Orchid Island Capital, Inc. (ORC): Among the Monthly Dividend Stocks With Over 5% Yield

Orchid Island Capital, Inc. (ORC) is a real estate investment trust (REIT) that has been paying monthly dividends since 2013. With a current annualized dividend of $1.44 per share, ORC offers a high dividend yield of 18.65%, making it an attractive option for income-oriented investors. This article will explore the factors contributing to ORC's high dividend yield, its payout ratio, and the historical trend of its dividends.

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Factors Contributing to ORC's High Dividend Yield

1. Annual Dividend Payout: ORC's annual dividend payout of $1.44 per share is higher than the average dividend payout of other companies in the Real Estate sector.
2. Dividend Frequency: The company pays dividends monthly, which increases the overall yield compared to companies that pay dividends quarterly or annually.
3. Stock Price: The stock price of ORC has decreased by 12% from a year ago, which contributes to the higher dividend yield.
4. Historical Dividend Yield: The current dividend yield of 18.65% is lower than the historical average of 20.9% over the last 5 years, indicating that the yield has decreased over time.
5. Payout Ratio: ORC's payout ratio of 118% is above the industry average but below the Real Estate sector average. This means that the company is distributing a significant portion of its earnings as dividends, contributing to its high dividend yield.

Chart showing ORC's dividend yield over the past 5 years

ORC's Payout Ratio Compared to Peers and Sector Average

ORC's payout ratio of 118% is above the industry average but below the Real Estate sector average. In comparison with its Real Estate sector average of 127.4%, ORC's payout ratio is 7% lower.

Historical Trend of ORC's Dividends and Impact on Stock Performance

ORC has been paying dividends since 2013, with a historical trend that shows both increases and decreases in the annualized dividend per share. The dividend yield has also fluctuated over time. Here's a breakdown of the historical trend and its impact on the stock's performance:

1. Dividend History:
- In 2013, ORC started paying dividends, with an annualized dividend per share of $0.4.
- From 2013 to 2015, the annualized dividend per share remained at $0.4.
- In 2016, the annualized dividend per share increased to $0.7.
- From 2017 to 2020, the annualized dividend per share remained at $0.7.
- In 2021, the annualized dividend per share increased to $0.8.
- In 2022, the annualized dividend per share decreased to $0.225.
- In 2023, the annualized dividend per share increased to $0.275.
- In 2024, the annualized dividend per share decreased to $0.12.
2. Dividend Yield:
- The dividend yield has fluctuated over the years. In 2013, the dividend yield was 16.61%.
- In 2014, the dividend yield increased to 18.65%.
- In 2015, the dividend yield decreased to 16.44%.
- In 2016, the dividend yield increased to 19.86%.
- In 2017, the dividend yield decreased to 17.85%.
- In 2018, the dividend yield increased to 19.76%.
- In 2019, the dividend yield decreased to 16.96%.
- In 2020, the dividend yield increased to 16.46%.
- In 2021, the dividend yield decreased to 15.76%.
- In 2022, the dividend yield increased to 15.7%.
- In 2023, the dividend yield decreased to 16.44%.
- In 2024, the dividend yield increased to 18.51%.
3. Impact on Stock Performance:
- The fluctuations in dividends and dividend yields have not had a consistent impact on ORC's stock performance. The stock price has also experienced ups and downs, independent of the dividend trends.
- For instance, in 2016, when the annualized dividend per share increased to $0.7, the dividend yield also increased to 19.86%. However, the stock price did not necessarily reflect this increase, as it may have been influenced by other factors such as market conditions and company performance.
- Similarly, in 2022, when the annualized dividend per share decreased to $0.225, the dividend yield also decreased to 15.7%. However, the stock price may not have been directly affected by this decrease, as it could have been influenced by other factors.

In conclusion, while ORC's dividends and dividend yields have fluctuated over the years, the impact on the stock's performance has not been consistent. The stock price has been influenced by various factors, including market conditions and company performance, making it difficult to attribute changes in stock performance solely to dividend trends. Investors should consider ORC's high dividend yield and payout ratio, as well as its historical dividend trends, when evaluating the company as a potential investment.