ARMOUR Residential REIT (ARR) Stock: Dividend and Book Value 2026

What ARR owns and who runs it

ARMOUR is a Maryland REIT in Vero Beach, Florida that holds mortgage bonds guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae, financed mostly with repurchase agreements (short-term loans secured by the bonds) and hedged with interest rate swaps. Its 10-K says “We do not have any employees”: ARMOUR Capital Management LP (ACM), the external manager, had 20 employees providing services to it on February 17, 2026, and all of ARMOUR's executive officers are ACM employees.

The last row is the reason a quote page cannot tell you much: of $5.89 billion that investors put in over the years, $2.85 billion has been paid back out as distributions and another $0.46 billion has been lost on the income statement, leaving $2.58 billion of equity (our arithmetic; the preferred dividends are inside the distributions line). The rest of this page follows each piece in turn.

The dividend: $0.50, $0.40, $0.24, then 34 months of $0.24

ARR announces its dividend one month at a time in an 8-K, usually in the last week of the previous month, and confirms it on the first business day of the month. Its reverse stock split makes the history hard to read on a quote page, because older dividends are quoted before the split. The table puts every period on the same footing by multiplying pre-split amounts by five.

In the announcement of December 14, 2023 ARMOUR said it expected returns to support a dividend yield for January 2024 of “approximately the low to mid-teens (12% to 15%) as a percentage of book value.” On the $21.88 estimated book value it gave that day, $2.88 a year is 13.2%. On the $17.53 book value at June 30, 2026 the same $2.88 is 16.4% (our arithmetic), above the band it described, because book value has fallen and the dividend has not moved. ARMOUR has not published a new yield band that we found in the 8-Ks and releases we saved.

Annual dividends declared per common share, as the 10-Ks give them after adjusting for the split, were $6.00 in 2021, $6.00 in 2022, $5.00 in 2023, $2.88 in 2024, $2.88 in 2025 and $1.44 in the first half of 2026. The cut from $0.50 a month in January 2023 to $0.24 in January 2024 is 52% (our arithmetic). The preferred stock is separate: the 7.00% Series C pays $0.14583 a share a month, with the fourth-quarter 2026 record dates set for October 15, November 15 and December 15.

Is the dividend earned? Distributable Earnings against the dividend

ARMOUR sets the dividend by looking at Distributable Earnings (DE), a non-GAAP measure it defines as net interest income plus TBA drop income, adjusted for the net coupon on interest rate swaps and futures, minus expenses. Its release says DE is used because it “tends to be more stable over time” than GAAP income. All amounts below are per common share and split-adjusted.

Three readings from the table. First, both cuts followed quarters in which DE did not cover the dividend: DE was 0.89 to 0.96 times the dividend in every quarter from Q4 2022 to Q4 2023, and the $0.24 level (which is $0.72 a quarter) was set when DE ran at about $1.07 a quarter, 1.5 times the new rate (our arithmetic). Second, the cut worked on a per-share basis for a while, with DE at 1.50 times the dividend in Q2 2024, but the margin has been shrinking as the share count grew: DE per share fell from $1.08 in Q2 2024 to $0.72 in Q2 2026 while total DE rose from $52.5 million to $93.2 million (+78%) and shares outstanding rose 2.8 times (our arithmetic). Third, GAAP earnings and book value swing around DE: GAAP earnings per share ranged from $(3.92) to $1.96 in these quarters, which is why the 10-K shows an accumulated net loss of $458.2 million alongside a dividend that DE roughly covers.

For the full years, DE was $3.68 against $2.88 of dividends in 2024 (1.28 times), $3.06 in 2025 (1.06 times) and $1.48 in the first half of 2026 against $1.44 (1.03 times), all our arithmetic from the quarters above. The first quarter of 2024 DE of $0.82 was after $9.0 million of non-recurring professional fees for the Special Committee investigation described below.

One feature of DE worth knowing: in Q2 2026 GAAP net interest income was $76.8 million, but DE before preferred dividends was $96.5 million, because DE adds $33.3 million of net interest on swaps and $2.4 million on futures, which GAAP books in gains and losses on derivatives. Those two items are 37.0% of DE (our arithmetic). That is the hedging cost or benefit moving through the dividend measure, not a flaw, but it means the headline GAAP net interest income does not tell you what supports the dividend.

