EIC Stock: 11.65%-Yielding Rare Income Play Hiding in Plain Sight
September 29, 2025
A Solid Dividend with a Chance of Upside?
In today’s market, steady, high-yield income is getting harder to find. Bond yields have been all over the place, dividend growth at blue-chip companies has slowed to a crawl, and inflation has been quietly eating away at the real value of payouts.
For income investors, this combination can be frustrating. You want reliable, meaningful cash flow, but sadly the traditional places to find it just aren’t delivering like they used to.
That’s why it can pay to look beyond the obvious. Some of the best income opportunities sit in overlooked corners of the market, quietly handing investors robust dividends, while everyone else chases headlines. One such corner is closed-end funds (CEFs).
And among them, there’s one name in particular that deserves a closer look: Eagle Point Income Company Inc (NYSE:EIC).
Outside of this publication, it is very likely you have never heard of this ticker. In fact, EIC stock could be a great income opportunity hiding in a plain sight.
What Does Eagle Point Income Company Do?
Eagle Point Income Company is a CEF that specializes in a very specific slice of the credit market: collateralized loan obligations (CLOs).
Most of Eagle Point Income’s portfolio sits in what management considers the “safer” part of the CLO structure—junior debt tranches. To enhance returns, the fund is also allowed to allocate up to 35% of its assets to riskier CLO equity and related securities.
For readers new to this space:
- CEFs raise a fixed amount of capital through an initial public offering, then invest that pool to produce income or growth for shareholders.
- CLOs are bundles of corporate loans that are sliced into “tranches.” Each tranche carries its own risk/return profile. The higher up the capital structure, the more secure (and lower yielding) it tends to be.
Eagle Point Income Company’s strategy is to focus mostly on the more stable tranches in order to deliver consistent monthly income, while still sprinkling in some higher-risk equity pieces to juice returns.
It’s worth highlighting the fact that EIC stock isn’t a one-size-fits-all investment. The fund is exposed to credit risk and interest-rate sensitivity, and the complexity of structured products like CLOs adds a little more uncertainty and risk. Anyone considering EIC should be well aware of the risks.
3 Reasons to Consider EIC Stock
There are three big reasons why EIC stock could be a great pick for income investors.
1. A High-Yield Monthly Dividend
EIC stock currently pays a monthly distribution of $0.13 per share, which works out to a dividend yield of roughly 11.65%. This yield crushes inflation big-time.
That’s also significantly more than investors could get from holding the average S&P 500 stock. For some perspective, the dividend yield on the S&P 500 is just 1.25%—that’s below inflation.
EIC stock used to pay a monthly dividend of $0.20 per share. Eagle Point recently reduced the payout, but this is primarily due to the nature of CLOs. Regardless, the dividend yield is impressive.
It’s also worth noting that there’s some predictability when it comes to income here, too. The company announces a few months in advance how much income will be paid; very rarely do you get this sort of heads-up from dividend payers.
2. Big Picture Favors EIC
The Federal Reserve is likely to lower interest rates in the coming months and quarters. This is primarily due to the U.S. economy rolling over, and inflation being somewhat controlled.
This puts EIC stock in a very sweet spot.
How so?
First, many of the assets owned by Eagle Point Income Company are floating rate. This means that, when rates fall, financing costs for issuers drop, which improves their cash flow. That tends to reduce default risk and improve the outlook for junior credit and debt in a CLO.
Next, you should know that falling rates often help the prices of junior tranches or CLO debt that was previously marked down due to high rates or just investors not finding them unattractive. Since Eagle Point Income Company has exposure to both junior debt and a slice of CLO equity, it stands to benefit big-time.
Lastly, know that risky assets often rally, as investors hunt for yield when rates fall. So, EIC stock could find many buyers in a declining-rate environment.
3. Chart Says There’s Upside Ahead
Looking at the EIC stock from a technical analysis perspective, there are a few interesting developments.
One major development worth watching is how the stock has behaved since April of this year. You see, EIC had made multiple bottoms around $12.00. In simple terms, this is becoming a major support level, hinting that buyers are accumulating.
Now take a look at the 200-week moving average; the stock price was able to remain above it. This tells us that the long-term trend continues to point upwards, and investor sentiment is bullish.
Chart Courtesy of StockCharts.com
The Lowdown on EIC Stock
High-yield monthly income is very difficult to find, but income investors can get it through EIC. It’s certainly a great opportunity hiding in plain sight.
Eagle Point Income Company certainly comes with unique risks, and it may not be right for every investor, but for those who can stomach some extra risk, EIC stock could be setting up to provide capital appreciation along with robust income.
Currently, the stock offers a dividend yield of 11.65%, many times more than the S&P 500.
EIC stock also trades at a discount to its net asset value (NAV). This essentially allows investors to buy its portfolio of loans for less than its underlying worth.
