In this article, we discuss 5 monthly dividend stocks with over 5% yield. If you want our detailed analysis of these stocks, go directly to 10 Monthly Dividend Stocks with Over 5% Yield.
5. Dynex Capital, Inc. (NYSE:DX)
Dividend Yield as of January 27: 9.92%
Number of Hedge Fund Holders: 7
Dynex Capital, Inc. (NYSE:DX) is a Virginia-based real estate investment trust that generates dividend income and long-term returns for shareholders by financing real estate assets across the United States. Dynex Capital, Inc. (NYSE:DX) offers shareholders a 9.92% dividend yield as of January 27. The REIT beat market consensus for earnings in the third quarter of 2021.
On January 13, Dynex Capital, Inc. (NYSE:DX) declared a $0.13 per share monthly dividend, in line with previous. The dividend will be distributed on February 1, to shareholders of record on January 24.
Among the hedge funds monitored by Insider Monkey in Q3 2021, 7 hedge funds reported owning stakes in Dynex Capital, Inc. (NYSE:DX), equaling approximately $13 million, as compared to 9 funds holding stakes worth $26.8 million in Dynex Capital, Inc. (NYSE:DX) in the preceding quarter. Marshall Wace LLP is the largest stakeholder of the company in the third quarter, holding 296,649 shares, valued at $5.1 million.
4. Ellington Financial Inc. (NYSE:EFC)
Dividend Yield as of January 27: 10.29%
Number of Hedge Fund Holders: 10
Ellington Financial Inc. (NYSE:EFC) is a Connecticut-based real estate investment trust that invests primarily in residential and commercial mortgage loans, consumer loans, collateralized loan obligations, non-mortgage and mortgage-related derivatives, and equity investments, among others.
On January 7, Ellington Financial Inc. (NYSE:EFC) declared a $0.15 per share monthly dividend, in line with previous. The dividend is payable on February 25, to shareholders of record on January 31. Ellington Financial Inc. (NYSE:EFC)’s dividend yield on January 27 came in at 10.29%, making it one of the most notable monthly dividend stocks to invest in.
Sheridan Capital and Ellington Financial Inc. (NYSE:EFC) on January 10 jointly announced a strategic partnership whereby Ellington Financial Inc. (NYSE:EFC) made an equity investment in Sheridan Capital, a player in originating commercial real estate bridge loans, to provide unique and creative loan products to the market.
As of Q3 2021, Millennium Management, the largest stakeholder of Ellington Financial Inc. (NYSE:EFC), increased its stake in the company by 597%, holding a total of 1.15 million shares worth $21.1 million. Overall, 10 hedge funds were bullish on Ellington Financial Inc. (NYSE:EFC) in the third quarter.
3. Ellington Residential Mortgage REIT (NYSE:EARN)
Dividend Yield as of January 27: 11.52%
Number of Hedge Fund Holders: 10
Ellington Residential Mortgage REIT (NYSE:EARN) is a mortgage real estate investment trust based in Connecticut, specializing in acquiring and managing residential mortgage and real estate assets that are guaranteed by a U.S. government agency. Ellington Residential Mortgage REIT (NYSE:EARN) delivers a dividend yield of 11.52% as of January 27.
On January 7, Ellington Residential Mortgage REIT (NYSE:EARN) declared a $0.10 per share monthly dividend, in line with previous. The dividend is payable on February 25, to shareholders of record on January 31.
BTIG analyst Eric Hagen downgraded Ellington Residential Mortgage REIT (NYSE:EARN) on November 8 to Neutral from Buy. The analyst is positive on Ellington Residential Mortgage REIT (NYSE:EARN)’s portfolio structure, particularly its move to hedge its cost of funds at the short-end, but as Ellington Residential Mortgage REIT (NYSE:EARN)’s shares approach book value with 10% dividend yield, valuation has become a concern.
Among the hedge funds tracked by Insider Monkey, 10 funds were long Ellington Residential Mortgage REIT (NYSE:EARN) in Q3 2021, with stakes totaling $18.1 million. Renaissance Technologies is the biggest stakeholder of the company, owning 582,700 shares worth $6.5 million.
2. ARMOUR Residential REIT, Inc. (NYSE:ARR)
Dividend Yield as of January 27: 13.12%
Number of Hedge Fund Holders: 6
ARMOUR Residential REIT, Inc. (NYSE:ARR) is a real estate investment trust based in Maryland, investing mainly in mortgage backed securities in the United States that are guaranteed by government-sponsored enterprises.
On January 4, ARMOUR Residential REIT, Inc. (NYSE:ARR) declared a $0.10 per share monthly dividend, in line with previous. The dividend is payable on January 28, to shareholders of record on January 18. ARMOUR Residential REIT, Inc. (NYSE:ARR)’s dividend yield came in at 13.12% on January 27.
The company’s distributable earnings missed market consensus in Q3 2021, hence JonesTrading analyst Jason Stewart on October 28 downgraded ARMOUR Residential REIT, Inc. (NYSE:ARR) to Hold from Buy and removed his prior price target. With the shares effectively trading at book value per share, he sees the risk versus reward as balanced at current levels for ARMOUR Residential REIT, Inc. (NYSE:ARR).
A total of 6 hedge funds were long ARMOUR Residential REIT, Inc. (NYSE:ARR) in the third quarter of 2021, with stakes totaling $23 million. Citadel Investment Group holds a $4.2 million position in ARMOUR Residential REIT, Inc. (NYSE:ARR) and is one of the leading stakeholders of the company.
1. Orchid Island Capital, Inc. (NYSE:ORC)
Dividend Yield as of January 27: 16.90%
Number of Hedge Fund Holders: 10
Orchid Island Capital, Inc. (NYSE:ORC) is a Florida-based specialty finance company that operates as a real estate investment trust, with a portfolio of residential mortgage-backed securities on a leveraged basis. Orchid Island Capital, Inc. (NYSE:ORC) delivers a 16.90% dividend yield as of January 27, making it one of the best monthly dividend stocks with over 5% yield.
On January 13, Orchid Island Capital, Inc. (NYSE:ORC) declared a $0.055 per share monthly dividend, which reflects a 15.4% decrease from its prior dividend of $0.065. The dividend is payable on February 24, to shareholders of record on January 31. The company reduced its dividend due to margin compressions in Q4 2021.
JonesTrading analyst Jason Stewart on January 24 upgraded Orchid Island Capital, Inc. (NYSE:ORC) to Buy from Hold with a $4.25 price target. The analyst believes mortgage backed securities and rates markets “now have room to provide near term support” to Orchid Island Capital, Inc. (NYSE:ORC)’s book value, especially since the shares are down 16% ahead of the company’s Q4 results.
Balyasny Asset Management is the biggest stakeholder of Orchid Island Capital, Inc. (NYSE:ORC) as of Q3 2021, holding 1.71 million shares worth $8.40 million. Overall, 10 hedge funds reported owning stakes in Orchid Island Capital, Inc. (NYSE:ORC) in the third quarter of 2021, totaling $16.1 million.
You can also take a look at Billionaire Michael Platt’s Stunning Performance in 2021 and His Top 10 Stock Picks and 10 Notable Earnings Reports to Watch.
