How Orchid Island Capital (ORC) Provides Stability Among the Safest Monthly Dividend Stocks

Orchid Island Capital, Inc. (NYSE:ORC) is included among the 10 Safest Monthly Dividend Stocks to Buy.

Orchid Island Capital, Inc. (NYSE:ORC) is a specialty finance company that invests in residential mortgage-backed securities (RMBS), with a portfolio split between traditional mortgage pass-through certificates and collateralized mortgage obligations, as well as structured Agency RMBS.

In its latest earnings update, CEO Robert Cauley pointed to two key events shaping the quarter: the reciprocal tariffs announced in April, known as Liberation Day, and the passage of the “One Big beautiful bill” in July. Both stirred market volatility and influenced investor sentiment. Cauley explained that Orchid Island Capital, Inc. (NYSE:ORC) was well-prepared, holding high cash reserves and keeping leverage at the low end of its range. This positioning limited the need for deleveraging and enabled the repurchase of more than 1.1 million shares at a steep discount early in the quarter. He added that while the company maintained a defensive stance, it also generated a cash buffer through selective share sales.

Orchid Island Capital, Inc. (NYSE:ORC) is one of the safest stocks to buy, as the company has been making regular dividend payments since its IPO in 2013. Currently, it offers a monthly dividend of $0.12 per share for a dividend yield of 20.54%, as of September 23.

While we acknowledge the potential of ORC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.