Lucky Monthly Paid Dividend Stocks And Funds Are Many In March

Summary

• Imagine a stock or fund that paid out its dividends once a month. Instead of quarterly, semi annually or (ugh) annually, your anticipatory angst waiting for money is reduced by 300%.
• The March U.S. exchange-traded monthly-paid (MoPay) dividends, upsides, and net-gains include: 1. Stocks by yield (75); 2. Stocks by price upside (30); 3. Closed-End Investments, Exchange-Traded Funds and Notes (CEICs/ETFs/ETNs) by yield >7.40% (80).
• 75 U.S. MoPay equities priced >$3 per share were listed. Canadian MoPay equities are omitted, but many Canadian firms are U.S. listed OTC. CEICs/ETFs/ETNs are combined US/Canadian and show >7.40% yields.
• Items: 1. Top MoPay stock gains; 2. Overall best MoPay gainers; 3. Funds vs. Equities; 4. Fund risks/rewards. All per prices as of 3/3/21.
• Analyst one-year-targets revealed that investing $5k in the lowest priced five of ten top-yield MoPay US exchange equities produced 8.41% more gain than $5k invested in all ten. The little (lower priced) dogs ruled March!
• Looking for a portfolio of ideas like this one? Members of The Dividend Dog Catcher get exclusive access to our model portfolio. Learn More »

Foreword

All but 12 equities and all of the funds listed in this March collection of monthly-paying dividend dogs live up to the ideal of annual dividends from $1K invested exceeding their single share price. Here in the MoPay collection lie affordable yet volatile and risky bargains.

After the past 2020 Ides of March dip, and before other pull-backs yet to come, the time to buy top yield MoPay dogs may now be at hand.

Actionable Conclusions (1-10): Brokers Estimated Top Ten MoPay Equities Could Net 7.95% to 15.54% Gains By March 2022

Seven of the 10 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 70% accurate.

Projections based on estimated dividend amounts from $1000 invested in each of the ten highest-yielding stocks plus analysts median 1yr target prices for those stocks, as reported by YCharts, produced the data points. Note: target prices from lone analysts were not applied (n/a). Ten probable profit-generating trades to March 2022 were:

source: YCharts

Ellington Financial Inc (EFC) netted $155.43 based on the median of annual price estimates from eight analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 113% more than the market as a whole.

SLR Senior Investment Corp (SUNS) netted $144.62 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 40% over the market as a whole.

Gladstone Commercial Corp (GOOD) netted $132.19 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 2% over the market as a whole.

Orchid Island Capital Inc (ORC) netted $127.30 based on dividends alone, less broker fees. The Beta number showed this estimate subject to risk/volatility 35% over the market as a whole.

PennantPark Floating Rate Capital Ltd (PFLT) was forecast to net $115.45 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 102% more than the market as a whole.

Cross Timbers Royalty Trust (CRT) netted $105.20, based on dividends alone less broker fees. The Beta number showed this estimate subject to risk/volatility equal to the market as a whole.

Oxford Square Capital (OXSQ) netted $95.50 based on dividends alone, less broker fees. The Beta number showed this estimate subject to risk/volatility 25% more than the market as a whole.

True North Commercial REIT (TUERF) netted $81.00 based on just dividends, less broker fees. A Beta number was not available for TUERF.

AGNC Investment Corp (AGNC) netted $80.10 based on dividends plus the median of annual price estimates from fifteen analysts less broker fees. The Beta number showed this estimate subject to risk/volatility equal to the market as a whole.

Dividend Select 15 Corp (OTCPK:DVVDF) netted $97.69 based on dividends alone less broker fees. A Beta number was not available for DVVDF.

Average net gain in dividend and price was 11.16% on $1k invested in each of these 10 MoPay stocks. This gain estimate was subject to average risk/volatility 40% more than the market as a whole.

Actionable Conclusion (11): (Bear Alerts) Analysts Predicted Four MoPay Equities To Show -4.03% To -19.74% Losses to March 2022

The probable losing trades revealed by Y-Charts to 2022 were:

Source: YCharts.com

Horizon Technology Finance Corp (HRZN) projected a loss of $40.37 based on its dividend and the median of target price estimates from five analysts including broker fees. The Beta number showed this estimate subject to risk/volatility 10% more than the market as a whole.

