In this article, we will be looking at the 5 best monthly dividend stocks with high yields. If you want to see our detailed analysis of dividend investing and these companies, go directly to the 10 Best Monthly Dividend Stocks with High Yields.
5. Broadmark Realty Capital Inc. (NYSE: BRMK)
Number of Hedge Fund Holders: 12
Dividend Yield: 8.1%
Broadmark Realty Capital Inc. (NYSE: BRMK) is a company operating in the mortgage REITs industry, engaging in the underwriting, funding, servicing, and managing of a portfolio of short-term trust loans for the construction of residential or commercial properties in the US. The company ranks 5th on our list of the best monthly dividend stocks with high yields.
This April, B. Riley analyst Matt Howlett assumed coverage of Broadmark Realty Capital Inc. (NYSE: BRMK) shares with a Buy rating and a $12.50 price target. Howlett believes that REITs are set to benefit from strong fundamentals in the coming years, in light of thawing credit and steeper yield curves.
In the first quarter of 2021, Broadmark Realty Capital Inc. (NYSE: BRMK) had an FFO of $0.18, missing estimates by $0.02. The company’s revenue was $29.47 million, also missing estimates by $2.80 million. Broadmark Realty Capital Inc. (NYSE: BRMK) has gained 11.63% in the past year.
By the end of the first quarter of 2021, 12 hedge funds out of the 866 tracked by Insider Monkey held stakes in Broadmark Realty Capital Inc. (NYSE: BRMK) worth roughly $98.7 million. This is compared to 10 hedge funds in the previous quarter with a total stake value of approximately $90.86 million.
White Brook Capital, an investment management firm, mentioned Broadmark Realty Capital Inc. (NYSE: BRMK) in its first-quarter 2020 investor letter. Here’s what they said:
“Broadmark Realty, Inc (BRMK), was sold because of competition for capital from new positions and other investments in the portfolio. The company will continue to do fine, but better short and long-term investment opportunities were available.”
4. Dynex Capital, Inc. (NYSE: DX)
Number of Hedge Fund Holders: 10
Dividend Yield: 8.63%
Dynex Capital, Inc. (NYSE: DX) is a mortgage REIT that invests in mortgage-backed securities on a leveraged basis in the US. It ranks 4th on our list of the best monthly dividend stocks with high yields.
This April, Byron Boston, the CEO of Dynex Capital, Inc. (NYSE: DX), while commenting on the company’s Q1 reports, mentioned that the company generated about 7.2% in economic return for its common shareholders in the first quarter, and about 34.8% in the last four quarters. Boston also mentioned that Dynex Capital, Inc. (NYSE: DX) also raised $128 million in common equity through two public offerings during the first quarter, while also growing its book value.
In the first quarter of 2021, Dynex Capital, Inc. (NYSE: DX) had an FFO of $0.46, in line with estimates, but its revenue of $12.26 million missed estimates by $5.14 million. Dynex Capital, Inc. (NYSE: DX) has also gained about 0.06% in the past 6 months and 2.84% year to date.
By the end of the first quarter of 2021, 10 hedge funds out of the 866 tracked by Insider Monkey held stakes in Dynex Capital, Inc. (NYSE: DX) worth roughly $23.6 million. This is compared to 10 hedge funds in the previous quarter with a total stake value of approximately $15.07 million.
3. AGNC Investment Corp. (NASDAQ: AGNC)
Number of Hedge Fund Holders: 18
Dividend Yield: 8.91%
AGNC Investment Corp. (NASDAQ: AGNC) is an American REIT investing in residential mortgage pass-through securities and collateralized mortgage obligations with principal and interest payments assured by the US government-sponsored enterprise or agency. It ranks 3rd on our list of the best monthly dividend stocks with high yields.
This June, Piper Sandler analyst Kevin Barker reiterated the firm’s Overweight rating on AGNC Investment Corp. (NASDAQ: AGNC) shares alongside an $18.50 price target. Barker mentioned that the company’s dividend can be expected to remain safe in light of its positive earnings status.
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) acquires and manages mortgage, consumer, corporate, and other financial assets in the US through its subsidiary company, Ellington Financial Operating Partnership LLC. It ranks 2nd on our list of the best monthly dividend stocks with high yields.
This May, BTIG raised its price target on Ellington Financial Inc. (NYSE: EFC) shares from $18.50 to $19, keeping a Buy rating on the stock. Analyst Eric Hagen also commented that there is positive momentum behind the company sourcing new loans.
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. ARMOUR Residential REIT, Inc. (NYSE: ARR)
Number of Hedge Fund Holders: 9
Dividend Yield: 10.99%
ARMOUR Residential REIT, Inc. (NYSE: ARR) is a mortgage REIT investing in residential mortgage-backed securities in the US, and it ranks 1st on our list of the best monthly dividend stocks with high yields.
This July, B. Riley analyst Matt Howlett initiated coverage of ARMOUR Residential REIT, Inc. (NYSE: ARR) shares with a Neutral rating and an $11.50 price target. Howlett commented that ARMOUR Residential REIT, Inc. (NYSE: ARR) is one of the only “pure-play agency-only” mortgage REITs out there that offers investors a high-yielding cash flow without credit risk.
In the first quarter of 2021, ARMOUR Residential REIT, Inc. (NYSE: ARR) had an FFO of $0.23, missing estimates by $0.08, while the company’s $16.06 million revenue also missed estimates by $20.09 million. ARMOUR Residential REIT, Inc. (NYSE: ARR) has however gained 14.83% in the past year.
By the end of the first quarter of 2021, 9 hedge funds out of the 866 tracked by Insider Monkey held stakes in ARMOUR Residential REIT, Inc. (NYSE: ARR) worth roughly $22.2 million. This is compared to 13 hedge funds in the previous quarter with a total stake value of approximately $23.4 million.
You can also take a peek at 10 Best High Yield Dividend Stocks To Buy and 15 Fastest Growing Dividend Stocks.
