Two Harbors Investment Corp. (TWO) currently has a dividend yield of about 14.5%. The average dividend yield of comparable funds is 11%, according to Bloomberg terminal. Is the extra 3.5% worth it? Does that extra 3.5% come with extra risk? The following article will explain TWO's investment strategy and why I'm bullish on the stock. The extra dividend yield provides a sufficient margin of safety for me even with the current headwinds plaguing the mREIT sector.
TWO's Portfolio
TWO has a relatively simple investment strategy. It mainly uses agency fixed-rate