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

Rhea-AI Summary

Two Harbors Investment Corp. (NYSE: TWO), an MSR + Agency RMBS REIT, has announced its third quarter 2024 dividend for common and preferred stockholders. The company declared a dividend of $0.45 per share of common stock, payable on October 29, 2024, to stockholders of record as of October 1, 2024. Additionally, Two Harbors declared dividends for its preferred stock series: $0.50781 per share for Series A, $0.47656 per share for Series B, and $0.45313 per share for Series C. These preferred dividends will be paid on October 28, 2024, to stockholders of record as of October 11, 2024. The company, headquartered in St. Louis Park, MN, invests in mortgage servicing rights, residential mortgage-backed securities, and other financial assets.

Positive

• Consistent dividend payment for common and preferred stockholders
• Diversified investment portfolio including mortgage servicing rights and residential mortgage-backed securities

Negative

• None.

Insights

Financial Analyst

Two Harbors' announcement of a $0.45 per share common stock dividend for Q3 2024 signals stability in their financial position. This consistent payout suggests the company's portfolio is performing well, particularly in the MSR and Agency RMBS sectors. The declaration of preferred stock dividends further underscores their commitment to shareholder returns. However, investors should note that the dividend amount remains unchanged from previous quarters, indicating no growth in distributions. While this stability is positive in uncertain markets, it may not excite growth-oriented investors. The company's focus on sustainability and taxable income in determining dividends reflects a prudent approach to capital management, which is important for REITs. Overall, this news is modestly positive for current shareholders but may not significantly impact the stock's attractiveness to new investors.

REIT Specialist

Two Harbors' dividend announcement aligns with typical REIT practices, maintaining their obligation to distribute a high percentage of taxable income. The $0.45 per share dividend yields approximately 16% at current stock prices, which is attractive in the high-interest rate environment. However, such high yields often indicate market skepticism about sustainability. The company's mention of 'sustainability' as a factor in dividend decisions is noteworthy, suggesting they're balancing shareholder returns with long-term viability. The stable preferred stock dividends provide an additional layer of income security for those investors. It's important to monitor Two Harbors' book value and earnings in upcoming reports to assess the dividend's sustainability, especially given the challenges in the mortgage REIT sector due to interest rate volatility. While the dividend appears safe for now, investors should remain cautious and watch for any signs of pressure on the company's earnings or book value.

NEW YORK--(BUSINESS WIRE)-- Two Harbors Investment Corp. (NYSE: TWO), an MSR + Agency RMBS REIT, today declared a dividend of $0.45 per share of common stock for the third quarter of 2024. The third quarter dividend is payable on October 29, 2024 to common stockholders of record at the close of business on October 1, 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 October 28, 2024 to the applicable preferred stockholders of record at the close of business on October 11, 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/20240919462859/en/

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

Source: Two Harbors Investment Corp.

FAQ

What is the dividend amount for Two Harbors Investment Corp. (TWO) common stock in Q3 2024?

Two Harbors Investment Corp. (TWO) declared a dividend of $0.45 per share of common stock for the third quarter of 2024.

When is the Q3 2024 dividend payable for Two Harbors Investment Corp. (TWO)?

The third quarter 2024 dividend for Two Harbors Investment Corp. (TWO) is payable on October 29, 2024, to common stockholders of record as of October 1, 2024.

What are the preferred stock dividend amounts for Two Harbors Investment Corp. (TWO) in Q3 2024?

Two Harbors Investment Corp. (TWO) 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.

When will Two Harbors Investment Corp. (TWO) pay its preferred stock dividends for Q3 2024?

Two Harbors Investment Corp. (TWO) will pay its preferred stock dividends on October 28, 2024, to preferred stockholders of record as of October 11, 2024.