Orchid Island Capital's 19% High Dividend Yield Faces Risk of Reduction

Orchid Island Capital (ORC), an agency mortgage REIT, has a history of declining dividends, eroding principal, and offering tax losses. Despite occasional opportunities to trade in shares at low valuations, the investment is not recommended due to its track record. The company's valuation is anchored by book value, but earnings and dividend levels can impact investor sentiment and drive changes in the price-to-book ratio.