Latest news with #mREIT
Yahoo
11-07-2025
- Business
- Yahoo
Orchid Projects Loss for Q2: Is RMBS Strategy Backfiring?
Orchid Island Capital, Inc. ORC has released its estimated results for the second quarter of 2025. The company estimates a net loss of 29 cents per share for the quarter ending June 30, 2025. This includes an estimated 45 cents per share of net realized and unrealized losses on residential mortgage-backed securities (RMBS) and derivative instruments. As of June 30, 2025, Orchid's estimated book value per share stood at $7.21, suggesting a 15.9% decline on a year-over-year basis. It disclosed an estimated negative total return on equity of 4.7% as of the same date. Orchid's RMBS portfolio remains its strength, but its structure amplifies exposure to interest rate risk. While the company's focus on Agency-backed securities reduces credit risk, it makes the portfolio vulnerable to prepayment risk and interest rate fluctuations. Orchid book value and total return are likely to decline in the second quarter due to net realized and unrealized losses on its RMBS and derivative instruments. As of June 30, 2025, Orchid reported an estimated RMBS portfolio value of $6.9 million. AGNC Investment AGNC and Annaly Capital Management, Inc. NLY are among the most closely tracked names in the mREIT industry. AGNC Investment primarily focuses on leveraged investments in Agency RMBS, including residential mortgage pass-through securities and collateralized mortgage obligations. As of March 31, 2025, the company had $70.5 billion RMBS portfolio value. In the first quarter of 2025, AGNC Investment reported a tangible net book value of $8.25 per share, down 1.9% sequentially. The company recorded a positive economic return on equity of 2.4%. Annaly Capital primarily focuses on Agency mortgage-backed securities (MBS), Residential Credit, and Mortgage Servicing Rights. As of March 31, 2025, the company held $75 billion of Agency MBS. It reported a book value per common share of $19.02 for the first quarter of 2025. Annaly Capital recorded an economic return of 3% for the same period. Over the past three months, ORC shares have gained 18.6% compared with the industry's growth of 14%. Price Performance Image Source: Zacks Investment Research From a valuation standpoint, Orchid trades at a forward price-to-tangible (P/TB) ratio of 1.03X, above the industry's average of 1X. Price-to-Tangible Book TTM Image Source: Zacks Investment Research The Zacks Consensus Estimate for ORC's 2025 and 2026 earnings implies a year-over-year rise of 394.4% and 24.5%, respectively. Estimates for 2025 and 2026 have been unchanged over the past 30 days. Earnings Estimates Image Source: Zacks Investment Research Orchid currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report Annaly Capital Management Inc (NLY) : Free Stock Analysis Report Orchid Island Capital, Inc. (ORC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-07-2025
- Business
- Yahoo
Orchid Offers 20.1% Dividend Yield: A Powerful Income Play?
One of the most closely watched aspects of Orchid Island Capital ORC is its financial profile, particularly its dividend policy. This specialty finance mREIT company, which invests in residential mortgage-backed securities (RMBS) on a leveraged basis, offers favorable long-term stockholder returns and a substantial dividend yield. Income-seeking investors have a large appetite for REIT stocks, as U.S. law requires REITs to distribute 90% of their annual taxable income in the form of dividends. ORC has a record of paying out regular dividends, currently yielding a staggering 20.1% compared with the industry average of 12.4%. The company has increased its dividend three times over the past five years. Dividend Yield Image Source: Zacks Investment Research Dividend aside, ORC has a share repurchase plan in place. In 2022, the board of directors approved an increase in the authorization up to an additional 4.3 million shares, bringing the remaining authorization under the stock repurchase program to 6.2 million shares. As of April 25, 2025, the company had the authorization of 2.7 million shares available under the program. Orchid has a strong liquidity position. As of March 31, 2025, the company had $446.5 million in cash and cash equivalents, and unpledged securities. It has no debt as of the same date. Hence, given a strong liquidity position, ORC's capital distribution seems sustainable. AGNC Investment Corp. AGNC has a record of paying monthly dividends, currently yielding 15.3%. It now sits at a payout ratio of 81%. Dividends aside, AGNC Investment has a share repurchase plan in place. In October 2024, the company's board of directors announced a new plan authorizing it to repurchase up to $1 billion of common stock through Dec. 31, 2026. As of March 31, 2025, the full authorization was available for repurchase. As of March 31, 2025, AGNC Investment's liquidity, including unencumbered cash and Agency MBS, was $6 billion. Given this, AGNC's capital distribution seems sustainable. Annaly Capital Management, Inc. NLY also has a record of paying monthly dividends, currently yielding a staggering 14.3%. It now sits at a payout ratio of 101%. In March 2025, Annaly announced a cash dividend of 70 cents per share for the first quarter of 2025, marking a 7.7% hike from the prior payout. Till the end of the first quarter of 2025, the company had $7.5 billion of total assets available for financing, including cash and unencumbered Agency MBS of $4.7 billion, which can readily provide liquidity in times of adverse market conditions. This will support Annaly's capital distribution in the future. ORC shares have gained 1.4% year to date compared with the industry's growth of 7.3%. Price Performance Image Source: Zacks Investment Research From a valuation standpoint, Orchid trades at a forward price-to-tangible (P/TB) ratio of 0.80X, below the industry's average of 0.98X. Price-to-Tangible Book TTM Image Source: Zacks Investment Research The Zacks Consensus Estimate for ORC's 2025 and 2026 earnings implies year-over-year rise of 394.4% and 24.5%, respectively. Estimates for 2025 and 2026 have been unchanged over the past 30 days. Earnings Estimates Image Source: Zacks Investment Research Orchid currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks a#1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report Annaly Capital Management Inc (NLY) : Free Stock Analysis Report Orchid Island Capital, Inc. (ORC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
04-07-2025
- Business
- Yahoo
Orchid Offers 20.1% Dividend Yield: A Powerful Income Play?
