Two Harbors Investment Corp. Announces Fourth Quarter 2023 Common and Preferred Stock Dividends

Rhea-AI Summary

Two Harbors Investment Corp. (NYSE: TWO) declared a dividend of $0.45 per share of common stock for the fourth quarter of 2023, along with preferred stock dividends. The company is a real estate investment trust that invests in residential mortgage-backed securities, mortgage servicing rights, and other financial assets.

Financial Analyst

The announcement of Two Harbors Investment Corp.'s dividend declaration for its common and preferred stock is a critical piece of information for shareholders and potential investors. The dividend amount, particularly for the common stock, reflects the company's operational performance and strategic decisions around capital allocation. The sustainability of such payments is often scrutinized, as it may indicate the company’s long-term financial health and management's confidence in future earnings.

In assessing the impact, one must consider the dividend yield in relation to the current stock price, which affects investor returns. The declaration of dividends on preferred stocks, which typically have fixed dividend rates, is a contractual obligation and less indicative of discretionary financial health but important for those specific investors. The market's reaction to this news will depend on whether the dividend aligns with the expectations and historical payouts. A deviation could signal changes in the company's profitability, operational challenges, or a strategic shift in capital management.

Real Estate Investment Trust Analyst

As a REIT, Two Harbors Investment Corp. is required to pay out at least 90% of its taxable income in the form of dividends to maintain its tax status. Thus, the declaration of dividends is a direct reflection of the company's earnings and taxable income. The nature of Two Harbors' investments in residential mortgage-backed securities and mortgage servicing rights means that its income—and consequently its dividends—are influenced by factors such as interest rate changes, mortgage default rates and the overall health of the housing market.

Investors often look at the stability and predictability of a REIT's dividends as a sign of its portfolio performance and risk management capabilities. A consistent or increasing dividend payout can be seen as a positive indicator, whereas cuts or irregularities may raise concerns about asset performance or capital management strategies. Investors should also consider the impact of the current market environment on the company's asset values and the potential for capital appreciation or depreciation.

NEW YORK--(BUSINESS WIRE)-- Two Harbors Investment Corp. (NYSE: TWO), an Agency + MSR real estate investment trust, today declared a dividend of $0.45 per share of common stock for the fourth quarter of 2023. The fourth quarter dividend is payable on January 29, 2024 to common stockholders of record at the close of business on January 12, 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 January 26, 2024 to the applicable preferred stockholders of record at the close of business on January 12, 2024.

Two Harbors Investment Corp.

Two Harbors Investment Corp., a Maryland corporation, is a real estate investment trust that invests in residential mortgage-backed securities, mortgage servicing rights 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, telephone (612) 453-4100.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231218071039/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 declared by Two Harbors Investment Corp. for the fourth quarter of 2023?

Two Harbors Investment Corp. declared a dividend of $0.45 per share of common stock for the fourth quarter of 2023.

When is the fourth quarter dividend payable to common stockholders?

The fourth quarter dividend is payable on January 29, 2024, to common stockholders of record at the close of business on January 12, 2024.

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

Two Harbors also declared 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.

What does Two Harbors Investment Corp. invest in?

Two Harbors Investment Corp. is a real estate investment trust that invests in residential mortgage-backed securities, mortgage servicing rights, and other financial assets.