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Two Harbors InvestmentFRA:2H2 +0.19%30 5-Year Yield-on-Cost % is 7.26 as of Jul. 21, 2026, which is 18% below its 10-year median of 8.87. GuruFocus rates FRA:2H2 with a GF Score™ of 30/100. The stock has 5 warning signs investors should review. Among 875 REITs companies, Two Harbors Investment ranks better than 51.43% on this metric.
Two Harbors Investment's yield on cost for the quarter that ended in Mar. 2026 was 7.26.
The historical rank and industry rank for Two Harbors Investment's 5-Year Yield-on-Cost % or its related term are showing as below:
FRA:2H2'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 4.29 Med: 8.87 Max: 34.04
Current: 7.26
During the past 13 years, Two Harbors Investment's highest Yield on Cost was 34.04. The lowest was 4.29. And the median was 8.87.
FRA:2H2's 5-Year Yield-on-Cost % is ranked better than 51.43% of 875
companies
in the REITs industry
Industry Median: 7.32
vs FRA:2H2: 7.26
Two Harbors Investment (FRA:2H2) 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.
Two Harbors Investment 5-Year Yield-on-Cost % Related Terms
FRA:2H2 vs LADR, ORC, ARI: 5-Year Yield-on-Cost % Comparison
For the REIT - Mortgage subindustry, Two Harbors Investment'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.
Two Harbors Investment 5-Year Yield-on-Cost % vs REITs Industry
For the REITs industry and Real Estate sector, Two Harbors Investment's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Two Harbors Investment's 5-Year Yield-on-Cost % falls into.
Two Harbors Investment 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.
Two Harbors Investment (FRA:2H2) has a 5-Year Yield-on-Cost % of 7.26 as of Jul. 21, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Two Harbors Investment and its competitors. This is 18% below median its historical median of 8.87. Over the past decade, Two Harbors Investment's 5-Year Yield-on-Cost % has ranged from 4.29 to 34.04. According to the industry distribution chart, Two Harbors Investment ranks #425 out of 875 companies in the REITs industry, placing it in the top 48.6%.
Is Two Harbors Investment's 5-Year Yield-on-Cost % too high?
Two Harbors Investment's current 5-Year Yield-on-Cost % of 7.26 is 18% below median its 10-year median of 8.87. Over the past 10 years, this metric has ranged from a low of 4.29 to a high of 34.04. The REITs industry median 5-Year Yield-on-Cost % is 7.32. Two Harbors Investment's value of 7.26 is 0.8% below this industry median. Based on the distribution chart, Two Harbors Investment ranks #425 out of 875 companies in the REITs industry, which is above the industry midpoint. Overall, Two Harbors Investment has a GF Score™ of 30/100, reflecting its overall financial health beyond just this single metric.
How does Two Harbors Investment's 5-Year Yield-on-Cost % compare to LADR and ORC?
According to the REITs industry distribution chart, Two Harbors Investment ranks #425 out of 875 companies for 5-Year Yield-on-Cost %. This puts Two Harbors Investment in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 7.32. Two Harbors Investment's value of 7.26 is 0.8% below this benchmark. Historically, Two Harbors Investment's own 5-Year Yield-on-Cost % has ranged from 4.29 to 34.04 over the past decade. While the company's 10-year median is 8.87 vs. the industry median of 7.32, Two Harbors Investment has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a REITs company?
The median 5-Year Yield-on-Cost % among REITs companies is 7.32, based on 875 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Two Harbors Investment's current 5-Year Yield-on-Cost % of 7.26 is 0.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Two Harbors Investment and its competitors. For the REITs industry, the median 5-Year Yield-on-Cost % is 7.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Two Harbors Investment's current 5-Year Yield-on-Cost % is 7.26, which is 18% below median its own 10-year median of 8.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Two Harbors Investment stock overvalued right now?
Two Harbors Investment (FRA:2H2) has a current 5-Year Yield-on-Cost % of 7.26. The current 5-Year Yield-on-Cost % is 7.26, which is 18% below median its 10-year median of 8.87 and 0.8% below the REITs industry median of 7.32. Two Harbors Investment's overall GF Score™ is 30/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Two Harbors Investment (FRA:2H2), the current 5-Year Yield-on-Cost % is 7.26 as of Jul. 21, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Two Harbors Investment Corp is a real estate investment trust focused on investing in, financing, and managing residential mortgage-backed securities, residential mortgage loans, mortgage servicing rights, and commercial real estate. The majority of its investment portfolio is split between agency RMBS purchased from government-sponsored enterprises and nonagency RMBS. The company derives revenues mainly from its MSR and Agency RMBS portfolio, including servicing fee income, float income, and interest income, as well as mortgage loan origination activities established to support the MSR portfolio. Its investment portfolio is subject to market risks, mainly interest rate, basis, and prepayment risk. The majority of income is generated by available-for-sale securities.
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