Is This Monthly Dividend Stock’s 8.8% Yield Safe?

For income investors, few things are better than a high-yield monthly dividend stock. But as is the case with any dividend-paying company, there’s no guarantee that the dividend payments will continue indefinitely into the future. So in this article, let’s take a look at one of the highest-yielding monthly dividend stocks in today’s market and examine its dividend safety.

The company in question is ARMOUR Residential REIT, Inc. (NYSE:ARR), a real estate investment trust (REIT) headquartered in Vero Beach, Florida. Unlike many REITs that own physical properties, ARMOUR specializes in real estate mortgages. In particular, the company invests in agency residential mortgage-backed securities. These are securities issued or guaranteed by a United States Government-sponsored entity, including the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the Government National Mortgage Administration (Ginnie Mae).

Source: Income Investors

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