Your Top Monthly Pay Dividend Stocks And Funds In July
- Here are your July U.S. exchange-traded monthly-paid (MoPay) dividends, upsides, and net-gains: 1. Stocks by-yield (67); 2. Stocks by price-upside (30); 3. Closed-End Investments, Exchange-Traded Funds & Notes (CEICs/ETFs/ETNs) by-yield >8.5% (80).
- U.S. MoPay equities are neither bigger nor better. Canadian MoPays are omitted but many Canadian firms are U.S. listed OTC. CEICs/ETFs/ETNs are combined US/Canadian and all show yields over 8.5%.
- Items: 1. Top MoPay stock gains; 2. Overall best MoPay gainers; 3. Funds vs.Equities; 4. Fund risks/rewards. All per prices as of 7/7/20.
- Analyst annual-targets revealed that investing $5k in the lowest priced five of ten top yield MoPay US exchange equities produced 18.38% more gain than $5k invested in all ten.
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Actionable Conclusions (1-10): Brokers Estimated Top Ten MoPay Equities To Net 18.1% to 97.67% Gains By July 2021
Six of the ten top-yield MoPay stocks (shaded in the chart below) were verified as being among the top-ten gainers for the coming year based on analyst one-year target prices. Thus, the Dogcatcher yield-based strategy for this MoPay group, as graded by broker estimates this month, proved 60% accurate.
Projections based on estimated dividend amounts from $1,000 invested in each of the ten highest yielding stocks and analyst median 1-yr target prices for those stocks, as reported by YCharts, produced the data points. Note: target prices from single analysts were not applied (n/a). Ten probable profit-generating trades to July 2021 were:
Orchid Island Capital (ORC) netted $976.66 based on the median of annual price estimates from two analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 28% more than the market as a whole.
Cross Timbers Royalty (CRT) netted $835.53 based on the median of annual price estimates from two analysts, plus dividends less broker fees. The Beta number showed this estimate subject to risk/volatility 8% more than the market as a whole.
American Finance Trust (AFIN) netted $457.48, based on dividends plus the median of annual price estimates from three analysts less broker fees. A Beta number was not available or AFIN.
Gladstone Capital (GLAD) netted $405.42 based on dividends, plus the median of target prices estimated by three analysts, less broker fees. The Beta number showed this estimate subject to risk/volatility 43% more than the market as a whole.
Solar Senior Capital Ltd. (SUNS) netted $391.79 based on the median of target estimates from three analysts, plus estimated annual dividends less broker fees. The Beta number showed this estimate subject to risk/volatility 31% over the market as a whole.
AGNC Investment Corp. (AGNC) netted $221.00 based on on a median of target price estimates from fifteen analysts, plus dividends less broker fees. The Beta number showed this estimate subject to risk/volatility 12% less than the market as a whole.
PennantPark Floating Rate Capital (PFLT) was forecast to net $221.90 based on a median of target price estimates from six analysts, plus estimated annual dividends less broker fees. The Beta number showed this estimate subject to risk/volatility 85% more than the market as a whole.
Dynex Capital (DX) netted $218.05 based on dividends plus the median of annual price estimates from five analysts less broker fees. The Beta number showed this estimate subject to risk/volatility 34% more than the market as a whole.
ARMOUR Residential REIT (ARR) netted $215.22 based on dividends plus the median of annual price estimates from four analysts less broker fees. The Beta number showed this estimate subject to risk/volatility 7% more than the market as a whole.
Gladstone Commercial (GOOD) netted $202.18 based on the median of target price estimates from six analysts, plus dividends less broker fees. The Beta number showed this estimate subject to risk/volatility 3% more than the market as a whole.
Average net gain in dividend and price was 41.37% on $1k invested in each of these ten MoPay stocks. This gain estimate was subject to average risk/volatility 41% more than the market as a whole.
The Dividend Dogs Rule
Stocks earned the "dog" moniker by exhibiting three traits: (1) paying reliable, repeating dividends, (2) their prices fell to where (3) yield (dividend/price) grew higher than their peers. Thus, the highest yielding stocks in any collection became known as "dogs." More specifically, these are, in fact, best called "underdogs".
