77% price drop but 3.18% annual return with DRIP over 16 years.
Two Harbors Investment (TWO) declined 77% and cut its dividend from $2 to $0.34, yet dividend reinvestment yields a 3.18% annual return over 16 years.
Two Harbors suffered catastrophic pandemic losses, with its share price down 77% and dividend slashed from $2 to $0.34. Despite this, an investment held with dividend reinvestment generated a 3.18% average annual return over 16 years, showing that even a severely distressed mREIT can deliver positive returns via compounding distributions.
"Why High Yield Investing is Much Safer Than You Think"