One of the most closely watched aspects of Orchid Island Capital ORC is its financial profile, particularly its dividend policy. This specialty finance mREIT company, which invests in residential mortgage-backed securities (RMBS) on a leveraged basis, offers favorable long-term stockholder returns and a substantial dividend yield. Income-seeking investors have a large appetite for REIT stocks, as U.S. law requires REITs to distribute 90% of their annual taxable income in the form of dividends. ORC has a record of paying out regular dividends, currently yielding a staggering 20.1% compared with the industry average of 12.4%. The company has increased its dividend three times over the past five years. Dividend Yield Image Source: Zacks Investment Research Dividend aside, ORC has a share repurchase plan in place. In 2022, the board of directors approved an increase in the authorization up to an additional 4.3 million shares, bringing the remaining authorization under the stock repurchase program to 6.2 million shares. As of April 25, 2025, the company had the authorization of 2.7 million shares available under the program. Orchid has a strong liquidity position. As of March 31, 2025, the company had $446.5 million in cash and cash equivalents, and unpledged securities. It has no debt as of the same date. Hence, given a strong liquidity position, ORC's capital distribution seems sustainable. AGNC Investment Corp. AGNC has a record of paying monthly dividends, currently yielding 15.3%. It now sits at a payout ratio of 81%. Dividends aside, AGNC Investment has a share repurchase plan in place. In October 2024, the company's board of directors announced a new plan authorizing it to repurchase up to $1 billion of common stock through Dec. 31, 2026. As of March 31, 2025, the full authorization was available for repurchase. As of March 31, 2025, AGNC Investment's liquidity, including unencumbered cash and Agency MBS, was $6 billion. Given this, AGNC's capital distribution seems sustainable. Annaly Capital Management, Inc. NLY also has a record of paying monthly dividends, currently yielding a staggering 14.3%. It now sits at a payout ratio of 101%. In March 2025, Annaly announced a cash dividend of 70 cents per share for the first quarter of 2025, marking a 7.7% hike from the prior payout. Till the end of the first quarter of 2025, the company had $7.5 billion of total assets available for financing, including cash and unencumbered Agency MBS of $4.7 billion, which can readily provide liquidity in times of adverse market conditions. This will support Annaly's capital distribution in the future. ORC shares have gained 1.4% year to date compared with the industry's growth of 7.3%. Price Performance Image Source: Zacks Investment Research From a valuation standpoint, Orchid trades at a forward price-to-tangible (P/TB) ratio of 0.80X, below the industry's average of 0.98X. Price-to-Tangible Book TTM Image Source: Zacks Investment Research The Zacks Consensus Estimate for ORC's 2025 and 2026 earnings implies year-over-year rise of 394.4% and 24.5%, respectively. Estimates for 2025 and 2026 have been unchanged over the past 30 days. Earnings Estimates Image Source: Zacks Investment Research Orchid currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks a#1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report Annaly Capital Management Inc (NLY) : Free Stock Analysis Report Orchid Island Capital, Inc. (ORC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
03-07-2025
- Business
- Yahoo
Is Orchid Stock Worth Buying for Its Lucrative 20.3% Dividend Yield?
