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24/7 Wall St. Insights
- Wall Street is now expecting 25-basis-point rate cuts in November and December.
- The federal funds rate should drop to 3.00% to 3.25% by 2026.
- Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “7 Things I Demand in a Dividend Stock,” plus get our two best dividend stocks to own today. Access 2 legendary, high-yield dividend stocks Wall Street loves.
Investors love ultra-high-yield dividend stocks because they provide dependable income and give investors a great opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or a portfolio includes income and stock appreciation.
Most stocks pay quarterly dividends, which is fine for many shareholders who reinvest dividends. However, many investors rely on dividends as part of a passive income stream, and getting a monthly dividend payout is more beneficial. Typically, real estate investment trusts, business development companies, and closed-end funds are among the investment vehicles that pay distributions monthly.
Monthly pay stocks are a great idea, especially now that the Federal Reserve has stopped hiking rates. Investors will look for yield as rates continue to fall for the rest of this year and in 2025.
We screened our 24/7 Wall St. research database, looking for companies rated Buy at major Wall Street firms that paid monthly dividends and traded at less than $10 per share. We found five that look like great ideas for passive income-oriented investors looking for upside appreciation.
Why are we covering this?
Despite the recent cut in interest rates, we still see persistent "sticky" inflation on many everyday items we must purchase. Those looking to enhance their earnings with passive income can benefit from stocks that pay ultra-yield dividends. Most importantly, all five of these companies pay their massive dividends monthly.
Fortitude Gold
A U.S.-based gold producer targeting projects with low operating costs, high margins, and strong returns on capital.
Gold is printing all-time highs, and with a 9.16% dividend, this could be a great way to play the sector. Fortitude Gold Corp. (OTC: FTCO) is a U.S.-based gold producer targeting projects with low operating costs, high margins, and strong returns on capital.
The company's strategy is to grow organically, remain debt-free, and distribute substantial dividends.
Fortitude Golds Nevada Mining Unit consists of seven high-grade gold properties in the Walker Lane Mineral Belt and an eighth high-grade gold property in west central Nevada.
The Isabella Pearl gold mine is currently in production and is located on the Isabella Pearl mineralized trend. Nevada is among the world's premier mining-friendly jurisdictions. The company recently announced that it has received all regulatory approvals and permits to mine deeper in its Isabella Pearl deposit.
Orchid Island Capital
A specialty finance company that invests in residential mortgage-backed securities on a leveraged basis.
With a stunning 17.25% dividend, this stock will help pay the monthly bills quickly. Orchis Island Capital Inc. ( NYSE: ORC ) is another specialty finance company that invests in residential mortgage-backed securities (RMBS) in the United States.
The company's RMBS is backed by single-family residential mortgage loans, referred to as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass-through certificates and collateralized mortgage obligations, and structured Agency RMBS comprising interest-only, inverse interest-only, and principal-only securities. The company has elected to be taxed as a real estate investment trust (REIT) for the United States federal income tax purposes.
Oxford Square Capital
A business development company that operates as a closed-end, non-diversified management investment company.
This company pays a massive 15.03% dividend, which could result in a substantial total return home run if the stock moves higher. Oxford Square Capital Corp. ( NASDAQ: OXSQ ) is a business development company that operates as a closed-end, non-diversified management investment company. It is a private equity and mezzanine firm.
The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, common stock, and syndicated bank loans.
Oxford Square Capital primarily invests in debt and equity securities of technology-related companies that operate in these areas:
- Computer software
- Internet
- Information technology infrastructure and services
- Media
- Telecommunications and telecommunications equipment
- Semiconductors
- Hardware
- Technology-enabled services
- Semiconductor capital equipment
- Medical device technology
- Diversified technology
- Networking systems
PermRock Royalty Trust
PermRock Royalty Trust acquires, develops, and operates oil and natural gas properties in the Permian Basin.
With a hefty 12.34% dividend, this energy trust makes sense as spot oil prices look to rebound. PermRock Royalty Property Trust ( NYSE: PRT ) is a Delaware statutory trust formed by Boaz Energy II LLC ("Boaz Energy") to own a net profits interest representing the right to receive 80% of the net profits from the sale of oil and natural gas production from specific properties owned by Boaz Energy in the Permian Basin of West Texas.
In 2018, in connection with the Trust’s initial public offering, Boaz Energy conveyed to the Trust an 80% net profits interest (NPI) carved out of a subset of Boaz Energy’s oil and natural gas leaseholds in the Permian Basin of West Texas. The NPI is the Trust's principal asset.
Prospect Capital
A leading flexible private debt and equity capital provider.
Hedge funds love this top Business development company, and the gigantic 13.11% dividend makes it a potential total return home run. Prospect Capital Corp. ( NASDAQ: PSEC ) specializes in:
The middle market, mature, mezzanine finance, later stage, emerging growth, leveraged buyouts, refinancing, acquisitions, recapitalizations, turnaround, growth capital, development, capital expenditures and subordinated debt tranches of collateralized loan obligations, cash flow term loans, marketplace lending, and bridge transactions.
It also invests in the multi-family residential real estate asset class. The fund makes secured debt, senior debt, senior and secured term loans, unitranche debt, first-lien and second-lien, private debt, private equity, mezzanine debt, and equity investments in private and microcap public businesses.
Prospect Capital focuses on both primary origination and secondary loans/portfolios. It invests in debt financing for private equity sponsors, acquisitions, dividend recapitalizations, growth financings, bridge loans, cash flow term loans, and real estate financings/investments.
The company invests in the following sectors and business silos:
- Aerospace and defense
- Chemicals
- Conglomerate and consumer services
- Ecological
- Electronics
- Financial services
- Machinery and Manufacturing
- Media
- Pharmaceuticals
- Retail
- Software
- Specialty Minerals
- Textiles and leather
- Transportation
- Oil gas and coal production
In addition to favoring materials, industrials, consumer discretionary, information technology, utilities, pipeline, storage, power generation and distribution, renewable and clean energy, oilfield services, healthcare, food and beverage, education, business services, and other select sectors.
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