Two Harbors Investment (TWO) Declares $0.14 Quarterly Dividend; 11.4% Yield

Two Harbors Investment (NYSE: TWO) declared a quarterly dividend of $0.14 per share, or $0.56 annualized.

The dividend will be payable on July 29, 2020, to stockholders of record on June 30, 2020, with an ex-dividend date of June 29, 2020.

The annual yield on the dividend is 11.4 percent.

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The common stock dividend is a function of several factors including sustainability, earnings power of the portfolio, taxable income, impact to book value and the market environment. We believe that our portfolio is capable of generating future gross returns in the mid-double digits as we deploy capital, increase leverage and reduce expenses following non-renewal of the management agreement.

As a result, we expect that our third and fourth quarter 2020 common stock dividends will be sustainable at substantially similar levels. We maintain this expectation even before giving effect to the expense savings we anticipate in the fourth quarter of 2020 following the discontinuation of management fee. As always, future dividends are dependent upon actual results and remain subject to the discretion and approval of the Board of Directors.

Common stock dividends are distributed based on the current estimate of taxable earnings per common share, not GAAP earnings. Taxable and GAAP earnings are expected to differ principally because of differences in discount accretion and premium amortization, certain non-taxable unrealized and realized gain and losses on derivatives, and non-deductible general and administrative expenses.

Preferred Stock Dividends

Two Harbors also declared today the following preferred stock dividends:

a dividend of $0.50781 per share of the 8.125% Series A Cumulative Redeemable Preferred Stock;
a dividend of $0.47656 per share of the 7.625% Series B Cumulative Redeemable Preferred Stock;
a dividend of $0.45313 per share of the 7.25% Series C Cumulative Redeemable Preferred Stock;
a dividend of $0.484375 per share of the 7.75% Series D Cumulative Redeemable Preferred Stock; and
a dividend of $0.46875 per share of the 7.50% Series E Cumulative Redeemable Preferred Stock.

The Series A, Series B and Series C preferred dividends are payable on July 27, 2020 to the applicable preferred stockholders of record at the close of business on July 10, 2020. The Series D and Series E preferred dividends are payable on July 15, 2020 to the applicable preferred stockholders of record at the close of business on July 1, 2020.

For a dividend history and other dividend-related data on Two Harbors Investment (TWO) click here.

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