First Published on January 23rd, 2023 by Bob Ciura for SureDividend.
Monthly dividend stocks have instant appeal for many income investors. Stocks that pay their dividends each month offer more frequent payouts than traditional quarterly or semi-annual dividend payers.
For this reason, we created a full list of 49 monthly dividend stocks.
You can download our full Excel spreadsheet of all monthly dividend stocks(along with metrics that matter like dividend yield and payout ratio) by clicking on the link below:
Stop, this is BIG! Click here to instantly download your free spreadsheet of all 49 monthly dividend stocks now, along with key investing metrics.
In addition, stocks that have high dividend yields are also attractive for income investors.
With the average S&P 500 yield hovering around 1.7%, investors can generate much more income with high-yield stocks.
Screening for monthly dividend stocks that also have high dividend yields makes for an appealing combination.
This article will list the 20 highest-yielding monthly dividend stocks.
In this article
Table Of Contents
The following 20 monthly dividend stocks have high dividend yields above 5%. Stocks are listed by their dividend yields, from lowest to highest.
You can instantly jump to an individual section of the article by utilizing the links below:
- High-Yield Monthly Dividend Stock #20: SL Green Realty (SLG)
- High-Yield Monthly Dividend Stock #19: Gladstone Commercial (GOOD)
- High-Yield Monthly Dividend Stock #18: Generation Income Properties (GIPR)
- High-Yield Monthly Dividend Stock #17: Sabine Royalty Trust (SBR)
- High-Yield Monthly Dividend Stock #16: Prospect Capital (PSEC)
- High-Yield Monthly Dividend Stock #15: PennantPark Floating Rate (PFLT)
- High-Yield Monthly Dividend Stock #14: Broadmark Realty Capital (BMRK)
- High-Yield Monthly Dividend Stock #13: Dynex Capital (DX)
- High-Yield Monthly Dividend Stock #12: SLR Investment Corp. (SLRC)
- High-Yield Monthly Dividend Stock #11 Horizon Technology (HRZN)
- High-Yield Monthly Dividend Stock #10: Ellington Residential Mortgage REIT (EARN)
- High-Yield Monthly Dividend Stock #9: Oxford Square Capital (OXSQ)
- High-Yield Monthly Dividend Stock #8: AGNC Investment Corporation (AGNC)
- High-Yield Monthly Dividend Stock #7: Ellington Financial (EFC)
- High-Yield Monthly Dividend Stock #6: PermRock Royalty Trust (PRT)
- High-Yield Monthly Dividend Stock #5: Permianville Royalty Trust (PVL)
- High-Yield Monthly Dividend Stock #4: San Juan Basin Royalty Trust (SJT)
- High-Yield Monthly Dividend Stock #3: Orchid Island Capital (ORC)
- High-Yield Monthly Dividend Stock #2: ARMOUR Residential REIT (ARR)
- High-Yield Monthly Dividend Stock #1: Hugoton Royalty Trust (HGTXU)
High-Yield Monthly Dividend Stock #20: SL Green Realty (SLG)
- Dividend Yield: 8.8%
SL Green Realty Corp was formed in 1980. It is an integrated real estate investment trust (REIT) that is focused on acquiring, managing, and maximizing the value of Manhattan commercial properties. It is Manhattan’s largest office landlord, and currently owns 73 buildings totaling 35 million square feet.
Source: Investor Presentation
In mid-October, SLG reported (10/19/2022) financial results for the third quarter of fiscal 2022. Its occupancy rate edged up from 92.0% at the end of the previous quarter to 92.1%, but its same-store net operating income dipped -0.5% over the prior year’s quarter.
Given also the negative effect of some assets sales, its funds from operations (FFO) per share decreased -7% over the prior year’s quarter, from $1.78 to $1.66. The REIT exceeded the analysts’ consensus by $0.01. During the quarter, SLG signed 32 Manhattan office leases for a total of 930,232 square feet.