July Monthly Pay Dividend Data
Three lists produced numerous actionable conclusions and several more unnumbered results. To draw these conclusions and results, July 7 closing prices and estimated annual dividends were referenced from YCharts. Monthly pay (MoPay) equity (1) yield and (2) upside potential lists were compared and contrasted against (3) a high yield (and higher risk) MoPay CEICs/ETFs/ETNs list.
Monthly Pay Dividend Qualities
Quarterly, Semi-Annual, and Annual dividend investors anxiously await announcements from a firm, fund, or brokerage to learn if their next dividend will be higher, lower, or paid at all.
Monthly pay stocks, funds, trusts, and partnerships inform the holder every four and one third weeks by check and/or statement. If the entity reduces or suspends a payment, the holder can sell out of the investment immediately to cut future losses.
This advantage has been curtailed when companies suddenly cut monthly dividends to save cash. Numerous prominent MoPay firms declared dividend cuts between December 2016 and May 2020. Those reducing or curtailing dividends in May and June 2020, include: Oxford Square Capital Corp; Partners Real Estate Investment Trust; Orchid Island Capital; Cross Timbers Royalty Trust; H&R Real Estate Investment Trust (OTCPK:HRUFF); BTB Real Estate Investment Trust (OTC:BTBIF); American Finance Trust; Mesa Royalty Trust (MTR); Solar Senior Capital; Ellington Financial (EFC); Dividend Select 15 (OTC:DVVDF); Chesswood Group (OTCPK:CHWWF); Sabine Royalty Trust (SBR); TORC Oil & Gas Ltd (OTCPK:VREYF); Freehold Royalties Ltd (OTCPK:FRHLF); ARC Resources (OTCPK:AETUF); Inter Pipeline (OTCPK:IPPLF); San Juan Basin Royalty Trust (SJT); Ag Growth International (OTCPK:AGGZF).
Former MoPay top ten regular by yield. Bluerock Residential (BRG) announced in December it is retreating to quarterly dividend payments "in keeping with industry tradition." That tradition continued with Armour Residential REIT (ARR) and Stellus Capital Investment (SCM) both transitioned to QPay last month (June 2020). Stellus stuck with its QPay status but ARR has returned to MoPay.
Capitala Finance Corp (CPTA) cut its monthly payout from $0.13 to $0.0833 as of October 30, 2017, then suspended it as of May 3. Oxford Square Capital (OXSQ), however, issued this nebulous statement regarding its pending monthly payments:
While no decision has yet been made with regard to the Company's common stock distributions for July, August and September, we believe that the Company's Board of Directors will likely elect to reduce or suspend the Company's distributions for those months."
On June 2, the company declared $0.035 monthly distributions for July August and September.
Top yield stock for this month, Orchid Island Capital (ORC), released this cautionary note with its monthly dividend announcements: "The Company has not established a minimum distribution payment level and is not assured of its ability to make distributions to stockholders in the future." ORC directors proceeded to back-up their words with actions cutting the dividend from $0.14 to $0.11 in February, to $0.09 in March, to $0.08 in September 2018, and to $0.055 for May 2020.
The U.S. exchange MoPay segment is volatile, transitive, and shrinking. More trades in monthly pay equities are available from Canadian firms, many of which are listed on U.S. OTC exchanges. This months active listing of MoPays is down to 68 from 75 last month.
