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Two Harbors: Is It Time To Abandon Ship?

Please forgive the maritime reference but Two Harbors Investment (TWO) has just reported its fourth quarter earnings. Following a weak Q3, it's time to really delve into this company to see where it is going and if it's time to jump ship. For the most part the company followed the general trend of other companies in the mREIT sector showing some quarter-over-quarter weakness with key strengths. First, let's start with earnings. They came in at $83.1 million, or $0.23 per share. This is a very slight improvement over Q3 which saw $82.8 million, or $0.23 per share. It is important to note that core earnings are a key gauge for the ability to pay dividends. Well, at $0.23 it clearly is failing to cover the dividend of $0.26. But there are other things we need to be aware of. What about the key metrics I look for in an mREIT?Read More …