Foreword
All but two equities and all of the funds listed in this May monthly pay batch live up to the ideal of paying annual dividends from a $1K investment, exceeding their single share price. Here, in the MoPay collection, lie affordable (yet volatile and risky) bargains. The dogcatcher rule of thumb is: one metric ($1k invested dividend income>1 share price) fits all!
Now, over four years past the 2020 Ides of March market dip, and before other pullbacks yet to come, the time to buy top yield MoPay dogs may be now.
To learn which of these 80 Ideal MoPay equities pay "safer" dividends, see my dividend dogcatcher investing group list after July 3rd. Simply click on the last bullet point in the Summary section above.
Actionable Conclusions (1-10): Brokers Estimated Top Ten MoPay Equities Could Net 14.16% to 36.32% Gains By June 2025
Seven of ten 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.
Estimated dividend payouts 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 gains estimates below. (Note: target prices from lone analysts were not counted.) Ten probable profit-generating trades to June 2025 were:
Modiv Industrial Inc (MDV) netted $363.16 based on the median of target price estimates from 4 analysts, plus dividends, less broker fees. A Beta number was not available for MDV.
Orchid Island Capital Inc (ORC) netted $284.66 based on the median of target price estimates from 4 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 88% over the market as a whole.
Dynex Capital Inc (DX) netted $249.17 based on the median of target price estimates from 6 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 33% greater than the market as a whole.
Ellington Financial Inc (EFC) was forecast to net $232.56 based on the median of target price estimates from 7 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 95% greater than the market as a whole.
EPR Properties (EPR) netted $198.52 based on the median of target price estimates from 10 analysts, plus dividends less broker fees. The Beta number showed this estimate subject to risk/volatility 68% greater than the market as a whole.
True North Commercial REIT (OTC:TUERF) netted $191.00 based on dividends less broker fees. A Beta number was not available for TUERF.
Financial 15 Split Corp (OTCPK:FNNCF) netted $173.30 based on dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 7% under the market as a whole.
Ellington Credit Co (EARN) netted $163.33, based on the median of target price estimates from 5 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 17% greater than the market as a whole.
Gladstone Commercial Corp (GOOD) netted $149.99 based on the median of target price estimates from 4 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 17% greater than the market as a whole.
AGNC Investment Corp (AGNC) netted $141.60 based on the median of target price estimates from 12 analysts, plus dividends, less broker fees. The Beta number showed this estimate subject to risk/volatility 47% greater than the market as a whole.
Average net gain in dividend and price was 21.47% on $1k invested in each of these ten MoPay stocks. This gain estimate was subject to average risk/volatility 37% greater than the market as a whole.
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".
June Monthly Pay Dividend Data
Three lists produce numerous actionable conclusions and several more unnumbered results. To draw these conclusions and results, June 21, 2024 closing prices and estimated annual dividends were referenced from YCharts. In the process, monthly pay equity (1) yield and (2) upside potential lists were compared and contrasted against (3) the 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 avoid future losses.
This advantage has been curtailed when companies suddenly cut monthly dividends to save cash. Numerous prominent MoPay firms declared dividend cuts between May and June 2020, including: 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 announced in December 2019 it was retreating to quarterly dividend payments "in keeping with industry tradition." Bluerock Residential company has since gone private and is no longer listed publicly.
That “industry tradition” continued with ARMOUR Residential REIT and Stellus Capital Investment Corp both transitioned to QPay in June 2020. Within three months, however, both SCM and ARR returned to MoPay mode.
Top yield stock for July 2018, June 2021, and December 2023, Orchid Island Capital, released this cautionary note with its monthly dividend announcements back in 2018: "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 in May 2020. However, in August. 2020 ORC monthly dividend increased from $0.06 to $0.065 for September, October, and into 2021.
ORC, however, currently pays a $0.12 monthly dividend (falling from $0.16 in October 2023) and is again listed here.
