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Want to Collect $300 in Safe Monthly Dividend Income? Invest $32,850 Into These 3 Ultra-High-Yield Stocks.
AGNCAGNC(US:AGNC) The Motley Foolยท2025-06-18 07:06

Core Viewpoint - The article highlights three high-yield dividend stocks that offer an average yield of 10.96%, providing investors with a reliable source of monthly income [1]. Group 1: Dividend Stocks Performance - Companies that consistently pay dividends are typically profitable and have a history of outperformance [2]. - A study by Hartford Funds and Ned Davis Research shows that dividend-paying stocks delivered an average annual return of 9.2% over 51 years, compared to 4.31% for non-payers [3]. Group 2: AGNC Investment - AGNC Investment, a mortgage REIT, offers a yield of 15.48% and has provided consistent double-digit yields for over a decade [6]. - The company borrows at low short-term rates to invest in higher-yielding long-term assets, such as mortgage-backed securities [7]. - The recent shift to a rate-easing cycle by the Federal Reserve is favorable for AGNC, as it typically performs well during such periods [9]. - AGNC's portfolio is heavily focused on agency securities, which are backed by the federal government, providing added safety [10]. - The normalization of the U.S. Treasury yield curve is expected to enhance AGNC's net interest margin and book value [11]. Group 3: PennantPark Floating Rate Capital - PennantPark Floating Rate Capital, a business development company, has an annual dividend yield of 11.8% and a market cap of $1 billion [13]. - The company focuses on debt investments, with a weighted average yield of 10.5% on its debt portfolio [15]. - PennantPark's management has implemented a rigorous vetting process, resulting in a low delinquency rate of 2.2% for its loan portfolio [17]. Group 4: Realty Income - Realty Income, a retail REIT, offers a yield of 5.6% and has increased its monthly payout for 111 consecutive quarters [18]. - The company manages a commercial real estate portfolio of over 15,600 properties, generating more than $5 billion in annualized base rent [19]. - Realty Income's tenant base is resilient to economic downturns, with over 90% of rent collected from businesses that provide essential goods and services [20]. - The company boasts a historical median occupancy rate of 98.2%, significantly higher than the S&P 500 REITs' median of 94.2% [21]. - Realty Income is considered relatively undervalued, with a forward-year multiple of 12.8, representing a 21% discount to its average multiple over the past five years [22].