ARMOUR Residential REIT, Inc. (ARR) Stock Price & How to Invest
Short answer
You can invest in ARMOUR Residential REIT (ARR) by buying shares or fractional shares at any major broker, through an ETF that holds it, or as one holding in a thematic basket. ARMOUR is an agency mortgage REIT: it borrows short-term and buys a large, leveraged portfolio of mortgage-backed securities guaranteed by U.S. government-sponsored entities, then passes most of the spread to shareholders as a high monthly dividend. The thesis is income, with a roughly 17% yield paid every month. The biggest risks are interest-rate moves, high leverage (around 8 to 1), and book-value erosion that can force the dividend lower.
ARR stock price
As of 2026-06-26, ARMOUR Residential REIT, Inc. (ARR) last closed at $17.26, up 4.1% over the past year. Over the past 52 weeks it has traded between $14.05 and $19.12.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or ARMOUR Residential REIT, Inc.'s investor relations page. Walnut is informational, not investment advice.
What does ARMOUR Residential REIT, Inc. (ARR) do?
ARMOUR Residential REIT (ARR) is an agency mortgage REIT based in Vero Beach, Florida, and externally managed by ARMOUR Capital Management. Its business is a leveraged carry trade: it uses shareholder equity plus heavy short-term borrowing (mostly repurchase agreements) to hold a portfolio of mortgage-backed securities issued or guaranteed by U.S. government-sponsored entities such as Fannie Mae and Freddie Mac. As of Q1 2026 the investment portfolio totaled about $21.1 billion, roughly 92.5% in Agency MBS, funded mainly by around $18.5 billion of repurchase agreements and hedged with about $12.9 billion notional of interest-rate swaps. The debt-to-equity ratio was 7.90 to 1 (implied leverage about 8.21 to 1), and net interest income was $70.7 million for the quarter. ARMOUR earns the spread between the yield on its MBS and its cost of borrowing and hedging, then distributes most of it as a monthly dividend.
ARMOUR is one of the few mortgage REITs that pays monthly rather than quarterly, which is central to its appeal for income investors. The monthly dividend has run at $0.24 per common share (about $2.88 annualized), a yield near 17% at recent prices. Book value, the key gauge for this kind of company, was $17.42 per common share at March 31, 2026, down 6.5% from $18.63 at the end of 2025, producing a slightly negative total economic return for the quarter amid rate volatility. Distributable earnings were $90.5 million ($0.76 per share) in Q1 2026 even as GAAP results swung to a $58.0 million net loss on mark-to-market hedge moves. ARMOUR has been growing its portfolio and raising capital through at-the-market equity programs (about $215 million of common stock in Q1 2026), and a large share of its repo financing runs through BUCKLER Securities, its majority-owned affiliate broker-dealer.
What's driving ARMOUR Residential REIT, Inc. (ARR)?
1. High monthly income is the core draw.
ARMOUR is built to return cash to shareholders, paying a monthly dividend of $0.24 per share, roughly $2.88 a year, for a yield around 17% at recent prices. That monthly cadence is unusual among mortgage REITs, where peers like AGNC and Annaly pay quarterly. Distributable earnings of $0.76 per share in Q1 2026 covered the $0.72 of dividends paid in the quarter, but coverage is tight and leaves little cushion if the spread compresses.
2. Book value is the number that really matters.
For an agency mortgage REIT, book value per share is the truest gauge of value because the assets are marked to market. ARMOUR's book value was $17.42 at March 31, 2026, down 6.5% in the quarter from $18.63 at year-end 2025. Rate and spread swings move book value far more than headline GAAP earnings, which can show large non-cash gains or losses from hedge marks. Watching the trend in book value plus dividends (total economic return) is the right way to judge performance.
3. Spreads and the rate environment drive the carry.
ARMOUR's profit is the gap between what its Agency MBS yield and what its borrowing and hedging cost. Wider spreads and a stable or falling short-rate environment help; a flat or inverted curve and volatile rates hurt. The company hedges with about $12.9 billion notional of interest-rate swaps to dampen rate risk, but hedges are imperfect and can themselves create large GAAP swings. Any path toward lower policy rates would generally ease funding costs and support the carry.
