Two Harbors Investment

Dividend Yield: 15.90%

Two Harbors Investment (NYSE: TWO) shares currently have a dividend yield of 15.90%.

Two Harbors Investment Corp. operates as a real estate investment trust (REIT) that focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS), residential mortgage loans, residential real properties, and other financial assets. The company has a P/E ratio of 11.75. Currently there are 7 analysts that rate Two Harbors Investment a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Two Harbors Investment has been 5,366,000 shares per day over the past 30 days. Two Harbors Investment has a market cap of $4.1 billion and is part of the real estate industry. Shares are up 21.7% year to date as of the close of trading on Wednesday.

TheStreet Ratings rates Two Harbors Investment as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, solid stock price performance, compelling growth in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • TWO's very impressive revenue growth greatly exceeded the industry average of 16.4%. Since the same quarter one year prior, revenues leaped by 255.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 64.86% and other important driving factors, this stock has surged by 32.26% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TWO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 268.1% when compared to the same quarter one year prior, rising from $51.43 million to $189.30 million.
  • The gross profit margin for TWO HARBORS INVESTMENT CORP is currently very high, coming in at 92.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 86.71% significantly outperformed against the industry average.
  • TWO HARBORS INVESTMENT CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TWO HARBORS INVESTMENT CORP reported lower earnings of $1.11 versus $1.27 in the prior year. This year, the market expects an improvement in earnings ($1.25 versus $1.11).

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Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
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