9. ARMOUR Residential REIT, Inc. (NYSE:ARR)
Number of Hedge Fund Holders: 15
Dividend Yield as of October 23: 22.36%
ARMOUR Residential REIT, Inc. (NYSE:ARR) invests primarily in mortgage-backed securities issued or guaranteed by U.S. Government-sponsored entities. It earns income from the interest on those securities and uses leverage to enhance its returns.
ARR’s 22.3% dividend yield is a direct result of the size of the monthly payouts and the low valuation of the shares. They pay $0.24 per share per month, which is $2.88 per year at the current rate. Debt can amplify returns, but it also carries risks: the cost of debt can rise, interest rates can change, and mortgage security prices can fall, all of which can negatively impact profits. That’s probably the best explanation for the stock’s very high yield.
The company’s dividend policy is to review earnings, financial position, REIT tax requirements, and market conditions prior to declaring a dividend. As a REIT, ARR is generally required to distribute at least 90% of its taxable income each year. The dividend is not guaranteed, and the board can reduce it if circumstances so require. Realty Income, on the other hand, is going strong in its dividend game. Read here.
As per Insider Monkey, 15 hedge funds held ARR at the end of Q2 2026. They may be seeking monthly income, hoping to profit from interest rate changes, or betting on a higher valuation. Some of the funds may be employing more sophisticated strategies to hedge against market and interest rate risk. Hedge fund interest in the stock doesn’t in any way make it a safe investment, but does indicate that professional investors see some value in it.
8. Qfin Holdings, Inc. (NASDAQ:QFIN)
Number of Hedge Fund Holders: 17
Dividend Yield as of October 23: 23.57%
Qfin Holdings, Inc. (NASDAQ:QFIN) is a Chinese credit tech platform that connects consumers and SMES with financial institutions. The platform’s technology is used by lenders to evaluate borrowers, manage credit risk, and collect repayments.
The 23.57% dividend yield is a function of the stock’s low share price in relation to its annualized dividend, but don’t assume that the dividend will be paid out in perpetuity. QFIN has a semi-annual dividend policy. For the first half of 2026, the company declared $0.46 per ADS. It also has a share buyback program in place, though its cautious outlook suggests some pressure on earnings. Read the analysis here: A Profit Collapse Masks Qfin’s (QFIN) Bigger AI Ambitions
Insider Monkey’s Q2 2026 data shows 17 hedge funds have invested in the company. Some investors increased their exposure: Triata Capital upped its position by 48% to 5.17 million shares, Arrowstreet Capital by 337% to 1.90 million shares, and Citadel also increased its position significantly. There appears to be some investor interest in QFIN given the scale of the positions in the lending tech, the size of the customer base, and the amount of cash on the balance sheet. D. E. Shaw, by contrast, reduced its position by about 19% to 2.53 million shares, suggesting institutional sentiment is far from unanimous.
The risks are real. Q2 2026 revenue was down from the prior year, and net income was down to RMB401.4m from RMB1.73bn. The high yield is likely to be a reflection of concerns around the Chinese lending environment and the sustainability of future dividends.
7. MFA Financial, Inc. (NYSE:MFA)
Number of Hedge Fund Holders: 16
Dividend Yield as of October 23: 21.62%
MFA Financial, Inc. (NYSE:MFA) is a mortgage REIT that invests in residential mortgage loans and mortgage-backed securities and also originates loans for real estate investors via its subsidiary Lima One Capital. The business is reliant on the income generated from the assets, the cost of funding, interest rates, and the ability of the borrowers to service their loans.
The stock currently has a dividend yield of 21.6%, which reflects the market price relative to its annualized dividend of $1.44 per share. MFA has had a quarterly dividend of $0.36 in place since 2025. The dividend does need to be looked at, though, as the second quarter 2026 distributable earnings were only $0.12 per share, significantly below the dividend. Earnings before realized credit losses were $0.35 per share, which is just about sufficient to cover the dividend. That gap indicates the impact loan losses can have on dividend sustainability. Read what analysts think of the stock.
Hedge fund interest also reflects MFA’s portfolio repositioning. By June 2026, MFA’s residential investment portfolio had grown to $13 billion, including $5.7bn in non-qualified mortgage loans and $4.1bn in agency MBS. The 60-day delinquency rate has come in at 7.0% down from 7.8% in the prior quarter. That’s likely to be of interest to investors who are looking for a recovery in mortgage assets and earnings.
Insider Monkey’s most recent table shows AQR Capital Management, Renaissance Technologies, Ellington, Citadel, and Millennium as MFA’s hedge fund holders. Citadel has increased its position by 207%, while Ellington has reduced its position by 51%, so institutional interest appears split rather than broadly positive.