4. Scale and capital raising.
ARMOUR has grown its portfolio to about $21.1 billion and raised roughly $215 million of common equity through at-the-market programs in Q1 2026. Issuing shares above book value is accretive and funds a bigger asset base, but issuing near or below book can dilute existing holders. Much of its repo financing flows through BUCKLER Securities, its majority-owned affiliate, which gives it dedicated funding access but adds a related-party dimension to watch.
What are the risks to ARMOUR Residential REIT, Inc. (ARR)?
ARMOUR carries the classic risks of a leveraged agency mortgage REIT, amplified by some of the highest leverage among its peers (around 8 to 1). Rising or volatile interest rates can compress the net interest spread and erode book value quickly, as the 6.5% book-value drop in Q1 2026 showed. The high leverage magnifies both gains and losses and creates funding risk if repo markets tighten or margin calls spike. Prepayment risk matters too: when rates fall, homeowners refinance and the MBS pay off early, forcing reinvestment at lower yields. The dividend is not guaranteed and has been cut in past cycles; with distributable earnings barely covering the payout, a downturn in the spread could pressure it. The stock has also tended to trade and pay distributions that, over long stretches, return capital rather than build it, so total return can lag the headline yield.
How is ARMOUR Residential REIT, Inc. (ARR) valued? (approximate, FY2025 results and Q1 2026 results (reported April 2026))
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see ARMOUR Residential REIT, Inc.'s investor relations page or your broker.
- Book value per common share: $17.42 (Mar 31, 2026), down 6.5% from $18.63 at year-end 2025
- Net interest income (Q1 2026): $70.7 million
- Distributable earnings (Q1 2026): $90.5 million, or $0.76 per share
- GAAP net result (Q1 2026): Net loss of $58.0 million, or $(0.49) per share (driven by hedge marks)
- Monthly dividend / yield: $0.24 per share monthly (about $2.88 annualized), yield roughly 17%
- Investment portfolio: About $21.1 billion, roughly 92.5% Agency MBS
- Leverage: Debt-to-equity 7.90:1, implied leverage about 8.21:1
- Common equity: About $2.15 billion (Q1 2026)
For an agency mortgage REIT, ignore the price-to-earnings ratio and focus on book value per share, the dividend, and leverage. The stock typically trades close to (sometimes at a discount or premium to) book value, so book value is the anchor for valuation. GAAP earnings can be wildly positive or negative because of non-cash hedge marks, which is why ARMOUR reports distributable earnings as a cash-flow proxy for dividend coverage. Total economic return (the change in book value plus dividends paid) is the cleanest way to judge a quarter. The very high yield reflects high leverage and rate risk, not a free lunch: a large yield often comes with the chance of book-value and dividend erosion.
Who competes with ARMOUR Residential REIT, Inc. (ARR)?
Agency mortgage REITs
The closest peers are AGNC Investment (AGNC) and Annaly Capital Management (NLY), the two largest agency mortgage REITs. Both pay quarterly rather than monthly and generally use somewhat less leverage and more fixed-rate exposure than ARMOUR, which leans toward floating-rate positions and the most aggressive leverage of the group.
Broader mortgage REITs
Adjacent competitors that invest across agency and non-agency or hybrid mortgage assets include Two Harbors Investment (TWO), Invesco Mortgage Capital (IVR), MFA Financial (MFA), and Ellington Financial (EFC). These vary in credit exposure and risk profile but compete for the same yield-seeking investors.
ETFs and income alternatives
Investors who want diversified exposure rather than a single name often use mortgage-REIT ETFs such as the iShares Mortgage Real Estate ETF (REM) or the VanEck Mortgage REIT Income ETF (MORT), both of which hold ARR alongside peers. High-yield bond funds and preferred-stock funds compete for the same income dollars.