Click here to download our most recent Sure Analysis report on SLG (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #19: Gladstone Commercial (GOOD)
- Dividend Yield: 9.0%
Gladstone Commercial Corporation is a real estate investment trust, or REIT, that specializes in single-tenant and anchored multi-tenant net leased industrial and office properties across the U.S. The trust targets primary and secondary markets that possess favorable economic growth trends, growing populations, strong employment, and robust growth trends.
The trust’s stated goal is to pay shareholders monthly distributions, which it has done for more than 17 consecutive years. Gladstone owns over 100 properties in 24 states that are leased to about 100 unique tenants.
Gladstone reported third quarter earnings on November 7th, 2022, and results were better than expected on both the top and bottom lines. FFO-per-share came to 43 cents, which was four cents better than expected. Revenue was up 16% year-over-year to $39.8 million, which was $3 million better than estimates.
The REIT collected 100% of cash rents in the quarter. Gladstone also acquired four fully occupied industrial properties for $46 million, comprising about 362k square feet of rented space, at a weighted average cap rate of 7.26%.
In addition, three properties were sold for $28 million. Total expenses were $37.5 million, up sharply from $27.8 million a year ago. The REIT renewed 167,566 square feet of remaining lease terms ranging from 5.3 to 6.2 years at two properties. Same store rents are expected to continue to rise at about 2% annually in the coming years, according to guidance.
Click here to download our most recent Sure Analysis report on GOOD (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #18: Generation Income Properties (GIPR)
- Dividend Yield: 9.2%
Generation Income Properties is an internally managed REIT focused on acquiring and managing income-producing retail, office, and industrial properties.
These properties feature 338,000 leasable square feet and an annualized base rent of $5.43 million. The trust also owned a 36.8% tenancy in common interest in a single tenant retail building (approximately 15,300 square feet) leased to La-Z-Boy Company. The trust generated $3.9 million in rental revenues last year and is based in Tampa, Florida.
Source: Investor Presentation
On November 14th, 2022, Generation Income reported its Q3 results for the period ending September 30th, 2022. Total revenues from operations came in at $1.5 million as compared to $1.0 million in the prior-year period. This represents a year-over-year increase of 43%, which was driven primarily by the acquisition of properties the company executed over the past four quarters.
Core AFFO came in at $358 thousand, or $0.16 per share, compared to last year’s $165 thousand, or $0.18 per share. Despite the higher AFFOs, the per-share metric declined due to an even larger increase in the company’s share count, which was utilized to fund its acquisitions. At the end of the quarter, 100% of the company’s portfolio was leased, with all rents due collected.
Click here to download our most recent Sure Analysis report on GIPR (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #17: Sabine Royalty Trust (SBR)
- Dividend Yield: 9.3%
Sabine Royalty Trust is a royalty trust set up in 1983 by Sabine Corporation. At initiation, the trust had an expected reserve life of 9 to 10 years; the current estimated life of the trust is 8 to 10 years.
The trust consists of royalty and mineral interests in producing properties and proved oil and gas properties in Florida, Louisiana, Mississippi, New Mexico, Oklahoma, and Texas. It is roughly 2/3 oil and 1/3 gas in terms of revenues.
The trust’s assets are static in that no further properties can be added. The trust has no operations but is merely a pass-through vehicle for royalties. SBR had royalty income of $60.9 million in 2021.
In mid-August, SBR reported (8/11/22) financial results for the second quarter of fiscal 2022. Oil Production edged up 2% over the prior year’s quarter while production of gas grew 75%. In addition, the average realized prices of oil and gas grew 76% and 43%, respectively, thanks to the sanctions of western countries on Russia, which have led to a rally of oil and gas prices to 13-year highs. As a result, distributable cash flow per unit more than doubled, from $0.78 to $2.05.
Moreover, the sanctions on Russia are not likely to be withdrawn anytime soon. As a result, SBR is likely to post 10-year high distributable cash flow per unit this year. Based on its distributions in the first eight months of the year, SBR is offering an annualized distribution yield of 9.8%.
