In this article, we discuss 10 high-yield monthly dividend stocks to buy in September.
As global stock markets face a challenging environment this year, investors seek solace in income-generating stocks. According to a report published by S&P Dow Jones Indices, the role of dividends as a source of income grew to 6.25% in March 2022, up from 2.88% in December 1981.
Dividend stocks like AbbVie Inc. (NYSE:ABBV), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ) are gaining ground among investors because they have steadily raised their payouts over the years. In addition to this, investors are also targeting high-yield stocks to boost their earnings in this current environment. Daniel Sotiroff, a senior manager research analyst at Morningstar, talked to Wall Street Journal about dividend stocks and mentioned that investors are pouring money into dividend ETFs as they come with lower fees and are more convenient for them. This can be seen from the recent data that shows dividend ETFs have seen nearly $52 billion worth of inflows in the first eight months of this year.
Historically, quality dividend companies remained big winners during inflationary periods due to their ability to generate steady cash flows. In the past 15 years, the average year-over-year dividend growth rate was 13.7%, compared with a 2.21% growth rate of the US Consumer Price Index, as reported by S&P Dow Jones Indices. The report further mentioned that dividends are expected to experience a 6.7% year-over-year growth over the next four quarters. Another report by CNBC throws light on the positive returns of dividend stocks in comparison with their peers. The report mentioned that dividend-paying companies delivered an annual average return of 9.6% from 1973 to 2021 while the broader market returned 8.2% during the same period.
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Our Methodology
The stocks mentioned below pay monthly dividends to shareholders and have yields above 9%, as recorded on September 6. The companies are ranked from the lowest yield to the highest.
High-Yield Monthly Dividend Stocks to Buy in September
10. Generation Income Properties, Inc. (NASDAQ:GIPR)
Dividend Yield as of September 6: 9.15%
Generation Income Properties, Inc. (NASDAQ:GIPR) is a Florida-based real estate investment trust company that acquires and manages income-producing retail, office, and industrial properties. The company’s portfolio is 100% rent paying and has been since its inception.
In its recently published quarterly earnings, Generation Income Properties, Inc. (NASDAQ:GIPR) reported revenue of $1.4 million, up 41.4% from the same period last year. The company’s net operating income also jumped 28% year-over-year to $1.1 million. It ended the quarter with $3.6 million in cash and cash equivalents.
Generation Income Properties, Inc. (NASDAQ:GIPR) started its dividend policy this year in January. The company pays a monthly dividend of $0.054 per share and has a yield of 9.15%, as recorded on September 6.
In addition to famous dividend stocks like AbbVie Inc. (NYSE:ABBV), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ), Generation Income Properties, Inc. (NASDAQ:GIPR) can also be added to dividend portfolios because of its monthly payouts.
9. PennantPark Floating Rate Capital Ltd. (NYSE:PFLT)
Dividend Yield as of September 6: 9.52%
PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) is an American company that invests in middle market companies located in the US and also provides primarily first lien debt. The company was a part of 3 hedge fund portfolios in Q2 2022, compared with 7 in the previous quarter, according to Insider Monkey’s data. The stakes owned by these hedge funds hold a collective value of over $5.7 million. With $4.4 million worth of stakes, Two Sigma Advisors had the largest position in the company in Q2.
In its Q2 2022 earnings, PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) surpassed analysts’ estimates on various accounts. The company posted a net interest income of $0.29 and a total investment income of $25.7 million, beating consensus by $0.01 and $0.96 million, respectively. The company’s cash position also remained strong during the quarter as it had $40.6 million in cash and cash equivalents available for investing and general corporate purposes. For the nine months ended in June, its cash used for operating activities stood at $111.6 million and paid nearly 4 million in dividends.
PennantPark Floating Rate Capital Ltd. (NYSE:PFLT), one of the best high-yield monthly dividend stocks, has a five-year average yield of 9.51%. Though the company has not raised its dividends since 2019, it maintained its payouts over these years. The company currently offers a monthly dividend of $0.095 per share, with a dividend yield of 9.52%, as of September 6.
8. Prospect Capital Corporation (NASDAQ:PSEC)
Dividend Yield as of September 6: 9.77%
Prospect Capital Corporation (NASDAQ:PSEC) is a yield-oriented business development company that makes debt and equity investments in the US middle market. The company is one of the best high-yield monthly dividend stocks as it has been offering dividends to shareholders since its inception in 2004, paying a total of $3.7 billion in dividends. It currently offers a monthly dividend of $0.06 per share, with a dividend yield of 9.77%, as of September 6.