Book value: from $28.90 to $17.53 and the reverse split in between

ARMOUR's reverse split was one-for-five: the 8-K of August 29, 2023 announced it, shares began trading on a split-adjusted basis on October 2, 2023 with a new CUSIP, and the number of authorized shares was cut from 450 million to 90 million. The Series C preferred was not affected. Another reverse split, one-for-eight, is mentioned in the 10-K for 2022 as having happened in July 2015. No other reverse split appears in the filings we saved.

The December 31, 2022 to September 30, 2023 drop was the largest: $28.90 to $21.73, with the Q3 2023 quarter alone booking a $(3.92) per share loss. ARMOUR's October 25, 2023 earnings release gave an estimated book value of $17.95 on October 24, 2023, 17% below the September 30 figure, and the number then recovered to $22.54 by December 31 (our arithmetic). Since then the economic return, which the company defines as the change in book value plus the common dividends paid, was negative in four of the nine quarters it reported from Q2 2024 to Q2 2026 (Q2 2024, Q4 2024, Q2 2025, Q1 2026).

Adding up what a share has paid against what it has lost: dividends declared from January 2023 to June 2026 were $12.20 per split-adjusted share ($5.00 + $2.88 + $2.88 + $1.44), against a book value drop of $11.37. Book value plus dividends declared is therefore 102.9% of the December 31, 2022 book value, and starting from December 31, 2023 it is 109.7% ($17.53 + $7.20, over $22.54). These are our arithmetic and they are not a shareholder return: they ignore the price anyone paid, reinvestment and tax.

On price, ARMOUR's own monthly updates list a stock price and yield. At June 30, 2026 the update shows $17.45, which is 1.00 times the $17.53 book value (our arithmetic); the update for August 31, 2026 shows $16.22 and a current dividend yield of 17.8%. The company's November 2023 investor presentation said: “On average for the last three years ARMOUR stock price has closed monthly within 4% of Book Value.” We have not checked that statement against price data, and these are the company's numbers, not quotes from a market data provider.

Where the new shares came from: ATM, an underwritten deal and a rising share cap

From the third quarter of 2024 to July 14, 2026 ARR sold about 94 million new common shares (our arithmetic from the table below, including the underwritten offering and the first half of July 2026). Almost all of it went through an at-the-market (ATM) program, in which sales agents sell shares into the market a little at a time. The program is governed by an Equity Sales Agreement dated July 26, 2023, with BUCKLER Securities LLC and other brokers as sales agents and ACM as a party.

No ATM or other common sales appear in the releases for Q4 2023, Q1 2024, Q2 2024 or Q4 2025. In 10 of the 11 quarters shown the average net price was below the prior quarter-end book value, by 0.6% to 10.7%; in six of the ten it was by less than 3%. A sale below book value lowers book value per share; here the effect is small, because the discount is small. The releases that show the effect give $0.05 a share for Q3 2023 and $0.03 for Q3 2024. The larger effect is on the number of shares sharing the same dividend: the common dividend bill was $93.1 million in Q2 2026 against about $35.1 million in Q1 2024 (our arithmetic, $0.72 times 48.8 million shares).

Capacity keeps being added. Authorized common shares were cut to 90 million at the reverse split, then raised to 125 million (August 22, 2024), 175 million (August 1, 2025) and 250 million (July 23, 2026). The ATM program has been enlarged by 25 million shares (August 23, 2024), 15 million (February 13, 2025), 9.5 million (July 25, 2025), 15 million (January 28, 2026) and 25 million (July 24, 2026); after the last amendment 25,544,352 shares were available. At the average price of the first two quarters of 2026 ($17.69, our arithmetic), that capacity is about $452 million. ARMOUR also bought back shares in two periods: 684,102 in September 2025 and 125,000 in the first quarter of 2026.

The external manager: a fee on capital raised

ARR has no staff. ACM manages it under an agreement running through December 31, 2029, then renewing for five years. The 10-K gives the formula: one twelfth, paid monthly, of 1.5% of gross equity raised up to $1.0 billion plus 0.75% of gross equity raised above that, where gross equity raised includes common and preferred paid-in capital before costs, and share repurchases reduce it. In the 10-K's words, “The monthly management fees are not calculated based on the performance of our assets.”

