In this article, we discuss 5 monthly dividend stocks with over 5% yield. If you want to read our detailed analysis of dividend stocks and their outlook for 2022, go directly to read 10 Monthly Dividend Stocks with Over 5% Yield.
5. Horizon Technology Finance Corporation (NASDAQ:HRZN)
Dividend Yield as of July 8: 10.10%
Horizon Technology Finance Corporation (NASDAQ:HRZN) is a specialty finance company that provides structured debt products to life sciences and tech companies.
Horizon Technology Finance Corporation (NASDAQ:HRZN) has been making dividend distributions consecutively for the past 10 years, with a 5-year track record of paying monthly dividends. The company hasn’t raised its dividends for a long time and is not expected to do so in the next two years as well. However, its payout ratio of 89% has improved from 171.4% in 2020. Horizon Technology Finance Corporation (NASDAQ:HRZN) currently offers a monthly dividend of $0.10 per share, with a yield of 10.10%, as of July 8.
In May, Compass Point upgraded Horizon Technology Finance Corporation (NASDAQ:HRZN) to ‘Neutral’ from ‘Sell’, appreciating the company’s investment interest income growth.
At the end of March 2022, 7 hedge funds owned stakes in Horizon Technology Finance Corporation (NASDAQ:HRZN), up from 6 in the previous quarter, according to Insider Monkey’s data. The collective value of stakes owned by hedge funds stood at over $6.8 million.
4. Ellington Financial Inc. (NYSE:EFC)
Dividend Yield as of July 8: 11.83%
Ellington Financial Inc. (NYSE:EFC) is a Connecticut-based investment adviser specializing in diversified credit, mortgage, and related markets.
Ellington Financial Inc. (NYSE:EFC) shifted to monthly payments in 2019, after offering quarterly dividends consistently for 7 years. Though the stock’s payout ratio stands very close to 100% in Q1 2022, its improving assets have investors hopeful about future dividend growth. At the end of March, the company had over $363.5 million available in cash or cash equivalents, up from $92.6 million in the previous quarter. Moreover, Ellington Financial Inc. (NYSE:EFC) paid over $11.6 million in dividends in Q1, compared with $10.3 million of dividends paid during Q4 2021. The company currently pays a monthly dividend of $0.15 per share.
In June, Piper Sandler presented an optimistic stance about Ellington Financial Inc. (NYSE:EFC) due to the company’s improving financials. However, the firm also acknowledged the market volatility that can put the stock at risk. Given this, the firm lowered its price target on the stock to $17 but maintained an Overweight rating on the shares.
Insider Monkey’s Q1 2022 database shows that 7 hedge funds held investments in Ellington Financial Inc. (NYSE:EFC), the same as in the previous quarter. The total value of these investments stood at $25.6 million. Jim Simons and David Harding were the most prominent shareholders of the company in Q1.
3. Broadmark Realty Capital Inc. (NYSE:BRMK)
Dividend Yield as of July 8: 12.33%
Broadmark Realty Capital Inc. (NYSE:BRMK) is a Washington-based specialty real estate investment trust that provides financing solutions to consumers.
In 2020, Broadmark Realty Capital Inc. (NYSE:BRMK) had to trim its dividend by 25% to $0.06 per share due to the global market crash. Since then, the company has raised its monthly dividend by a penny to $0.07 per share in 2021, with a yield of 12.33%, as of July 8. In Q1 2022, Broadmark Realty Capital Inc. (NYSE:BRMK) paid nearly $9.3 million in dividends to shareholders, almost in line with its previous quarter’s payments. The company’s balance sheet signals another dividend cut, as its dividend payments accounted for 140% of its income in Q1, compared with a 120% payout ratio in Q4 2021.
In June, Piper Sandler initiated its coverage of Broadmark Realty Capital Inc. (NYSE:BRMK) with a Neutral rating and a $7 price target, calling the stock a long-term opportunity due to the global supply and demand imbalance.
As per Insider Monkey’s Q1 2022 data, 7 hedge funds reported owning stakes in Broadmark Realty Capital Inc. (NYSE:BRMK), down from 11 in the previous quarter. These stakes hold a consolidated value of over $50 million. Farallon Capital was the company’s leading shareholder in Q1, owning shares worth nearly 5 million.
2. AGNC Investment Corp. (NASDAQ:AGNC)
Dividend Yield as of July 8: 12.53%
AGNC Investment Corp. (NASDAQ:AGNC) is an internally-managed real estate investment trust that invests in residential mortgage-backed securities.
AGNC Investment Corp. (NASDAQ:AGNC) trimmed its monthly payout in 2020 by 25% but the cut was comparatively smaller than other mREITs made during this period. Since then, the company has been paying a monthly dividend of $0.12 per share, with a yield of 12.53%, as of July 8.
In June, Keefe Bruyette upgraded AGNC Investment Corp. (NASDAQ:AGNC) to ‘Outperform’ while lifting the stock’s price target to $13.25. The firm expects mortgage REITs to generate positive returns in 2022.
At the end of Q1 2022, 14 hedge funds in Insider Monkey’s database owned stakes in AGNC Investment Corp. (NASDAQ:AGNC), down from 21 a quarter earlier. The collective value of these stakes is over $70.4 million. With nearly $41 million worth of shares, Canyon Capital Advisors held the largest position in the company in Q1.
1. ARMOUR Residential REIT, Inc. (NYSE:ARR)
Dividend Yield as of July 8: 16.71%
A Florida-based real estate investment trust, ARMOUR Residential REIT, Inc. (NYSE:ARR) has been making dividend payments consecutively for the past 11 years. The company does not have a stable dividend growth history and the last raise was in June 2020. ARMOUR Residential REIT, Inc. (NYSE:ARR) currently offers a monthly dividend of $0.10 per share, with a yield of 16.71%, which is well above the industry average.
In May, Barclays highlighted the declining book value of ARMOUR Residential REIT, Inc. (NYSE:ARR) and rising interest rates. In view of this, the firm lowered its price target on the stock to $6 with an Underweight rating on the shares.
At the end of Q1 2022, 4 hedge funds held nearly $6 million worth of investments in ARMOUR Residential REIT, Inc. (NYSE:ARR), as per Insider Monkey’s data. In comparison, 6 hedge funds owned stakes in the company in the previous quarter, valued at over $11.3 million.
You can also take a look at Top Stock Picks of Michael Burry and 10 Low Beta Dividend Stocks with High Yields