Click here to download our most recent Sure Analysis report on SBR (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #16: Prospect Capital (PSEC)
- Dividend Yield: 9.6%
Prospect Capital Corporation is a Business Development Company, or BDC, that provides private debt and private equity to middle–market companies in the U.S. The company focuses on direct lending to owner–operated companies, as well as sponsor–backed transactions.
Prospect invests primarily in first and second lien senior loans and mezzanine debt, with occasional equity investments. The company produces about $680 million in annual revenue.
Source: Investor Presentation
Prospect reported fourth quarter and full-year earnings on August 29th, 2022, and results were better than expected on both the top and bottom lines. Adjusted earnings-per-share came to 21 cents, which was three cents ahead of estimates. Total investment income soared 17% year-over-year to $185 million, and beat expectations by $8 million.
The company’s beat was in spite of the fact that originations declined. Originations were $477 million in Q4, down from $565 million in Q3. Total repayments during the quarter were down as well from Q3, falling from $185 million to $151 million.
Operating expenses were $95 million, flat with Q3, but up from $84 million in the year-ago period. Net investment income per share of 21 cents was up from 20 cents in Q3 and 19 cents in last year’s Q4. Net asset value of $10.48 was down from $10.81 in Q3.
Click here to download our most recent Sure Analysis report on PSEC (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #15: PennantPark Floating Rate (PFLT)
- Dividend Yield: 9.7%
PennantPark Floating Rate Capital Ltd. is a BDC that makes secondary direct, debt, equity, and loan investments.
The fund also aims to invest through floating rate loans in private or thinly traded or small–cap, public middle market companies, equity securities, preferred stock, common stock, warrants or options received in connection with debt investments or through direct investments.
Source: Investor Presentation
It generally invests in the United States and to a limited extent non–U.S. companies. It aims to invest in companies not rated by national rating agencies.
On November 16th, 2022 PennantPark Floating Rate Capital Ltd. announced results for the Fourth Quarter and Fiscal Year Ended September 30, 2022. Investment income was $28.8 million, up from $21.6 million in the year-ago quarter. Investment income for the fiscal year ended September 30, 2022 was $105.5 million and was attributable to $89.1 million from first lien secured debt and $16.4 million from other investments.
Investment income for the year ended September 30, 2021 was $82.7 million and was attributable to $72.1 million from first lien secured debt and $10.6 million from other investments, indicating that PFLT generated considerable growth year-over-year.
The increase in investment income compared to the same periods in the prior year was primarily due to an increase in LIBOR and SOFR base rates and an increase in the size of the trust’s interest-bearing portfolio.
Click here to download our most recent Sure Analysis report on PFLT (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #14: Broadmark Realty Capital (BRMK)
- Dividend Yield: 9.8%
Broadmark Realty Capital Inc. is a real estate investment trust that provides short-term, first deed of trust loans that are secured by real estate. Customers use these loans to acquire, renovate, rehab and develop properties for both residential and commercial uses in the U.S. Broadmark Realty formed in 2010, but had its initial public offering in November 2019.
Source: Investor Presentation
On November 7th, 2022, Broadmark Realty reported third quarter results for the period ending September 30th, 2022. For the quarter, revenue decreased 11.4% to $27.1 million, which was $1.42 million below estimates. Adjusted earnings per share of $0.14 compared to $0.16 in the prior year and was $0.02 less than expected.
Quarterly interest income totaled $20.7 million and fee income was $6.4 million. The total loan portfolio consisted of $1.5 billion of loans across 17 U.S. states and the District of Columbia. Broadmark Realty originated $137.9 million of new loans and amendments for the quarter. Second quarter origination was a 30% decrease sequentially and had a weighted average loan-to-value of 59.7%.
As of September 30th, 2022, Broadmark Realty had a total of $115.4 million of loans in contractual default. Provisions for credit losses totaled $12.3 million compares to $2.6 million in the prior year.
