As high returns are harder to come by today than in the past two years, investing in dividend stocks that pay distributions monthly is a big advantage, as most firms tend to pay dividends quarterly.
Although a high dividend yield may be attractive, investors should seek companies with strong fundamentals and a dividend paying history. With REITs being the most common type of stock to offer monthly distributions, it can be more difficult to identify companies in other sectors that offer monthly payments.
Here are two REIT stocks and one energy company offering strong dividend yields for the second half of 2022.
ARMOUR Residential REIT Inc (NYSE: ARR) is offering a dividend yield of 17.14% or $1.20 per share annually, utilizing monthly payments, with an inconsistent track record of increasing its dividend payments. ARMOUR Residential REIT is a real estate investment trust that invests in residential mortgage-backed securities, issued or guaranteed by U.S. government sponsored enterprises, such as Fannie Mae, Freddie Mac, or Ginnie Mae.
In the second quarter of 2022, ARMOUR repurchased 248,000 shares of common stock, at an average cost of $6.23 per share, equating to roughly $1.5 million.
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AGNC Investment Corporation (NASDAQ: AGNC) is offering a dividend yield of 12.17% or $1.44 per share annually, using monthly payments, and also has an inconsistent track record of increasing its dividends. AGNC Investment is a real estate investment trust that invests in agency residential mortgage-backed securities, similarly to ARMOUR Residential REIT.
During the second quarter of 2022, AGNC Investment repurchased 4.7 million shares at an average repurchase price of $10.78 per share, for a total value of $51 million.
Pembina Pipeline Corporation (NYSE: PBA) is offering a dividend yield of 5.53% or $1.95 per share annually, making monthly payments, with no track record of raising its dividends as of late. Pembina Pipeline is a midstream company serving the Canadian and North American (primarily Bakken) markets with an integrated product portfolio, and its firms' assets include pipelines and gas gathering as well as assets across fractionation, storage, and propane exports.
Pembina began paying dividends in 1997 and has paid $11.6 billion in dividends since inception.
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