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Two Harbors Investment Corp. (TWO) logo

Two Harbors Investment Corp.

S&P 500

TWO/Real Estate · REIT - Mortgage/NYSE

Dividend Yield

11.56%

$1.41 · Annual Dividend

Stock Price$12.39P/E5.3MCap1.3BLast update: Jun 26, 2026 at 06:56

Dividend Safety Rating

42/ 100Caution

TWO's dividend shows some areas that warrant monitoring. Strengths include a 75.9% earnings payout ratio & 4.2% net debt / total assets. Areas of concern: 304.2% fcf payout ratio & 126.0% cfo payout ratio. As a REIT, higher payout ratios are normal since they are required to distribute most taxable income.

Based on 13 of 15 metrics

Strengths

  • Earnings Payout Ratio: 75.9%Low earnings payout ratio leaves room to grow the dividend.
  • Net Debt / Total Assets: 4.2%Healthy balance sheet with low net debt.
  • Operating Margin: 27.6%Healthy operating margin provides a wide buffer.

Risks

  • FCF Payout Ratio: 304.2%Free cash flow is tight relative to the dividend.
  • CFO Payout Ratio: 126.0%Operating cash flow leaves little room for the payout.
  • Current Ratio: 0.2xLimited short-term liquidity to meet obligations.

Payout & Coverage

Warning

Balance Sheet

Caution
0.2xDanger
479.2Warning

Profitability

Caution
-17.7%Danger
27.6%Very Safe

Dividend Track Record

Caution
11+ yrsVery Safe
NoneVery Safe
UnstableDanger

About Two Harbors Investment Corp.

Two Harbors Investment Corp. is a real estate investment trust (REIT) specializing in mortgage-backed securities and related investments. The primary function of Two Harbors Investment Corp. is to provide financial solutions through a diversified portfolio focused primarily on agency residential mortgage-backed securities (RMBS), non-agency securities, and mortgage servicing rights (MSRs). This REIT plays a significant role in the housing finance sector by investing in assets that are pivotal to the health and stability of the residential mortgage market. By managing a composite of fixed-rate and adjustable-rate securities, Two Harbors aims to effectively navigate interest rate changes and mortgage prepayments. Due to its focus on mortgage assets, the corporation impacts sectors including housing, finance, and real estate. It offers investors exposure to the dynamics of the U.S. housing market while adhering to REIT regulations that mandate the distribution of a substantial portion of taxable income as dividends. Established in 2009 and headquartered in Minnetonka, Minnesota, Two Harbors Investment Corp. has positioned itself as a vital player in the mortgage REIT space, providing insights into mortgage market trends.

Dividend Overview

Dividend Yield

11.56%

Annual Dividend

$1.41

Frequency

Quarterly

Payout Ratio

75.95%

FCF Payout Ratio

304.21%

52-Week Range

$8.78 - $14.17

Dividend History (2016–2025)

TWO annual dividend per share and yield history

Earnings & Profitability

TWO earnings per share and net profit margin

Key Dates

Next Ex-Dividend Date

July 2, 2026

Next Payment Date

July 15, 2026

Dividend Growth

3-Year Dividend CAGR

-7.21%

5-Year Dividend CAGR

-4.01%

10-Year Dividend CAGR

-13.33%

3-Year Total Growth

-20.10%

5-Year Total Growth

-18.50%

10-Year Total Growth

-76.08%

Income Calculator

TWO Dividend Calculator

Total Investment

$1,239.00

Annual Income

$141.00

Quarterly Income

$35.25

Monthly Income

$11.75

Frequently Asked Questions

What is TWO's current dividend yield?
Two Harbors Investment Corp. (TWO) currently has a dividend yield of 11.56%, based on a stock price of $12.39 and an annual dividend of $1.41.
When is TWO's next dividend payment date?
TWO's next ex-dividend date is 2026-07-02 and the next payment date is 2026-07-15. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does TWO pay in dividends per year?
Two Harbors Investment Corp. paid $1.63 per share in annual dividends in 2025. The dividends are paid quarterly.
Has TWO been increasing its dividend?
Two Harbors Investment Corp. has grown its dividend at a 5-year CAGR of -4.01% and a 10-year CAGR of -13.33%.
Is TWO's dividend safe?
Two Harbors Investment Corp. has a payout ratio of 75.95%. Its free cash flow payout ratio is 304.21%. The payout ratio is moderate. Monitor earnings to ensure sustainability.
How is TWO's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Two Harbors Investment Corp.'s dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for real estate companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.