Click here to download our most recent Sure Analysis report on BRMK (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #13: Dynex Capital (DX)
- Dividend Yield: 10.8%
Dynex Capital invests in mortgage–backed securities (MBS) on a leveraged basis in the United States. It invests in agency and non–agency MBS consisting of residential MBS, commercial MBS (CMBS), and CMBS interest–only securities.
Source: Investor Presentation
Agency MBS have a guaranty of principal payment by an agency of the U.S. government or a U.S. government–sponsored entity, such as Fannie Mae and Freddie Mac. Non–Agency MBS have no such guaranty of payment.
In Q3, Dynex Capital generated a total economic loss of $(2.17) per common share, or (12.9)% of beginning book value, comprised of a decline in book value per common share of $(2.56) to $14.23 as of September 30, 2022. This was partially offset by dividends declared of $0.39 per common share for the third quarter of 2022.
The company generated a comprehensive loss of $(2.20) per common share and a net loss of $(1.07) per common share. Realized gains on interest rate hedges included in GAAP results were $149.6 million for the third quarter and $486.0 million year-to-date.
Earnings available for distribution (“EAD”) to common shareholders, a non-GAAP measure, of $0.24 per common share, excluded the benefit of interest rate hedge gains and includes severance expenses of approximately $0.06 per share related to the company’s CFO transition. The net interest spread came in at 0.23% and the adjusted net interest spread, a non-GAAP measure, came in at 1.12%.
Click here to download our most recent Sure Analysis report on DX (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #12: SLR Investment Corp. (SLRC)
- Dividend Yield: 10.9%
SLRC is a Business Development Company that primarily invests in U.S. middle market companies. The company has five core business units which include cash flow, asset-based, life science lending, equipment finance, and corporate leasing.
The trust’s debt investments primarily consist of cash flow senior secured loans, including first lien and second lien debt instruments. It also offers asset-based loans including senior secured loans collateralized on a first lien basis by current assets.
On November 2nd, 2022, SLR Investment Corp. reported its Q3-2022 results for the period ending September 31st, 2022. For the quarter, total investment income totaled $47.6 million, 47.8% higher year-over-year. The increase was primarily due to a larger portfolio as well as increase in rates. Expenses totaled $27.7 million, 61% higher compared to last year.
The steep increase in expenses was primarily due to SLR’s cost of borrowing surging. Thus, net investment income grew by a lesser 33% to $20 million. On a per-share basis, net investment income grew by just a cent to $0.37, due to the additional shares utilized to fund the company’s investments.
Click here to download our most recent Sure Analysis report on SLRC (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #11: Horizon Technology (HRZN)
- Dividend Yield: 11.1%
Horizon Technology Finance Corp. is a BDC that provides venture capital to small and medium–sized companies in the technology, life sciences, and healthcare–IT sectors.
Source: Investor Presentation
The company has generated attractive risk–adjusted returns through directly originated senior secured loans and additional capital appreciation through warrants, featuring a last–nine–month annualized portfolio yield of 14.7%.
The company has exceeded the typical industry average IRR of around 10% from its loan coupons by engaging in commitment fees, guidance fees, and potential equity rights, maximizing its total yield. Horizon Technology hasgross investment income of around $47 million annually.
On October 28th, 2022, Horizon increased its base dividend by 10% to a monthly rate of $0.11.
On November 1st, 2022, Horizon released its Q3 results for the period ending September 30th, 2022. Total investment income grew 42.1% year-over-year to $23.3 million, primarily due to growth in interest income on investments resulting from an increase in the average size of the debt investment portfolio and an increase in the base rate for most of the company’s variable rate debt investments. The latter was driven by rising interest rates. Net investment income per share (ISS) rose to $0.43, three cents higher compared to Q3-2022.
Click here to download our most recent Sure Analysis report on HRZN (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #10: Ellington Residential Mortgage REIT (EARN)
- Dividend Yield: 12.0%
Ellington Residential Mortgage REIT acquires, invests in, and manages residential mortgage and real estate related assets. Ellington focuses primarily on residential mortgage-backed securities, specifically those backed by a U.S. Government agency or U.S. government–sponsored enterprise.
