In this article, we will be looking at the 5 best high-yield monthly dividend stocks to buy. If you want to see our detailed analysis of dividend investing, go directly to the 10 Best High-Yield Monthly Dividend Stocks to Buy.
5. PennantPark Floating Rate Capital Ltd. (NASDAQ: PFLT)
Number of Hedge Fund Holders: 7
Dividend Yield: 8.7%
PennantPark Floating Rate Capital Ltd. (NASDAQ: PFLT) is a company operating in the financials sector as a business development entity. It makes secondary direct, debt, equity, and loan investments and ranks 5th on our list of the best high-yield monthly dividend stocks to buy.
This July, Oppenheimer’s Mitchel Penn began covering PennantPark Floating Rate Capital Ltd. (NASDAQ: PFLT) shares with a Perform rating and a $13 price target, adding that he expected the company to earn a 9% ROE. Ladenburg also has a Buy rating on PennantPark Floating Rate Capital Ltd. (NASDAQ: PFLT) shares.
In the fiscal second quarter of 2021, PennantPark Floating Rate Capital Ltd. (NASDAQ: PFLT) had an NII of $0.26, missing estimates by $0.01. The company’s TII was $19.44 million, also missing estimates by $1.08 million. PennantPark Floating Rate Capital Ltd. (NASDAQ: PFLT) has gained 19.03% in the past 6 months and 26.20% year to date.
By the end of the first quarter of 2021, 7 hedge funds out of the 866 tracked by Insider Monkey held stakes in PennantPark Floating Rate Capital Ltd. (NASDAQ: PFLT) worth roughly $10.4 million. This is compared to 7 hedge funds in the previous quarter with a total stake value of approximately $10.9 million.
4. Prospect Capital Corporation (NASDAQ: PSEC)
Number of Hedge Fund Holders: 7
Dividend Yield: 8.85%
Prospect Capital Corporation (NASDAQ: PSEC) is a business development company headquartered in New York, and it ranks 4th on our list of the best high-yield monthly dividend stocks to buy.
This June, Prospect Capital Corporation (NASDAQ: PSEC) stated that it had funded about $55 million for a first lien senior secured floating rate term loan for the acquisition of Enseo Holdings.
In the fiscal third quarter of 2021, Prospect Capital Corporation (NASDAQ: PSEC) had an NII of $0.19, beating estimates by $0.02. The company’s TII was $159.46 million, up 3.21% year over year and beating estimates by $8.32 million. Prospect Capital Corporation (NASDAQ: PSEC) has also gained 34.10% in the past 6 months and 47.73% year to date.
By the end of the first quarter of 2021, 7 hedge funds out of the 866 tracked by Insider Monkey held stakes in Prospect Capital Corporation (NASDAQ: PSEC) worth roughly $11.6. This is compared to 8 hedge funds in the previous quarter with a total stake value of approximately $18.3 million.
3. AGNC Investment Corp. (NASDAQ: AGNC)
Number of Hedge Fund Holders: 18
Dividend Yield: 8.91%
AGNC Investment Corp. (NASDAQ: AGNC) is a US-based real estate investment trust. It ranks 3rd on our list of the best high-yield monthly dividend stocks to buy.
This June, Piper Sandler kept its Overweight rating on AGNC Investment Corp. (NASDAQ: AGNC) shares alongside an $18.50 price target. Analyst Kevin Barker also made positive comments regarding the safety of the company’s dividend yield in light of a positive earnings report.
In the first quarter of 2021, AGNC Investment Corp. (NASDAQ: AGNC) had an FFO of $0.76, beating estimates by $0.13. The company’s revenue was $528 million, up 712.31% year over year and beating estimates by $244.78 million. AGNC Investment Corp. (NASDAQ: AGNC) has also gained about 2.34% in the past 6 months and 5% year to date.
By the end of the first quarter of 2021, 18 hedge funds out of the 866 tracked by Insider Monkey held stakes in AGNC Investment Corp. (NASDAQ: AGNC) worth roughly $167 million. This is compared to 25 hedge funds in the previous quarter with a total stake value of approximately $353 million.
2. Ellington Financial Inc. (NYSE: EFC)
Number of Hedge Fund Holders: 6
Dividend Yield: 10.10%
Ellington Financial Inc. (NYSE: EFC) operates in the acquisition of financial assets in the US through Ellington Financial Operating Partnership LLC. It ranks 2nd on our list of the best high-yield monthly dividend stocks to buy.
BTIG has a Buy rating on Ellington Financial Inc. (NYSE: EFC) alongside a $19 price target as of this May, with analyst Eric Hagen seeming optimistic on the stock.
In the first quarter of 2021, Ellington Financial Inc. (NYSE: EFC) had an FFO of $0.43, higher than the previous quarter’s FFO of $0.37, while its revenue was $40.08 million, also surpassing the previous quarter’s $39.07 million revenue. Ellington Financial Inc. (NYSE: EFC) has also gained 15.7% in the past 6 months and 22.12% year to date.
By the end of the first quarter of 2021, 6 hedge funds out of the 866 tracked by Insider Monkey held stakes in Ellington Financial Inc. (NYSE: EFC) worth roughly $38.6 million. This is compared to 9 hedge funds in the previous quarter with a total stake value of approximately $40.4 million.
1. Orchid Island Capital, Inc. (NYSE: ORC)
Number of Hedge Fund Holders: 8
Dividend Yield: 15.35%
Orchid Island Capital, Inc. (NYSE: ORC) operates in the mortgage REIT industry as a specialty finance company, investing in residential mortgage-backed securities in the US. It ranks 1st on our list of the best high-yield monthly dividend stocks to buy.
This April, Orchid Island Capital, Inc. (NYSE: ORC) saw its quarterly EPS view of an estimated $0.60 per share, and an estimated total return on equity of 6%.
In the first quarter of 2021, Orchid Island Capital, Inc. (NYSE: ORC) had an FFO of $0.25, missing estimates by $0.02. The company’s revenue was $24.91 million, up 30.12%% year over year and beating estimates by $3.33 million. Orchid Island Capital, Inc. (NYSE: ORC) has also gained 19.03% in the past 6 months and 26.20% year to date.
By the end of the first quarter of 2021, 8 hedge funds out of the 866 tracked by Insider Monkey held stakes in Orchid Island Capital, Inc. (NYSE: ORC) worth roughly $19.8 million. This is compared to 10 hedge funds in the previous quarter with a total stake value of approximately $14.7 million.
You can also take a peek at 10 Best High Yield Dividend Stocks To Buy and 15 Fastest Growing Dividend Stocks.
