Want to Collect $300 in Safe Monthly Dividend Income? Invest $32,850 Into These 3 Ultra-High-Yield Stocks.
With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, investors have a myriad of ways to grow their wealth on Wall Street. But among these countless strategies, few have more consistently delivered for investors than buying and holding high-quality dividend stocks.
Companies that pay a regular dividend to their shareholders are typically profitable on a recurring basis and time-tested. Most importantly, they bring historical outperformance to the table.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
In The Power of Dividends: Past, Present, and Future, the analysts at Hartford Funds, in collaboration with Ned Davis Research, compared the performance of dividend stocks to non-payers over a 51-year period (1973-2024). What they found was a marked disparity in the return column, with dividend payers delivering an average annual return of 9.2%, compared to an average of 4.31% for non-payers, annually.
While we often think of dividend payments as a quarterly event, there's a small group of public companies doling out their payments on a monthly basis. A few of these businesses are head-and-shoulders above their peers when it comes to their ultra-high-yields, as well as the safety of their payouts.
If you want to collect $300 in safe monthly dividend income, simply invest $32,850 (split equally, three ways) into the following three ultra-high-yield stocks, which sport an average yield of 10.96%!
AGNC Investment: 15.48% yield
The first high-octane monthly income stock that's been delivering a double-digit yield, with consistency, for more than a decade to its investors is mortgage real estate investment trust (REIT) AGNC Investment (NASDAQ: AGNC).
There's probably not an industry that Wall Street analysts have disliked more this decade than mortgage REITs. Companies like AGNC aim to borrow money at low short-term rates and use this capital to purchase higher-yielding long-term assets, such as mortgage-backed securities (MBSs). Because the industry is so sensitive to changes in interest rates and Federal Reserve monetary policy, the central bank's aggressive rate-hiking cycle from March 2022 to July 2023 weighed heavily on AGNC Investment and its peers.
But the tide has decisively turned in favor of mortgage REITs. The Fed is in the midst of a drawn-out rate-easing cycle and it's doing a good job of telegraphing any shifts in monetary policy. AGNC has typically performed its best during rate-easing cycles, which reduce short-term borrowing costs. As long as the Fed remains transparent with its policy, AGNC and its peers will have ample time to make adjustments to their portfolios to maximize profits.
Another key catalyst for AGNC Investment is its agency-focused portfolio. An "agency" security is one that's backed by the federal government in the event of default. AGNC closed out March with a $78.9 billion portfolio, $78 billion of which has been put to work in agency MBSs. While this added protection does weigh down the yield AGNC generates on the assets it's purchasing, it also allows the company to lever its portfolio in order to bolster its profit.
Lastly, the U.S. Treasury yield curve is no longer inverted. Yield-curve inversions, which involve shorter-dated Treasury bills sporting higher yields than long-dated Treasury bonds, tend to weigh on AGNC's net interest margin. A normalizing yield curve often leads to net interest margin and book value expansion for mortgage REITs.
PennantPark Floating Rate Capital: 11.8%
Investors don't need to buy a large-cap company to generate safe, supercharged, monthly dividend income. Business development company (BDC) PennantPark Floating Rate Capital (NYSE: PFLT) has a modest $1 billion market cap, but packs a punch with its annual dividend yield approaching 12%.
BDCs are a type of business that invest in the debt or equity (common and/or preferred stock) of generally unproven companies, which are known as "middle-market companies." Though PennantPark did close out the March quarter with nearly $240 million in various common and preferred stock held in its portfolio, the $2.1 billion in debt it holds makes it a debt-focused BDC.
Focusing on debt comes with an assortment of advantages for PennantPark. First of all, most middle-market companies lack access to a full array of financial services. As a result, the weighted average yield on PennantPark's debt investments stood at a scorching-hot 10.5%, as of the end of March.
PennantPark's entire debt securities portfolio is also based on variable rates. When the nation's central bank increased interest rates aggressively in 2022 and 2023 to combat a historically high inflation rate, it sent PennantPark's weighted average yield on debt investments soaring. Even with the Fed in an aforementioned rate-easing cycle, the slow nature of the central bank's actions has allowed PennantPark to grow its loan portfolio and lock in superior yields.
Something else investors can appreciate about this relatively unknown monthly high-yielder is the lengths management has gone to protect invested principal. A top-tier vetting process has resulted in only a 2.2% delinquency rate for the company's loan portfolio, at cost. Further, an average investment size of $14.7 million (including common and preferred stock), spread across 159 companies ensures that no single investment is paramount to PennantPark's success or capable of sinking the proverbial ship.
Realty Income: 5.6% yield
The third ultra-high-yield stock that can help you collect $300 with an initial investment of $32,850, split equally among the trio, is retail REIT Realty Income (NYSE: O). Realty Income's 5.6% yield might appear modest next to AGNC and PennantPark, but neither of the other two companies have raised their monthly payout for 111 consecutive quarters like Realty Income has.
