Company Update (NYSE:ARR): ARMOUR Residential REIT, Inc. Confirms Monthly Dividend Rates for Q3 2015


ARMOUR Residential REIT, Inc. (NYSE:ARR) confirmed the Q3 2015 monthly cash dividend rates for the Company’s Common Stock and Series A and Series B Preferred Stock.

Common Stock 1-for-8 Reverse Split and Q3 2015 Dividend Information

As previously announced on June 18, 2015, the Company’s Board of Directors has approved a reverse stock split of ARMOUR’s outstanding shares of common stock at a ratio of one-for-eight, which is scheduled to take effect at about 5:00 p.m. Eastern Time on July 31, 2015. The July 2015 dividend rate of $0.04 per common share, which is the same as the Q2 2015 dividend rate, does not reflect the effect of the reverse stock split and would be equivalent to $0.32 per common share on a basis reflecting the one-for-eight reverse stock split. After the completion of the reverse stock split on July 31, 2015, ARMOUR’s August 2015 and September 2015 dividend rates will be $0.33 per share. The following table summarizes the Q3 2015 dividend information for the Company’s Common Stock:

Month Dividend Holder of Record Date Payment Date
July 2015 $0.04 pre-split July 15, 2015 July 27, 2015
August 2015 $0.33 post-split August 17, 2015 August 27, 2015
September 2015 $0.33 post-split September 15, 2015 September 28, 2015

Q3 2015 Series A Preferred Stock Dividend Information

Month Dividend Holder of Record Date Payment Date
July 2015 $0.171875 July 15, 2015 July 27, 2015
August 2015 $0.171875 August 15, 2015 August 27, 2015
September 2015 $0.171875 September 15, 2015 September 28, 2015

Q3 2015 Series B Preferred Stock Dividend Information

Month Dividend Holder of Record Date Payment Date
July 2015 $0.1640625 July 15, 2015 July 27, 2015
August 2015 $0.1640625 August 15, 2015 August 27, 2015
September 2015 $0.1640625 September 15, 2015 September 28, 2015

Certain Tax Matters

ARMOUR has elected to be taxed as a real estate investment trust (“REIT”) for U.S. Federal income tax purposes. In order to maintain this tax status, ARMOUR is required to timely distribute substantially all of its ordinary REIT taxable income. Accordingly, ARMOUR may increase the amount of one or more announced dividends before the applicable record date or may declare supplemental dividends, if necessary, to meet this tax requirement. Dividends paid in excess of REIT taxable income for a fiscal year (including any taxable income carried forward from the previous year) will generally not be taxable to stockholders. (Original Source)

Shares of Armour Residential closed yesterday at $2.8. ARR has a 1-year high of $4.35 and a 1-year low of $2.76. The stock’s 50-day moving average is $2.92 and its 200-day moving average is $3.07.

On the ratings front, Armour Residential has been the subject of a number of recent research reports. In a report issued on June 23, MLV & Co. analyst Rich Eckert upgraded ARR to Buy. Separately, on June 19, Deutsche Bank’s Stephen Laws maintained a Hold rating on the stock and has a price target of $3.70.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Rich Eckert and Stephen Laws have a total average return of -1.4% and 1.6% respectively. Eckert has a success rate of 25.0% and is ranked #2914 out of 3688 analysts, while Laws has a success rate of 51.4% and is ranked #1676.

ARMOUR Residential REIT Inc invests in and manages a leveraged portfolio of residential mortgage backed securities. Itinvest in residential mortgage backed securities issued or guaranteed by a United States Government-sponsored entity.