Orchid Island Capital, Inc. (ORC) is a specialty finance company that invests in residential mortgage-backed securities (RMBS) in the United States1. Here are some key points about ORC:
- Investment Focus: ORC's portfolio consists primarily of Agency RMBS, including traditional pass-through Agency RMBS and structured Agency RMBS such as interest only securities, inverse interest only securities, and principal only securities1.
- Financial Structure: ORC has elected to be taxed as a real estate investment trust (REIT) for federal income tax purposes. This allows the company to avoid corporate income tax on a portion of its net income if it annually distributes dividends to its stockholders equal to at least 90% of its REIT taxable income2.
- Dividend Policy: ORC has a history of increasing its dividend payments, with an average dividend yield of 19.59% as of the last data point3. However, the company's dividend payout ratio is very high at 1,600.0%, indicating that it relies heavily on its balance sheet to cover its dividend payments4.
- Market Performance: ORC's stock has shown volatility, with a 1-year percentage change of -17.93% followed by a 3-month percentage change of 2.92%5. The stock's beta of 1.85 suggests it is more volatile than the market6.
- Analyst Ratings and Price Targets: ORC has received a "Neutral" rating from analysts with an average price target of $3.177. This suggests that analysts see the stock as fairly valued at its current price.
- Fund Flow: There has been a net inflow of $282,595.58 into ORC's stock, indicating investor confidence or potential interest8.
In conclusion, ORC is a monthly dividend-paying stock with a high dividend yield, but it carries significant risk due to its high payout ratio and volatility. Investors should consider these factors along with the company's financial performance and market conditions when evaluating ORC as an investment.
6/14/2024 01:03am
