At a glance
ARMOUR Residential REIT Inc is worth $1.88B, about 4 times its fiscal 2025 earnings. It pays a 22.73% dividend yield, and returned $916.5M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned −7.7% over the past year with dividends reinvested and −10.6% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 68.4% in the 2020 crash (S&P 500: 33.7%) and 49.7% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The business in plain English
ARMOUR Residential REIT is a mortgage real estate investment trust (REIT), a company that pays little corporate income tax because it hands most of its taxable income to shareholders as dividends. Rather than buildings, it holds mortgage-backed securities (MBS): bonds built from pools of U.S. home loans, mostly fixed-rate. As of December 31, 2025, its holdings were MBS issued or guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae, plus U.S. Treasury securities.
ARMOUR says it channels private money into U.S. home lending. It earns the gap between the interest its bonds pay and its borrowing costs. It borrows through repurchase agreements ("repos"), short-term loans, usually overnight to three months, secured by its bonds. Borrowings generally total six to ten times stockholders' equity, its net worth. Protective contracts such as interest rate swaps and futures partly offset the effect of rate swings. The annual report does not split results by segment or region; the leveraged bond portfolio is the whole business.
An outside firm, ARMOUR Capital Management (ACM), runs daily operations for a fee under an agreement lasting through December 31, 2029. ARMOUR owns 10.8% of BUCKLER Securities, a broker-dealer under common control with ACM. BUCKLER is its largest repo financing partner and the agent for its at-the-market offerings, which place new shares gradually on the exchange.
Price history
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ARR -7.7% over the year to Oct 28, 2026, total return with dividends reinvested.
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was —, and net income was $-323.7M (-303.3%).
- For fiscal 2025, revenue was — (— year over year) with a null% net margin.
Financial health check
| Return on equity (FY2025) | 14.3% watch |
|---|---|
| Return on assets (FY2025) | 1.5% weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | — | $-215.1M | — |
| FY2021 | — | $15.4M | — |
| FY2022 | — | $-229.9M | — |
| FY2023 | — | $-67.9M | — |
| FY2024 | — | $-14.4M | — |
| FY2025 | — | $322.7M | — |
Valuation snapshot
| Market value | $1.88B |
|---|---|
| P/E ratio | 3.8 |
| Dividend yield | 22.73% |
Rank among 1514 US companies
Market value at each year end
ARMOUR Residential REIT’s market value went from $946.6M at the end of 2023 to $1.88B on Oct 28, 2026, about 2.0 times as much; since the end of 2025 it is down 5%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $1.88B | -5.0% |
| 2025 | $1.98B | +88.2% |
| 2024 | $1.05B | +11.1% |
| 2023 | $946.6M |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| ARR price data to Oct 28, 2026 | -17.4% | -7.7% | +15.5% | -10.6% | -10.3% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -17.4% |
| 2025 | +11.6% |
| 2024 | +13.2% |
| 2023 | -15.4% |
| 2022 | -31.8% |
| 2021 | +1.2% |
| 2020 | -34.8% |
| 2019 | -10.8% |
| 2018 | -18.7% |
| 2017 | +20.8% |
| 2016 | +2.6% |
| 2015 | -20.5% |
| 2014 | -5.3% |
| 2013 | -36.0% |
| 2012 | -5.0% |
| 2011 | -6.2% |
| 2010 | -1.5% |
| 2009 | -10.0% |
| 2008 | +1.3% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 64% over that stretch · deepest drop along the way 68.4%, not recovered by the end of the data |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 45.4% over that stretch · deepest drop along the way 49.7%, not recovered by the end of the data |
Insider activity
Form 4 filings from 2025-10-29 to 2026-10-29 (25 read): 1 open-market purchases ($10K) and 1 sales ($564K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Sep 10, 2026 | Daniel C Staton Chairman of the Board, Director | sell | $564K |
| Sep 29, 2026 | Sergey Losyev Co-Chief Investment Officer | buy | $10K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 16% | Jun 30, 2026 |
| Vanguard Portfolio Management | 5.46% | Mar 31, 2026 |
| Vanguard Capital Management | 5.29% | Jun 30, 2026 |
ETFs with the most weight in ARR
| DVDN Kingsbarn Dividend Opportunity ETF | 6.68% |
| KBWD Invesco KBW High Dividend Yield Financial ETF | 3.44% |
| MORT VanEck Mortgage REIT Income ETF | 3.03% |
| XSHD Invesco S&P SmallCap High Dividend Low Volatility ETF | 2.59% |
| REM iShares Mortgage Real Estate ETF | 2.09% |
| SDIV Global X SuperDividend ETF | 0.85% |
| XSLV Invesco S&P SmallCap Low Volatility ETF | 0.77% |
| RZV Invesco S&P SmallCap 600® Pure Value ETF | 0.45% |
What could go wrong
- Manager's fees don't fall when results do. Outside manager ACM is paid on capital raised from stock sales, not performance. As of December 31, 2025, the fee equaled 2.11% of stockholders' equity. ACM ended its voluntary fee waiver from January 2026.
