ARMOUR Residential REIT, Inc. Confirms January 2024 Common Share and Series C Preferred Share Dividends
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Insights
ARMOUR Residential REIT's confirmation of its January 2024 cash dividend for Common Stock and the Q1 2024 monthly cash dividend for Series C Preferred Stock is a reflection of the company's dividend policy and its commitment to providing shareholder returns. The declaration of dividends is a key indicator of a REIT's financial health and its ability to generate cash flow from its operations. In this case, the consistency with previous guidance suggests stability in ARMOUR's operational cash flows, which is a positive sign for investors looking for predictable income streams.
However, investors should consider the REIT's payout ratio, which is the proportion of earnings paid out as dividends, as it can impact the company's ability to reinvest in its operations and maintain or grow its asset base. A payout ratio that is too high could signify potential liquidity issues or a lack of growth opportunities. Additionally, the tax implications of the REIT structure, which requires distribution of the majority of taxable income to shareholders, should be factored into investment decisions as it affects the after-tax yield of the dividends received.
ARMOUR's status as a REIT has significant tax implications for both the company and its shareholders. As a REIT, ARMOUR must distribute at least 90% of its taxable income to shareholders, which can lead to high dividend yields. However, these dividends are taxed differently than regular corporate dividends. For shareholders, the non-taxable nature of dividends paid in excess of current tax earnings and profits can be advantageous, as it reduces the immediate tax liability. It is important for investors to understand the tax treatment of these dividends to accurately assess the after-tax return on their investment.
Investors should also be aware of the potential for return of capital, which occurs when dividends exceed the company's earnings and profits. While return of capital reduces an investor's cost basis and defers tax liability, it could also signal that the company is distributing capital rather than earnings, which might raise questions about the sustainability of dividend payments in the long run.
The real estate market conditions have a direct impact on the performance of REITs like ARMOUR. The stability of dividend payments can be seen as an indicator of the underlying property market's health, particularly in the residential sector where ARMOUR operates. Current market conditions, such as occupancy rates, rent levels and interest rate environment, are crucial factors that influence a REIT's operation and its ability to sustain dividend payments.
Investors should examine broader economic indicators, including housing market trends and interest rate forecasts, as these can affect property values and financing costs for REITs. A favorable economic climate could lead to asset appreciation and potential capital gains for shareholders, whereas a downturn could put pressure on the company's ability to maintain dividends at current levels.
VERO BEACH, Florida, Jan. 02, 2024 (GLOBE NEWSWIRE) -- ARMOUR Residential REIT, Inc. (NYSE: ARR and ARR-PRC) (“ARMOUR” or the “Company”) today confirmed the January 2024 cash dividend for the Company's Common Stock consistent with the previous guidance which the Company released on December 14, 2023. The Company also confirmed the Q1 2024 monthly cash dividend rate for the Company's Series C Preferred Stock.
January 2024 Common Stock Dividend Information
| Month | Dividend | Holder of Record Date | Payment Date | |||
| January 2024 | January 16, 2024 | January 30, 2024 |
Q1 2024 Series C Preferred Stock Dividend Information
| Month | Dividend | Holder of Record Date | Payment Date | |||
| January 2024 | January 15, 2024 | January 29, 2024 | ||||
| February 2024 | February 15, 2024 | February 27, 2024 | ||||
| March 2024 | March 15, 2024 | March 27, 2024 |
Certain Tax Matters
ARMOUR has elected to be taxed as a real estate investment trust (“REIT”) for U.S. Federal income tax purposes. In order to maintain this tax status, ARMOUR is required to timely distribute substantially all of its ordinary REIT taxable income. Dividends paid in excess of current tax earnings and profits for the year will generally not be taxable to common stockholders. Actual dividends are determined at the discretion of the Company’s Board of Directors, who may consider additional factors including the Company’s results of operations, cash flows, financial condition and capital requirements as well as current market conditions, expected opportunities and other relevant factors.
About ARMOUR Residential REIT, Inc.
ARMOUR invests primarily 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”).
Safe Harbor
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. The Company disclaims any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.
Additional Information and Where to Find It
Investors, security holders and other interested persons may find additional information regarding the Company at the SEC’s internet site at www.sec.gov, or the Company website at www.armourreit.com, or by directing requests to: ARMOUR Residential REIT, Inc., 3001 Ocean Drive, Suite 201, Vero Beach, Florida 32963, Attention: Investor Relations.
Investor Contact:
James R. Mountain
Chief Financial Officer
ARMOUR Residential REIT, Inc.
(772) 617-4340
FAQ
What is the January 2024 cash dividend for ARMOUR Residential REIT, Inc. Common Stock?
When is the holder of record date for ARMOUR Residential REIT, Inc. Common Stock January 2024 dividend?
When is the payment date for ARMOUR Residential REIT, Inc. Common Stock January 2024 dividend?
What is the Q1 2024 monthly cash dividend rate for ARMOUR Residential REIT, Inc. Series C Preferred Stock?
When is the holder of record date for ARMOUR Residential REIT, Inc. Series C Preferred Stock January 2024 dividend?
When is the payment date for ARMOUR Residential REIT, Inc. Series C Preferred Stock January 2024 dividend?
How is ARMOUR Residential REIT, Inc. taxed?
Are dividends paid in excess of current tax earnings and profits taxable to common stockholders?
