Orchid Island Capital, Inc. (NYSE: ORC) is among the 13 highest paying monthly dividend stocks to buy. Compass Point initiated coverage on ORC with a Neutral rating and a $7.50 price target on December 15. In Q3 2025 earnings, Orchid said market conditions were favorable for levered Agency RMBS investors, with a 6.7% total return for the quarter.

Despite increasing prepayments due to declining rates, Orchid Island Capital generated a total return of 6.7% in Q3. Net income for the quarter was $72.1 million, a significant increase from the same period last year. The company continued to build its capital base and invest in Agency RMBS for above-average returns.

Orchid Island Capital is a specialty finance company investing in Agency residential mortgage-backed securities. While ORC has investment potential, some believe other AI stocks offer greater upside with lower downside risk. For an undervalued AI stock benefiting from tariffs and onshoring, check out the best short-term AI stock.

Read more at Yahoo Finance.: Compass Point Initiates Coverage on Orchid Island Capital (ORC) at Neutral