- Affiliate BUCKLER is its biggest lender. BUCKLER, a broker-dealer under common control with ACM and 10.8% owned by ARMOUR, is its largest lender and sells its new shares. Funding and fundraising both depend on a related party.
- Replacing the manager would be hard and costly. The ACM agreement runs through December 31, 2029, then auto-renews for five years. ARMOUR can't end it early without cause, and ending it in a liquidation or merger costs four times a year's fees.
- Heavy borrowing magnifies losses. ARMOUR usually borrows six to ten times its equity through repurchase agreements, short-term secured loans lasting overnight to three months. In stressed markets it has sold bonds at distressed prices, locking in permanent losses.
- Interest rate swings can quickly erode equity. Rate swings, or a wider gap between mortgage bond yields and benchmark rates, can cut ARMOUR's equity. Its hedges cover only part of this. It lost $323.7 million in the quarter ended September 30, 2026.
- Frequent share sales dilute existing owners. ARMOUR sells new stock in at-the-market offerings (gradual sales on the exchange). Shares outstanding rose 65.5% from October 26, 2021, to October 20, 2026, and it may issue shares when investments look less attractive.
Recent events
- Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Other company announcement
- Other company announcement
- Investor presentation or announcement
- Other company announcement
- Investor presentation or announcement
- Major agreement signed; Bylaws or fiscal year changed; Other company announcement
- Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
For income and retirement investors
ARMOUR pays a large dividend, but it has shrunk. Adjusted for the 2023 reverse split, it paid $6.00 per share in 2021 and 2022, $5.00 in 2023 and $2.88 in both 2024 and 2025, so there is no streak of increases. Dividends paid equaled about 84% of 2025 net income, but the company lost money in 2022, 2023 and 2024. The yield was 22.73% as of October 28, 2026, a level that often reflects doubt about whether a payout can last.
Share repurchases (buybacks) were small: about $38.9 million in 2021 through 2025, against $877.6 million in dividends, while the share count kept climbing. In downturns the stock fell hard, losing 68.4% from peak to trough in the 2020 COVID crash and 49.7% in the 2022 bear market. It had not regained either peak as of October 28, 2026. A single stock like ARR carries more risk than a diversified fund.
Questions investors ask
How does ARMOUR Residential REIT make money?
ARMOUR earns the gap between interest on its mortgage bonds and its borrowing costs. It buys mortgage-backed securities (MBS), bonds backed by pools of home loans, issued or guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. At December 31, 2025, it also held U.S. Treasuries. It funds them with repurchase agreements, short-term loans lasting overnight to three months, usually borrowing six to ten times its equity. Swaps and futures hedge part of its interest rate risk. Government backing limits default risk, but not price risk.
Why is ARR's dividend yield so high?
ARR's yield is high because ARMOUR borrows heavily to magnify income from mortgage bonds, and because its share price has fallen. The dividend yield was 22.73% as of October 28, 2026, after the stock dropped 17.4% in 2026 through that date. Since yield is dividends divided by price, a falling price pushes it up. Yields this high often signal that investors doubt the payout will last, and ARMOUR has cut its dividend before. The same leverage magnifies losses.
Has ARMOUR Residential REIT cut its dividend?
Yes, more than once. Adjusted for the one-for-five reverse stock split of September 29, 2023, which combined every five shares into one, ARMOUR paid $6.00 per share in both 2021 and 2022, $5.00 in 2023, and $2.88 in each of 2024 and 2025. It has no streak of annual increases. In 2025, dividends paid equaled 84.1% of net income, but earnings swing widely: the company posted net losses in four of the six years from 2020 through 2025.
Who manages ARMOUR Residential REIT, and what does it charge?
ARMOUR Capital Management (ACM), an SEC-registered investment adviser, runs the company under a management agreement. ACM is paid 1.5% a year on the first $1.0 billion of gross equity raised and 0.75% above that, regardless of performance. Gross equity raised is capital from stock sales minus buybacks, so the fee does not shrink when losses cut equity. As of December 31, 2025, it equaled 2.11% of stockholders' equity. ACM ended a voluntary fee waiver starting with January 2026 fees.
Why has ARR stock dropped so much?
Heavy borrowing is a big reason. ARMOUR usually borrows six to ten times its equity, which magnifies losses when rates rise or mortgage bond prices slump. ARR's share price fell 66% over the 10 years to October 28, 2026, though it gained 54% over the prior three years. It dropped 68.4% in the 2020 COVID crash and 49.7% in the 2022 bear market, and had not regained either peak. Shares outstanding rose 65.5% from October 2021 to October 2026, which the company warns can dilute holders.