ARMOUR Residential REIT, Inc. (NYSE:ARR) Plans Monthly Dividend of $0.24

Key Points

• ARMOUR Residential REIT declared a monthly dividend of $0.24 per share, or $2.88 annually, representing a 17.6% yield. Investors of record on September 15 will receive payment on September 29.
• The dividend is currently supported by earnings, with an 82.1% payout ratio, though analysts expect that ratio to rise to 92.6% next year as earnings growth remains limited.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $18.50 versus the stock’s recent $16.41 price; the company most recently met earnings expectations at $0.72 per share.

ARMOUR Residential REIT, Inc. (NYSE:ARR - Get Free Report) announced a monthly dividend on Thursday, August 27th. Investors of record on Tuesday, September 15th will be given a dividend of 0.24 per share by the real estate investment trust on Tuesday, September 29th. This represents a c) dividend on an annualized basis and a dividend yield of 17.6%. The ex-dividend date is Tuesday, September 15th.

ARMOUR Residential REIT has decreased its dividend by an average of 0.1%per year over the last three years. ARMOUR Residential REIT has a dividend payout ratio of 82.1% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Analysts expect ARMOUR Residential REIT to earn $3.11 per share next year, which means the company should continue to be able to cover its $2.88 annual dividend with an expected future payout ratio of 92.6%.

ARMOUR Residential REIT Price Performance

ARR stock opened at $16.41 on Friday. ARMOUR Residential REIT has a 12 month low of $13.98 and a 12 month high of $19.31. The firm has a market cap of $2.32 billion, a PE ratio of 4.41 and a beta of 1.37. The firm has a 50 day simple moving average of $16.70 and a 200 day simple moving average of $17.06.

ARMOUR Residential REIT (NYSE:ARR - Get Free Report) last issued its earnings results on Wednesday, July 22nd. The real estate investment trust reported $0.72 earnings per share for the quarter, hitting analysts' consensus estimates of $0.72. The firm had revenue of $113.29 million during the quarter, compared to analysts' expectations of $111.98 million. ARMOUR Residential REIT had a net margin of 44.90% and a return on equity of 15.10%. As a group, sell-side analysts expect that ARMOUR Residential REIT will post 2.93 earnings per share for the current year.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. Weiss Ratings downgraded ARMOUR Residential REIT from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Wednesday, August 19th. Zacks Research upgraded ARMOUR Residential REIT from a "strong sell" rating to a "hold" rating in a report on Tuesday, July 21st. Two investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $18.50.

About ARMOUR Residential REIT

ARMOUR Residential REIT NYSE: ARR is a mortgage real estate investment trust that was formed in 2008 to acquire and manage a portfolio of residential mortgage-backed securities (RMBS). The company's investments are primarily agency-sponsored and agency-guaranteed RMBS issued by U.S. government-sponsored enterprises, along with credit risk transfer securities and select non-agency residential and multifamily RMBS. By focusing on high-quality mortgage assets, ARMOUR Residential REIT seeks to generate stable income and preserve capital through diversified exposure to the U.S.

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