ARMOUR Residential REIT, Inc. (NYSE:ARR) Board Approves Three Dividend Offers as Reverse Stock Split Nears


Dallas, Texas 06/30/2015 (Financialstrend) – ARMOUR Residential REIT, Inc. (NYSE:ARR) is planning to increase the number of its common stock dividends in the third quarter. The company’s board of directors has approved a reverse stock split of all outstanding shares of common stock at a ratio of one-for–eight. The reverse stock split is to be carried out on the 31st of July.

Reverse Stock Split in Numbers

The company hopes to attract and a number of investors with the reverse stock split as the stock price is expected to increase as a result. The reverse stock split should result in the number of outstanding shares being reduced to 43,750,000 from 350,000,000.

The number of shares of common stock should also come down to 125,000,000 from the current highs of 1 billion. ARMOUR Residential REIT, Inc. (NYSE:ARR) has also confirmed that no fractional shares will be issued with the reverse stock split.

Dividend Offer

 Shareholders holding fractional shares will be entitled to receive cash equivalent to the amount of shares they hold based on Armour average closing price for the three days ending July 31, 2015. The board has also approved a dividend of $0.04 per share held to be paid on July 27, 2015, to all shareholders on record as of July 15, 2015. The dividend will not reflect the effect of the reverse stock split.

However, a dividend of $0.33 a share to be paid on August 27, 2015, to shareholders on record as of August 17, 2015, will reflect the one for eight stock split. ARMOUR Residential REIT, Inc. (NYSE:ARR) is to issue a $0.33 a share dividend on September 28, 2015, to all shareholders on record as of September 15, 2015.

Solid earnings estimate by analysts over the past few months should be an indication of the growing bullish sentiments over the stock’s long-term prospects. With the three dividend offers on the table, the stocks sentiments should continue improving in the Street.