Armour Residential REIT
Market Cap: $1.2 billion
Dividend Yield: 17%
June 11 Open: $7.05
Armour Residential REIT (NYSE:ARR) is one of those mortgage paper REITs that deals not in property but in the financing of property. Specifically, Armour invests primarily in adjustable-rate and fixed-rate mortgage-backed securities issued with government support via Fannie Mae or Freddie Mac.
Its yield is a staggering 17% based on monthly dividends — that’s right, monthly — of 10 cents per share. This dividend is, of course, subject to change and was just reduced from 11 cents back in March. But dividends have been paid in some form since 2010 … so while there’s risk, the shocking yield is just too much to ignore for some investors. Shares of ARR are flat year-to-date.