Agency MBS are created and backed by government agencies or enterprises, while non-agency MBS are not guaranteed by the government.
Source: Investor Presentation
On November 9th, 2022, Ellington Residential reported its Q3 results for the period ending September 30th, 2022. The company booked a $(1.04) net loss per share for Q3. The company renamed what was previously called core earnings to adjusted distributable earnings starting in the last quarter.
Ellington achieved adjusted distributable earnings of $3.0million in the quarter, leading to adjusted EPS of $0.23 per share, which does not cover the dividend paid in the period.
EARN achieved a net interest margin of 1.28% in Q3. At quarter end, Ellington had $25.4 million of cash and cash equivalents, and $2.6 million of other unencumbered assets. The debt-to-equity ratio was 9.1x. Book value per share declined from the prior quarter to $7.78, a 14% decrease.
Click here to download our most recent Sure Analysis report on EARN (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #9: Oxford Square Capital (OXSQ)
- Dividend Yield: 12.2%
Oxford Square Capital Corp. is a BDC specializing in financing early and middle–stage businesses through loans and CLOs.
The company holds an equally split portfolio of First–Lien, Second–Lien, and CLO equity assets spread across 8 industries, with the highest exposure in business services and healthcare, at 36% and 25%, respectively.
On November 7th, Oxford Square reported its Q3 results for the period ending September 30th, 2022. The company generated approximately $11.4 million of total investment income, up 15.2% from the previous quarter. The rise in total investment income was due to rising interest rates.
Specifically, the weighted average yield of the debt investments came in at 10.4% at the current cost, compared to 9.0% during Q2-2022. This increase was partially offset by a lower cash distribution yield from OXSQ’s CLO equity investments, which declined from 20.7% to 16.6% sequentially.
As a result of a higher total investment income and stable expenses, NII (the net investment income) amounted to $5.6 million, or $0.11/share, compared to $4.3 million or $0.09 sequentially. Net asset value (NAV) per share was $3.34 compared to $3.67 last quarter. This was due to a decrease in the value of the company’s assets.
Click here to download our most recent Sure Analysis report on OXSQ (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #8: AGNC Investment Corporation (AGNC)
- Dividend Yield: 12.5%
American Capital Agency Corp is a mortgage real estate investment trust that invests primarily in agency mortgage–backed securities (or MBS) on a leveraged basis.
The firm’s asset portfolio is comprised of residential mortgage pass–through securities, collateralized mortgage obligations (or CMO), and non–agency MBS. Many of these are guaranteed by government–sponsored enterprises.
The majority of American Capital’s investments are fixed–rate agency MBS. Most of these are MBS with a 30–year maturity period. American Capital derives nearly all its revenue in the form of interest income.
AGNC reported its Q3 2022 results on October 24, 2022. It generated a $2.01 comprehensive loss per common share. AGNC had a $9.08 tangible net book value per common share as of September 30, 2022, which decreased $2.35 per common share, or -20.6%, from $11.43 per common share as of June 30, 2022.
AGNC paid out $0.36 in dividends per common share for the third quarter. There was a -17.4% economic return on tangible common equity for the quarter comprised of $0.36 dividends per common share and a $2.35 decrease in tangible net book value per common share.
Click here to download our most recent Sure Analysis report on AGNC (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #7: Ellington Financial (EFC)
- Dividend Yield: 13.1%
Ellington Financial Inc. acquires and manages mortgage, consumer, corporate, and other related financial assets in the United States. The company acquires and manages residential mortgage–backed securities (RMBS) backed by prime jumbo, Alt–A, manufactured housing, and subprime residential mortgage loans.
Additionally, it manages RMBS, for which the U.S. government guarantees the principal and interest payments. It also provides collateralized loan obligations, mortgage–related and non–mortgage–related derivatives, equity investments in mortgage originators and other strategic investments.