Most Readers like MoPays:
[Y]ou list a few issues here whose distributions are rife with RETURN OF CAPITAL [ROC] at its most destructive form, funds that pay you back your own money each and every month in their distributions with no regard to what they truly earn...- these should not be included in any list containing the word "dividend". --NYer1
I can enter or exit a position and still reap dividends for at least 2/3s of the quarter. They also smooth the income stream so I have cash at any given time to make a purchase at dips." --Ed Invests
At this level of risk, I'm only buying monthly dividend payers. Dividend if cut only [sits] for a month and not a quarter." --Sinjjn Smythe
...love those monthly payers." --Hardog
Some of us are comfortable investing in Dog stocks because we feel the reward is worth the risk. As long as [my sin stock] continues to pay and raise the dividend like it has for 16 years now, it will have a spot in my portfolio." --Miz Magic DiviDogs
One thing to point out: These stocks are not buy & hold. If you buy any of these stocks, set a price where you will sell... trailing stops work real good & with mopays you can get out & get back in without losing a whole quarter of dividends..." --drking
68 US Exchange-Traded Monthly Pay Dividend Equities by Yield
Top ten of these US exchange-listed monthly pay dividend equities showing the best yields in July represented two of the eleven Morningstar market sectors, with representative firms split 4 and 6 between the financial services and real estate sectors.
First place went to the first of four financial services sector representatives, Great Elm Capital Corp (GECC) . The remaining three financials placed second, fourth, and fifth: Prospect Capital (PSEC) , Oxford Square Capital (OXSQ) , and PennantPark Floating Rate Capital (PFLT) .
Secondly, real estate equities took the third and sixth through tenth slots, Orchid Island Capital (ORC) , ARMOUR Residential REIT (ARR) , Bridgemarq Real Estate Services (OTCPK:BREUF) , Dynex Capital (DX) , American Finance Trust (AFIN) , and AGNC Investment (AGNC) , to complete the July MoPay top ten list by yield.
Monthly Pay Dividend Equities by Price Upside
The results shown below from YCharts for MoPay dividend stocks as of market closing price July 7 were compared with analyst median target prices one year-out. The ten top stocks displayed 9.27% to 84.04% price upsides for the next year based on analyst 1-yr targets.
Five (tinted beside the graph) of ten on this price upside list were members of the top ten list by yield. The first five places on this upside list went to: Orchid Island Capital (ORC) , Cross Timbers Royalty Trust (CRT) , American Finance Trust (AFIN) , Solar Senior Capital (SUNS) , Gladstone Capital (GLAD) .
The lower level five were, Dynex Capital (DX) , AGNC Investment (AGNC) , Gladstone Commercial (GOOD) , Prospect Capital (PSEC) , PennantPark Floating Rate Capital (PFLT) , and ARMOUR Residential REIT (ARR) .
Price upside, of course, was defined as the difference between the current price and analyst target one-year median price targets for each stock.
Those ten MoPay stocks showing the highest upside price potential into 2020 were gleaned from 30 selected by yield. Three to nine analysts have historically provided the most accurate median target price estimates.
Monthly Pay Dividend Closed-End Investment Companies, Exchange-Traded Funds, and Notes, by Yield
Eighty top monthly dividend paying (MoPay) Closed-End Funds, Exchange-Traded Funds and Notes listed below were culled from nearly 800 candidates. Yields greater than 13.9% calculated as of July 7 determined the top ten.
The top ten monthly paying dividend investment companies, funds, and notes showing the biggest yields for per YChart & YahooFinance data featured three open-ended investment companies [ETFS], six closed-ended investment company [CEICs], and two uncollateralized debt instruments [ETNs].
Three open-ended investment companies [ETFS] placed first, ninth, and tenth: InfraCap MLP ETF (AMZA) , Invesco KBW High Dividend Yld Fincl ETF (KBWD), and Global X SuperDividend REIT ETF (SRET) .
Five closed-end investment companies (CEICs) placed second through fifth and eighth, OFS Credit Company (OCCI) , Eagle Point Credit (ECC) , Highland Global Allocation Fund (HGLB) , RiverNorth Marketplace Lending (RSF) , and Aberdeen Income Credit Strategies Fund (ACP) .
Finally, two uncollateralized debt instruments (ETNs) placed sixth and seventh: Credit Suisse X-Links Silver CovCall ETN (SLVO) ; ETRACS 2xMonthly Pay Lvrgd Pref Stk ETN (PFFL) , to complete the top ten exchange-traded notes, exchange-traded funds, and closed-end investment companies list for July 2020.
