Even though the Federal Reserve has raised interest rates from 0% to 4.75% over the past year, longer rates on the 10-year and 30-year benchmark bonds have collapsed. In fact, due to the collapse, potential homebuyers have seen the biggest decline in mortgage rates in 14 years as the 30-year U.S. mortgage rate has moved from 7.18% to 6.18%. That is the biggest 10-week drop in rates since January 2009.
While great for potential homebuyers or those looking to refinance, it is not so great for those looking for dependable dividends. The thought of buying a 30-year Treasury bond with a puny 3.89% yield make no sense for growth and income investors looking for yield.
One great idea now, especially with the Federal Reserve starting to close in on the end of the rate hike cycle, is a combination of top equity income ideas that pay investors every month instead of on a quarterly basis. Given that everybody gets their bills every 30 days instead of 90, the seven stocks we found are a great idea now. Many are at entry points that are the best in months as well. Yet, 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.
Shareholders receive a 12.64% dividend. Maxim Group has a $12 price target on AGNC Investment stock. That compares with the $11.60 consensus target and the most recent closing price of $11.39.
Agree Realty
This top REIT has had a nice run off the lows printed last year but still has potential upside. Agree Realty Corp. (NYSE: ADC) focuses on the ownership, development, acquisition and management of retail properties net leased to national tenants. It specializes in acquiring and developing net-leased retail properties for retail tenants.
The company specializes in the acquisition and development of properties net leased to industry-leading, omnichannel retail tenants. As of December 31, 2022, it owned and operated a portfolio of 1,839 properties, located in all 48 continental states and containing approximately 38.1 million square feet of gross leasable area.
Investors receive a 3.85% distribution. The $81 target price at Raymond James accompanies a Strong Buy rating. Agree Realty stock has a consensus target of $77.75. The stock last closed at $74.80.
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