In this article, we discuss 5 monthly dividend stocks with highest yields. If you want to read our detailed analysis of dividend stocks and their performance in the current market environment, go directly to read 10 Monthly Dividend Stocks with Highest Yields.
5. Ellington Residential Mortgage REIT (NYSE:EARN)
Dividend Yield as of September 14: 12.31%
Ellington Residential Mortgage REIT (NYSE:EARN) is an American real estate investment trust company that acquires and manages residential mortgages and real estate-related assets. The company was founded in 2012 and is headquartered in Connecticut.
Ellington Residential Mortgage REIT (NYSE:EARN) currently pays a monthly dividend of $0.08 per share, with a dividend yield of 12.31%, as of September 14. In Q2 2022, the company reported distributable earnings of $3.7 million or $0.28 per share. Its net interest margin came in at 1.6%. The company had $37.5 million available in cash and cash equivalents at the end of the quarter and $3.4 million in unencumbered assets. In addition to this, Ellington Residential Mortgage REIT (NYSE:EARN) repurchased 30,532 shares during the quarter, at an average share price of $6.57.
In June, Piper Sandler maintained its Overweight rating on Ellington Residential Mortgage REIT (NYSE:EARN) with a $9 price target, highlighting the company’s position in this economic condition.
At the end of June 2022, 5 hedge funds in Insider Monkey’s database owned stakes in Ellington Residential Mortgage REIT (NYSE:EARN), up from 4 in the previous quarter. These stakes hold a collective value of over $8.1 million. Jim Simons and Paul Tudor Jones were some of the company’s prominent holdings in Q2.
4. AGNC Investment Corp. (NASDAQ:AGNC)
Dividend Yield as of September 14: 12.47%
Up next on our list of monthly dividend stocks with a high yield is AGNC Investment Corp. (NASDAQ:AGNC), which is a Maryland-based real estate investment trust company. It mainly invests in mortgage-backed securities on a leveraged basis.
In Q2 2022, AGNC Investment Corp. (NASDAQ:AGNC) reported strong results, posting revenue of $315 million, which represented a 35.8% year-over-year growth. The value of the company’s investment portfolio stood at $61.3 billion. It also repurchased roughly 5 million of its common shares during the quarter for a total value of $51 million.
AGNC Investment Corp. (NASDAQ:AGNC) has been making uninterrupted dividend payments since its IPO in 2008. Since then, the company has paid total dividends worth over $11.6 billion to shareholders. Its current monthly dividend stands at $0.12 per share, with a dividend yield of 12.47%, as recorded on September 14.
The number of hedge funds tracked by Insider Monkey owning stakes in AGNC Investment Corp. (NASDAQ:AGNC) stood at 18 in Q2 2022, growing from 14 in the previous quarter. These stakes are collectively valued at over $192.4 million, compared with $70.4 million worth of stakes owned by hedge funds in the preceding quarter.
3. Ellington Financial Inc. (NYSE:EFC)
Dividend Yield as of September 14: 12.48%
Ellington Financial Inc. (NYSE:EFC) is an American real estate credit company that also operates as a mortgage finance company. In July, Keefe Bruyette reiterated its Market Perform rating with a $14.75 price target, appreciating the company’s book value growth over the years.
In Q2 2022, Ellington Financial Inc. (NYSE:EFC) reported $16.22 in book value per common share, including the effects of dividends of $0.45 per share. The company’s cash position remained strong during the quarter, as it reported $224.5 million in cash and cash equivalents and $591.2 million in other unencumbered assets. Its net interest income stood at $36.7 million, down from $37 million in the previous quarter.
On September 8, Ellington Financial Inc. (NYSE:EFC) declared a monthly dividend of $0.15 per share, in line with its previous dividend. This monthly dividend stock has a yield of 12.48%, as of September 14.
At the end of Q2 2022, 4 hedge funds tracked by Insider Monkey owned investments in Ellington Financial Inc. (NYSE:EFC), worth over $16 million. In the previous quarter, 7 hedge funds owned stakes in the company, holding a total value of $25.6 million. With stakes worth over $13.6 million, Ellington owned the largest position in the company in Q2.
2. Broadmark Realty Capital Inc. (NYSE:BRMK)
Dividend Yield as of September 14: 13.24%
Broadmark Realty Capital Inc. (NYSE:BRMK) is a Washington-based specialty real estate finance company that also provides financial services to its consumers. The company has been raising its dividends consistently for the past three years. It pays a monthly dividend of $0.07 per share, with a dividend yield of 13.24%, as of September 14.
Broadmark Realty Capital Inc. (NYSE:BRMK) reported a strong cash position in Q2 2022 as it had over $36 million available in cash and cash equivalents and a fully undrawn $135 million in revolving credit facility. The company’s total assets amounted to over $1.25 billion. Its revenue for the quarter came in at $28.5 million.
In August, Piper Sandler maintained its Underweight rating on Broadmark Realty Capital Inc. (NYSE:BRMK) with a $7 price target, highlighting the company’s dividend policy and its distributable earnings.
As of the close of Q2 2022, 8 hedge funds tracked by Insider Monkey owned stakes in Broadmark Realty Capital Inc. (NYSE:BRMK), up from 7 in the previous quarter. The stakes owned by these funds hold a collective value of over $40.8 million. Farallon Capital was the company’s leading stakeholder in Q2.
1. ARMOUR Residential REIT, Inc. (NYSE:ARR)
Dividend Yield as of September 14: 17.62%
ARMOUR Residential REIT, Inc. (NYSE:ARR) is a Florida-based real estate investment trust that invests in residential mortgage-backed securities. On September 13, the company declared a monthly dividend of $0.10 per share and has a yield of 17.62%, as of September 14.
In July, B. Riley reiterated its Neutral rating on ARMOUR Residential REIT, Inc. (NYSE:ARR) with an $8 price target, as the company expects the sector’s book value to remain better than overall industry performance.
At the end of June 2022, 5 hedge funds tracked by Insider Monkey owned stakes in ARMOUR Residential REIT, Inc. (NYSE:ARR), compared with 4 in the previous quarter. These stakes hold a collective value of over $13.4 million, up from $6 million worth of stakes owned by hedge funds in the preceding quarter.
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