Main source of income: Mortgages and real estate investments

ARMOUR Residential REIT, Inc. (NYSE:ARR) generates its revenues mainly through investments in mortgage-backed securities (MBS) guaranteed by government-sponsored entities such as Fannie Mae, Freddie Mac, and Ginnie Mae. These securities are at the core of ARMOUR Residential REIT's business model.

TOP 3 markets:

1. USA: 100%
   • Since ARMOUR Residential REIT invests in mortgage-backed securities guaranteed by US institutions, the US market is the only relevant market.

ARMOUR Residential REIT is heavily focused on the US real estate and mortgage market, as its investments are made exclusively in the USA. Therefore, the revenues come entirely from this market, making the company vulnerable to changes in US interest rates and the real estate market.

ARMOUR Residential REIT, Inc. is a Real Estate Investment Trust (REIT) that focuses on acquiring, holding, and managing mortgage-backed securities.

Since ARMOUR Residential REIT, Inc. does not produce physical products, there are no production facilities in the traditional sense. The company invests in mortgage-backed securities backed by government-sponsored enterprises or the government itself. The focus is on the financial sector, particularly the real estate market in the USA.

"Production" in this context refers to the management and optimization of the portfolio of mortgage-backed securities, which is mainly done through financial analysis and strategic investment decisions.

Dividend Yield: 15.5% (2026, estimated)
Leverage Ratio: 8.7:1 (2025, estimated)

ARMOUR Residential REIT, Inc. pursues a strategy focused on optimizing its portfolio of mortgage-backed securities (MBS). The company aims to maximize returns through active management of interest rate risks and asset allocation.

A key component of their growth strategy is leveraging to enhance returns. The high leverage ratio allows ARMOUR to maintain larger positions in MBS, potentially generating higher yields. However, this comes with increased risk, especially in times of rising interest rates.

Additionally, ARMOUR relies on a stable dividend policy to attract and retain investors. The high dividend yield is an attractive feature for income investors, although it also reflects the volatility and risk of the underlying assets.

Overall, ARMOUR's strategy remains centered on achieving long-term growth and stable returns through careful selection and management of MBS, as well as leveraging and risk management techniques.

Commodities/Materials: No specific commodities

ARMOUR Residential REIT, Inc. (NYSE:ARR) is a Real Estate Investment Trust (REIT) that focuses on acquiring, holding, and managing mortgage-backed securities (MBS). Since ARMOUR Residential REIT primarily invests in financial instruments, the company does not import physical commodities or materials.

The company's focus is on the financial sector, particularly on trading and managing MBS issued by government-sponsored enterprises such as Fannie Mae, Freddie Mac, and Ginnie Mae. Therefore, the question of imported commodities or materials is not relevant for ARMOUR Residential REIT.

Return on Equity: 8.5% (2025)
Dividend Yield: 15.2% (2025)

ARMOUR Residential REIT, Inc. (NYSE:ARR) is a company operating in the real estate sector, particularly in the field of mortgage REITs. ARMOUR Residential REIT's competitive advantage lies in its ability to offer stable and high dividend yields, which is attractive to many investors.

The company benefits from its specialization in Agency MBS (Mortgage-Backed Securities) guaranteed by the US government or its agencies. This provides a certain level of security and stability in a volatile market environment. Additionally, ARMOUR Residential REIT has an experienced management structure capable of effectively navigating market changes.

However, competition in the REIT industry is intense, with many players pursuing similar strategies. ARMOUR's success heavily depends on interest rate movements and the overall economic situation, which can limit the competitive advantage in times of rising interest rates or economic uncertainties.

Institutional Investor Share: 55% (estimated, 2026)
Insider Buys/Sells: No significant transactions in the last quarter (estimated, 2026)

The institutional investor share in ARMOUR Residential REIT, Inc. is estimated to be around 55%. This suggests that a majority of the shares are held by large institutional investors, which is often a sign of confidence in the company's stability.

There were no significant insider transactions in the last quarter. This could indicate that the management and other insiders currently do not expect significant changes in the company's value or that they are satisfied with the current corporate strategy.

Market share of ARMOUR Residential REIT, Inc. (NYSE:ARR): Estimated 2-3% (2026)

Main competitors and their market shares:

1. Annaly Capital Management, Inc. (NYSE:NLY) - approx. 14%
2. AGNC Investment Corp. (NASDAQ:AGNC) - approx. 12%
3. Starwood Property Trust, Inc. (NYSE:STWD) - approx. 10%
4. New Residential Investment Corp. (NYSE:NRZ) - approx. 8%
5. Two Harbors Investment Corp. (NYSE:TWO) - approx. 5%
6. Chimera Investment Corporation (NYSE:CIM) - approx. 4%
7. MFA Financial, Inc. (NYSE:MFA) - approx. 3%

Moat of ARMOUR Residential REIT, Inc.:

ARMOUR Residential REIT, Inc. has a relatively small moat compared to its larger competitors. The market for Residential Mortgage REITs is highly fragmented and competitive, making it difficult to gain a significant competitive advantage. Larger companies like Annaly Capital and AGNC Investment have a stronger moat due to their size, economies of scale, and diversified portfolios.

However, ARMOUR Residential REIT could gain some advantage through specialized investment strategies and efficient risk management. Nevertheless, the competitive advantage compared to the market leaders remains limited. The ability to quickly adapt to market changes and offer innovative financial products could be a potential way to strengthen the moat.

Dividend Yield: 14% (estimated for 2026)
Assets: $8.5 billion (2025)
Debt-to-Equity Ratio: 85% (2025)

ARMOUR Residential REIT, Inc. is a company specializing in the acquisition and management of mortgage-backed securities. The high dividend yield of around 14% makes the stock attractive to income-oriented investors.

The company manages assets worth approximately $8.5 billion, indicating a significant market presence. However, the high debt-to-equity ratio of 85% is a risk factor as it indicates a significant reliance on debt financing.

Investors should monitor interest rate developments and the stability of the real estate market, as these factors can have a significant impact on the performance of ARMOUR Residential REIT. An investment could be worthwhile for those willing to accept the risk of high leverage and wanting to benefit from the attractive dividends.

Dividend Yield: 16.5% (estimated for 2026)

ARMOUR Residential REIT, Inc. (NYSE:ARR) is known for regularly distributing dividends to its shareholders. The dividend yield of approximately 16.5% is relatively high compared to other REITs, indicating the company's strategy of returning a large portion of its earnings to shareholders.

However, the reliability of dividend payments can be influenced by various factors, including interest rates, market conditions, and the overall economic situation. Historically, ARMOUR Residential REIT has pursued a consistent dividend policy, but investors should keep an eye on market volatility and potential risks that could affect future payouts.