Over the past several years, monthly dividend stocks have been highly sought after. As a result of increased investor enthusiasm, prices of the most well-known monthly dividend payers have already been bid up, causing their yields to drop. So when you come across a monthly dividend stock with a double-digit yield in this day and age, it’s only natural to ask, “Is the payout safe?”
Let’s take a look at Orchid Island Capital Inc (NYSE:ORC), a specialty finance company that invests in real estate mortgages. Trading at roughly $7.90 apiece, ORC stock offers an annual dividend yield of about 12.1%. In particular, ORC invests in residential mortgage-backed securities (RMBSs). Here’s how they work: When banks lend out mortgages to residential homeowners, they can package them into pools of mortgages and sell them to investors as RMBSs. The principal and interest payments of the underlying mortgages then get passed on to the investors of the RMBSs.
Source: Income Investors
Related Articles:
- 3 Low Beta, Higher Yielding Dividend Stocks For The Next Downturn
- 6 High-Yield REITs With Growing Dividends
- 26 Income Securities For A Well-Rounded Asset Allocation
- 5 Small/Mid-Cap Dividend Growth Stocks Answering The Call
- 8 Dividend Stocks With The Right Stuff
Should Investors Consider This Monthly Dividend Stock’s 12.1% Yield?
Posted by D4L | Thursday, September 13, 2018 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.