ARMOUR Residential REIT said on January 30, 2023 that its board of directors declared a regular monthly dividend of $0.10 per share ($1.20 annualized). Shareholders of record as of February 14, 2023 will receive the payment on February 27, 2023. Previously, the company paid $0.10 per share.
At the current share price of $6.28 / share, the stock's dividend yield is 19.11%. Looking back five years and taking a sample every week, the average dividend yield has been 12.97%, the lowest has been 9.61%, and the highest has been 27.35%. The standard deviation of yields is 4.05 (n=237).
The current dividend yield is 1.52 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is -0.67. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is -0.41%.
Analyst Price Forecast Suggests 9.32% Downside
As of February 1, 2023, the average one-year price target for ARMOUR Residential REIT is $5.69. The forecasts range from a low of $5.05 to a high of $6.30. The average price target represents a decrease of 9.32% from its latest reported closing price of $6.28.
The projected annual revenue for ARMOUR Residential REIT is $199MM. The projected annual EPS is $1.20.
Fund Sentiment
There are 325 funds or institutions reporting positions in ARMOUR Residential REIT. This is a decrease of 23 owner(s) or 6.61%.
Average portfolio weight of all funds dedicated to US:ARR is 0.0705%, a decrease of 16.2031%. Total shares owned by institutions increased in the last three months by 13.50% to 72,180K shares.
What are large shareholders doing?
IJR - iShares Core S&P Small-Cap ETF holds 8,333,787 shares representing 5.12% ownership of the company. In it's prior filing, the firm reported owning 7,203,902 shares, representing an increase of 13.56%. The firm decreased its portfolio allocation in ARR by 18.78% over the last quarter.
Mirae Asset Global Investments Co. holds 4,361,481 shares representing 2.68% ownership of the company. In it's prior filing, the firm reported owning 4,301,117 shares, representing an increase of 1.38%. The firm decreased its portfolio allocation in ARR by 25.78% over the last quarter.
Invesco holds 4,153,087 shares representing 2.55% ownership of the company. In it's prior filing, the firm reported owning 4,154,845 shares, representing a decrease of 0.04%. The firm decreased its portfolio allocation in ARR by 26.55% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 3,582,201 shares representing 2.20% ownership of the company. In it's prior filing, the firm reported owning 3,079,892 shares, representing an increase of 14.02%. The firm decreased its portfolio allocation in ARR by 16.13% over the last quarter.
NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 2,912,531 shares representing 1.79% ownership of the company. In it's prior filing, the firm reported owning 2,643,336 shares, representing an increase of 9.24%. The firm decreased its portfolio allocation in ARR by 20.52% over the last quarter.
ARMOUR Residential REIT Background Information
(This description is provided by the company.)
ARMOUR Residential REIT Inc. invests exclusively in fixed rate residential, adjustable rate and hybrid adjustable rate residential mortgage-backed securities issued or guaranteed by U.S. Government-sponsored enterprises or guaranteed by the Government National Mortgage Association. ARMOUR is externally managed and advised by ARMOUR Capital Management LP, an investment advisor registered with the Securities and Exchange Commission ('SEC').
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
