Orchid Island Capital, Inc. to Issue Aug 25 Dividend of $0.12 (NYSE:ORC)

Key Points

• Orchid Island Capital, Inc. declared a dividend of $0.12 per share, with shareholders of record on August 29 receiving payment on September 29.
• The company has a concerning payout ratio of 182.3%, indicating it cannot fully cover its dividend payments with earnings and is relying on its balance sheet.
• Analysts expect Orchid Island Capital to post earnings of $0.37 per share for the current fiscal year, suggesting potential difficulties in sustaining its $1.44 annual dividend.

Orchid Island Capital, Inc. (NYSE:ORC - Get Free Report) declared a aug 25 dividend on Wednesday, August 13th, RTT News reports. Shareholders of record on Friday, August 29th will be paid a dividend of 0.12 per share by the real estate investment trust on Monday, September 29th.

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. 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 0.4%

Shares of ORC traded up $0.03 during trading hours on Wednesday, reaching $7.17. 4,267,544 shares of the company's stock traded hands, compared to its average volume of 4,459,369. The stock has a market cap of $908.65 million, a PE ratio of 35.85 and a beta of 1.47. The firm's 50 day simple moving average is $7.10 and its 200-day simple moving average is $7.42. Orchid Island Capital has a 12 month low of $5.68 and a 12 month high of $9.01.

Orchid Island Capital (NYSE:ORC - Get Free Report) last announced its quarterly earnings results on Thursday, July 24th. The real estate investment trust reported $0.16 EPS for the quarter, topping analysts' consensus estimates of $0.15 by $0.01. The company had revenue of $23.15 million during the quarter, compared to analysts' expectations of $23.25 million. As a group, analysts expect that Orchid Island Capital will post 0.37 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts have commented on ORC shares. Jones Trading reaffirmed a "hold" rating on shares of Orchid Island Capital in a report on Wednesday, April 30th. Wall Street Zen cut Orchid Island Capital from a "hold" rating to a "strong sell" rating in a research report on Saturday, July 26th.

About Orchid Island Capital

Orchid Island Capital, Inc, a specialty finance company, invests in residential mortgage-backed securities (RMBS) in the United States. The company's RMBS is backed by single-family residential mortgage loans, referred as Agency RMBS. Its portfolio includes traditional pass-through Agency RMBS, such as mortgage pass through certificates and collateralized mortgage obligations; and structured Agency RMBS comprising interest only securities, inverse interest only securities, and principal only securities.

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