ARMOUR Residential REIT Offers Over 18% Dividend Yield

On Wednesday, ARMOUR Residential REIT Inc. (Symbol: ARR) saw shares yield more than 18%, based on its monthly dividend of $2.88. The stock traded as low as $15.96 during the day. Dividends hold significant importance for investors, as they historically contribute notably to total stock market returns. For instance, purchasing shares of the iShares Russell 3000 ETF (IWV) on May 31, 2000, would have cost $78.27 each. By May 31, 2012, the value declined to $77.79, reflecting a drop of 0.6%. However, dividends collected over the same period totaled $10.77 per share, boosting the overall return to 13.15%. In contrast, the annual total return was just about 1.0% when accounting for reinvested dividends, making an 18% yield much more appealing if it remains sustainable. ARMOUR Residential REIT Inc. is part of the Russell 3000, signifying its place among the largest companies in the U.S. stock market.

Generally, dividend payments can be unpredictable and are influenced by a company’s profitability. Investors can assess the likelihood of ARMOUR Residential REIT’s current dividend by reviewing its historical performance chart, which can aid in determining if an 18% annual yield is feasible.

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