Armour Residential REIT: High Yield, Declining Asset Value

Summary

• Armour Residential REIT, Inc. offers a high yield, but performance lags peers, the Real Estate Sector, and the S&P 500, resulting in significant investor losses.
• Armour Residential has consistently cut dividends over the past decade, with a forward dividend yield of 15.13% not compensating for the loss in share value.
• For mortgage REIT income investors, Arbor Realty offers a more attractive alternative with a 12.1% dividend yield and consistent dividend growth over 11 years.
• I rate ARR stock a “Sell” due to declining dividends, consistent underperformance, and eroding share price over the years.

filo

I rate Armour Residential REIT, Inc. (NYSE:ARR) a “Sell” for income investors interested in monthly income from real estate investments. The most important factors that influence my opinion of the mREIT are:

• Declining dividends have been cut consistently

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.