10 Cheap Monthly Dividend Stocks with High Yields

Published on November 13, 2022 at 3:18 pm by Fahad Saleem in Hedge Funds, News

In this article, we discuss the 10 cheap monthly dividend stocks with high yields. If you want to skip our detailed analysis of these stocks, go directly to 5 Cheap Monthly Dividend Stocks with High Yields.

The importance of dividend investing came back into the limelight in 2022 as the stock market crashed, inflation soared to new highs and the Fed became extremely hawkish. As cryptocurrencies and tech growth stocks fell to new lows, investors scrambled to find equities that are stable and also pay consistent income. As companies in the US begin massive layoffs, average retail investors are also on the lookout for dividend stocks that are reliable and can promise steady income.

Study after study has proven the effectiveness of dividend investing. For example, in a detailed report on dividend investing, Heartland Advisors quotes a research that tracked the total return of the US stock market for a period starting from 1802 and ending 2002. During this period, dividend stocks accounted for 5.8% of the 7.9% total annualized returns. The same study also mentions another research, from the London Business School, which highlights the importance of dividend investing when it comes to global markets. This study shows that from 1900 to 2005, the real stock market return across 17 countries was about 5%, while the average yield of those countries during this period was 4.5%.

However, the research report by Heartland Advisors emphasizes that the outperformance of dividend stocks when compared to their counterparts takes its real effect when seen with a long-term perspective. Several datasets in the report assume an investment time period of 20 years, while admitting that usually investors don’t hold stocks for two decades. Nonetheless, an important pattern observed in the study is that over 20-year periods, dividend payers usually outperform non-dividend payers. Therefore, it’s important for income investors to find long-term dividend stocks and hold them if they truly want to enjoy the benefits of divided investing.

While this article takes a look at dividend stocks with high-yields, it must be noted that high yields come with some drawbacks. A detailed research report published by Fidelity in 2012 says that high-yield dividend stocks are more vulnerable to dividend cuts and suspensions. The study says that on average during the past two decades, 10% of stocks with the highest dividend yields suspended or cut their dividends. In 2009, this percentage spiked to a whopping 40%. Another important data point mentioned in the study shows that on average, the company that cut or suspended its dividend underperformed the market by more than 23% during the 12 months preceding the official announcement of the dividend cut or suspension.

That’s why, high-yield dividend stocks might be ok if you are looking for short-term gains, but if you are a long-term investor and plan to enjoy the benefits of reinvested dividends and want to avoid volatility and uncertainty, you should carefully choose dividend stocks that have sustainable yields.

Another important research report that is extremely relevant to today’s market environment is from Vanguard. This study, which was published in 2017, says that the best bet for investors who want to avoid risk is to invest for both dividends and capital appreciation. The study calls this a “total return perspective.” The study also says that “substituting dividend-oriented equities for fixed income significantly raises a portfolio’s risk profile” and decreases its downside protection. However, the report noted that dividend-oriented equities tend to have more sensitivity to interest rates, which make them susceptible to volatility when bond yields change. That’s exactly what’s happening in 2022, as several REIT dividend stocks jumped back in October 2022 based on the movements in the bonds market, while many others crashed.

The Vanguard study takes an in-depth look at the two famous perspectives in dividend investing. The first perspective is related to high-dividend yield investing, in which investors are always interested in high-yield dividend stocks. The other perspective focuses more on dividend growth and prefers companies that have a history of consistent dividend increases. The study also quotes the “dividend irrelevance theory” which contends that if a company is not paying dividends, it will be investing in its business or share buybacks, thus practically increasing investors’ returns. However, the 2022 stock market crash made it impossible to consider dividends “irrelevant” as it’s clear that mature dividend-paying companies that have strong businesses are the best bets for investors for at least several months to come as the world goes through many geopolitical and economic challenges.

In this article we picked relatively cheap stocks that pay monthly dividends. These stocks can be solid options for those who can tolerate risk and are looking for high-yield dividend stocks. As mentioned above, high-yield dividend stocks come with their peculiar risks, and one should always look to offset risks with diversification.

