How Orchid Island Capital (ORC) Provides Stability Among the Safest Monthly Dividend Stocks

Orchid Island Capital, Inc. (NYSE:ORC) is included among the 10 Safest Monthly Dividend Stocks to Buy.

How Orchid Island Capital (ORC) Provides Stability Among the Safest Monthly Dividend Stocks

Photo by Dan Dennis on Unsplash

Orchid Island Capital, Inc. (NYSE:ORC) is a specialty finance company that invests in residential mortgage-backed securities (RMBS), with a portfolio split between traditional mortgage pass-through certificates and collateralized mortgage obligations, as well as structured Agency RMBS.

In its latest earnings update, CEO Robert Cauley pointed to two key events shaping the quarter: the reciprocal tariffs announced in April, known as Liberation Day, and the passage of the “One Big beautiful bill” in July. Both stirred market volatility and influenced investor sentiment. Cauley explained that Orchid Island Capital, Inc. (NYSE:ORC) was well-prepared, holding high cash reserves and keeping leverage at the low end of its range. This positioning limited the need for deleveraging and enabled the repurchase of more than 1.1 million shares at a steep discount early in the quarter. He added that while the company maintained a defensive stance, it also generated a cash buffer through selective share sales.

Orchid Island Capital, Inc. (NYSE:ORC) is one of the safest stocks to buy, as the company has been making regular dividend payments since its IPO in 2013. Currently, it offers a monthly dividend of $0.12 per share for a dividend yield of 20.54%, as of September 23.

While we acknowledge the potential of ORC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ORC and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: Dividend Stock Portfolio For Retirement: 10 Stocks to Buy and 10 Best S&P 500 Dividend Stocks to Invest in.

Disclosure: None.