Two Harbors Investment Corp's Dividend Analysis: A Closer Look at Sustainability and Growth
Breaking down the dividend performance, payout ratio, and growth prospects of Two Harbors Investment Corp
Two Harbors Investment Corp (NYSE:TWO) recently announced a dividend of $0.45 per share, payable on 2023-10-27, with the ex-dividend date set for 2023-10-02. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's deep dive into Two Harbors Investment Corp's dividend performance and assess its sustainability.
Overview of Two Harbors Investment Corp
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Two Harbors Investment Corp is a real estate investment trust primarily focused on investing in, financing, and managing residential mortgage-backed securities, or RMBS; residential mortgage loans; mortgage servicing rights; and commercial real estate. The majority of the company's investment portfolio is split between agency RMBS purchased from government-sponsored enterprises and nonagency RMBS. Two Harbors derives nearly all of its revenue in the form of interest income collected from its investments. Most of this income is generated by available-for-sale securities, while residential mortgage loans held for investment in securitization trusts also contribute a sizable amount.
Two Harbors Investment Corp's Dividend History
Two Harbors Investment Corp has maintained a consistent dividend payment record since 2009. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Two Harbors Investment Corp's Dividend Yield and Growth
As of today, Two Harbors Investment Corp currently has a 12-month trailing dividend yield of 17.60% and a 12-month forward dividend yield of 13.60%. This suggests an expectation of decrease dividend payments over the next 12 months.
Over the past three years, Two Harbors Investment Corp's annual dividend growth rate was -26.60%. Extended to a five-year horizon, this rate increased to -24.50% per year. And over the past decade, Two Harbors Investment Corp's annual dividends per share growth rate stands at -15.00%.
Based on Two Harbors Investment Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Two Harbors Investment Corp stock as of today is approximately 4.33%.