This company is an average mortgage REIT and has 5 preferred shares we will be looking at. The preferred shares carry a risk rating of 2.5 which makes them a candidate for the buy-and-hold investor. We believe the A-Series is the best option. E-Series is an option if investors are looking at yield-to-call.
The common dividend yield listed for Two Harbors (TWO) is about 4%. That is an error in most dividend yield reporting systems. TWO declared a partial period common dividend related to their merger. Consequently, the common yield is much higher than some investors screening the stock might think today. TWO has 5 preferred shares. The A, B, and C series of preferred stock have a material amount of call protection on the calendar. The D and E series of preferred stock no longer have call protection on the calendar except for the 30-day notice management will give on a call. We believe TWO preferred shares are fairly safe and give them a risk rating of 2.5. This makes them a good option for the more aggressive buy-and-hold investors.
Source: Seeking Alpha
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