Anworth Mortgage Asset Corp. : ANH-US: Dividend Analysis : December 29th, 2017 (record date) : By the numbers : January 1, 2018

Our analysis is based on comparing Anworth Mortgage Asset Corp. with the following peers – MFA Financial, Inc., Two Harbors Investment Corp., AGNC Investment Corp., Dynex Capital, Inc., CYS Investments, Inc., New York Mortgage Trust, Inc. and Annaly Capital Management, Inc. (MFA-US, TWO-US, AGNC-US, DX-US, CYS-US, NYMT-US and NLY-US).

Anworth Mortgage Asset Corp.’s dividend yield is 11.03 percent and its dividend payout is 127.66 percent. This compares to a peer median dividend yield of 10.86 percent and a payout level of 61.19 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s relatively low dividend quality score of 25 out of a possible score of 100 raises questions on the sustainability of its robust payout ratio.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to September 30, 2017), ANH-US paid a low quality dividend, which represents a yield of 11.03% at the current price.
  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 4 were high quality and 1 was low quality.
  • The ending cash balance is less than the last full year dividend payment and cannot be relied on to cushion any significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to September 30, 2017), ANH-US paid a low quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 2.50x), investing cash flow (coverage of -8.46x), issuance cash flow (coverage of 6.82x) and twelve-month prior cash (coverage of 0.63x), for a total dividend coverage of 1.51x.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 12.52 13.92 11.04 14.4 11.75 11.03
Dividend Payout (%) 102.99 102.04 311.11 750 352.94 127.66

A complete list of metrics and analysis is available on the company page.

Company Profile

Anworth Mortgage Asset Corp. operates as a real estate investment trust. It invests in agency mortgage-backed securities issued or guaranteed by the United States government sponsored entities or an agency of the United States government, including mortgage pass-through certificates, collateralized mortgage obligations, and other real estate securities on a leveraged basis. Its portfolio includes agency mortgage-backed securities comprising of agency adjustable-rate mortgage-backed securities, agency hybrid adjustable-rate mortgage-backed securities, agency fixed-rate mortgage-backed securities and agency floating-rate collateralized mortgage obligations. The company was founded on October 20, 1997 and is headquartered in Santa Monica, CA.

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