ECC Stock: Collect a Jaw-Dropping 22.25% Dividend Yield Each Month?
September 8, 2025
ECC Stock Offers Robust Monthly Dividend Yield
Today in the income investing spotlight: ECC stock.
When it comes to investing, timing matters a lot. And if you are an income investor, one of the most important factors to watch is interest rates.
Here’s why: when interest rates are climbing, borrowing becomes more expensive. That puts pressure on companies and consumers, and it creates volatility across the debt markets. But once rates stop rising and the Federal Reserve signals a pause—or even a cut—that’s often when opportunities in the credit and debt markets really start to shine.
Historically, the periods right after rate hikes peak have been some of the best times for investors.
Why so?
Because defaults don’t usually surge as much as feared, and when borrowing costs eventually decline, companies find it easier to manage debt. This leads to healthier cash flows, a stronger loan performance, and attractive income for investors positioned in the right places.
With this in mind, after an aggressive hiking cycle by the Federal Reserve, rates appear to be near their top. And that’s exactly why investors should be paying close attention to credit plays right now.
One of the most compelling names in this space is Eagle Point Credit Company Inc (NYSE:ECC).
It is very likely you have never heard of ECC stock, but if you are seeking monthly income and some capital gain, this could be great stock to explore.
What Does Eagle Point Credit Company Do?
Eagle Point Credit Company is a closed-end investment fund launched and managed by Eagle Point Credit Management LLC. It focuses on investing in equity and junior debt tranches of collateralized loan obligations (CLOs) that primarily consist of below-investment grade U.S. senior secured loans. (Source: “Profile,” Yahoo! Finance, last accessed September 2, 2025.)
CLOs are essentially bundles of loans, typically made to below-investment-grade companies, which are then packaged together. These loan bundles generate interest income, and CLO managers distribute that cash flow to investors.
Eagle Point Credit specializes in taking stakes in the riskier parts of these CLOs. In return for taking on more risk, the company earns higher yields.
Now, why does this matter for income investors?
Because those yields are then passed on to shareholders in the form of massive dividends.
ECC Stock Pays Monthly
Let me get straight to the point: Eagle Point Credit Company currently pays one of the frothiest dividends on Wall Street.
At the time of writing, ECC stock has a dividend yield of 22.25%, paying $1.68 on an annual basis in monthly payments.
That’s not a typo. Income investors could literally collect double-digit income by owning ECC stock.
And management has been consistent about rewarding shareholders as well. The company has not only maintained regular distributions but has also declared special dividends when earnings exceeded expectations.
So, on a monthly basis, ECC stock pays $0.14 per share. With an investment of $755.00 (100 shares), a shareholder could generate monthly income of $14.00.
For income investors, this sort of high yield and monthly payment is gold. So many blue-chip stocks pay in the range of two to four percent.
The ECC Stock Chart Tells a Bullish Tale
For investors who like to combine fundamentals with technical analysis, the ECC stock chart is also worth watching. In fact, it’s telling a bullish tale.
After a choppy 2022–2023 period, when rising interest rates were hurting nearly every credit-related name, ECC stock is showing signs of stabilizing.
In recent months, ECC stock has been building a solid base, with support levels forming in the $6.00–$6.50 range. Each time the price has dipped into this zone, investors have stepped in to buy.
On the upside, resistance sits around the $7.80-8.00 area on the chart. A decisive breakout above that level could open the door to a higher move.
Another encouraging factor on the chart: ECC stock has recently crossed above its 200-day moving average. At its core, this tells us that the long-term trend has changed direction, and it’s now pointing upwards.
Trading volume has also picked up on up-days. This indicates that investors could be accumulating, and are excited to buy.
Chart Courtesy of StockCharts.com
The Lowdown on ECC Stock
If you’re an income investor, ignoring ECC stock could be a big mistake. It’s at least worth a look, if not the investment.
We are at a point in the cycle where interest rates have very likely peaked. That’s exactly when the credit market can offer some of its most compelling opportunities.
Eagle Point Credit Company stands out because it pays one of the highest dividends on the market, makes a distribution every single month, and is managed by a team with deep expertise in CLOs.
Sure, ECC stock comes with some risks, but for investors who understand those risks, the potential rewards are hard to ignore.
Lastly, as per the most recent data, Stone Point Capital LLC, Morgan Stanley, and PFG Investments, LLC are the biggest institutional holders of ECC stock. Combined, they hold 8.24 million shares. (Source: “Holders,” Yahoo! Finance, last accessed September 2, 2025.)
