Oxford Sq. Capital Corp. is a BDC specializing in financing early and center–stage companies by means of loans and CLOs.
The firm holds an equally cut up portfolio of First–Lien, Second–Lien, and CLO fairness assets unfold throughout a number of industries, with the very best publicity in software program and enterprise companies.
Supply: Investor Presentation
On Could 2nd, 2024, Oxford Sq. reported its Q1 outcomes for the interval ending March thirty first, 2024. For the quarter, the corporate generated roughly $10.7 million of complete funding earnings, down from $12.3 million within the earlier quarter.
The weighted common money distribution yield of its money earnings producing CLO fairness investments at present additionally rose sequentially from 13.6% to 13.7%.
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Least expensive Month-to-month Dividend Inventory #7: Apple Hospitality REIT (APLE)
- Annual Valuation Return: 2.9%
- Dividend Yield: 8.1%
Apple Hospitality REIT is a resort REIT that owns a portfolio of resorts with tens of 1000’s of rooms positioned in scores of markets and throughout dozens of states. It franchises its properties out to main manufacturers, together with Marriott branded resorts, Hilton-branded resorts, and Hyatt-branded resorts.
As of its newest filings, Apple Hospitality owned 219 resorts with a complete of 29,558 visitor rooms throughout 37 states and the District of Columbia.
On Could 1st, 2025, Apple Hospitality REIT launched its Q1 outcomes for the interval ending March thirty first, 2025. The corporate reported complete income of $327.7 million for the quarter, representing a 0.5% lower in comparison with the prior yr.
Efficiency remained regular, with power in common every day charge (ADR) partially offset by a modest decline in occupancy. Comparable Inns ADR rose 1.0% to $156.56, whereas occupancy declined 1.5% to 71.1%, leading to a slight 0.5% year-over-year lower in income per obtainable room (RevPAR) to $111.36.
Regardless of this marginal top-line softness, the corporate maintained strong profitability, although margin stress continued. Comparable Inns Adjusted Resort EBITDA declined 5.4% year-over-year to $104.9 million, with margins narrowing by 180 foundation factors to 32.3%.
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Least expensive Month-to-month Dividend Inventory #6: RioCan Actual Property Funding Belief (RIOCF)
- Annual Valuation Return: 3.4%
- Dividend Yield: 6.4%
RioCan Actual Property Funding Belief owns, manages, and develops retail-focused, mixed-use properties positioned in prime, high-density transit-oriented areas the place Canadians store, stay, and work.
As of March thirty first, 2025, the corporate wholly owned or co-owned stakes in 177 properties spanning an combination web leasable space of roughly 32 million sq. toes. Moreover, the corporate has a pipeline of roughly 21 million sq. toes zoned for future improvement.
RIOCF’s annualized contractual gross lease is generally derived from retail properties (85.1%). Workplace properties chip in one other 10.5%, and residential rental properties contribute the remaining 4.4% to RIOCF’s annualized lease.
The corporate’s technique is to focus totally on necessity-based retail. These embody grocery shops and pharmacies (20.0% of annualized lease) and are buoyed by exceptionally robust tenants like Walmart and Costco.
Important items and companies made up 24.0% of annualized lease and included tenants just like the Financial institution of Montreal, TD Financial institution, and Royal Financial institution of Canada. Worth retailers contributed 13.0% of annualized lease and embody Dollarama, in addition to TJX Corporations’ HomeSense and Winners manufacturers.
On Could fifth, RIOCF launched its first-quarter earnings report for the interval ended March thirty first, 2025. The corporate’s income fell by 8.5% year-over-year to $255.4 million within the quarter (adjusting for common CAD to USD conversion charges in Q1 2024 and Q1 2025).
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Least expensive Month-to-month Dividend Inventory #5: Ellington Credit score Co. (EARN)
- Annual Valuation Return: 3.7%
- Dividend Yield: 16.8%
Ellington Credit score Co. acquires, invests in, and manages residential mortgage and actual property associated property. Ellington focuses totally on residential mortgage-backed securities, particularly these backed by a U.S. Authorities company or U.S. authorities–sponsored enterprise.
Company MBS are created and backed by authorities businesses or enterprises, whereas non-agency MBS are not assured by the federal government.
On March twelfth, 2025, Ellington Residential reported its fourth quarter outcomes for the interval ending December 31, 2024. The corporate generated a web lack of $(2.0) million, or $(0.07) per share.
Ellington achieved adjusted distributable earnings of $7.8 million within the quarter, resulting in adjusted earnings of $0.27 per share, which lined the dividend paid within the interval.
Ellington’s web curiosity margin was 5.07% general. At quarter finish, Ellington had $31.8 million of money and money equivalents, and $79 million of different unencumbered property.
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Least expensive Month-to-month Dividend Inventory #4: Itau Unibanco Holding S.A. (ITUB)
- Annual Valuation Return: 3.8%
- Dividend Yield: 7.5%
Itaú Unibanco Holding S.A. is headquartered in Sao Paulo, Brazil. The financial institution has operations throughout South America and different locations like the US, Portugal, Switzerland, China, Japan, and so forth.
On February sixth, 2025, Itaú Unibanco reported fourth-quarter and full yr outcomes for 2024. The corporate reported recurring managerial end result reached R$10.9 billion, up 2.0% from the earlier quarter, with a 22.1% return on fairness.