ARMOUR Residential REIT Inc. (ARR) projected a loss of $49.43 based on its dividend and the median of target price estimates from three analysts including broker fees. The Beta number showed this estimate subject to risk/volatility 6% greater than the market as a whole.

Prospect Capital Corp. (PSEC) projected a loss of $133.83 based on its dividend and the median of target price estimates from two analysts including broker fees. The Beta number showed this estimate subject to risk/volatility 6% less than the market as a whole.

Pembina Pipeline Corp (PBA) projected a loss of $197.37 based on its dividend and the median of target price estimates from twenty analysts including broker fees. The Beta number showed this estimate subject to risk/volatility 50% greater than the market as a whole.

The average net loss in dividend and price was 10.53% on $4k invested as $1k in each of these four MoPay stocks. This loss estimate was subject to average risk/volatility 15% greater than the market as a whole.

source: digyourdog.com

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".

March Monthly Pay Dividend Data

Three lists produce numerous actionable conclusions and several more un-numbered results. To draw these conclusions and results, March 3 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, included: Oxford Square Capital Corp; Partners Real Estate Investment Trust; Orchid Island Capital Inc; Cross Timbers Royalty Trust; H&R Real Estate Investment Trust; BTB Real Estate Investment Trust; American Finance Trust Inc; Mesa Royalty Trust; Solar Senior Capital Ltd; Ellington Financial Inc; Dividend Select 15 Corp; Chesswood Group Ltd; Sabine Royalty Trust; TORC Oil & Gas Ltd; Freehold Royalties Ltd; ARC Resources Ltd; Inter Pipeline Ltd; San Juan Basin Royalty Trust; Ag Growth International Inc.

Former MoPay top ten regular by yield. Bluerock Residential (BRG) announced December 2019 it was retreating to quarterly dividend payments "in keeping with industry tradition." That tradition continued with ARMOUR Residential REIT and Stellus Capital Investment Corp (SCM) both transitioned to QPay in June 2020. Now both SCM and ARR have returned to MoPay mode.

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, 2020. Oxford Square Capital, 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, which have persisted.

Top yield stock for July 2018, Orchid Island Capital, 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. However, in August 2020 ORC monthly dividend jumped from $0.06 to $0.065 for September, October, and into 2021.

The U.S. exchange MoPay segment is volatile, transitive, and recovering. More trades in monthly pay equities are available from Canadian firms, many of which are listed on U.S. OTC exchanges. Active listed MoPays priced over $3 were up from 71 in October to 73 in February 2021, and now in March 2021 at the full strength of 75 active last seen back in May/June 2020.

List One:

US Exchange Traded Monthly Pay Dividend Equities by Yield

source: YCharts

Top 10 of these US exchange listed monthly pay dividend equities showing the best yields for March represented three of the 11 Morningstar market sectors, with representative firms split 4, 1, and 5 between the real estate, energy, and financial services sectors.

First place went to the first of those four real estate equities, Orchid Island Capital [1]. The remaining three real estate representatives placed fourth, seventh eight and eighth, ARMOUR Residential REIT Inc [4], True North Commercial REIT [7], and AGNC Investment Corp [8]. Then, the single energy representative showed up in second place, Cross Timbers Royalty Trust [2].

The whole top 10 collection was capped off by five financial services sector representatives in the third, fifth, sixth, ninth and tenth slots: Oxford Square Capital Corp [3], Prospect Capital Corp [5], PennantPark Floating Rate Capital Ltd [6], Dividend Select 15 Corp [9]; Horizon Technology Finance Corp[10], which completed the incoming March MoPay top ten list by yield.

List Two:

Monthly Pay Dividend Equities by Price Upside

The results shown below from YCharts for MoPay dividend stocks as of market closing price March 3 were compared with the median of analyst target prices one year-out. The ten top stocks displayed 0% to 9.02% price upsides for the next year based on those analyst one-year targets.

source: YCharts

Seven (tinted) 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: Ellington Financial Inc [1], SLR Senior Investment Corp [2], Gladstone Commercial Corp [3], PennantPark Floating Rate Capital Ltd [4], and Orchid Island Capital Inc[5].

The lower level five (all of which showed no upside) were, Cross Timbers Royalty Trust [6], Oxford Square Capital Corp [7], True North Commercial REIT [8], AGNC Investment Corp [9], Dividend 15 Select Corp [10].

