In this article, we discuss 10 monthly dividend stocks with highest yields.
The volatile stock market has brought dividend stocks into the limelight this year. Investors are pouring millions of dollars into dividend-focused ETFs and dividend companies to reward themselves with regular income during unstable economic conditions. Companies are steadily raising their payouts this year as US dividends reached their all-time in the second quarter of 2022, amounting to $144.4 billion, as reported by Janus Henderson Group. The report further mentioned that 94% of the companies in the index increased or maintained their payouts during the quarter.
Historically, dividend stocks have protected investors in times of financial crisis. Sam Stovall, a chief investment strategist at CFRA research, talked about dividend stocks in his interview with CNBC this September. He said that investors can improve their performance by owning dividend stocks as they can protect against an unstable market environment. He further mentioned that dividends have represented 33% of the total return of the S&P 500 since 1945, which gives investors a clear idea of their contribution during inflationary periods. This year’s returns have shown that dividend stocks are gaining ground among investors. The S&P 500 Index is down 17.6% year-to-date and the tech-heavy NASDAQ lost 26.08% during this time. In comparison, the FTSE High Dividend Yield Index, which tracks the returns of large- and mid-sized dividend companies, is down by just 5.3% in 2022 so far.
High yield is one of the most important features of dividend investments. In his discussion with CNBC, VettaFi’s head of research Todd Rosenbluth said that companies that pay above-average yields perform better during rocky markets and provide protection to investors. He also mentioned that companies that maintain their dividend growth keep up with unstable market conditions better than their peers. Some of the notable stocks in this regard are The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and Johnson & Johnson (NYSE:JNJ), which have raised their dividends for decades and have outperformed the broader market in 2022 so far.
In this article, our focus would be some monthly dividend stocks that have some of the highest yields in the market.
Photo by Austin Distel on Unsplash
Our Methodology:
The stocks mentioned below pay monthly dividends to shareholders and have yields above 10%, as recorded on September 14. For this list, we reviewed the respective companies’ financial health and dividend policies.
10 Monthly Dividend Stocks with Highest Yields
10. PermRock Royalty Trust (NYSE:PRT)
Dividend Yield as of September 14: 10.16%
PermRock Royalty Trust (NYSE:PRT) is a Texas-based statutory trust that owns oil and natural gas-producing properties mainly located in Permian Basin. The company receives 80% of the net profits from oil and natural gas sales in its properties. These profits are distributed to shareholders each month in dividends.
On August 9, the company declared a 1.4% hike in its monthly dividend to $0.092 per share. The stock’s dividend yield came in at 10.16%, as of September 14. The company suspended its dividends for five months in 2020 in recognition of the pandemic unlike The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and Johnson & Johnson (NYSE:JNJ), which continued growing their payouts. In addition to this, it also suffered losses in 2020 due to declining oil prices. However, the company’s management has ensured investors about its recovery post-pandemic.
In FY21, PermRock Royalty Trust (NYSE:PRT) reported revenue of $8.1 million, up from $3.1 million in the previous year. Its operating income stood at $7.3 million, compared with nearly $2 million in 2020.
9. Dynex Capital, Inc. (NYSE:DX)
Dividend Yield as of September 14: 10.28%
Dynex Capital, Inc. (NYSE:DX) is a Virginia-based real estate investment trust that invests in mortgage loans and securities on a leveraged basis. The company’s main goal is to manage its capital efficiently to deliver risk-adjusted returns to shareholders.
In Q2 2022, Dynex Capital, Inc. (NYSE:DX) remained a popular buy among elite funds, as 13 hedge funds tracked by Insider Monkey owned stakes in the company, up from 6 in the previous quarter. These stakes hold a collective value of over $49 million. With over $15 million worth of stakes, Millennium Management was the company’s leading stakeholder in Q2.
In Q2 2022, Dynex Capital, Inc. (NYSE:DX)’s earnings fell short of Street estimates, however, its shareholder equity increased by 7% from the previous quarter to $842.4 million. The company’s operating cash flow for the quarter came in at nearly $36.2 million, compared with $34.5 million in the previous quarter.
On September 13, Dynex Capital, Inc. (NYSE:DX) declared a monthly dividend of $0.13 per share, consistent with its previous dividend. The stock’s dividend yield was recorded at 10.28% on September 14, which places it as one of the most prominent monthly dividend stocks with the highest yields.