Cheap Monthly Dividend Stocks with High Yields

10. AGNC Investment Corp. (NASDAQ:AGNC)

AGNC Investment Corp. (NASDAQ:AGNC) is a US-based REIT that invests in residential mortgage pass-through securities and collateralized mortgage obligations. It’s one of the most high-yield monthly dividend stocks in the market as its yield came in at over 17% on November 5. Last month, AGNC Investment Corp. (NASDAQ:AGNC) said its board declared a cash dividend of $0.12 per share, payable on November 9 to shareholders of record as of October 31. The stock is in the limelight after the company beat analyst estimates for the third quarter. The company said its results were helped by its efficient asset repositioning and significant hedge position.

AGNC Investment Corp. (NASDAQ:AGNC) saw an uptick in hedge fund sentiment in the second quarter, as 18 funds reported having stakes in the company at the end of June, compared to 14 funds in the previous quarter.

9. Cross Timbers Royalty Trust (NYSE:CRT)

Cross Timbers Royalty Trust (NYSE:CRT) is currently in the news, but not for very positive reasons. Cross Timbers Royalty Trust (NYSE:CRT) recently said it was cutting its monthly dividend by about 25%. The company last month announced its monthly dividend of $0.1491 per share, as compared to its prior dividend of $0.2004. Still, the stock’s forward dividend yield came in at 7.75%, which makes the stock one of the decent options out there for investors looking for cheap dividend stocks. The stock is trading at around $20 as of November 5.

8. Dynex Capital, Inc. (NYSE:DX)

Dynex Capital, Inc. (NYSE:DX) is a Virginia-based mortgage REIT that invests in mortgage-backed securities (MBS) on a leveraged basis in the United States. Dynex Capital, Inc. (NYSE:DX) also felt the heat due to the current macroeconomic situation during the third quarter. Its third-quarter earnings were hit amid spread widening. Dynex Capital, Inc. (NYSE:DX)’s book value plummeted by 15% in the quarter as compared to the previous quarter. Adjusted EPS in the quarter came in at $0.24, below the average estimate of $0.31. Dynex Capital, Inc. (NYSE:DX)’s management said that “extreme interest rate volatility” and spread widening were the reasons behind the weak quarterly results.

However, hedge funds started showing interest in the REIT in the June quarter. 13 hedge funds in our database reported owning stakes in the company at the end of the second quarter, compared to just 6 in the previous quarter.

7. Gladstone Capital Corporation (NASDAQ:GLAD)

Gladstone Capital Corporation (NASDAQ:GLAD) is a Virginia-based company that specializes in debt refinancing, debt investments in senior term loans, and revolving loans, among many other services. The company has a dividend yield of over 8%. On October 11, Gladstone Capital Corporation (NASDAQ:GLAD) announced a 3.7% increase in its monthly dividend. It announced a dividend of $0.07 per share of common stock for October, November, and December 2022.

As of the end of the second quarter, 7 hedge funds tracked by Insider Monkey had owned stakes in Gladstone Capital Corporation (NASDAQ:GLAD), compared to just 3 funds in the previous quarter. The biggest stakeholder of the company in our database was billionaire Izzy Englander’s Millennium Management, which owns a $3.8 million stake in the company.

6. Generation Income Properties, Inc. (NASDAQ:GIPR)

Trading at just around $5, Generation Income Properties, Inc. (NASDAQ:GIPR) is one of the cheap monthly dividend stocks available in the market. However, the company recently announced a 27% cut in its dividend for the last three months of this year. Generation Income Properties declared a dividend of $0.039 per share, which was 27.8% below the previous dividend of $0.054.

Generation Income Properties, Inc. (NASDAQ:GIPR) is a Florida-based REIT that has a portfolio of single-tenant properties.

Click to continue reading and see 5 Cheap Monthly Dividend Stocks with High Yields.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on April 11, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

Google CEO: This Will Be Bigger Than Electricity

Published on April 29, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up