Three facts follow. The base grew 26.8% from year-end 2023 to year-end 2025 (our arithmetic), which is the ATM and the underwritten deal, so each dollar raised adds 0.75% a year to the fee whether or not it earns anything. Contractual fee commitments are $47.7 million for each year from 2026 to 2029 on the December 31, 2025 base, before the new money raised in 2026. And ACM told ARMOUR on December 22, 2025 that it was ending its voluntary waiver, effective for the fee due after February 1, 2026: management fees before waiver were $12.2 million in Q1 2026 and $12.5 million in Q2 2026 against $10.8 million and $11.1 million a year earlier. In Q2 2026 the fee was 11.5% of the earnings before it ($96.5 million of DE plus $12.5 million, our arithmetic). If the agreement is terminated in connection with a liquidation or certain business combinations, ARMOUR owes ACM a termination fee of four times the contractual fee of the prior 12 months, before any waiver.

BUCKLER: the affiliated broker-dealer

BUCKLER Securities LLC is a broker-dealer controlled by ACM, according to the 10-K. ARMOUR owns a 10.8% equity interest, carried at $583 thousand at December 31, 2025, and the 10-K says: “The primary purpose of our investment in BUCKLER is to facilitate our access to repurchase financing.” ARMOUR has committed $250 million of on-demand subordinated loans to BUCKLER, which BUCKLER treats as capital for regulatory purposes ($200 million through March 20, 2027 and $50 million through February 28, 2028). The 10-K says the equity owners of ACM own 89.2% of BUCKLER and warns: “BUCKLER may offer repurchase agreement financing to us at rates and terms that may be less advantageous to us than if they had been negotiated with third parties.” BUCKLER is also the first-named sales agent in the common ATM, and an underwriter in the August 2025 offering.

This is interest paid on repurchase agreements, a market financing cost. It is not BUCKLER's profit, and the 10-K says ARMOUR earned $0 in each of 2025 and 2024 as an allocated share of BUCKLER's financing gross profit. What the filings let a reader see is concentration: about half of the funding comes from one counterparty that shares control with the manager, and in 2025 the interest ($294.4 million) was about 6.5 times the management fee ($45.5 million, our arithmetic). BUCKLER also earned commissions as a sales agent on the common ATM: $2.65 million on $351.1 million of net proceeds in 2025, $1.74 million on $221.5 million in 2024.

What the 2024 Special Committee found

In late January 2024 issues were raised internally about how Distributable Earnings and net interest margin were reported, how the board reviewed ACM, and internal controls. ARMOUR filed a late-filing notice on March 1, 2024 and then its 2023 10-K inside the 15-day grace period, on March 15, 2024. The 10-K says the Special Committee found the use and calculation of DE and NIM appropriate, that the board followed an appropriate process in reviewing the management agreement and fees, and that the independent directors complied with their fiduciary duties, but it also reported “inappropriate conduct” by certain members of senior management and the board during the investigation, and said: “The tone set by these individuals was insufficient to create the proper environment for effective internal control over financial reporting.” The company called these material weaknesses, reported them again in its 10-Qs for the first three quarters of 2024, streamlined senior management to a single CEO and vice chair, and concluded in its 2024 10-K that they had been remediated as of December 31, 2024. The earnings release put the non-recurring professional fees at $9.0 million in the first quarter of 2024 and the 10-K puts the investigation-related expenses at $9.6 million; neither recurs in 2025 or 2026.

Leverage, repo and what a spread move does to the book

The portfolio roughly doubled from $10.9 billion (March 31, 2024) to $21.8 billion (June 30, 2026) with implied leverage in a band of 7.1 to 8.3 times, so the growth was funded by new equity, not more borrowing per dollar of equity. The weighted average swap rate was 2.87% on $17.0 billion at August 31, 2026, with a remaining term of 52 months, and the repo book had a weighted average remaining term of 22 days.

The 10-Q's market-risk tables show where the exposure sits. These are the company's models for an instantaneous move at June 30, 2026, not forecasts.

At December 31, 2025 the spread sensitivity was the same (-10.24% for +25 bps), so the exposure has not been reduced as the portfolio doubled. The 10-Q says the rate tables assume the mortgage spread stays constant, and that the spread table is “in addition to” the rate sensitivity.