The U.S. exchange MoPay segment is volatile, transitive, recovering, and for 2024 has achieved recovery to full strength. More trades in monthly pay equities are available from Canadian firms, many of which are also listed on U.S. OTC (pink sheet) exchanges. Active listed MoPays priced over $2 were up from 71 in October to 73 in February 2021, and since October 2021 at the full strength of over 100 active, not seen for years. This list found itself pared to 77 by keeping the share price limit at $5 and not listing dividends yielding under 3% or over 25%.
List One:
US Exchange Traded MoPay Dividend Equities by Yield & Analyst Targets
Top ten of these US exchange listed monthly pay dividend equities showing the best yields for June, represented just three of the eleven Morningstar market sectors. Representative firms split 1, 1, and 8, between the real estate, industrial, and financial services sectors, respectively.
First place, by yield, belonged to the lone real estate sector representative: True North Commercial REIT [1], and the industrials member placed sixth, 2020 Bulkers Ltd. (OTCPK:TTBKF) [6].
The financial services sector members hogged the rest of the top ten: Financial 15 Split Corp. [2]; Orchid Island Capital [3]; AGNC Investment Corp [4]; ARMOUR Residential (ARR)[5]; Ellington Credit Co [7]; Prospect Capital Corp (PSEC) [8]; Dynex Capital [9]; Ellington Financial [10], and they completed the June MoPay top-ten equities list by yield.
Analyst Targets
Only twenty-five of these US exchange listed monthly pay dividend equities got positive responses from analysts in June. Those represented just four of the eleven Morningstar market sectors. Representative firms split 14, 1, 9, and 1, between the real estate, communication, financial services, and energy sectors, respectively. Seven more in the financial (6), and energy (1) sectors got negative analyst target grades.
List Two:
Monthly Pay Dividend Equities by Price Upsides (and Downsides)
Results from YCharts, shown below, show 30 MoPay dividend stocks (as of market closing price June 21) compared with the median of analyst target prices one year out. The ten top stocks displayed 0% to 23.48% price upsides for the next year.
Five (tinted) of the ten on this top ten price upside list were also members of the top ten list by yield. The first five places on this upside list went to: Modiv Industrial [1], Dynex Capital Inc [2], EPR Properties [3], Orchid Island Capital Corp [4], Ellington Financial Inc [5].
The lower level (by upside %) five were, Gladstone Commercial Corp [6], Ellington Credit [7], Stellus Capital Investment [8], Pennant Park Floating Rate [9], and AGNC Investment 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.
Ten MoPay stocks showing the top estimated price gains for June 2025 were gleaned from 30 selected by yield. Three to nine analysts have historically provided the most accurate median target price estimates.
List Three:
MoPay Dividend Closed End Investment Companies, Exchange-Traded Funds, and Notes, by Yield
Eighty top monthly dividend paying Closed End Funds, Exchange-Traded Funds and Notes listed below were culled from nearly 800 candidates. Yields of 10.35% or greater, calculated as of June 21, determined the top ten. All 80 show assets under management [AUM] greater than $20M and are priced above $7.00 per share.
The top-ten monthly-paying dividend investment companies, funds, & notes, showing the biggest yields for per YChart & Yahoo Finance data, featured ten open-ended investment companies [ETFs], no closed-ended investment company [CEIC], nor collateralized debt instruments [ETNs].
The ten open-ended investment ETFs were: Defiance S&P 500 Enhanced Options Income ETF (JEPY) [1]; YieldMax Ultra Option Income Strategy ETF (ULTY) [2]; YieldMax MSTR Option Income Strategy ETF (MSTY) [3]; YieldMax PYPL Option Income Strategy ETF (PYPY) [4]; ProShares Bitcoin Strategy ETF (BITO) [5]; YieldMax AMZN Option Income Strategy ETF (AMZY) [6]; YieldMax AAPL Option Income Strategy ETF (APLY) [7]; YieldMax DIS Option Income Strategy ETF (DISO) [8]; Tesla (TSLA) Yield Shares Properties ETF (YTSL:CA) [9]; YieldMax MSFT Option Income Strategy ETF (MSFO) [10], to complete the top-ten Exchange-Traded Notes, Exchange-Traded Funds, and Closed End Investment Companies list for June 24-25.
