15 Best Monthly Dividend Stocks To Buy Right Now

11. Ellington Financial Inc. (NYSE:EFC)

Number of Hedge Fund Holders: 9

Ellington Financial Inc. (NYSE:EFC) is a Connecticut-based specialty finance company that acquires and manages a range of financial assets, including those related to mortgages, consumers, corporations, and other financial sectors. The company’s main goal is to deliver appealing, risk-adjusted returns to its shareholders by investing in opportunities that are expected to provide appropriate rewards for the associated risks. Since the start of 2025, the stock has surged by nearly 3%.

In the third quarter of 2024, Ellington Financial Inc. (NYSE:EFC) expanded its investment portfolio by leveraging its strong balance sheet to grow its high-yielding loan assets. The company saw a 26% increase across its non-QM loan, residential transition loan, commercial mortgage bridge loan, HELOC, and closed-end second-lien loan portfolios. This growth led to a slight rise in leverage, while the company reduced its Agency portfolio and preserved capital for future investments.

Ellington Financial Inc. (NYSE:EFC)’s cash position also remained robust, supporting its ability to maintain solid dividend payments. By the end of the quarter, the company had nearly $218 million in cash and cash equivalents, up from $198.5 million at the end of June 2024. Its total assets grew to nearly $16 billion, an increase from $15.3 billion in the same period last year.

On January 9, Ellington Financial Inc. (NYSE:EFC) declared a monthly dividend of $0.13 per share, which was in line with its previous dividend. Overall, the company has been paying regular dividends to shareholders for the past 15 years, which makes EFC one of the best dividend stocks on our list. The stock’s dividend yield on January 29 came in at 12.48%.

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.