Income Alert: Eagle Point Income Stock Offers Monthly Cash Flow
July 29, 2025
Why EIC Stock Could Be Worth the Investment
An income pick I want to highlight today is Eagle Point Income stock.
When it comes to dividend stocks, finding high yields with consistency is tricky. Too often, the payouts look great on paper but come with dire fundamentals or too much risk under the surface. And let’s be really honest here, too: the so-called “safe” income stocks don’t really provide anything stellar. You’d be lucky to get any yield above five percent.
That’s why smart income investors must widen their search a bit beyond the names that are quoted in the mainstream financial media on a regular basis and pay close attention to a specialized corner of the stock market. It’s extremely unexplored by average income investors, but solid income could be generated through these investment vehicles.
One name making waves in that particular space is Eagle Point Income Company Inc (NYSE:EIC). It’s certainly not your typical dividend stock, but it’s built well for one thing: generating income month after month.
And Eagle Point Income stock has a dividend yield that really stands out.
What Does Eagle Point Income Do?
Eagle Point Income Company is a closed-end fund (CEF) focused on providing investors with steady, high-yield income. The fund primarily invests in the safer, more secure parts of collateralized loan obligations (CLOs), specifically junior debt tranches. Occasionally, up to 35% of the fund’s portfolio may include riskier CLO equity and related securities to boost returns.
Let me clarify some key terms:
- A closed-end fund is an investment company that raises a set amount of capital through an initial offering and then invests that money to generate income or growth.
- A collateralized loan obligation (CLO) is essentially a bundle of corporate loans grouped together and sold to investors in slices. Each slice, or “tranche,” has a different level of risk and return. Eagle Point mainly targets the more stable, lower-risk tranches, aiming to provide consistent income. (Source: “About EIC,” Eagle Point Income Company Inc, last accessed July 22, 2025.)
Before going into further detail, it’s important to note that Eagle Point Income stock isn’t for everyone. It comes with credit risk, interest-rate sensitivity, and exposure to complex assets like CLOs. Any investor should ensure they understand the strategy before jumping in.
Eagle Point Income Stock Pays Monthly
Eagle Point Income Company is all about one thing: paying investors.
It is one of the few names out there that dishes out monthly dividends, which makes it a standout for income investors who love seeing cash coming in every 30 days.
For the first half of 2025, Eagle Point Income stock was paying $0.20 per share monthly, but starting in July, that monthly payment rate dropped to $0.13.
While this sounds like a big deal, it’s not unusual for a fund like Eagle Point Income Company. The payouts can change depending on market conditions and how the fund’s portfolio is performing.
Still, even at $0.13 per month, the yield on Eagle Point Income stock remains very attractive. This amounts to $1.56 per share on an annual basis, for a forward dividend yield of over 11.5%.
Chart Courtesy of StockCharts.com
There’s something else that sets Eagle Point Income stock apart from your average dividend stock: the payout comes with some predictability.
Generally, Eagle Point Income Company tells investors exactly how much they should be expecting to be paid each month, and on which date.
To say the least, this is a big deal for investors who don’t want to play the guessing game. It can help income investors plan their cash flows better.
It’s also important to pay attention to Eagle Point’s track record: it has been paying dividends monthly since its initial public offering (IPO) in 2019. That’s 74 months of monthly payments. Impressive.
One More Reason to Be Bullish on EIC Stock
Investing in CLOs isn’t easy, so management isn’t just important—it’s critical. Without savvy managers, this monthly company could go from being a cash-generating machine to being a loss leader.
I think Eagle Point Income Company’s management is very capable, so they make the case for owning EIC stock stronger.
The company’s recent financial results showed how efficient its management really is; there were encouraging data across the board. Eagle Point currently has solid net investment income, robust earnings, and a well-diversified portfolio.
To give you some perspective on how well Eagle Point’s portfolio is constructed, consider this: at the end of the first quarter of 2025, the company, through its CLO investments, had indirect exposure to about 1,466 unique underlying loans. The largest obligor represented just 0.6% of the loans, and the top 10 largest obligors together represented just five percent of the loans. (Source: “Eagle Point Income Company Inc. Announces First Quarter 2025 Financial Results and Declares Third Quarter 2025 Common and Preferred Distributions,” Eagle Point Income Company Inc, May 28, 2025.)
The Lowdown on Eagle Point Income Stock
EIC stock should be on the radar of anyone chasing income.
This closed-end fund doesn’t mess around with modest yields or safe-bet dividends. It’s built for investors who want serious monthly income and are willing to go where most don’t—into the CLO market.
And while CLOs may sound complicated, the premise is simple: Eagle Point buys slices of corporate loan bundles, collects interest, and passes the income to shareholders. That income is paid monthly, and the yield is an eye-popping 11.5%.
Eagle Point Income stock pays $0.13 per share each month, and it hasn’t skipped a payment in 74 months.
Plus, Eagle Point Income Company has launched a buyback program. This $50.0-million program could help sustain the share price and even provide some capital appreciation for those who own the stock.
Lastly, know that Eagle Point Income stock trades at a discount to its net asset valued (NAV). This essentially means that there are risks, so it may not be for everyone. EIC stock comes with risks surrounding credit quality, interest rates, and CLO market conditions.
