Two Harbors cuts quarterly dividend to 39c from 45c per share

Two Harbors (TWO) Investment declared a dividend of 39c per share of common stock for Q2, payable on July 29, to common stockholders of record at the close of business on July 3. The dividend is cut from 45c per share. The company said, “The 13% reduction in the dividend this quarter is consistent with the reduction in our book value resulting from the contingency accrual of $198.9 million that we have deemed probable and estimable in connection with the ongoing litigation related to our internalization in 2020. The reduced dividend reflects our projected static returns in future quarters as we adjust our portfolio in light of this accrual. While this litigation remains ongoing and involves claims unrelated to the accrual that are not yet probable or estimable, we think lowering the dividend on a pro rata basis at this time is a prudent action and positions us to take advantage of future market opportunities. Most importantly, this dividend reduction does not reflect our positive momentum, and we remain tremendously excited about the opportunities available for mortgage companies like TWO, and our paired strategy of MSR and MBS specifically.”