In this article, we discuss 5 high yield monthly dividend stocks. If you want our detailed analysis of dividend investing and these stocks, go directly to 10 High Yield Monthly Dividend Stocks.
5. PermRock Royalty Trust (NYSE:PRT)
Dividend Yield as of January 14: 8.07%
Number of Hedge Fund Holders: N/A
PermRock Royalty Trust (NYSE:PRT) was established in Delaware in 2017 as a statutory trust that invests primarily in oil and gas properties. As of January 14, PermRock Royalty Trust (NYSE:PRT) offers an 8.07% yield, making it one of the top high yield monthly dividend stocks to purchase.
PermRock Royalty Trust (NYSE:PRT) on December 20 declared a $0.0699 per share monthly dividend, which reflects an 11.8% increase from the prior dividend of $0.0625. The dividend was paid on January 14 to shareholders of record on December 31.
4. Prospect Capital Corporation (NASDAQ:PSEC)
Dividend Yield as of January 14: 8.22%
Number of Hedge Fund Holders: 7
Prospect Capital Corporation (NASDAQ:PSEC) is an American company engaging in sponsor-backed transactions and direct lending, offering private debt and equity to middle market companies.
Raymond James analyst Robert Dodd upgraded Prospect Capital Corporation (NASDAQ:PSEC) on November 11 to Market Perform from Underperform without a price target. The company’s Q3 earnings beat, and NAV per share growth was above average and the analyst sees a risk/reward in-line with peers at current levels.
On November 8, Prospect Capital Corporation (NASDAQ:PSEC) declared a $0.06 dividend per share, to be paid monthly on December 23, January 20, and February 17. The company offers an 8.22% yield as of January 14.
Publishing its Q3 results on November 8, Prospect Capital Corporation (NASDAQ:PSEC) posted earnings per share of $0.21, exceeding estimates by $0.03. Revenue for the quarter gained 18.61% year-over-year, reaching $169.47 million, surpassing estimates by $3.16 million.
Among the hedge funds tracked by Insider Monkey during Q3 2021, Two Sigma Advisors is the leading Prospect Capital Corporation (NASDAQ:PSEC) stakeholder, elevating its position in the company by 3875%, holding 1.97 million shares worth $15.2 million. Overall, 7 hedge funds were bullish on Prospect Capital Corporation (NASDAQ:PSEC) at the end of September, down from 11 funds in the preceding quarter.
3. Stellus Capital Investment Corporation (NYSE:SCM)
Dividend Yield as of January 14: 8.48%
Number of Hedge Fund Holders: 2
Stellus Capital Investment Corporation (NYSE:SCM) is a Texas-based investment firm that offers senior secured debt and equity to lower middle market companies in the United States.
On October 28, Stellus Capital Investment Corporation (NYSE:SCM) announced earnings for the third quarter. The company posted a GAAP EPS of $0.66, exceeding estimates by $0.37. Revenue over the period came in at $17.03 million, up 21.49% from the prior-year quarter, outperforming estimates by $1.26 million.
Stellus Capital Investment Corporation (NYSE:SCM) declared a monthly per share dividend of $0.0933 on January 14, in line with previous. The dividend will be paid on February 15 to shareholders of record on January 28.
Oppenheimer analyst Mitchel Penn on November 1 upgraded Stellus Capital Investment Corporation (NYSE:SCM) to Outperform from Perform with a $15 price target after the Q3 results. The analyst credits the “strong” return on equity of 18.6% in the quarter and Stellus Capital Investment Corporation (NYSE:SCM)’s “high quality” portfolio for the upgrade.
In Q3 2021, Arrowstreet Capital and Two Sigma Advisors were long Stellus Capital Investment Corporation (NYSE:SCM), with collective stakes totaling $15.95 million.
2. AGNC Investment Corp. (NASDAQ:AGNC)
Dividend Yield as of January 14: 9.41%
Number of Hedge Fund Holders: 16
AGNC Investment Corp. (NASDAQ:AGNC) is an American real estate investment trust that invests in residential mortgage securities and collateralized mortgage obligations which are backed by government-sponsored enterprises and state agencies.
On January 10, AGNC Investment Corp. (NASDAQ:AGNC) announced a monthly per share dividend of $0.12, payable on February 9 to shareholders of record on January 31. The REIT offers a 9.41% yield as of January 14, and is one of the highest yielding monthly dividend stocks to purchase.
Reporting its third quarter results on October 25, AGNC Investment Corp. (NASDAQ:AGNC) posted earnings per share of $0.75, beating estimates by $0.10. The $279 million revenue dropped 7.62% year-over-year, missing estimates by $19.63 million.
Piper Sandler analyst Kevin Barker on January 5 lowered the price target on AGNC Investment Corp. (NASDAQ:AGNC) to $16 from $16.50 and kept a Neutral rating on the shares. The analyst expects Q4 mortgage banking earnings to be under pressure amid increasing competitive pressures across all channels due to reduced seasonal demand combined with excess capacity. He tells investors to seek out names that offer stable income, company-specific catalysts, and good valuation.
Among the 867 hedge funds monitored by Insider Monkey in the third quarter of 2021, 16 funds reported owning stakes worth $81.4 million in AGNC Investment Corp. (NASDAQ:AGNC). Joshua Friedman and Mitchell Julis’ Canyon Capital Advisors is the largest stakeholder of the company, with a $52.7 million position.
1. Ellington Financial Inc. (NYSE:EFC)
Dividend Yield as of January 14: 10.17%
Number of Hedge Fund Holders: 10
Ellington Financial Inc. (NYSE:EFC) is a company investing in multiple types of financial assets, such as residential and commercial mortgage-backed securities, mortgage loans, collateralized loan obligations, derivatives, equity investments, among other strategic investments.
On January 7, Ellington Financial Inc. (NYSE:EFC) declared a $0.15 per share monthly dividend, in line with previous. The dividend will be paid on February 25 to shareholders of record on January 31.
Ellington Financial Inc. (NYSE:EFC) announced on December 8 that it is proceeding with a Series B public stock offering to raise capital for acquiring its target assets and for other corporate expenses.
Publishing its third quarter results on November 8, Ellington Financial Inc. (NYSE:EFC) reported earnings per share of $0.46, missing estimates by $0.02. The Q3 revenue also missed consensus estimates.
Israel Englander’s Millennium Management is the leading Ellington Financial Inc. (NYSE:EFC) stakeholder, with 1.15 million shares worth $21.1 million. Overall, 10 hedge funds were bullish on the stock in the third quarter of 2021.
You can also take a look at 10 Most Popular Dividend Stocks Among Famous Hedge Funds and 11 Best Depressed Stocks To Invest In.