This is the premier company among retail REITs. When the first quarter came to a close, its commercial real estate (CRE) portfolio surpassed 15,600 properties, which is on track to produce more than $5 billion in annualized base rent.
One of the reasons Realty Income is so special is because more than 90% of the total rent it collects is resilient to recessions and e-commerce pressures. It primarily leases to brand-name, stand-alone businesses that draw consumer traffic in any economic climate. Some prime examples include grocery stores, drug stores, dollar stores, and automotive locations. Leasing to vetted companies that provide basic need goods and services ensures the rent continues to be paid regardless of how the U.S. economy is performing.
Additionally, Realty Income sports a quarter century of superior occupancy rates. Whereas the median occupancy rate for S&P 500 REITs is 94.2% since 2000, Realty Income has been 400 basis points better (98.2%) at its historical median occupancy rate since 2000. This is a testament to its long lease terms, the quality of its tenants (and the vetting process), and the company's prudent disposition activity.
To round things out, Realty Income is also, arguably, the cheapest of this ultra-high-yield dividend trio. Its forward-year multiple, relative to Wall Street's consensus cash flow estimate for 2026, is just 12.8, which represents a 21% discount to its average multiple to cash flow over the trailing-five-year period.
Should you invest $1,000 in AGNC Investment Corp. right now?
Before you buy stock in AGNC Investment Corp., consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AGNC Investment Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,821!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $886,880!*
Now, it's worth noting Stock Advisor 's total average return is791% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 9, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
3 hours ago
- Globe and Mail
Is BigBear.ai Stock a Buy Now?
The hot artificial intelligence (AI) market has birthed a number of high-flying AI stocks. One of these is (NYSE: BBAI). The company's share price soared more than 200% over the past 12 months through June 18. The stock hit a 52-week high of $10.36 in February after President Donald Trump announced Project Stargate, which aims to invest billions of dollars into the AI sector. Since then, stock is down more than 50% from its peak. Does this present an opportunity to scoop up the company's shares for cheap? Why shares plummeted A confluence of factors led to the decline in stock this year. One is Wall Street's concerns about the unpredictable macroeconomic environment, exacerbated by the Trump administration's tariff approach. On top of that, the federal government is cutting budgets. This is worrying because delivers AI solutions centered around national security and infrastructure. Consequently, the bulk of company revenue comes from federal government contracts. Adding to this mix, in March, disclosed a material weakness in its internal controls for financial reporting, contributing to the company's share price decline. As a result, the company restated the last few years' worth of financial statements. While unrelated, CFO Julie Peffer departed in June. This wasn't 2025's only leadership change. In January, gained a new CEO, Kevin McAleenan, who had served as Acting Secretary of the U.S. Department of Homeland Security during President Trump's first term. financial picture leadership changes may be a good outcome over the long run. McAleenan's experience with the previous Trump administration could help survive the government budget cuts. In addition, under the previous CEO, the company fell short of its 2024 goal to achieve at least $165 million in sales, coming in at $158.2 million last year. With McAleenan taking over, perhaps can meet its 2025 full-year revenue target, which ranges between $160 million and $180 million. He will have to succeed to win shareholder confidence in his leadership. It's too early to tell if McAleenan can deliver, since he only has the first quarter under his belt. brought in $34.8 million in Q1 sales, a 5% year-over-year increase. However, the company's balance sheet includes a sizable chunk of debt. Of its $198.5 million in total Q1 liabilities, $101.4 million was debt. Q1 total assets were 396.3 million with $107.6 million of that in cash and equivalents. Moreover, despite year-over-year sales growth, is not profitable. It exited Q1 with a net loss of $62 million. Deciding whether to buy stock It's not uncommon for tech companies to operate at a loss, but in these cases, you want to see sales growing rapidly. With just a 5% year-over-year increase in Q1 revenue, is not achieving strong growth, especially for the hot field of artificial intelligence. This raises questions about the company's ability to capture customers, let alone eventually achieve profitability. stock valuation is another factor to consider. The price-to-sales (P/S) ratio is useful for this purpose, since it measures how much investors are willing to pay for every dollar of revenue. This metric is commonly used with companies that aren't profitable. Comparing it to artificial intelligence leader Nvidia, as well as a competitor also operating in the government AI sector, helps to understand share price valuation. Data by YCharts. The chart shows P/S multiple is the lowest of the three AI companies, and it's down significantly from where it was at in February. This suggests shares are attractively valued. However, Nvidia and warrant higher valuations because of their business performance. For example, Nvidia's revenue rose 69% year over year to $44.1 billion in its fiscal Q1, ended April 27. Meanwhile, revenue of $108.7 million in its fiscal fourth quarter, ended April 30, represented a 26% year-over-year increase. mediocre AI revenue growth, debt, and the factors that led to its share price decline this year means investing in the company is risky. As a result, it's best to hold off buying. Instead, watch its business performance over the next few quarters to see if it can strengthen sales before reconsidering stock. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
