Dividend investing has always been popular, and for good reason. Dividend stocks offer a wide range of advantages for return-minded investors, but two of the most significant are a reliable income stream and an inflation-beating yield. Taken together, these advantages can form the base of a truly sound portfolio.
The majority of dividend stocks pay out on a quarterly basis, but turning towards those with a monthly payment schedule allows investors to better plan their income streams to meet their needs. When it comes to yields, they are still calculated based on the annualized rate of the dividend, so even a small monthly payment, multiplied by 12, can result in a high annual yield.
But not all dividend stocks are created equal, and some offer better opportunities than others. This is where Wall Street’s analysts come into play.
Diving into the TipRanks database, we have homed in on two monthly-payment dividend stocks that not only boast a market-beating dividend yield of at least 13% but also qualify as ‘Strong Buys’ according to the analyst consensus. Let’s take a closer look.
Dynex Capital (DX)
We’ll start with Dynex Capital, a real estate investment trust company that focuses on mortgage loans and securities. Dynex allocates its resources to both agency and non-agency mortgage-backed security (MBS) instruments and also has exposure to the commercial MBS market. The company’s portfolio also contains a sizable portion of mortgage loans, including both securitized single-family residential and commercial mortgages dating back to the ’90s.
Dynex adheres to several simple strategic points in building its portfolio. The company is committed to capital preservation and disciplined allocation of that capital, using risk management techniques to maintain long-term returns. Furthermore, the company has always been committed to maintaining the dividend as a healthy component of those returns. Finally, and of key importance to dividend investors, Dynex keeps its sights set on maintaining stable and acceptable returns over the long term.