How to invest in ARMOUR Residential REIT, Inc. (ARR)
There are three common ways to get ARR exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so ARR sits alongside other stocks that express the same thesis.
Walnut takes the basket route. Describe a thesis where ARR fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
The bottom line on ARMOUR Residential REIT, Inc. (ARR)
If you believe interest rates and mortgage-bond spreads will stabilize and that ARMOUR's hedges can protect its book value, the stock offers an unusually high, monthly income stream. In a portfolio it behaves as a high-yield, high-volatility income holding whose price and book value swing sharply with rates, not as a stable blue chip.
More on ARMOUR Residential REIT, Inc. (ARR)
Whether ARR is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is ARR a buy?, and where the stock could go from here in the ARR stock forecast.
For income investors, whether ARR pays a dividend and how the payout looks is covered in does ARR pay a dividend?
Build a basket around ARR with Walnut
Use ARMOUR Residential REIT, Inc. as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What does ARMOUR Residential REIT do?
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ARMOUR Residential REIT is an agency mortgage REIT. It uses shareholder equity plus heavy short-term borrowing to hold a large, leveraged portfolio of mortgage-backed securities guaranteed by U.S. government-sponsored entities like Fannie Mae and Freddie Mac. It earns the spread between the yield on those bonds and its cost of borrowing and hedging, and passes most of that income to shareholders. As of Q1 2026 its portfolio was about $21.1 billion, roughly 92.5% Agency MBS.
Does ARR pay a dividend?
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Yes, and unusually it pays monthly rather than quarterly. The recent rate has been $0.24 per common share each month, about $2.88 per share annualized, which works out to a yield near 17% at recent prices. The high yield reflects the company's heavy leverage and rate sensitivity, and the dividend is not guaranteed: ARMOUR has cut it in past cycles when its spread or book value came under pressure.
Is ARR a good stock?
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This is descriptive, not advice. The bull case is one of the highest yields in the market, paid monthly, from a portfolio of government-guaranteed mortgage bonds. The bear case is very high leverage (around 8 to 1), book value that can fall quickly when rates move (it dropped 6.5% in Q1 2026), and a dividend that has been cut before and is barely covered by current earnings. Whether it fits depends on your own goals and risk tolerance.
Is ARR a good stock to buy right now?
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This is informational, not a recommendation. The bull case rests on stabilizing or falling interest rates and steady mortgage-bond spreads, which would support the carry and protect book value while paying a high monthly dividend. The bear case is that volatile rates, tight dividend coverage, and aggressive leverage could erode book value and pressure the payout. Walnut provides information, not investment advice, so any decision should reflect your own situation.
Why does ARR report a GAAP loss but still pay its dividend?
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Agency mortgage REITs hedge with derivatives like interest-rate swaps, and those hedges are marked to market every quarter. Those non-cash marks can produce large GAAP gains or losses unrelated to cash flow. In Q1 2026 ARMOUR posted a $58.0 million GAAP net loss but still earned $90.5 million ($0.76 per share) of distributable earnings, the cash-flow measure it uses to gauge dividend coverage. That is why distributable earnings, not GAAP net income, is the figure to watch for the dividend.
How does ARR compare to AGNC and Annaly?
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All three are agency mortgage REITs investing in government-guaranteed mortgage bonds, but ARMOUR is the smallest and uses the most leverage. It also pays monthly while AGNC and Annaly pay quarterly, and it leans more toward floating-rate positions. The higher leverage can mean larger swings in book value and total return, which has cut both ways over different periods.
Which ETFs or baskets include ARR?
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ARR is held by mortgage-REIT and high-yield ETFs such as the iShares Mortgage Real Estate ETF (REM) and the VanEck Mortgage REIT Income ETF (MORT). On Walnut, ARR typically sits inside an income or REIT-focused basket as a high-yield income holding rather than a growth position, alongside other rate-sensitive names.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with ARMOUR Residential REIT, Inc.'s investor relations page or your broker before making investment decisions.