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ARMOUR Residential REIT (FRA:2AR) 5-Year Yield-on-Cost % : 6.20 (As of Dec. 12, 2024)


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What is ARMOUR Residential REIT 5-Year Yield-on-Cost %?

ARMOUR Residential REIT's yield on cost for the quarter that ended in Sep. 2024 was 6.20.


The historical rank and industry rank for ARMOUR Residential REIT's 5-Year Yield-on-Cost % or its related term are showing as below:

FRA:2AR' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 3.59   Med: 6.47   Max: 15.61
Current: 6.2


During the past 13 years, ARMOUR Residential REIT's highest Yield on Cost was 15.61. The lowest was 3.59. And the median was 6.47.


FRA:2AR's 5-Year Yield-on-Cost % is ranked worse than
53.56% of 900 companies
in the REITs industry
Industry Median: 6.735 vs FRA:2AR: 6.20

Competitive Comparison of ARMOUR Residential REIT's 5-Year Yield-on-Cost %

For the REIT - Mortgage subindustry, ARMOUR Residential REIT's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


ARMOUR Residential REIT's 5-Year Yield-on-Cost % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, ARMOUR Residential REIT's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where ARMOUR Residential REIT's 5-Year Yield-on-Cost % falls into.



ARMOUR Residential REIT 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of ARMOUR Residential REIT is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5

ARMOUR Residential REIT  (FRA:2AR) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


ARMOUR Residential REIT 5-Year Yield-on-Cost % Related Terms

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ARMOUR Residential REIT Business Description

Traded in Other Exchanges
Address
3001 Ocean Drive, Suite 201, Vero Beach, FL, USA, 32963
ARMOUR Residential REIT Inc is a real estate investment trust that invests in residential mortgage-backed securities or RMBS. These are issued or guaranteed by U.S.-government-sponsored enterprises, such as Fannie Mae, Freddie Mac, or Ginnie Mae. The company's investment portfolio is composed of mortgage-backed securities, adjustable-rate mortgage securities, and multifamily mortgage-backed securities. In terms of total fair value, most Armour's investments are long-term, fixed-rate agency RMBS. Multifamily RMBS also represents a substantial amount. Fannie Mae guarantees most of the company's holdings. Armour derives substantially all its revenue as interest income from its investments.

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