5 Monthly Dividend Stocks with Over 5% Yield

3. Ellington Residential Mortgage REIT (NYSE:EARN)

Dividend Yield as of January 27: 11.52%

Number of Hedge Fund Holders: 10

Ellington Residential Mortgage REIT (NYSE:EARN) is a mortgage real estate investment trust based in Connecticut, specializing in acquiring and managing residential mortgage and real estate assets that are guaranteed by a U.S. government agency. Ellington Residential Mortgage REIT (NYSE:EARN) delivers a dividend yield of 11.52% as of January 27. 

On January 7, Ellington Residential Mortgage REIT (NYSE:EARN) declared a $0.10 per share monthly dividend, in line with previous. The dividend is payable on February 25, to shareholders of record on January 31. 

BTIG analyst Eric Hagen downgraded Ellington Residential Mortgage REIT (NYSE:EARN) on November 8 to Neutral from Buy. The analyst is positive on Ellington Residential Mortgage REIT (NYSE:EARN)’s portfolio structure, particularly its move to hedge its cost of funds at the short-end, but as Ellington Residential Mortgage REIT (NYSE:EARN)’s shares approach book value with 10% dividend yield, valuation has become a concern. 

Among the hedge funds tracked by Insider Monkey, 10 funds were long Ellington Residential Mortgage REIT (NYSE:EARN) in Q3 2021, with stakes totaling $18.1 million. Renaissance Technologies is the biggest stakeholder of the company, owning 582,700 shares worth $6.5 million.