Here's How You Can Earn $100 In Passive Income By Investing In ARMOUR Residential Stock

ARMOUR Residential REIT ARR invests in residential mortgage-backed securities (MBS) in the United States. Its securities portfolio primarily consists of securities issued or guaranteed by United States Government-sponsored entities (GSEs) and the Government National Mortgage Association, backed by fixed-rate, hybrid adjustable-rate and adjustable-rate home loans; unsecured notes and bonds issued by the GSEs and U.S. treasuries, as well as money market instruments.

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The 52-week range of ARMOUR Residential REIT's stock price was $15.88 to $21.93.

The ARMOUR Residential REIT dividend yield is 15.5%. During the last 12 months, it paid $2.88 per share in dividends.

The Latest On ARMOUR Residential REIT

On Oct. 23, the company announced its Q3 2024 earnings, posting a GAAP EPS of $1.21 and a distributable EPS of $1.00, as reported by Benzinga.

The company reported an average interest income on interest-earning assets of 4.89% and an interest cost on average interest-bearing liabilities of 5.51%.

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How Can You Earn $100 Per Month As An ARMOUR Residential REIT Investor?

If you want to make $100 per month—$1,200 annually—from ARMOUR Residential REIT dividends, your investment value needs to be approximately $7,742, which is around 416 shares at $18.62 each. 

Understanding the dividend yield calculations: When making an estimate, you need two key variables—the desired annual income ($1,200) and the dividend yield (15.5% in this case). So, $1,200 / 0.155 = $7,742 to generate an income of $100 per month.

You can calculate the dividend yield by dividing the annual dividend payments by the stock’s current price.

The dividend yield can change over time as a result of fluctuating stock prices and dividend payments on a rolling basis.

For instance, assume a stock that pays $2 as an annual dividend is priced at $50. Its dividend yield would be $2/$50 = 4%. If the stock price rises to $60, the dividend yield drops to 3.33% ($2/$60). A drop in stock price to $40 will have an inverse effect and increase the dividend yield to 5% ($2/$40).

In summary, income-focused investors may find ARMOUR Residential REIT stock an attractive option for earning a steady $100 per month by owning 416 shares of stock. 

Check out this article by Benzinga for three more stocks that offer solid dividend yields.

Better Yields Than Some REITs?

The current interest rate environment has created an incredible opportunity for income-seeking investors to earn massive yields, but not through publicly-traded REITs.

Arrived Homes, the Jeff Bezos-backed investment platform, has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target 7% to 9% net annual yield paid to investors monthly. It paid 8.1% in August. The best part? Due to high demand the maximum investment amount is currently $5,000 with a minimum investment of ONLY $100.

Looking for fractional real estate investment opportunities? The Benzinga Real Estate Screener features the latest offerings.

Wondering if your investments can get you to a $5,000,000 nest egg? Speak to a financial advisor today. SmartAsset’s free tool matches you up with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.