TWO - Why Is Two Harbors' Dividend Yield So High?
This year has been a perfect storm for the mortgage space. Mortgage originators struggled as rising rates crushed origination volumes, while mortgage real estate investment trusts (REITs) dealt with rising rates and relative underperformance of mortgage-backed securities. This caused the stock prices of mortgage REITs to struggle and many had big losses this year.
These stock price declines translated into some pretty large dividend yields for the mortgage REIT sector. For example, Two Harbors (NYSE: TWO) is one REIT with close to a 13% yield. Why is Two Harbors' dividend yield so high?
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Why Is Two Harbors' Dividend Yield So High?