Compare Equity To Fund Performance
Note that June 2024-25 top-ten equity dividends are currently priced equally to those of the top ten funds. Last month they were 1% under. Last June they were 1% higher. The price differences were found in the outlandishly high dividends attributed to the top equities or funds.
This month, the author lopped the fourteen top funds paying 41.5% to 85% yields off the Funds list. The result you see above shows ten funds (bearing 43.34% to near 84.99% dividends) pushing the top ten funds 3% over the top ten equity returns. Without such odd aberrations, funds are generally priced higher than the equities due to the higher overhead costs of fund management.
Background and Actionable Conclusions
In June 2012, readers suggested the author to include these funds, trusts, and partnerships in the MoPay article. 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 an upside vs. buy & hold in November. Another list factored December 2012 reader comments.
A new decade of 2020 that began in January, and continued to February, March, April, early May, and mid May, June, July, August, September, October, November, December. The progression continued in 2021 in January, February, March, April, May, June, July, August, September, October, November, and December. And carried-on in 2022, January, February, March, April, May, June/July, August, September, October, November, December, and again, in 2023, January, February, March, April. May, June, July, August, September, October, and December.
Now in, 2024, we continue in January, February, March, April, May, and now June to compare and contrast MoPay equity upside potential to the yield (and higher risk/volatility) should any investor be tempted to buy and hold Closed End Investments or Exchange-Traded Funds and Notes.
Yield Metrics Showed A 2.1% Advantage For The Five Lowest-Priced Of Ten High-Yield MoPay Equities In June
Ten monthly pay stock equities were ranked by yield. Those results, verified by YCharts, Seeking Alpha, and Yahoo Finance, produced the following charts.
Actionable Conclusions: Analysts Estimated 5 Lowest Priced of Top Ten High Yield MoPay Dividend Stocks (11) Would Produce 18.64% VS. (12) 18.26% Net Gains from All Ten by June 2025
$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 2.1% more net gain than $5,000 invested as $.5k in all ten. The fifth lowest-priced MoPay dividend dog, Orchid Island Capital Inc, was predicted to deliver the best net gain of 28.47%.
Lowest priced five MoPay dividend stocks estimated as of June 21 were: Prospect Capital, Financial 15 Split Corp., True North Commercial REIT, Ellington Credit Co., Orchid Island Capital, with prices ranging from $5.55 to $8.45.
Higher priced five MoPay dividend equities, estimated as of June 21, were: AGNC Investment Corp., Dynex Capital Inc., Ellington Financial Inc., 2020 Bulkers, ARMOUR Residential REIT, whose prices ranged from $9.76 to $19.65.
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, is today useful to find long-term 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 15% to 85% accurate on the direction of change and about 0% to 15% 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:
June’s 77 MoPay Equities List
(Alphabetical by Ticker Symbol)
All but two equities and all of the funds listed in this June 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.
June Ideal MoPay Equities List
(Dividend from $1K Invested > Share Price)
Now, over four years beyond the 2020 Ides of March dip, and before more pullbacks yet to come, the time to buy top yield MoPay dogs may now be at hand. There are more to choose from. This month’s list of 75 showed a maximum yield top 20.1%, resulting from setting the minimum price per share for selection at $5, and holding the minimum yield to 3%. When bears are back, bargains reappear.
June’s list of 77 showed 75 ideal candidates whose dividends from $1K invested exceeded the single share price.
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 endorsem*nt 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; Yahoo Finance - Stock Market Live, Quotes, Business & Finance News; analyst mean target price by YCharts. Open source dog art from Dividend Dog Catcher.
Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
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