Orchid Island Capital, Inc. ORC has a record of paying out regular dividends, currently yielding a staggering 20.3% compared with the industry average of 12.4%. The company has increased its dividend three times over the past five years. Dividend Yield Image Source: Zacks Investment Research This specialty finance mortgage real estate (mREIT) company, which invests in residential mortgage-backed securities (RMBS) on a leveraged basis, offers favorable long-term stockholder returns and a substantial dividend yield. Income-seeking investors have a large appetite for REIT stocks, as U.S. law requires REITs to distribute 90% of their annual taxable income in the form of dividends. ORC peers AGNC Investment AGNC and Arbor Realty Trust ABR also pay dividends regularly. AGNC Investment has a dividend yield of 15.8% and Arbor Realty Trust has a dividend yield of 15.5%. Coming back to Orchid, it has a strong liquidity position. As of March 31, 2025, the company had $446.5 million in cash and cash equivalents, and unpledged securities. It has no debt as of the same date. ORC also has a share repurchase plan in place. In 2022, the board of directors approved an increase in the authorization up to an additional 4.3 million shares, bringing the remaining authorization under the stock repurchase program to 6.2 million shares. As of April 25, 2025, the company had the authorization of 2.7 million shares available under the program. Given such a staggering dividend yield, it may entice many investors to buy the stock. Is now the right time to invest? To answer this, it is essential to delve into the details and evaluate various factors at play. Though the Federal Reserve has lowered the interest rates by 100 basis points in 2024, it has kept rates steady since then due to macroeconomic uncertainty. Despite this, mortgage rates have slightly declined. Per a Freddie Mac report, the average rate on a 30-year fixed-rate mortgage was 6.77% as of June 26, 2025, down from 6.81% in the previous week. Further, based on the incoming economic data, market participants are predicting at least two rate cuts by year-end. In its June Housing Forecast, Fannie Mae projected mortgage rates to reach 6.6% by the end of the third quarter of 2025 and 6.5% by the year's end. With rates trending lower and balanced supply/affordability playing out in the mortgage market, loan demand is expected to improve. With rising purchase originations and refinancing activities, Orchid will likely witness book value improvement in the coming period as spreads in the Agency market tighten, driving asset prices. This should also boost the company's net interest spread, improving the portfolio's overall yield. This is expected to support ORC's financials in the upcoming period. ORC has maintained its focus on agency RMBS, an investment strategy that has positioned it as one of the strong players in this specialized market segment. Orchid's investment strategy focuses on two categories of Agency RMBS, traditional pass-through Agency RMBS, such as mortgage pass-through certificates and collateralized mortgage obligations issued by Fannie Mae, Freddie Mac, or Ginnie Mae, and structured Agency RMBS. Interest rates were generally range-bound, and volatility was low for most of the first quarter, making it an ideal condition for a levered investment in Agency RMBS for ORC. Accordingly, the company generated attractive returns for the period. Given this, Orchid generated a positive total return of 2.6% in the first quarter of 2025, driven by the company's compelling monthly dividend. Agency RMBS will continue to offer a compelling return opportunity for ORC. Although the market is extremely competitive, the company's focus on agency RMBS puts it in a position to possibly profit from favorable trends. However, execution will be crucial to achieving these advantages. Orchid shares have gained 12.5% in the past three months compared with the industry's rally of 10%. Meanwhile, AGNC Investment and Arbor Realty have risen 9.2% and 1.5%, respectively, over the past three months. Price Performance Image Source: Zacks Investment Research The Zacks Consensus Estimate for ORC's 2025 and 2026 earnings implies year-over-year jumps of 394.4% and 24.5%, respectively. The estimates for 2025 and 2026 have been unchanged over the past 30 days. Earnings Estimates Image Source: Zacks Investment Research From a valuation standpoint, Orchid appears expensive relative to the industry. The company is currently trading at a premium with a forward 12-month price-to-sales (P/S) TTM multiple of 2.47X, higher than the industry average of 2.35X. Its peer AGNC Investment and Arbor Realty Trust have forward 12-month P/S ratios of 2.75X and 1.70X, respectively. Price-to-Sales TTM Image Source: Zacks Investment Research ORC's attractive dividend yield, strong liquidity position and strategic focus on agency-backed RMBS make it well-positioned to capitalize on long-term growth, especially as mortgage rates gradually decline. These factors can drive book value growth, improved net interest spreads and solid earnings in the coming quarters. However, uncertainties around interest rate path and execution risks, along with premium valuation, suggest that it is prudent to remain cautious at the moment. Orchid currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AGNC Investment Corp. (AGNC) : Free Stock Analysis Report Arbor Realty Trust (ABR) : Free Stock Analysis Report Orchid Island Capital, Inc. (ORC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
03-07-2025
- Business
- Globe and Mail
Is Orchid Stock Worth Buying for Its Lucrative 20.3% Dividend Yield?