Prospect Capital Corporation (NASDAQ:PSEC) announced its fiscal Q4 results on August 29, posting a net interest income of $0.21, which beat analysts’ estimates by $0.03. The company’s total investment income came in at $184.2 million, which showed a 17.3% year-over-year growth and also surpassed consensus by $8.02 million. At the end of June 2022, it had $35.3 million available in cash and cash equivalents.
As of the close of Q2 2022, 7 hedge funds in Insider Monkey’s database owned stakes in Prospect Capital Corporation (NASDAQ:PSEC), up from 6 in the previous quarter. The collective value of these stakes is over $15.3 million, compared with $18.4 million worth of stakes owned by hedge funds in the preceding quarter.
7. SLR Investment Corp. (NASDAQ:SLRC)
Dividend Yield as of September 6: 11.01%
SLR Investment Corp. (NASDAQ:SLRC) is a New York-based business development company that invests in senior secured loans of private middle market companies to generate current income which is distributed to shareholders. In Q2 2022, the company reported a total investment income of $42.8 million, compared with $35.6 million during the same period last year. At the end of June, it had $28.9 million available in cash and approximately $850 million of available capital.
SLR Investment Corp. (NASDAQ:SLRC) has been offering dividends to shareholders for over a decade now. The company currently pays a monthly dividend of $0.1367 per share, with a dividend yield of 11.01%, as recorded on September 6. The stock’s five-year average dividend yield stood at 8.85%, which makes it one of the best high-yield monthly dividend stocks.
In July, Keefe Bruyette maintained its Market Perform rating on SLR Investment Corp. (NASDAQ:SLRC) with a $16.50 price target. The firm mentioned that the recent pullback in business development companies can be a good opportunity for investors in this current environment.
As of the close of Q2 2022, 7 hedge funds tracked by Insider Monkey reported owning stakes in SLR Investment Corp. (NASDAQ:SLRC), up from 6 in the previous quarter. These stakes hold a collective value of over $11.4 million. D. E. Shaw, James Morrow, and Israel Englander were some of the company’s major stakeholders in Q2.
6. Oxford Square Capital Corp. (NASDAQ:OXSQ)
Dividend Yield as of September 6: 11.48%
Oxford Square Capital Corp. (NASDAQ:OXSQ) is an American investment management company that also operates as a business development company. At the end of Q2 2022, 2 hedge funds in Insider Monkey’s database owned stakes in the company, compared with 5 in the previous quarter. These stakes hold a consolidated value of over $1.2 million.
At the end of June 2022, Oxford Square Capital Corp. (NASDAQ:OXSQ) reported a strong cash position. The company had $23.2 million available in cash and cash equivalents, compared with $9 million at the end of December. Its total investment income for the quarter came in at $9.94 million, which showed a 27.4% year-over-year growth. Moreover, its net investment income for the quarter amounted to $4.3 million or $0.09 per share.
Oxford Square Capital Corp. (NASDAQ:OXSQ) currently pays a monthly dividend of $0.035 per share and has a yield of 11.48%, as recorded on September 6. The company can be a good investment opportunity for income investors among other famous dividend stocks like AbbVie Inc. (NYSE:ABBV), Exxon Mobil Corporation (NYSE:XOM), and Johnson & Johnson (NYSE:JNJ).
5. AGNC Investment Corp. (NASDAQ:AGNC)
Dividend Yield as of September 6: 12.23%
AGNC Investment Corp. (NASDAQ:AGNC) is a Maryland-based real estate investment trust company that invests in residential mortgage-backed securities. The stock was upgraded to Outperform by Keefe Bruyette in June with a $13.25 price target, up from $12.25. The firm presented a positive outlook on mortgage REITs.
On August 11, AGNC Investment Corp. (NASDAQ:AGNC) declared a monthly dividend of $0.12 per share, in line with its previous dividend. As of September 6, the stock’s dividend yield came in at 12.23%.
In Q2 2022, AGNC Investment Corp. (NASDAQ:AGNC) reported revenue of $315 million, which showed a 35.8% year-over-year growth. The company reported over $906 million in cash and cash equivalents with its total assets amounting to $61.2 million. It repurchased 4.1 million of its common shares during the quarter at a total price of $51 million.
The number of hedge funds tracked by Insider Monkey owning stakes in AGNC Investment Corp. (NASDAQ:AGNC) grew to 18 in Q2 2022, from 14 in the previous quarter. These stakes hold a collective value of over $192.4 million. With stakes worth over $51.4 million, Citadel Investment Group held the largest position in the company in Q2.
