yielding loan portfolios. During the quarter, the company’s non-QM loan, residential transition loan, commercial mortgage bridge loan, HELOC, and closed-end second-lien loan portfolios increased by a combined 26%, which led to a modest rise in leverage, even as the company reduced its Agency portfolio and preserved additional capital for future investments.

In addition, Ellington Financial Inc. (NYSE:EFC)’s cash position also remained strong which makes it a solid dividend payer. The company ended the quarter with nearly $218 million available in cash and cash equivalents, compared with $198.5 million at the end of June 2024. Its total assets came in at nearly $16 billion, up from $15.3 billion in the same period last year.

Ellington Financial Inc. (NYSE:EFC) is one of the best dividend stocks as the company has never missed a dividend in the past 15 years. On January 9, it declared a monthly dividend of $0.13 per share, which was in line with its previous dividend. The stock offers an attractive dividend yield of 12.8%, as of January 14.

The number of hedge funds tracked by Insider Monkey owning stakes in Ellington Financial Inc. (NYSE:EFC) grew to 9 in Q3 2024, from 5 in the previous quarter. These stakes have a consolidated value of more than $45.4 million. With over 1.1 million shares, Levin Easterly Partners was the company’s leading stakeholder in Q3.