Orchid Island Capital, Inc. Plans Monthly Dividend of $0.10 (NYSE:ORC)

Key Points

• Orchid Island Capital announced a monthly dividend of $0.10 per share (record date April 30, payable May 28), implying an annualized yield of about 16.3%.
• The dividend appears unsustainable: the company has a current payout ratio of 182.3% and analysts’ earnings forecasts imply a future payout ratio near 334.9%, meaning earnings alone cannot cover the distribution.
• The stock trades around $7.36 with a market cap of $1.44 billion and a P/E of 7.07; analysts have a consensus rating of “Reduce” with an average price target of $7.50 after recent mixed downgrades and upgrades.

Orchid Island Capital, Inc. (NYSE:ORC - Get Free Report) announced a monthly dividend on Wednesday, April 15th. Shareholders of record on Thursday, April 30th will be paid a dividend of 0.10 per share by the real estate investment trust on Thursday, May 28th. This represents a c) dividend on an annualized basis and a yield of 16.3%. The ex-dividend date is Thursday, April 30th.

Orchid Island Capital has decreased its dividend payment by an average of 0.2%annually over the last three years and has increased its dividend every year for the last 1 years. Orchid Island Capital has a payout ratio of 182.3% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Orchid Island Capital to earn $0.43 per share next year, which means the company may not be able to cover its $1.44 annual dividend with an expected future payout ratio of 334.9%.

Orchid Island Capital Trading Up 0.8%

NYSE ORC opened at $7.36 on Thursday. The company has a market cap of $1.44 billion, a P/E ratio of 7.07 and a beta of 1.63. Orchid Island Capital has a 12 month low of $6.26 and a 12 month high of $8.40. The company has a debt-to-equity ratio of 0.09, a current ratio of 509.34 and a quick ratio of 509.34. The company has a 50-day moving average of $7.30 and a 200-day moving average of $7.39.

Orchid Island Capital (NYSE:ORC - Get Free Report) last released its earnings results on Thursday, January 29th. The real estate investment trust reported $0.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.01. The company had revenue of $124.78 million during the quarter, compared to analyst estimates of $35.74 million. As a group, equities analysts predict that Orchid Island Capital will post 0.37 earnings per share for the current year.

Analyst Ratings Changes

A number of research firms recently issued reports on ORC. Weiss Ratings downgraded shares of Orchid Island Capital from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Monday, April 6th. Wall Street Zen upgraded shares of Orchid Island Capital from a "sell" rating to a "hold" rating in a research note on Saturday, April 11th. Two research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Orchid Island Capital has a consensus rating of "Reduce" and an average price target of $7.50.

Orchid Island Capital Company Profile

Orchid Island Capital is a real estate investment trust that specializes in investing in residential mortgage‐backed securities (RMBS), with a primary focus on mortgage pass‐through securities guaranteed by the Government National Mortgage Association (Ginnie Mae). Structured to elect and maintain status as a REIT under the U.S. Internal Revenue Code, the company's principal business strategy involves acquiring pools of U.S. residential mortgages in the secondary market and holding them to generate interest income.

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