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

Core Insights - Orchid Island Capital, Inc. (NYSE:ORC) is recognized as one of the safest monthly dividend stocks to buy, offering a monthly dividend of $0.12 per share, resulting in a dividend yield of 20.54% as of September 23 [4]. Group 1: Company Overview - Orchid Island Capital, Inc. is a specialty finance company that invests in residential mortgage-backed securities (RMBS), with a portfolio that includes traditional mortgage pass-through certificates, collateralized mortgage obligations, and structured Agency RMBS [2]. Group 2: Recent Performance and Strategy - In the latest earnings update, CEO Robert Cauley highlighted two significant events affecting the quarter: the reciprocal tariffs announced in April and the passage of the "One Big beautiful bill" in July, which contributed to market volatility and influenced investor sentiment [3]. - The company maintained a strong position by holding high cash reserves and keeping leverage at the low end of its range, which limited the need for deleveraging and allowed for the repurchase of over 1.1 million shares at a steep discount early in the quarter [3]. - Despite a defensive stance, the company generated a cash buffer through selective share sales [3].