In this article, we discuss the 5 best monthly dividend stocks to buy in July. If you want to read our detailed analysis of dividend stocks and their past performance, go directly to the 10 Best Monthly Dividend Stocks to Buy in July.
5. PennantPark Floating Rate Capital Ltd. (NYSE:PFLT)
Dividend Yield as of July 4: 9.55%
PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) is an externally managed investment company that invests in middle-market companies located in the U.S.
Over the past six years, PennantPark Floating Rate Capital Ltd. (NYSE:PFLT) has not changed its monthly payouts, but the company survived the worst of 2020 and continued paying dividends to shareholders. Moreover, since 2011, the company has not trimmed its dividend even once. Its current monthly payout stands at $0.095 per share, with a yield of 9.55%, as recorded on July 4.
According to Insider Monkey’s Q1 data, 7 hedge funds held positions in PennantPark Floating Rate Capital Ltd. (NYSE:PFLT), up from 3 a quarter earlier. The combined value of the stakes owned by those funds stood at $12.6 million, compared with $5 million worth of stakes in Q4 2021. Two Sigma Advisors was the company’s largest shareholder in Q1.
4. Prospect Capital Corporation (NASDAQ:PSEC)
Dividend Yield as of July 4: 10.04%
Prospect Capital Corporation (NASDAQ:PSEC) is a New York-based business development company that makes debt and equity investments in U.S middle-market businesses.
Prospect Capital Corporation (NASDAQ:PSEC) trimmed its dividends in 2015 and 2017 but has paid uninterrupted dividends to shareholders since its inception in 2004, equaling over $3.5 billion cumulatively. In Q1 2022, the company’s payout ratio stood at 86% based on net investment income. Currently, it offers a monthly payout of $0.06 per share, with a dividend yield of 10.04%, as of July 4.
At the end of Q1 2022, 6 hedge funds owned stakes in Prospect Capital Corporation (NASDAQ:PSEC), down from 9 in the previous quarter. These stakes hold a combined value of over $18.4 million. Among those hedge funds, D E Shaw was one of the company’s most prominent shareholders in Q1.
3. Horizon Technology Finance Corporation (NASDAQ:HRZN)
Dividend Yield as of July 4: 10.08%
Horizon Technology Finance Corporation (NASDAQ:HRZN) is a Connecticut-based specialty finance company that invests in companies in their developmental stage, particularly companies belonging to the healthcare and IT sectors.
Horizon Technology Finance Corporation (NASDAQ:HRZN) currently pays a monthly dividend of $0.10 per share. It is one of the best monthly dividend stocks because it has been making continuous dividend payments for the past 10 years and offers an attractive yield of 10.08% as of July 4. Moreover, it also declared a special dividend of $0.05 per share in November 2021. The company’s payout ratio sits at 89%.
In May, Compass Point upgraded Horizon Technology Finance Corporation (NASDAQ:HRZN) to ‘Neutral’ from ‘Sell’, highlighting the company’s investment interest income growth.
Insider Monkey’s Q1 2022 database shows that 7 hedge funds owned $6.8 million worth of stakes in Horizon Technology Finance Corporation (NASDAQ:HRZN) on March 31. In comparison, 6 hedge funds held positions in the company in Q4 2021, with stakes valued at over $6.4 million. Citadel Investment Group was one of the company’s most prominent stakeholders in Q1.
2. Ellington Financial Inc. (NYSE:EFC)
Dividend Yield as of July 4: 11.89%
Ellington Financial Inc. (NYSE:EFC) is an American mortgage finance company that invests in residential and commercial mortgage-based securities.
In June, Piper Sandler appreciated the performance of Ellington Financial Inc. (NYSE:EFC), as it managed to drive its core earnings and dividends, but expressed concerns about rising interest rates and price hikes. In view of this, the firm lowered its price target on the stock to $17 but maintained an ‘Overweight’ rating on the shares.
Ellington Financial Inc. (NYSE:EFC) makes it to our list of the best monthly dividend stocks as it has 10 years of consistent dividend payments under its belt and its current monthly dividend of $0.15 per share stands at pre-pandemic levels. The company switched to monthly payments in 2019 and offered quarterly payouts before that. As of July 4, the stock’s dividend yield came in at 11.89%.
As of the quarter ended in March 2022, Ellington Financial Inc. (NYSE:EFC) was a part of 7 hedge funds’ portfolios, according to Insider Monkey’s data. The combined EFC stakes owned by those hedge funds was valued at $25.6 million.
1. AGNC Investment Corp. (NASDAQ:AGNC)
Dividend Yield as of July 4: 12.54%
AGNC Investment Corp. (NASDAQ:AGNC) is a Maryland-based real estate investment trust company that invests in residential mortgage-backed securities on a leveraged basis.
On June 9, AGNC Investment Corp. (NASDAQ:AGNC) declared a monthly dividend of $0.12 per share, in line with its previous dividend. The stock’s dividend yield stood at 12.54% as of July 4.
In June, Keefe Bruyette upgraded AGNC Investment Corp. (NASDAQ:AGNC) to ‘Outperform’ while lifting the stock’s price target to $13.25. The firm presented a positive outlook on mortgage REITs, expecting the sector to generate positive returns in 2022.
At the end of Q1 2022, 14 hedge funds in Insider Monkey’s database had investments in AGNC Investment Corp. (NASDAQ:AGNC), down from 21 a quarter earlier. The stakes owned by those 14 hedge funds had a total value of over $70.4 million. With nearly $41 million worth of shares, Canyon Capital Advisors held the largest position in the company in Q1.
You can also take a look at 10 Real Estate Stocks to Buy Now According to Charles Fitzgerald’s V3 Capital and 10 Best Gas Stocks To Buy Now.
