Two Harbors Investment (TWO) Declares $0.60 Dividend
Two Harbors Investment said on March 23, 2023 that its board of directors declared a regular quarterly dividend of $0.60 per share ($2.40 annualized). Previously, the company paid $0.60 per share.
Shares must be purchased before the ex-div date of April 3, 2023 to qualify for the dividend. Shareholders of record as of April 4, 2023 will receive the payment on April 28, 2023.
At the current share price of $13.89 / share, the stock's dividend yield is 17.28%. Looking back five years and taking a sample every week, the average dividend yield has been 12.23%, the lowest has been 3.41%, and the highest has been 37.04%. The standard deviation of yields is 3.58 (n=237).
The current dividend yield is 1.41 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 1.05. 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 -0.62%.
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Analyst Price Forecast Suggests 28.51% Upside
As of March 25, 2023, the average one-year price target for Two Harbors Investment is $17.85. The forecasts range from a low of $16.16 to a high of $19.95. The average price target represents an increase of 28.51% from its latest reported closing price of $13.89.
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The projected annual revenue for Two Harbors Investment is $55MM, a decrease of 27.16%. The projected annual non-GAAP EPS is $2.51.
What is the Fund Sentiment?
There are 366 funds or institutions reporting positions in Two Harbors Investment. This is a decrease of 105 owner(s) or 22.29% in the last quarter. Average portfolio weight of all funds dedicated to TWO is 0.12%, an increase of 16.79%. Total shares owned by institutions decreased in the last three months by 77.76% to 58,618K shares. The put/call ratio of TWO is 1.26, indicating a bearish outlook.
What are Large Shareholders Doing?
IJR - iShares Core S&P Small-Cap ETF holds 6,432K shares representing 6.66% ownership of the company.
Allspring Global Investments Holdings holds 3,968K shares representing 4.11% ownership of the company. In it's prior filing, the firm reported owning 15,865K shares, representing a decrease of 299.82%. The firm increased its portfolio allocation in TWO by 14.54% over the last quarter.
ESPAX - Wells Fargo Special Small Cap Value Fund holds 3,191K shares representing 3.30% ownership of the company.
DIV - Global X SuperDividend U.S. ETF holds 2,856K shares representing 2.96% ownership of the company. In it's prior filing, the firm reported owning 2,773K shares, representing an increase of 2.90%. The firm decreased its portfolio allocation in TWO by 26.90% over the last quarter.
FSSNX - Fidelity Small Cap Index Fund holds 2,772K shares representing 2.87% ownership of the company. In it's prior filing, the firm reported owning 2,627K shares, representing an increase of 5.24%. The firm decreased its portfolio allocation in TWO by 30.35% over the last quarter.
Two Harbors Investment Background Information
(This description is provided by the company.)
Two Harbors Investment Corp. is a Maryland corporation focused on investing, financing and managing residential mortgage-backed securities (RMBS) and related investments. Its objective is to provide attractive risk-adjusted returns to its stockholders over the long term, primarily through dividends and secondarily through capital appreciation. The Company selectively acquires and manages an investment portfolio of its target assets, which is constructed to generate attractive returns through market cycles. The Company focuses on security selection and implement a relative value investment approach across various sectors within the mortgage market. Its target assets include the following: Agency RMBS (which includes inverse interest-only Agency securities classified as Agency Derivatives for purposes of U.S. GAAP), meaning RMBS whose principal and interest payments are guaranteed by the Government National Mortgage Association (or Ginnie Mae), the Federal National Mortgage Association (or Fannie Mae), or the Federal Home Loan Mortgage Corporation (or Freddie Mac); Mortgage servicing rights (MSR); and Other financial assets comprising approximately 5% to 10% of the portfolio.
This story originally appeared on Fintel.