For many investors, an important part of their portfolios is dedicated to generating income along with growth. As most of us know, interest rates have been at generational lows for years. While they will start creeping higher in March as promised, even if the Federal Reserve does a stunning seven hikes this year, as some on Wall Street have predicted, that would put the federal funds rate around 2.5%. To put that in perspective, this rate in 2007 topped out at 5.02%.
We decided to screen our 24/7 Wall St. research database looking for companies that pay big and dependable dividends on a monthly basis. Most stocks, and the lion’s share of mutual funds, pay their dividend distributions on a quarterly basis. That’s fine for many, but for those who use investment income to cover the cost of living, most bills unfortunately do not come on a quarterly basis.
We found seven top stocks that are Buy rated and come with dependable monthly dividends. Most importantly, they look live solid investment ideas in these very turbulent times. It is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
AGNC Investment
This company has paid solid dividends for years. AGNC Investment Corp. (NASDAQ: AGNC) operates as a real estate investment trust (REIT) in the United States. It invests in residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by U.S. government-sponsored enterprises or agencies.
The company funds its investments primarily through collateralized borrowings structured as repurchase agreements. The company has elected to be taxed as a REIT under the Internal Revenue Code of 1986 and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders.
Investors receive a 10.71% distribution. Royal Bank of Canada has an $18 price target on AGNC Investment stock. That compares with the $15.10 consensus target and Tuesday’s closing price of $13.10.
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