The mortgage portfolio grew 6.3% general and 5.8% in Brazil, pushed by mortgage (+5.6%), automobile financing (+1.8%), and bank card loans (+6.8%).
Small and medium-sized enterprise loans rose 8.1% as a result of overseas trade results and authorities backed financing. Company lending elevated 6.8%.
Larger lending and an improved liabilities margin led to a 3.7% rise within the monetary margin with shoppers, whereas credit score prices rose 4.8%. Nonperforming loans over 90 days (NPL 90) improved to 2.4%, with comparable features in short-term delinquency charges.
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Least expensive Month-to-month Dividend Inventory #3: Horizon Expertise Finance (HRZN)
- Annual Valuation Return: 4.3%
- Dividend Yield: 17.6%
Horizon Expertise Finance Corp. is a BDC (Enterprise Growth Firm) looking for to supply enterprise capital to small and medium-sized corporations, primarily within the life sciences, know-how, healthcare-IT sectors, and sustainability, which account for round 42%, 33%, 15%, and 10% of its portfolio, respectively.
The corporate has been in a position to generate engaging risk-adjusted returns by means of immediately originated senior secured loans and extra capital appreciation by means of warrants, that includes a last-twelve-month portfolio yield of 15.4%.
The corporate has topped the everyday business common IRR of round 10% from its mortgage coupons by partaking in dedication charges, steerage charges, and potential fairness rights, maximizing its complete yield. Horizon Expertise has gross funding earnings of round $60 million yearly and is predicated in Farmington, Connecticut.
On April twenty ninth, 2025, Horizon introduced its Q1 outcomes for the interval ending March thirty first, 2025. For the quarter, complete funding earnings fell 6.2% year-over-year to $24.5 million, primarily as a result of decrease curiosity earnings on investments from the debt funding portfolio.
Extra particularly, the corporate’s dollar-weighted annualized yield on common debt investments in Q1 of 2025 and Q1 of 2024 was 15.0% and 15.6%, respectively.
Internet funding earnings per share (IIS) fell to $0.27, down from $0.38 in comparison with Q1-2024. Internet asset worth (NAV) per share landed at $7.57, down from $9.64 year-over-year and $8.43 sequentially.
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Least expensive Month-to-month Dividend Inventory #2: Prospect Capital (PSEC)
- Annual Valuation Return: 5.9%
- Dividend Yield: 16.7%
Prospect Capital Company is a enterprise improvement firm, or BDC. It supplies non-public debt and personal fairness to middle-market corporations within the U.S. The corporate focuses on direct lending to owner-operated corporations, in addition to sponsor-backed transactions.
Prospect invests primarily in first and second lien senior loans and mezzanine debt, with occasional fairness investments.
Prospect posted third quarter earnings on Could eighth, 2025, and outcomes had been blended as soon as once more. Earnings got here to 19 cents, which beat estimates by a nickel. Earnings had been off from 20 cents in Q2, and from 23 cents in final yr’s Q3.
Whole funding earnings, nevertheless, plummeted 16% year-over-year to $171 million, and missed estimates by virtually $4
million.
Whole originations had been $196 million, up from $135 million in Q2. Whole repayments and gross sales had been $192 million, down from $383 million in Q2.
Originations web of repayments and gross sales got here to $5 million in Q3, up from -$248 million in Q2. Internet originations quarter-to-date in This fall had been $45 million as of the earnings report.
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Least expensive Month-to-month Dividend Inventory #1: Dream Workplace REIT (DRETF)
- Annual Valuation Return: 8.3%
- Dividend Yield: 6.6%
Dream Workplace REIT is a Toronto-focused workplace actual property funding belief that owns and manages a portfolio of 26 high-quality workplace properties totaling 4.8 million sq. toes of gross leasable space. Most of its properties are concentrated in downtown Toronto, one of the institutional and supply-constrained workplace markets within the nation.
They’re principally mid-sized, well-located workplace buildings which were notably upgraded lately by means of renovations, amenity enhancements, and sustainability retrofits to satisfy evolving tenant calls for.
On Could eighth, 2025, Dream Workplace REIT posted its first quarter 2025 outcomes for the three months ended March thirty first, 2025. Internet rental earnings totaled about $18 million, down barely from final yr, primarily because of the sale of 438 College Avenue and decrease occupancy in downtown Toronto. Similar-property web working earnings grew modestly by 0.2% to about $18 million, as lease will increase and value efficiencies offset the impression of lease expires.
Dream Workplace accomplished about 255,000 sq. toes of leasing exercise through the quarter. In Toronto downtown, new leases had been signed at common rents slightly below 1% above expiring ranges, signaling continued curiosity in well-located high quality area.
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Remaining Ideas
Though month-to-month dividend shares could seem interesting for producing a gentle earnings stream, it’s essential to remember that not all dividend shares are created equal.
Every inventory carries its personal set of dangers, and the larger the danger, the extra possible it’s that shares will seem undervalued.
Buyers ought to scrutinize a budget valuation of month-to-month dividend shares. Nonetheless, our record can function a superb start line for buyers looking for potential alternatives for undervalued investments within the realm of month-to-month dividend shares.
Don’t miss the assets beneath for extra month-to-month dividend inventory investing analysis.
And see the assets beneath for extra compelling funding concepts for dividend development shares and/or high-yield funding securities.