Where this page differs from the AGNC, Annaly and MFA pages

Our AGNC and Annaly page compares those two companies and Two Harbors on tangible book value, economic return and dividend history; it does not cover ARMOUR. The ARMOUR filings add things that comparison cannot show: a reverse split, two dividend cuts, a management fee tied to capital raised and an affiliated lender that supplies roughly half the repo. Our MFA Financial page covers a mortgage REIT whose risk is credit (delinquent loans), where ARMOUR's is interest rates and mortgage spreads on government-guaranteed bonds. For the credit side of the sector see the commercial mortgage REIT table.

The tax side

ARMOUR's 10-K says the portion of its common dividends that was non-taxable return of capital was 47.5% in 2023, 14.8% in 2024 and 19.6% in 2025. It reported $257.3 million of net operating loss carryforwards available indefinitely at December 31, 2025. The tax split for 2026 is not known until after year-end; our REIT distributions and return of capital page explains how the Form 1099-DIV boxes work. If you hold both ARR and a non-traded REIT, the pricing difference is covered in our non-traded versus publicly traded REIT page.

What changed since the June 30, 2026 quarter, and what is next

• July 22, 2026: earnings release and 10-Q. GAAP net income to common of $111.5 million ($0.86 a share), DE $93.2 million ($0.72), economic net interest spread 1.82%, total economic return 4.8%, ATM sales of $218.7 million of common and $4.1 million of preferred. The CEO’s remark: “We continue to prioritize maintaining common share dividends appropriate for the intermediate term rather than focusing on short-term market fluctuations.”
• July 24, 2026: 8-K raising ATM capacity by 25 million shares and authorized common shares to 250 million (effective July 23); it also replaced the federal tax summary in the company's shelf registration.
• August 14 and September 11, 2026: monthly company updates. At August 31: portfolio $22.7 billion, swaps $17.0 billion, repo $19.8 billion with 50.0% from BUCKLER, debt to equity 7.5 and implied leverage 7.9.
• August 27, September 24 and October 1, 2026: the 8-Ks for the September and October dividends, $0.24 each.
• Not yet filed as of October 16, 2026: the 10-Q and earnings release for the quarter ended September 30, 2026, and November's dividend 8-K. The company has released Q3 results on October 25, 2023, October 23, 2024 and October 22, 2025, so a release in the week of October 19 to 23 would match the pattern, but no date has been filed.

What a holder or reader can do with this

This is analysis of public documents, not investment, legal or tax advice. Checks the filings let you run on ARR or any externally managed mortgage REIT:

• Compare the dividend with book value and with DE, both. At $17.53 the $2.88 dividend is 16.4% of book value, and DE covers it about once. Neither number says what the stock trades for.
• Convert the sensitivity table into months of dividend. A 25 basis point widening in mortgage spreads costs about 7.5 months of dividend on the company's own model.
• Watch the share count and the fee base together. Every ATM sale shows up in the next 10-Q as shares outstanding and in the 10-K as gross equity raised, which is the fee base.
• Read the monthly company update on the ARMOUR site and the 8-K that carries it: it gives portfolio, repo by counterparty and swap details between quarters.
• If you sold or plan to sell, see how gains and losses are reported on Form 8949 in our Form 8949 and Schedule D guide.

If you want to know when the September 30 quarter shows up in EDGAR, we can send an email.

FAQ

Sources, read and saved on October 16, 2026: ARMOUR Residential REIT, Inc. (CIK 1428205) Forms 10-K for 2022, 2023, 2024 and 2025 (accessions 0001428205-23-000032, 0001428205-24-000061, 0001428205-25-000027, 0001428205-26-000029); Forms 10-Q for 2024, 2025 and the first half of 2026 (including 0001428205-26-000059 and 0001428205-26-000090); quarterly earnings releases filed as Exhibit 99.1 to Forms 8-K (accessions listed in the CSV); the monthly dividend Forms 8-K of January 2023 to October 1, 2026 (0001428205-26-000111); the 8-Ks of August 29 and October 2, 2023 (reverse split), August 22, 2024, August 5, 2025 and July 24, 2026 (authorized shares and ATM), August 7, 2025 (underwritten offering), and the company updates of 2026 (including 0001428205-26-000107). Figures marked “our arithmetic” are our calculations from the cited rows. This is analysis of public documents, not investment, legal or tax advice.