Two Harbors Investment Corp. (NYSE:TWO) Announces Quarterly Dividend of $0.45

Two Harbors Investment Corp. (NYSE:TWO) declared a quarterly dividend on Wednesday, December 18th,Wall Street Journal reports. Investors of record on Friday, January 3rd will be given a dividend of 0.45 per share by the real estate investment trust on Wednesday, January 29th. This represents a $1.80 annualized dividend and a dividend yield of 15.65%. The ex-dividend date is Friday, January 3rd.

Two Harbors Investment has raised its dividend payment by an average of 1,259.4% per year over the last three years. Two Harbors Investment has a dividend payout ratio of 100.0% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Equities research analysts expect Two Harbors Investment to earn $0.85 per share next year, which means the company may not be able to cover its $1.80 annual dividend with an expected future payout ratio of 211.8%.

Two Harbors Investment Stock Performance

Shares of TWO stock traded down $0.01 on Thursday, hitting $11.50. The company had a trading volume of 1,314,488 shares, compared to its average volume of 1,102,886. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.80. The company has a 50-day moving average price of $12.04 and a 200-day moving average price of $12.96. Two Harbors Investment has a twelve month low of $11.28 and a twelve month high of $14.54. The firm has a market cap of $1.19 billion, a P/E ratio of -2.39 and a beta of 1.85.

Two Harbors Investment (NYSE:TWO) last posted its quarterly earnings data on Monday, October 28th. The real estate investment trust reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.35 by ($0.22). The company had revenue of $112.64 million for the quarter. Two Harbors Investment had a positive return on equity of 4.45% and a negative net margin of 87.84%. During the same period in the previous year, the company earned ($0.01) EPS. As a group, equities research analysts predict that Two Harbors Investment will post 0.47 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms have commented on TWO. JPMorgan Chase & Co. decreased their price target on Two Harbors Investment from $13.50 to $11.50 and set a “neutral” rating on the stock in a research note on Wednesday, October 30th. StockNews.com upgraded Two Harbors Investment to a “sell” rating in a research note on Thursday, December 12th. Compass Point cut their price target on Two Harbors Investment from $15.75 to $14.75 and set a “buy” rating on the stock in a research report on Monday, November 25th. Royal Bank of Canada lowered their target price on Two Harbors Investment from $14.00 to $12.00 and set a “sector perform” rating on the stock in a research note on Friday, November 1st. Finally, JMP Securities cut their target price on Two Harbors Investment from $15.00 to $14.50 and set a “market outperform” rating for the company in a research note on Thursday, October 17th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and four have issued a buy rating to the company. According to data from MarketBeat.com, Two Harbors Investment currently has a consensus rating of “Hold” and an average target price of $13.71.

Two Harbors Investment Company Profile

Two Harbors Investment Corp. invests in, finances, and manages mortgage servicing rights (MSRs), agency residential mortgage-backed securities (RMBS), and other financial assets through RoundPoint in the United States. The company target assets include agency RMBS collateralized by fixed rate mortgage loans, adjustable rate mortgage loans, hybrid mortgage loans, or derivatives; and other assets, such as financial and mortgage-related assets, including non-agency securities and non-hedging transactions.