4. Ellington Financial Inc. (NYSE:EFC)
Dividend Yield as of September 6: 12.72%
Ellington Financial Inc. (NYSE:EFC) is a real estate credit company and a registered investment adviser that provides services in credit, mortgage, and related markets. As of the close of Q2 2022, 4 hedge funds in Insider Monkey’s database owned stakes in the company, down from 7 in the previous quarter. The combined value of these stakes is over $16 million.
Ellington Financial Inc. (NYSE:EFC) reported a 1% hike in its July book value at $16.32 per share. In Q2 2022, the company’s adjusted distributable earnings stood at $24.9 million or $0.41 per share. Its cash position remained strong during the quarter, reporting $224.5 million in cash and cash equivalents and $591.2 million in other assets. At the end of June 2022, the company paid $11.2 million in dividends, compared with $10.3 million during the same period last year.
Ellington Financial Inc. (NYSE:EFC) currently pays a monthly dividend of $0.15 per share. The stock’s 5-year average yield stands at 12.2%, coming through as one of the best high-yield monthly dividend stocks. As of September 6, the stock’s dividend yield stood at 12.72%.
3. Broadmark Realty Capital Inc. (NYSE:BRMK)
Dividend Yield as of September 6: 13.48%
Broadmark Realty Capital Inc. (NYSE:BRMK) is an American specialty real estate finance company that provides financing solutions. The company has been paying consecutive dividends since its IPO in 2019. It currently pays a monthly dividend of $0.07 per share and has a yield of 13.48%, as recorded on September 6.
In Q2 2022, Broadmark Realty Capital Inc. (NYSE:BRMK) closed on over $196 million of investments at an average yield of 10.0%. The company’s total revenue for the quarter came in at $28.5 million and its interest income stood at $22.1 million. In addition to this, it had $36 million available in cash and cash equivalents and $135 million in revolving credit facility.
In June, Piper Sandler highlighted the long-term investment opportunities offered by Broadmark Realty Capital Inc. (NYSE:BRMK) and initiated its coverage of the stock with a Neutral rating and a $7 price target.
At the end of Q2 2022, Broadmark Realty Capital Inc. (NYSE:BRMK) was a part of 8 hedge fund portfolios, compared with 7 in the previous quarter, according to Insider Monkey’s data. The stakes owned by these funds hold a total value of over $40.8 million. Among these hedge funds, Farallon Capital was the company’s leading stakeholder in Q2.
2. Orchid Island Capital, Inc. (NYSE:ORC)
Dividend Yield as of September 6: 14.88%
Another prominent high-yield monthly dividend stock, Orchid Island Capital, Inc. (NYSE:ORC) announced a 1-for-5 reverse stock split in August and a monthly dividend of $0.16 per share. The company’s shares have started to trade on a split-adjusted basis from August 31. As of September 6, the stock’s dividend yield stood at 14.88%. It has been paying uninterrupted dividends to shareholders since its IPO in 2013.
In Q2 2022, Orchid Island Capital, Inc. (NYSE:ORC) reported revenue of $66.2 million, up 26% from the same period last year. The company’s net interest income for the quarter came in at $27.1 million and its total expenses stood at $4.9 million. Its cash position also remained strong in Q2 as it reported $283.3 million in cash and cash equivalents and its total assets stood at over $4.4 billion.
As of the close of Q2 2022, 5 hedge funds in Insider Monkey’s database owned stakes in Orchid Island Capital, Inc. (NYSE:ORC), compared with 4 in the previous quarter. The collective value of these stakes is $536,000. Balyasny Asset Management owned the largest stake in the company, worth $277,000.
1. ARMOUR Residential REIT, Inc. (NYSE:ARR)
Dividend Yield as of September 6: 17.02%
ARMOUR Residential REIT, Inc. (NYSE:ARR) is a Florida-based capital management company that also provides investment advisory services to its consumers. In July, B. Riley maintained its Neutral rating on the stock with an $8 price target, highlighting the company’s book value which remained better than the industry’s average.
ARMOUR Residential REIT, Inc. (NYSE:ARR) has been paying dividends consistently since 2010. It currently pays a monthly dividend of $0.10 per share and has a yield of 17.02%, as of September 6.
In Q2 2022, ARMOUR Residential REIT, Inc. (NYSE:ARR) reported a net interest income of $35 million and its book value per common share stood at $7.25. The company’s total cash at the end of the quarter stood at $573.7 million. Its total assets amounted to $8.8 billion.
As of the end of June 2022, 5 hedge funds tracked by Insider Monkey owned stakes in ARMOUR Residential REIT, Inc. (NYSE:ARR), up from 4 in the previous quarter. The collective value of these stakes is over $13.4 million.
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Disclosure. None. 10 High-Yield Monthly Dividend Stocks to Buy in September is originally published on Insider Monkey.
