10 Monthly Dividend Cash Machines Paying 10%+ Yields ( Top Picks!)

As of my latest data, here are 10 high-yield monthly dividend stocks (including funds like REITs, BDCs, and CEFs) with yields over 10% annually.

1. Orchid Island Capital (ORC) – Yield: ~16.5%

Type: Mortgage REIT (mREIT)

Business Model: Invests in agency mortgage-backed securities (MBS), which are backed by the U.S. government (lower credit risk but sensitive to interest rates).

Dividend Sustainability:

• Payout ratio: ~90% of earnings (high, but common for mREITs).

• Risk: Rising interest rates hurt book value; dividends fluctuate.

Recent Performance:

• Stock down ~30% in 5 years (common for mREITs due to rate hikes).

• Outlook: If Fed cuts rates, ORC could stabilize.

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2. ARMOUR Residential REIT (ARR) – Yield: ~15.8%

Type: Mortgage REIT (similar to ORC)

Business Model: Focuses on residential MBS, highly sensitive to Fed policy.

Dividend Sustainability:

• Cut dividends multiple times (from 0.10𝑡𝑜0.10to0.08 monthly recently).

• Risk: Book value erosion if rates stay high.

Recent Performance:

• Down ~50% since 2020 due to rate hikes.

• Outlook: Only for aggressive income investors.

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3. Oxford Square Capital (OXSQ) – Yield: ~14.2%

Type: Business Development Company (BDC)

Business Model: Lends to small/mid-sized companies (higher default risk than mREITs).

Dividend Sustainability:

• Covered by net investment income (NII) (payout ratio ~95%).

• Risk: Non-accruals (loans not paying) could hurt dividends.

Recent Performance:

• Stock flat over 5 years, but high yield compensates.

• Outlook: Stable if economy avoids recession.

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4. Gladstone Investment (GAIN) – Yield: ~13.5%

Type: BDC

Business Model: Focuses on lower-middle-market companies, often with equity upside.

Dividend Sustainability:

• Monthly + special dividends (strong NII coverage).

• Risk: Portfolio company defaults.

Recent Performance:

• Stock up ~40% in 5 years (rare for high-yield stocks).

• Outlook: One of the safer BDCs.

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5. SLR Investment Corp (SLRC) – Yield: ~12.8%

Type: BDC

Business Model: Floating-rate loans (benefits from higher rates).

Dividend Sustainability:

• NII covers dividend (payout ratio ~85%).

• Risk: Exposure to cyclical industries.

Recent Performance:

• Stock down ~20% in 5 years but dividends steady.

• Outlook: Decent hold if rates stay high.

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6. Ellington Financial (EFC) – Yield: ~12.5%

Type: Hybrid Mortgage REIT

Business Model: Mix of agency MBS + credit assets (more diversified than ORC/ARR).

Dividend Sustainability:

• Recently raised dividend (good sign).

• Risk: Still exposed to rate volatility.

Recent Performance:

• Stock down ~25% since 2020 but recovering.

• Outlook: Better than pure agency mREITs.

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7. AGNC Investment Corp (AGNC) – Yield: ~14.3%

Type: Mortgage REIT (largest agency mREIT)

Business Model: Agency MBS + hedging strategies (tries to reduce rate risk).

Dividend Sustainability:

• Dividend cut in 2020, now stable.

• Risk: Book value declines in rising-rate environments.

Recent Performance:

• Stock down ~40% since 2020 (rate hike impact).

• Outlook: Better if Fed pivots to cuts.

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8. Horizon Technology Finance (HRZN) – Yield: ~11.9%

Type: BDC

Business Model: Venture debt lender (tech/life sciences startups – high risk/reward).

Dividend Sustainability:

• NII covers payout, but watch non-accruals.

• Risk: Startup failures could hurt returns.

Recent Performance:

• Stock down ~15% in 5 years but dividends steady.

• Outlook: High risk, but good for tech exposure.

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9. Stellus Capital Investment (SCM) – Yield: ~11.7%

Type: BDC

Business Model: Middle-market corporate loans (floating rate).

Dividend Sustainability:

• NII covers dividend, but close (~90%).

• Risk: Energy sector exposure (~20% of portfolio).

Recent Performance:

• Stock flat over 5 years but pays high yield.

• Outlook: Stable if energy sector holds up.

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10. PennantPark Floating Rate Capital (PFLT) – Yield: ~11.2%

Type: BDC

Business Model: Floating-rate loans (low default history).

Dividend Sustainability:

• Strong NII coverage (~110%).

• Risk: Economic slowdown could increase defaults.

Recent Performance:

• Stock down ~10% in 5 years but reliable payouts.

• Outlook: One of the safer high-yield BDCs.

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Final Thoughts: Best Picks vs. Highest Risks

✅ Best for Safety: GAIN, PFLT, EFC (better dividend coverage).

⚠️ Highest Risk: ORC, ARR, HRZN (dividend cuts possible).

📉 Rate-Sensitive: AGNC, ORC, ARR (avoid if rates keep rising).

📈 Growth + Yield: GAIN (special dividends + equity upside).