Passive income is a popular investment strategy for many investors looking to earn money effortlessly. One way to achieve this is through Real Estate Investment Trusts (REITs) that pay out dividends regularly. If you’re a fan of passive income REITs, you’ll be excited to learn about ARMOUR Residential REIT Inc. (NYSE: ARR), which is currently offering an estimated dividend of 14.06%.
ARMOUR Residential REIT Inc. primarily invests in residential mortgage-backed securities (RMBS), including securities guaranteed or issued by organizations affiliated with the U.S. government such as Fannie Mae, Freddie Mac, and Ginnie Mae. This means that each loan in its portfolio is secured by tangible assets, specifically real estate. Despite the challenges faced during the 2008 financial crisis, residential mortgage lending has a proven track record of delivering reliable and solid performance for investors.
One of the key factors contributing to the stability of ARMOUR Residential REIT Inc.’s portfolio is the low delinquency rate in America’s mortgage market. According to data firm CoreLogic, the total mortgage delinquency rate has been below 3% since February 2023, and the national foreclosure rate is at a near-all-time low of 0.3%. With a mix of long-term, fixed-rate RMBS, adjustable rate, and multifamily mortgage-backed securities in its portfolio, ARR is well-diversified to boost returns and ensure continued performance.
In the event of widespread borrower defaults, the loans in ARR’s portfolio are backed by real estate assets that historically appreciate and can be liquidated to recover investor capital. This provides a secure position for both ARMOUR Residential REIT Inc. and its investors, ensuring solid dividends into the future.
With a current market cap of $1.08 billion and a share price of $20.25, ARMOUR Residential REIT Inc. recently announced a monthly dividend of $0.24 per share, totaling $2.88 per share annually. This translates to a dividend yield of over 14%, making it an attractive investment for those seeking passive income opportunities.
If you were to invest $10,000 in ARMOUR Residential REIT Inc., you could potentially earn an annual dividend of $1,406 based on the current estimate. A $100,000 investment would yield $14,060 in passive income. While past performance does not guarantee future results, the strength of ARR’s portfolio and the historical performance of America’s mortgage market make it a potentially lucrative addition to any investor’s portfolio.
In conclusion, if you’re a fan of passive income REITs, ARMOUR Residential REIT Inc. is definitely worth considering. With a dividend yield of over 14% and a secure portfolio backed by real estate assets, it offers a compelling opportunity for investors looking to earn money effortlessly through dividends. Consider adding ARMOUR Residential REIT Inc. to your investment portfolio for a chance to benefit from its attractive dividend payout.