Source: Investor Presentation
On November 7th, 2022, Ellington Financial reported its Q3 results for the period ending September 30th, 2022. Due to the company’s business model, Ellington doesn’t report any revenues. Instead, it records only income. Interest income came in at $66.8 million, 29.5% higher quarter-over-quarter. Adjusted (previously referred to as “core”) earnings-pershare came in at $0.44, three cents higher versus Q3-2021, driven by higher interest income and a lesser growth in total expenses.
The company’s improving results were driven primarily by a larger residential transition loan portfolio at higher rates, partially offset by opportunistic sales, paydowns, and mark-to-market losses elsewhere in the credit portfolio. Ellington’s book value per share declined from $16.22 to $15.22 during the last three months, with its dividend exceeding the underlying earnings.
Click here to download our most recent Sure Analysis report on EFC (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #6: PermRock Royalty Trust (PRT)
- Dividend Yield: 13.2%
PermRock Royalty Trust is a trust formed in November 2017 by Boaz Energy, a company that is focused on the acquisition, development and operation of oil and natural gas properties in the Permian Basin. The Trust derives all its cash flows from profits from the sale of oil and natural gas production from these properties and distributes dividends monthly.
The trust reported third quarter 2022 results for the period ending September 30th, 2022. Net profits income received by the trust was $3.53 million for the quarter, compared to $2.27 million in Q3 2021. Significant increases in oil and natural gas sales prices led to a strong year-over-year improvement, offset by a reduction in sales volumes.
The average realized sale price of oil ($/Bbl) was $107.75 during the quarter, a 59% increase compared to the price of $67.82 in the prior year period. The average realized sale price of natural gas also shot up massively, from $4.29 to $8.95 per Mcf.
Distributable income for the trust came to $3.36 million, up from $2.10 million in Q3 2021. Distributable income per unit of $0.28 was up from $0.17 in the prior year period. The trust paid out all distributable income to shareholders as distributions, for a payout ratio of 100%.
Click here to download our most recent Sure Analysis report on PRT (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #5: Permianville Royalty Trust (PVL)
- Dividend Yield: 14.7%
Permianville Royalty Trust is an oil and natural gas royalty trust. It owns a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from various oil and gas properties located in Texas, Louisiana, and New Mexico.
The company was formerly known as Enduro Royalty Trust and changed its name to Permianville Royalty Trust in September 2018. As oil and gas royalty trusts are closely correlated to oil and gas prices, royalty trusts like PVL are essentially a bet on commodity prices.
High-Yield Monthly Dividend Stock #4: San Juan Basin Royalty Trust (SJT)
- Dividend Yield: 15.7%
San Juan Basin Royalty Trust is a medium sized gas trust (it produces anegligible amount of oil), set up by Southland Royalty Company. The producing properties are all in northern New Mexico, in the San Juan Basin.They are currently operated by Hilcorp San Juan, L.P., which acquired the interests in 2017.
The trust’s assets are static in that no further properties can be added. The trust has no operations, but is merely a pass–through vehicle for the royalties. SJT had royalty income of $37.6 million in 2021.
In mid-November, SJT reported (11/14/2022) financial results for the third quarter of fiscal 2022. Thanks to the
impressive rally in natural gas prices, distributable income per unit grew from $0.12 in last year’s quarter to $0.45 per unit. Based on distributions per unit of $1.57 in the first 11 months of the year, we expect annual distributable income per unit around $1.71, a 10-year high.
Click here to download our most recent Sure Analysis report on SJT (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #3: Orchid Island Capital (ORC)
- Dividend Yield: 15.9%
Orchid Island Capital, Inc. is a Real Estate Investment Trust, or REIT, operating in the mortgage industry. Mortgage REITs differ from most other REITs. For example, traditional REITs typically own a portfolio of physical real estate, which they lease to tenants to collect rental income.
Orchid is an externally managed REIT (by Bimini Advisors LLC) that invests in residential mortgage-backed securities (RMBS), either pass-through or structured agency RMBSs, which are financial instruments that collect cash flow based on residential loans such as mortgages, including subprime, and home-equity loans.
