is two harbors a solid mid risk dividend buy

**Two Harbors Investment Corp. (TWO) is a solid mid-risk dividend buy**. Here's why:

1. **Attractive Dividend Yield**: TWO offers a 17.1% dividend yield as of August 19, 2025, which is considered high and attractive for income-focused investors.
2. **Dividend Growth and Sustainability**: The company has a history of dividend growth, with a 33.1% increase in dividends over the past year. This indicates a commitment to returning value to shareholders.

3. **Payout Ratio Analysis**: The payout ratio for TWO is 78.91% as of August 19, 2025. While this is on the higher end, it is still manageable and suggests that the company retains enough earnings to support its dividend payments and maintain financial health.
4. **Dividend History and Consistency**: TWO has a history of consistent dividend payments, with no missed dividends in the recent past. This track record is a positive sign for investors looking for reliable income streams.
5. **Market Position and Financial Health**: Despite a recent price drop and litigation-related challenges, TWO's financials show asset growth, with an increase in book value per share. This resilience in the face of challenges is a positive indicator for dividend sustainability.
6. **Preferred Stock Offerings**: TWO's Series B Cumulative Redeemable Preferred Stock offers a consistent 7.625% annual dividend, which is a beacon of dividend reliability. This preferred stock can be a prudent choice for income-focused investors.

In conclusion, TWO appears to be a solid mid-risk dividend buy, offering a high dividend yield and a history of dividend growth. However, investors should monitor the company's financial health, payout ratio, and the impact of litigation on its operations. The recent decline in stock price has made it more undervalued, presenting a potential opportunity for investors looking for dividend investments at a reasonable price.