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

Key Points

• ARMOUR Residential REIT declared a monthly dividend of $0.24 per share, payable October 29 to shareholders of record October 15. The dividend implies an annualized payout of $2.88 and a 20.5% yield.
• The dividend remains covered by earnings, with a current payout ratio of 82.1%; analysts expect next year’s earnings to support a higher projected payout ratio of 92.6%. The company has reduced its dividend by an average of 0.1% annually over the past three years.
• ARR shares opened at $14.07, near their 52-week low of $14.05 and below their 50-day and 200-day moving averages. Institutional investors own 54.17% of the stock, while the company’s chairman recently sold 35,583 shares.

ARMOUR Residential REIT, Inc. (NYSE:ARR - Get Free Report) declared a monthly dividend on Thursday, September 24th. Stockholders of record on Thursday, October 15th will be given a dividend of $0.24 per share by the real estate investment trust on Thursday, October 29th. This represents a $2.88 annualized dividend and a dividend yield of 20.5%. The ex-dividend date is Thursday, October 15th.

ARMOUR Residential REIT has decreased its dividend by an average of 0.1%annually over the last three years. ARMOUR Residential REIT has a payout ratio of 82.1% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Research 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 Stock Performance

NYSE ARR opened at $14.07 on Friday. The company has a fifty day moving average of $16.09 and a 200-day moving average of $16.73. ARMOUR Residential REIT has a 52-week low of $14.05 and a 52-week high of $19.31. The company has a market capitalization of $1.99 billion, a P/E ratio of 3.79 and a beta of 1.36.

ARMOUR Residential REIT (NYSE:ARR - Get Free Report) last released its quarterly earnings results on Wednesday, July 22nd. The real estate investment trust reported $0.72 EPS for the quarter, meeting analysts' consensus estimates of $0.72. ARMOUR Residential REIT had a return on equity of 15.10% and a net margin of 44.90%.The business had revenue of $113.29 million during the quarter, compared to analyst estimates of $111.98 million. As a group, analysts forecast that ARMOUR Residential REIT will post 2.93 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Chairman Daniel Staton sold 35,583 shares of the stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $15.86, for a total transaction of $564,346.38. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 0.19% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ARMOUR Residential REIT

Several large investors have recently added to or reduced their stakes in ARR. State Street Corp increased its holdings in shares of ARMOUR Residential REIT by 15.0% in the 2nd quarter. State Street Corp now owns 4,745,078 shares of the real estate investment trust's stock valued at $82,802,000 after acquiring an additional 619,020 shares during the period. Bank of New York Mellon Corp purchased a new stake in shares of ARMOUR Residential REIT during the second quarter worth about $13,757,000. First Trust Advisors LP raised its position in shares of ARMOUR Residential REIT by 234.6% in the 1st quarter. First Trust Advisors LP now owns 664,247 shares of the real estate investment trust's stock valued at $11,080,000 after purchasing an additional 465,733 shares during the last quarter. Principal Financial Group Inc. boosted its stake in ARMOUR Residential REIT by 2.0% in the 1st quarter. Principal Financial Group Inc. now owns 543,935 shares of the real estate investment trust's stock worth $9,073,000 after purchasing an additional 10,592 shares in the last quarter. Finally, Ascentis Wealth Management LLC grew its position in ARMOUR Residential REIT by 11.3% during the 2nd quarter. Ascentis Wealth Management LLC now owns 395,000 shares of the real estate investment trust's stock worth $6,893,000 after purchasing an additional 40,000 shares during the last quarter. 54.17% of the stock is owned by institutional investors.

ARMOUR Residential REIT Company Profile

ARMOUR Residential REIT, Inc is a real estate investment trust that invests primarily in residential mortgage-backed securities (RMBS). Its portfolio is focused mainly on securities issued or guaranteed by government-sponsored enterprises and U.S. government agencies, including Fannie Mae, Freddie Mac and Ginnie Mae.

The company seeks to generate income from its investment portfolio and finances its activities through arrangements such as repurchase agreements. ARMOUR also uses interest-rate hedging strategies and other financial instruments to manage exposure to changing interest rates, financing costs and market conditions.

ARMOUR Residential REIT was organized in 2007 and is externally managed by ARMOUR Capital Management LP.

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