ARMOUR Residential REIT, Inc. (NYSE:ARR) next Q dividend plans


Dallas, Texas 09/30/2013 (Financialstrend) – On September 25, ARMOUR Residential REIT, Inc. (NYSE:ARR) announced that new options are on offer starting that day and these options had a November 16th close date. The market reaction to the announcement has been mixed. The stock gained close to 1.2% in value over the past week’s trading and has gone up by an approximate 4% in the past 30 days. The share price was down 0.47% as of September 27, to close out the week at $4.21 per share.

4Q Monthly Dividend Plan

In a related development the firm announced on September 19th its monthly dividend payout plan and timetable for the last three months of the year. As per this plan the residential REIT will pay out a monthly cash dividend of $0.05 per share. The dividend for October would be paid for all share holders on record as of October 15 and will be paid out on October 28. Similarly for November and December dividend of $0.05 per share would be paid out on November 27 and December 27 respectively.

Less compared to previous quarter

This new dividend plan represents a dip of 28% from the payouts its shares holders got paid in September. This announcement triggered a selloff of the fund shares leading to a 4.6% dip in value over the next three days. The share price recovered and settled at $4.14 as of close of business on September 23.

Additionally the trust fund also announced a new timetable and dividend payout rate for its preferred stock holders. Series A preferred stock holders will earn a dividend of $0.171 per share while its Series B preferred stock holders will earn $0.164 per share. These dividend payouts will also happen on the same days as payouts of common stock as detailed in the previous paragraphs.

In spite of the relative dip in dividend payout in the ensuing quarter, the fund has a enviable track record of 14.25% dividend yield over the previous 12 months trailing period.