Last year, Two Harbors paid shareholders more than $290 million in dividends - that's nearly eight times more cash than it brought in. To say that's unsustainable would be like saying San Francisco is a bit untidy these days - a dramatic understatement. Though the dividend has been cut recently, Two Harbors is still projected to pay out $232 million in dividends this year, despite the fact that NII is expected to come in at less than $14 million. Unsurprisingly, as NII has fallen, so has the company's dividend. Two Harbors has cut its dividend five times over the past 10 years. Considering the company's dismal record of maintaining its dividend and its putrid NII performance, not only is the dividend unsafe, but another dividend reduction is a sure thing. Click the button below to reveal Two Harbors' dividend safety rating... |
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