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 four MoPay stocks showing the highest upside price potential to February 2022 were gleaned from 30 selected by yield. Three to nine analysts have historically provided the most accurate median target price estimates.

List Three:

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 of 11.05% or greater calculated as of March 3 determined the top ten.

source: YCharts

The top ten monthly paying dividend investment companies, funds, and notes showing the biggest yields for per YChart and Yahoo Finance data featured four uncollateralized debt instruments [ETNs], four closed-ended investment company [CEICs], and two open-ended investment companies [ETFs].

source: YCharts

Three uncollateralized debt instrument companies (ETNs) placed first, third, and fourth: Credit Suisse X-Links Silver Covered Call ETN (SLVO) [1]; Credit Suisse X-Links Gold Covered Call ETN (GLDI) [3], and Credit Suisse X-Links Monthly Pay 2x Leveraged Mortgage REIT ETN (REML) [4].

Five closed end investment companies (CEICs) placed second, fifth and eighth through tenth, Oxford Lane Capital Corp (OXLC)[2], Highland Global Allocation Fund (HGLB) [5], Aberdeen Income Credit Strategies Fund (ACP) [8], RiverNorth Specialty Finance (RSF) [9], and RiverNorth/DoubleLine Strategic Opportunity Fund (OPP) [10].

Finally, two open ended investment companies (ETFs) placed sixth, and seventh, InfraCap MLP ETF (AMZA) [6], and Global X NASDAQ 100 Covered Call ETF (QYLD) [7], to complete the top ten Exchange Traded Notes, Exchange Traded Funds, and Closed End Investment Companies list for March 2021-22.

Compare Equity To Fund Performance

source: YCharts

Note that the March 2021 top ten equity dividends are now priced at equal proportions to those of the top ten funds. In February they equities were 1% higher than the funds In January they were equal, October to December they were 1% lower, and August and September had them 1% higher. Those previous two months were the first time equities showed prices higher than funds in over a year. Equities were equal to the funds in July, 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 2019 equities were 2% under funds but last August they were equal. The price differences are likely found in management fees collected in the fund world and the price of risk/volatility.

Background and Actionable Conclusions

Since June 2012 readers suggested to include these 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.

Now we have a new decade of 2020 that began last January, and continued in February, March, April, early May, and mid May, June, July, August, September, October, November, December. The progression continued in 2021 in January, February and now March. We can compare and contrast MoPay equity upside potential to the yield (and higher risk/volatility) should one be tempted to buy and hold Closed End Investments or Exchange Traded Funds and Notes.

Yield Metrics Found An 8.41% Advantage To The Five Lowest Priced Of Ten High-Yield MoPay Equities

source: YCharts

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 4.99% VS. (12) 4.61% Net Gains from All Ten by March 2022

source: YCharts

$5000 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 8.41% more net gain than $5,000 invested as $.5k in all ten. The fourth lowest-priced MoPay dividend dog, Orchid Island Capital, was predicted to deliver the best net gain of 12.73%.

source: YCharts

Lowest priced five MoPay dividend stocks estimated as of March 3 were: Oxford Square Capital Corp ; True North Commercial REIT; Dividend Select 15 Corp; Orchid Island Capital Inc; Prospect Capital Corp, with prices ranging from $3.98 to $7.44.

Higher priced five MoPay dividend equities estimated as of March 3 were: Cross Timbers Royalty Trust; PennantPark Floating Rate Capital Ltd; ARMOUR Residential REIT Inc; Horizon Technology Finance Corp; AGNC Investment Corp, whose prices ranged from $9.03 to $15.99.

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.

Afterword

If somehow you missed the suggestion of the stocks ripe for picking at the start of this article, here is a reprise of the list at the end:

March MoPay Equities List

(Alphabetical by Ticker)

source: YCharts

All but twelve equities and all of the funds listed in this March collection of monthly-paying dividend dogs live up to the ideal of annual dividends from $1K invested exceeding their single share price. Here in the MoPay collection lie affordable yet volatile and risky bargains. Those tickers highlighted in pink in the chart above identify the dozen non-ideal priced MoPays for March.

After the past 2020 Ides of March dip, and before other pull-backs yet to come, the time to buy top yield MoPay dogs may now be at hand.

Stocks listed above were suggested only as decent starting points for your MoPay dividend stock purchase or sale research process. These were not recommendations.

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: digyourdog.com.

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.