Compare Equity To Fund Performance
Note that the top ten equity dividends are now priced equal to those of the top ten funds for July. However, the equities were 1% lower in June, 3% lower in March, April, and early May. They were 2% apart in December and November 2019, but, in October, they were 1% less. For September, equities were 2% under funds, but, in August, they were equal. The differences were likely found in management fees collected in the fund world and the price of risk/volatility.
Background and Actionable Conclusions
Since June 2012, reader suggestions to include funds, trusts, and partnerships, a list of MoPay equities to buy and hold in September 2012 resulted from those reader suggestions supplemented with a high yield collection from here. That list was supplemented by an upside potential article in October and a upside vs. buy and hold in November. Another list factored December 2012 reader comments.
In January, February, March, April, May, June, July, August, September, October, November, and December 2013 readers contributed.
Reader suggestions continued in 2014 following the January, February, March, April, May, June, July, August, September, October, November, and December articles.
2015 continued with readers contributing in January, February, March, April, May, June, July, August, September, October, November, and December.
The 2016 articles in January, February, March, April, May, June, July, August, September, October, November, and December.
The 2017 articles of January, February, March, April, May, June, July, August, September, October, November, and December.
The 2018 articles in January, February, March, April, May, June, July, August, September, and October/November, and December. The 2019 articles in January, February, March, April, May, June, July, August, September, October, November, and December. Now we have a new year and decade of 2020 beginning in January, and continuing in February, March, April, early May, and mid May, now June and July to compare and contrast MoPay equity upside potential to the yield (and higher risk/volatility) should one attempt to buy and hold Exchange Traded Funds and Notes.
Yield Metrics Found An 18% Advantage In Five Lowest Priced Of Ten High Yield MoPay Equities
Ten monthly pay stock equities were ranked by yield. Those results, verified by YCharts and YahooFinance, produced the following charts.
Actionable Conclusions: Analysts Estimated 5 Lowest Priced of Top Ten High Yield MoPay Dividend Stocks (11) Would Produce 31.9% Vs. (12) 26.95% Net Gains from All Ten by July 2021
$5,000 invested as $1k in each of the five lowest priced stocks in the top ten MoPay dividend dog kennel by yield were predicted by analyst 1-year targets to deliver 18.38% more net gain than $5,000 invested as $.5k in all ten. The third lowest priced MoPay dividend dog, Orchid Island Capital (ORC), was predicted to deliver the best net gain of 97.67%.
Lowest priced five MoPay dividend stocks estimated as of July 7 were: Oxford Square Capital (OXSQ); Great Elm Capital (GECC); Orchid Island Capital (ORC); Prospect Capital (PSEC); American Finance Trust (AFIN), with prices ranging from $2.89 to $7.53.
Higher priced five MoPay dividend equities estimated as of July 7 were: Bridgemarq Real Estate Services (OTCPK:BREUF); PennantPark Floating Rate Capital (PFLT); ARMOUR Residential REIT (ARR); AGNC Investment (AGNC); Dynex Capital (DX), whose prices ranged from $8.23 to $13.75.
This distinction between five low-priced dividend dogs and the general field of ten reflects the "basic method" Michael B. O'Higgins employed for beating the Dow. The same technique, you now see, may someday be usable to find rewarding dogs in the MoPay kennel.
The added scale of projected gains based on analyst targets contributed a unique element of "market sentiment" gauging upside potential. It provided a here and now equivalent of waiting a year to find out what might happen in the market. It is also the work analysts got paid big bucks to do.
Caution is advised, however, as analysts are historically 20% to 80% accurate on the direction of change and about 0% to 20% accurate on the degree of the change.
Gains/declines as reported do not factor-in any tax problems resulting from dividend, profit, or return of capital distributions. Consult your tax advisor regarding the source and consequences of "dividends" from any investment.
Stocks listed above were suggested only as decent starting points for your MoPay dividend stock purchase or sale research process. These were not recommendations.
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This article was written by
Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same. Graphs and charts were compiled by Rydlun & Co., LLC from data derived from www.ycharts.com; www.dividend.com; finance.yahoo.com; analyst mean target price by YCharts. Dog Photo: pettycashfundpurposemauihawaii.blogspot.com
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