8. San Juan Basin Royalty Trust (NYSE:SJT)
Dividend Yield as of September 14: 10.66%
San Juan Basin Royalty Trust (NYSE:SJT) is a non-mortgage widely held fixed investment trust, headquartered in Texas, US. The trust collects the Royalty income to pay its all expenses and charges and to distribute its remaining income to shareholders through dividends.
Though San Juan Basin Royalty Trust (NYSE:SJT) does not hold any dividend growth track records, the company has raised its dividends at a CAGR of 16.17% in the past five years. On August 19, the company hiked its monthly dividend by 26.4% to $0.1834 per share. As of September 14, the stock’s yield is 10.66%.
San Juan Basin Royalty Trust (NYSE:SJT) reported a strong cash position in Q2 2022. The company’s royalty income stood at $13.7 million, compared with $7.6 million during the same period last year. Its distributable income for the quarter also grew to $13.3 million, from $7.2 million generated during the same period last year.
At the end of Q2 2022, 2 hedge funds tracked by Insider Monkey reported owning stakes in San Juan Basin Royalty Trust (NYSE:SJT), the same as in the previous quarter. These stakes hold a consolidated value of over $1.7 million. Citadel Investment Group was the company’s leading stakeholder in Q2.
7. SLR Investment Corp. (NASDAQ:SLRC)
Dividend Yield as of September 14: 10.85%
Another monthly dividend stock with a high yield on our list is SLR Investment Corp. (NASDAQ:SLRC), which is a New York-based business development company. Following the company’s Q2 results, Oppenheimer maintained its Perform rating on the stock in August with a $16 price target. The firm also highlighted the company’s dividend policy in this challenging economic environment.
In Q2 2022, SLR Investment Corp. (NASDAQ:SLRC) reported a total investment income of $42.8 million, compared with $35.6 million during the same period last year. The company has roughly $29 million available in cash at the end of the quarter and had access to approximately $850 million of available capital. In the first six months of the year, it had cash and cash equivalents worth $348.8 million, up from $320 million at the end of December. In addition to this, its net investment income grew to $22.5 million in Q2, from $20.1 million in the prior-year quarter.
On September 2, SLR Investment Corp. (NASDAQ:SLRC) declared a monthly dividend of $0.1367 per share, in line with its previous dividend. The stock’s dividend yield stood at 10.85% on September 14.
Two Sigma Advisors owned stakes worth nearly $5 million in SLR Investment Corp. (NASDAQ:SLRC), becoming the company’s leading stakeholder in Q2 2022. In addition to this, 7 hedge funds in Insider Monkey’s database owned stakes in the company in Q2, up from 7 in the previous quarter. These stakes hold a value of over $11.4 million.
6. Oxford Square Capital Corp. (NASDAQ:OXSQ)
Dividend Yield as of September 14: 11.17%
Oxford Square Capital Corp. (NASDAQ:OXSQ) is a Connecticut-based investment management company that also performs as a business development company. The company pays a monthly dividend of $0.035 per share, with shares boasting a yield of 11.17%, as recorded on September 14. This monthly dividend stock with a high yield can be a good addition to dividend portfolios among other dividend stocks like The Coca-Cola Company (NYSE:KO), PepsiCo, Inc. (NASDAQ:PEP), and Johnson & Johnson (NYSE:JNJ).
In Q2 2022, Oxford Square Capital Corp. (NASDAQ:OXSQ) reported a total investment income of $9.9 million, up 27.4% from the same period last year. The company’s net investment income stood at $4.3 million or $0.09 per share. During the quarter, it made investments worth over $26.9 million and received roughly $9.6 million from sales and repayments of investments. At the end of June 2022, Oxford Square Capital Corp. (NASDAQ:OXSQ) had over $23.2 million in cash and cash equivalents, compared with $9 million at the end of December 2021.
Oxford Square Capital Corp. (NASDAQ:OXSQ) was a part of 2 hedge fund portfolios in Q2 2022, down from 5 in the previous quarter. These stakes hold a collective value of over $1.2 million, compared with $1.6 million worth of stakes owned by hedge funds in the previous quarter.
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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Disclosure. None. 10 Monthly Dividend Stocks with Highest Yields is originally published on Insider Monkey.
