5 Monthly Dividend Stocks with Over 5% Yield

4. Ellington Financial Inc. (NYSE:EFC)

Dividend Yield as of July 8: 11.83%

Ellington Financial Inc. (NYSE:EFC) is a Connecticut-based investment adviser specializing in diversified credit, mortgage, and related markets.

Ellington Financial Inc. (NYSE:EFC) shifted to monthly payments in 2019, after offering quarterly dividends consistently for 7 years. Though the stock’s payout ratio stands very close to 100% in Q1 2022, its improving assets have investors hopeful about future dividend growth. At the end of March, the company had over $363.5 million available in cash or cash equivalents, up from $92.6 million in the previous quarter. Moreover, Ellington Financial Inc. (NYSE:EFC) paid over $11.6 million in dividends in Q1, compared with $10.3 million of dividends paid during Q4 2021. The company currently pays a monthly dividend of $0.15 per share.

In June, Piper Sandler presented an optimistic stance about Ellington Financial Inc. (NYSE:EFC) due to the company’s improving financials. However, the firm also acknowledged the market volatility that can put the stock at risk. Given this, the firm lowered its price target on the stock to $17 but maintained an Overweight rating on the shares.

Insider Monkey’s Q1 2022 database shows that 7 hedge funds held investments in Ellington Financial Inc. (NYSE:EFC), the same as in the previous quarter. The total value of these investments stood at $25.6 million. Jim Simons and David Harding were the most prominent shareholders of the company in Q1.