2 Monthly Dividend Stocks to Buy That Haven't Cut Their Payouts in More Than 6 Years
Both of these stocks have ultra-high yields.
When seeking dividend stocks that maintain their payouts, consider mortgage REITs and business development corporations (BDCs). AGNC Investment Corp. (AGNC -0.68%) is a mortgage REIT with a 16.3% yield, paying $1.44 per share while generating $1.54 per share in net spread and dollar roll income. This coverage, using net spread and dollar roll income, stems from comprehensive income available to shareholders adjusted for various gains and losses.
AGNC hasn't cut its dividend since 2020, but a potential threat lies in yield curve flattening due to a compression of short- and long-term yields and interest rate risks.
Main Street Capital (MAIN -0.32%) operates as a BDC, investing in or lending to small and middle-market companies. The company's interest in loans, dividends, and equity gains makes it lucrative. Main Street's portfolio remains diverse and stable, with only 0.9% on non-accrual status. Its distributable net investment income (DNII) has been steady on a quarterly basis and increased by $2.16 in dividends over the first half of the year.
Main Street has been increasing its net asset value for 17 consecutive quarters, and it has never cut its monthly dividend since its initial public offering in 2007.
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