Two Harbors Investment Corp. Announces First Quarter 2024 Common and Preferred Stock Dividends

Rhea-AI Summary

Two Harbors Investment Corp. (TWO) declares a dividend of $0.45 per share for the first quarter of 2024. The company also announces preferred stock dividends for Series A, B, and C. Two Harbors is a real estate investment trust focusing on mortgage servicing rights and residential mortgage-backed securities.

Financial Analyst

The announcement of a dividend payout by Two Harbors Investment Corp. is a significant indicator of the company's financial health and its ability to generate cash flow. A dividend of $0.45 per share of common stock suggests that the company has sufficient earnings and confidence in its future earnings to return capital to shareholders. Additionally, the declaration of dividends for preferred stock, with specific rates for Series A, B and C, indicates a commitment to fulfilling obligations to preferred shareholders, who typically have fixed dividend rates.

Investors often view dividend announcements as a signal of a company's stability and maturity. The impact on the stock market can be positive, as dividends can attract income-focused investors. However, it's important to analyze the payout ratio and compare it with industry standards to ensure that the dividends are sustainable and not compromising the company's growth potential or ability to invest in profitable ventures.

Market Research Analyst

Two Harbors' focus on mortgage servicing rights (MSR) and Agency RMBS (Residential Mortgage-Backed Securities) positions it within a sector that is sensitive to interest rate changes and housing market dynamics. The ability to pay consistent dividends may reflect not only the company's operational efficiency but also a stable housing market and favorable interest rate environment. This can reassure investors about the sector's health.

However, it's essential to consider the broader economic context, including potential shifts in monetary policy that could affect mortgage rates and refinancing activity. These factors can influence the performance of MSRs and RMBS and consequently, the company's future dividend-paying capacity. Investors should view the dividend announcement in light of these macroeconomic factors to gauge the long-term sustainability of Two Harbors' investment strategy.

Real Estate Investment Trust Analyst

The declaration of dividends by Two Harbors Investment Corp. provides insight into the company's strategy within the real estate investment trust (REIT) sector. REITs are required to distribute at least 90% of their taxable income to shareholders in the form of dividends, which can make them attractive to income-seeking investors. The specific rates declared for the preferred stock dividends reflect the fixed-income nature of these securities, which is a draw for investors seeking less volatile returns.

It is important to analyze the company's portfolio diversification, its exposure to MSR and Agency RMBS and the impact of economic cycles on these assets. The company's ability to maintain or increase dividends over time is an important consideration for investors. The impact to book value and market environment mentioned in the announcement are key factors that could affect future dividend policy and should be monitored closely by stakeholders.

NEW YORK--(BUSINESS WIRE)-- Two Harbors Investment Corp. (NYSE: TWO), an MSR + Agency RMBS real estate investment trust, today declared a dividend of $0.45 per share of common stock for the first quarter of 2024. The first quarter dividend is payable on April 29, 2024 to common stockholders of record at the close of business on April 4, 2024. The common stock dividend is a function of several factors, including sustainability, earnings and return potential of the portfolio, taxable income, impact to book value and the market environment.

Two Harbors also declared today the following preferred stock dividends:

• a dividend of $0.50781 per share of the 8.125% Series A Cumulative Redeemable Preferred Stock;
• a dividend of $0.47656 per share of the 7.625% Series B Cumulative Redeemable Preferred Stock; and
• a dividend of $0.45313 per share of the 7.25% Series C Cumulative Redeemable Preferred Stock.

The Series A, Series B and Series C preferred dividends are payable on April 29, 2024 to the applicable preferred stockholders of record at the close of business on April 12, 2024.

Two Harbors Investment Corp.

Two Harbors Investment Corp., a Maryland corporation, is a real estate investment trust that invests in mortgage servicing rights, residential mortgage-backed securities and other financial assets. Two Harbors is headquartered in St. Louis Park, MN.

Additional Information

Stockholders of Two Harbors and other interested persons may find additional information regarding the company at www.twoharborsinvestment.com, at the Securities and Exchange Commission’s internet site at www.sec.gov or by directing requests to: Two Harbors Investment Corp., 1601 Utica Avenue South, Suite 900, St. Louis Park, MN 55416, (612) 453-4100.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240320998844/en/

Margaret Karr, Head of Investor Relations, Two Harbors Investment Corp., 612-453-4080, margaret.karr@twoharborsinvestment.com.

Source: Two Harbors Investment Corp.

What is the dividend amount per share declared by Two Harbors Investment Corp. for the first quarter of 2024?

Two Harbors Investment Corp. declared a dividend of $0.45 per share of common stock for the first quarter of 2024.

When is the first quarter dividend payable to common stockholders?

The first quarter dividend is payable on April 29, 2024, to common stockholders of record at the close of business on April 4, 2024.

What are the preferred stock dividends declared by Two Harbors Investment Corp. for Series A, B, and C?

Two Harbors declared preferred stock dividends of $0.50781 per share for Series A, $0.47656 per share for Series B, and $0.45313 per share for Series C.

What does Two Harbors Investment Corp. focus on as a real estate investment trust?

Two Harbors Investment Corp. focuses on investing in mortgage servicing rights, residential mortgage-backed securities, and other financial assets.

Where is Two Harbors Investment Corp. headquartered?

Two Harbors Investment Corp. is headquartered in St. Louis Park, MN.