12 Monthly Dividend Stocks with Over 5% Yield

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3. AGNC Investment Corp. (NASDAQ:AGNC)

Dividend Yield as of January 14: 15.58%

AGNC Investment Corp. (NASDAQ:AGNC) is an American real estate investment trust company that mainly invests in residential mortgage-backed securities. The company’s net spread and dollar roll income per share, which is the key metric for assessing its profits, decreased over the past year due to a sluggish mortgage market and slower-than-expected interest rate cuts by the Fed. However, its tangible net book value per share increased year-over-year as the value of its underlying investments rose.

Despite the associated risks, AGNC Investment Corp. (NASDAQ:AGNC) is still a solid investment. As a mortgage REIT, it invests in mortgages that have been packaged into bond-like securities, rather than owning properties and leasing them to tenants like most REITs. In some respects, it operates like a mutual fund, with the company’s value being tied to the value of its mortgage securities portfolio. In addition, as of June 30, 2024, the company’s investment portfolio was valued at $66.0 billion. This portfolio comprised $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.

AGNC Investment Corp. (NASDAQ:AGNC) has been making regular dividend payments to shareholders since it went public in 2008. The company shifted to monthly payments in 2014. Since 2008, it has returned $13.4 billion to shareholders through dividends. It pays a monthly dividend of $0.12 per share and has a dividend yield of 15.58%, as of January 14.

AGNC Investment Corp. (NASDAQ:AGNC) was popular among elite funds in Q3 2024 with 24 hedge funds holding stakes in the company, up from 19 in the previous quarter, according to Insider Monkey’s database. These stakes have a consolidated value of more than $230.3 million. With over 12 million shares, Citadel Investment Group was the company’s leading stakeholder in Q3.

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