Monthly High-Yield Dividend Stocks in August 2025: Identifying Undervalued Monthly Payers with Strong Sustainability and Growth Potential

For income-focused investors seeking compounding opportunities in August 2025, monthly high-yield dividend stocks remain a compelling asset class. However, identifying undervalued options with sustainable payouts and growth potential requires a nuanced analysis of financial metrics, sustainability practices, and market positioning. This article examines three key candidates—Flaherty & Crumrine Dynamic Preferred and Income Fund (DFP), Orchid Island Capital (ORC), and Apple Hospitality REIT (APLE)—to determine their suitability for long-term income portfolios.

DFP: Stability in a High-Yield Monthly Payer

DFP, a closed-end fund specializing in preferred securities, offers a consistent monthly dividend schedule. Its August 2025 ex-dividend date is August 22, 2025, with a payout of $0.1186 per share (payable on August 29) [3]. This aligns with its historical pattern of incremental increases, such as the recent raise from $0.1174 to $0.1186 in July and September 2025 [1]. With a current dividend yield of ~6.7% [2], DFP provides a stable income stream, though its sustainability metrics remain underreported compared to peers. While the fund’s focus on preferred securities inherently carries lower environmental impact, investors should monitor its exposure to energy and industrial sectors for alignment with broader ESG goals.

ORC: High Yield with Cautionary Caveats

Orchid Island Capital (ORC), a mortgage REIT, boasts a 20.37% forward dividend yield as of August 2025, making it one of the market’s highest-yielding monthly payers [4]. However, this comes with a 141.87% payout ratio, indicating that its dividend exceeds estimated earnings—a red flag for sustainability [4]. ORC’s recent 5-year dividend growth rate of -22.30% [3] underscores its vulnerability to interest rate fluctuations and mortgage market volatility. Valuation metrics are mixed: a P/E ratio of 50.43 [2] suggests overvaluation relative to earnings, while its P/B ratio of 0.99 [5] implies alignment with book value. Sustainability-wise, ORC’s net impact ratio of +17.9% (per The Upright Project) reflects positive contributions to taxes and job creation but offsets significant negatives in GHG emissions and waste [5]. Investors prioritizing yield over sustainability may find ORC appealing, but its high payout ratio and declining dividend growth warrant caution.

APLE: Undervalued Growth with ESG Alignment

Apple Hospitality REIT (APLE) emerges as a standout for its 92.89% 5-year dividend growth rate [6] and strong ESG practices. With a P/E ratio of 16.87 [7], APLE is undervalued relative to its industry average of 15.47 [6], and its recent Tampa acquisition at a favorable cap rate supports long-term asset appreciation. The company’s sustainability initiatives, including energy-efficient retrofits and partnerships with hotel brands like Marriott and Hilton, align with global decarbonization goals [8]. APLE’s Zacks Rank #2 (Buy) and A for Value rating further validate its appeal [6]. While its August 2025 dividend is not explicitly detailed, its consistent monthly payouts and strategic clustering of assets position it as a resilient choice for income growth.

Actionable Insights for Income Investors

1. DFP suits conservative investors prioritizing stability over growth, with its predictable monthly payouts and moderate yield.
2. APLE offers a rare combination of undervaluation, robust dividend growth, and ESG alignment, making it ideal for long-term compounding.
3. ORC should be approached cautiously due to its high yield and payout ratio, which signal elevated risk. It may appeal to aggressive income seekers willing to tolerate volatility.

Conclusion

In August 2025, monthly high-yield dividend stocks like DFP, ORC, and APLE present distinct opportunities and risks. While DFP and APLE offer varying degrees of sustainability and valuation appeal, ORC’s precarious payout ratio demands careful scrutiny. Investors should prioritize APLE for its growth potential and ESG alignment, use DFP as a stable anchor, and treat ORC as a speculative high-yield play. As global sustainability frameworks evolve—such as the CDP’s 2025 disclosure cycle [9]—companies with transparent environmental practices will likely outperform in the long term.

Source:
[1] DFP Dividend Information, [https://marketchameleon.com/Overview/DFP/Dividends/]
[2] DFP Dividend Information, [https://stockanalysis.com/stocks/dfp/dividend/]
[3] Orchid Island Capital (ORC) 5-Year Dividend Growth Rate, [https://www.gurufocus.com/term/dividend-growth-5y/ORC]
[4] ORC: Dividend Date & History for Orchid Island Capital, Inc., [https://www.dividend.com/stocks/financials/specialty-finance/mortgage-finance/orc-orchid-island-capital-inc/]
[5] Orchid Island Capital (ORC) PB Ratio, [https://www.financecharts.com/stocks/ORC/value/price-to-book-value]
[6] Assessing Apple Hospitality REIT's (APLE) Valuation, [https://simplywall.st/stocks/us/real-estate/nyse-aple/apple-hospitality-reit/news/assessing-apple-hospitality-reits-aple-valuation-following-e]
[7] APLE - Apple Hospitality REIT PE ratio, [https://fullratio.com/stocks/nyse-aple/pe-ratio]
[8] Sustainability, [https://applehospitalityreit.com/sustainability/]
[9] Disclosure Cycle 2025, [https://www.cdp.net/en/disclosure-2025]