Orchid Island Capital, Inc. ORC has a record of paying out regular dividends, currently yielding a staggering 20.3% compared with the industry average of 12.4%. The company has increased its dividend three times over the past five years. This specialty finance mortgage real estate (mREIT) company, which invests in residential mortgage-backed securities (RMBS) on a leveraged basis, offers favorable long-term stockholder returns and a substantial dividend yield. Income-seeking investors have a large appetite for REIT stocks, as U.S. law requires REITs to distribute 90% of their annual taxable income in the form of dividends. ORC peers AGNC Investment AGNC and Arbor Realty Trust ABR also pay dividends regularly. AGNC Investment has a dividend yield of 15.8% and Arbor Realty Trust has a dividend yield of 15.5%. Coming back to Orchid, it has a strong liquidity position. As of March 31, 2025, the company had $446.5 million in cash and cash equivalents, and unpledged securities. It has no debt as of the same date. ORC also has a share repurchase plan in place. In 2022, the board of directors approved an increase in the authorization up to an additional 4.3 million shares, bringing the remaining authorization under the stock repurchase program to 6.2 million shares. As of April 25, 2025, the company had the authorization of 2.7 million shares available under the program. Given such a staggering dividend yield, it may entice many investors to buy the stock. Is now the right time to invest? To answer this, it is essential to delve into the details and evaluate various factors at play. ORC to Gain From Decline in Mortgage Rates Though the Federal Reserve has lowered the interest rates by 100 basis points in 2024, it has kept rates steady since then due to macroeconomic uncertainty. Despite this, mortgage rates have slightly declined. Per a Freddie Mac report, the average rate on a 30-year fixed-rate mortgage was 6.77% as of June 26, 2025, down from 6.81% in the previous week. Further, based on the incoming economic data, market participants are predicting at least two rate cuts by year-end. In its June Housing Forecast, Fannie Mae projected mortgage rates to reach 6.6% by the end of the third quarter of 2025 and 6.5% by the year's end. With rates trending lower and balanced supply/affordability playing out in the mortgage market, loan demand is expected to improve. With rising purchase originations and refinancing activities, Orchid will likely witness book value improvement in the coming period as spreads in the Agency market tighten, driving asset prices. This should also boost the company's net interest spread, improving the portfolio's overall yield. This is expected to support ORC's financials in the upcoming period. Orchid & Agency RMBS ORC has maintained its focus on agency RMBS, an investment strategy that has positioned it as one of the strong players in this specialized market segment. Orchid's investment strategy focuses on two categories of Agency RMBS, traditional pass-through Agency RMBS, such as mortgage pass-through certificates and collateralized mortgage obligations issued by Fannie Mae, Freddie Mac, or Ginnie Mae, and structured Agency RMBS. Interest rates were generally range-bound, and volatility was low for most of the first quarter, making it an ideal condition for a levered investment in Agency RMBS for ORC. Accordingly, the company generated attractive returns for the period. Given this, Orchid generated a positive total return of 2.6% in the first quarter of 2025, driven by the company's compelling monthly dividend. Agency RMBS will continue to offer a compelling return opportunity for ORC. Although the market is extremely competitive, the company's focus on agency RMBS puts it in a position to possibly profit from favorable trends. However, execution will be crucial to achieving these advantages. ORC Price Performance, Estimates & Valuation Analysis Orchid shares have gained 12.5% in the past three months compared with the industry's rally of 10%. Meanwhile, AGNC Investment and Arbor Realty have risen 9.2% and 1.5%, respectively, over the past three months. The Zacks Consensus Estimate for ORC's 2025 and 2026 earnings implies year-over-year jumps of 394.4% and 24.5%, respectively. The estimates for 2025 and 2026 have been unchanged over the past 30 days. Earnings Estimates Image Source: Zacks Investment Research From a valuation standpoint, Orchid appears expensive relative to the industry. The company is currently trading at a premium with a forward 12-month price-to-sales (P/S) TTM multiple of 2.47X, higher than the industry average of 2.35X. Its peer AGNC Investment and Arbor Realty Trust have forward 12-month P/S ratios of 2.75X and 1.70X, respectively. Price-to-Sales TTM How to Approach Orchid's Stock Now? ORC's attractive dividend yield, strong liquidity position and strategic focus on agency-backed RMBS make it well-positioned to capitalize on long-term growth, especially as mortgage rates gradually decline. These factors can drive book value growth, improved net interest spreads and solid earnings in the coming quarters. However, uncertainties around interest rate path and execution risks, along with premium valuation, suggest that it is prudent to remain cautious at the moment. Orchid currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AGNC Investment Corp. (AGNC): Free Stock Analysis Report Arbor Realty Trust (ABR): Free Stock Analysis Report Orchid Island Capital, Inc. (ORC): Free Stock Analysis Report