CTV News
3 hours ago
- CTV News
Vancouver lawyer suspended for submitting false documents in support of client's $3.3M loan application
A Vancouver lawyer has admitted to improperly notarizing documents and solemnly declaring affidavits that contained information he knew was false in order to help a corporate client secure a $3.3-million loan from a U.S. bank. Jason Chieh-Sheng Wang admitted his misconduct in a consent agreement with the Law Society of B.C., a summary of which was published online last week. According to the document, Wang was retained by 'a group of companies' in April 2023 to facilitate the loan application. 'Upon being retained, the lawyer was advised that the client was in difficult financial circumstances, and that it wished to obtain a loan from the lender on an urgent basis,' the summary reads. The loan was secured by 'five pieces of artwork as collateral,' according to the document. None of the parties involved in the situation – other than Wang himself – are named in the consent agreement summary. Instead, the document uses parties' initials. 'The loan was personally guaranteed by ZYZ and JM, whose respective families held the majority of the shares of the client,' the document reads. 'The loan also required the approval of their respective spouses, YP and LW, documented by spousal consents.' The lender told Wang it needed the spousal consent forms – along with other documents prepared in the U.S. – notarized, something the lawyer said would be impractical because some of the parties whose signatures were required were located in China. The bank eventually agreed that Wang could notarize the signatures in question via video call. Wang 'purported to notarize' four documents on May 15, 2023, but he had not actually met the signatories via video call, or at all, according to the consent agreement summary. The lawyer also created three affidavits in which he swore that the signatories had joined him on a video call and shown him both sides of their government-issued photo IDs before signing the documents. 'The lawyer solemnly declared the contents of the affidavits of execution to be true when he knew that he had not met with any of the signatories … via video conference or at all, and had not witnessed any of their signatures,' the summary reads. Wang also admitted to deleting WeChat messages he had exchanged with the client's representatives, in which he agreed to proceed with notarizing the documents without the requisite video call. 'The lawyer knew or ought to have known that deleting this client correspondence was contrary to his obligation to maintain and preserve his client's files and records," the summary reads. For all of this admitted misconduct, Wang agreed to serve a one-month suspension, which began on June 16. In accepting the consent agreement, the law society's discipline panel considered three mitigating factors:
Globe and Mail
4 hours ago
- Globe and Mail
President Trump's Plan to End Taxes on Overtime Pay Could Become Reality Sooner Than You Think
President Trump made a lot of attention-grabbing promises during his campaign for a second term, and in his five months since retaking office, he's met with varying degrees of success in enacting them. Ending taxes on Social Security benefits, for example, appears no nearer than it was on Trump's first day in office. But he's made considerable headway with some of his other agenda items, including ending taxes on overtime pay. We could see this enacted yet this year, but there are still some important details to be ironed out. The "One, Big, Beautiful Bill" could end taxes on overtime as soon as this year House Republicans recently drafted the "One, Big, Beautiful Bill" that incorporates several of President Trump's key campaign promises, like an end to taxes on tips and overtime pay. It would create an above-the-line deduction for these items, so you wouldn't owe any income taxes on them. The House version of the bill clarifies that the tax deduction for overtime pay would apply only to overtime compensation that is paid to an individual in excess of the regular rate they receive for their work. This deduction wouldn't be available to highly compensated employees (HCEs) and those without a work-eligible Social Security number. The bill narrowly passed the House, and lawmakers initially hoped it would make it to the president's desk by July 4, 2025. But the Senate is determined to make its mark on the legislation as well, and at least some senators, like Ron Johnson (R-WI), feel the July 4 deadline isn't realistic. The Senate is already making changes The Senate's version of the "One, Big, Beautiful Bill" isn't finalized yet, but we've already had a peek at some of the changes it hopes to make. While the general idea of no taxes on overtime pay remains in the latest version of the bill, the Senate has added one important restriction. The tax deduction for overtime pay would be limited to $12,500 per person or $25,000 for married couples filing a joint return. While this should be adequate for most people, it may be disappointing if you earn a lot of money from overtime. The House version of the bill didn't have any restrictions on the overtime tax deduction. There are also income phaseouts that reduce the deduction by $100 for every $1,000 your modified adjusted gross income (MAGI) exceeds $150,000 for a single adult or $300,000 for a married couple. Individuals with MAGIs of $275,000 or more and married couples with MAGIs of $550,000 or more wouldn't be eligible to claim the deduction. It's not a done deal yet Senate Republicans can only afford to lose three Republican votes if they want the bill to pass, and right now, there are several who are voicing concerns about the bill in its current state. This means that it likely won't be passed in the next couple of weeks at least. There isn't a vote scheduled currently. If it does pass, the overtime tax deduction will take effect for the 2025 tax year, according to the current bill. However, it would only remain in place through the 2028 tax year. After that, it would be up to lawmakers to decide whether to continue the deduction or not. The $23,760 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.
