Passive Income Ideas For Portfolio Accounts: These 3 High-Yielding Monthly Dividend Payers Offer Potential Growth Opportunities

Zinger Key Points
  • In the second quarter of 2022, Ellington posted a net income loss of $64.9 million which was marked by extreme volatility.
  • In the third quarter of 2022, Gladstone invested $48.7 million in three new portfolio companies.
Passive Income Ideas For Portfolio Accounts: These 3 High-Yielding Monthly Dividend Payers Offer Potential Growth Opportunities

Looking for small cap and micro cap stocks offering solid dividend yields, with future growth potential. These three monthly paying dividend stocks are offering stable passive income for the rest of the year.

High-Yielding Monthly Dividend Stock #1: Ellington Financial Inc EFC

Dividend Yield: 11.49%

Annual Dividend: $1.60

Frequency: Monthly

Sector: Financials

Ellington Financial does not have a consistent track record of raising its dividends as it has raised them once in the last year. Ellington Financial is a micro cap specialty finance company that focuses on investing in residential mortgage-backed securities guaranteed by U.S. government agency or a U.S. government-sponsored entity, alternative A-paper, subprime residential mortgage loans, mortgage servicing rights, mortgage-related derivatives, commercial mortgage-backed securities and other commercial real estate debt.

In the second quarter of 2022, Ellington posted a net income loss of $64.9 million that was marked by extreme volatility, rising interest rates and weakness in both the fixed income and equity markets, said Laurence Penn, its president and CEO.

High-Yielding Monthly Dividend Stock #2: Sabine Royalty Trust SBR

Dividend Yield: 8.89%

Annual Dividend: $6.46

Frequency: Monthly

Sector: Energy

Sabine Royalty Trust does not consistently raise dividends as it has raised dividends once in the last year. Sabine Royalty is an express trust formed to receive Sabine Corporation's royalty and mineral interests, including landowner's royalties, overriding royalty interests, undeveloped oil and gas properties, minerals production payments, and any other similar, non-participatory interest, in certain Royalty Properties.

In the second quarter of 2022, Sabine Royalty increased income to $27 million compared to $12 million in last year's prior-quarter, up 125% year-over-year.

Go To: Four REITS That Pay Monthly Dividends

High-Yielding Monthly Dividend Stock #3: Gladstone Capital Corporation GLAD

Dividend Yield: 7.53%

Annual Dividend: 81 cents 

Frequency: Monthly

Sector: Financials

Gladstone Capital Corporation is another micro cap stock that has raised dividends once in the past year. Gladstone Capital is an externally managed, closed-end, non-diversified management investment company with investment objectives to grow current income by investing in debt securities of established businesses that would provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness and make distributions to stockholders that grow over time.

In the third quarter of 2022, Gladstone invested $48.7 million in three new portfolio companies and $18.6 million in existing portfolio companies, while receiving $6.3 million in repayments and net proceeds.

Posted In: High-Yielding Monthly Dividend StocksMicro cap dividend stocksSmall Cap Dividend StocksNewsDividendsSmall CapTrading Ideas