On October 27th, 2022, Orchid Island Capital reported Q3 results. The company reported a Q3 Net loss of $84.5 million, or $2.40 per common share, which consists of Net interest income of $14.2 million, or $0.40 per common share. Total expenses of $5.2 million, or $0.15 per common share.
Net realized and unrealized losses were $93.5 million, or $2.66 per common share, on RMBS and derivative instruments, including net interest income on interest rate swaps. Book value per common share came in at $11.42 while the total return of -16.7%, comprised of a $0.545 dividend per common share and a $2.94 decrease in book value per common share.
Click here to download our most recent Sure Analysis report on ORC (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #2: ARMOUR Residential REIT (ARR)
- Dividend Yield: 19.6%
ARMOUR is a high dividend REIT that invests primarily in residential mortgage–backed securities that are guaranteed or issued by a United Statesgovernment entity including Fannie Mae, Freddie Mac and Ginnie Mae.
Source: Investor Presentation
ARMOUR reported Q3 results on October 26th, 2022. It generated a comprehensive loss of $(155.7) million or $(1.26) per common share. Distributable Earnings were $38.8 million, which represents $0.32 per common share.
The REIT paid common stock dividends of $0.10 per share per month during the quarter and raised $167.2 million of capital by issuing 22,733,043 shares of common stock at $7.36 net proceeds per share, after fees and expenses. Management has also repurchased 780,000 shares of common stock, at an average cost of $4.96 per share. Net interest income was $25.1 million while the net interest margin of 2.21% was down 1 basis points from the prior quarter.
Book value per common share was $5.83 while total liquidity was $469.3 million. The debt to equity ratio was 8.7 to 1 while leverage, net of TBA Security short positions, was 7.8 to 1. Implied leverage, adjusted for forward settling sales and unsettled purchases, was 7.3 to 1. Interest Rate swap contracts totaled $6.5 billion of notional amount, representing 90% of total repurchase agreement and TBA Securities liabilities.
Click here to download our most recent Sure Analysis report on ARR (preview of page 1 of 3 shown below):
High-Yield Monthly Dividend Stock #1: Hugoton Royalty Trust (HGTXU)
- Dividend Yield: 21.7%
Hugoton Royalty Trust was created in late 1998, when XTO Energy conveyed 80% net profit interests in some predominantly gas-producing properties in Kansas, Oklahoma and Wyoming to the trust. Net profits in each area are calculated by subtracting production costs, development costs and labor costs from revenues. The trust, which produced 88% natural gas and 12% oil in 2021, has a market capitalization of $84 million.
Due to its pure upstream nature, Hugoton is highly sensitive to the cycles of gas prices. Between April 2018 and October 2020, the costs of the trust exceeded its revenues due to suppressed gas prices. As a result, Hugoton did not offer any distributions during that period. Even worse, when gas prices began to recover in late 2020, the trust had to wait for its revenues to offset past losses. Hugoton resumed paying monthly distributions only in August 2022.
In mid-November, Hugoton reported (11/14/22) financial results for the third quarter of fiscal 2022. Its realized prices of oil and gas recovered thanks to the sanctions of Europe and the U.S. on Russia for its invasion in Ukraine. Therefore, even though oil and gas output decreased, distributable income per unit recovered from $0.00 in the prior year’s quarter to $0.22.
Click here to download our most recent Sure Analysis report on HGTXU (preview of page 1 of 3 shown below):
Final Thoughts
Monthly dividend stocks could be more appealing to income investors than quarterly or semi-annual dividend stocks. This is because monthly dividend stocks make 12 dividend payments per year, instead of the usual 4 or 2.
Furthermore, monthly dividend stocks with high yields above 5% are even more attractive for income investors.
The 20 stocks on this list have not been vetted for dividend safety, meaning each investor should understand the unique risk factors of each company.
That said, these 20 dividend stocks make monthly payments to shareholders, and all have high dividend yields.
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