Key Highlights

  • The top Yield in the set belongs to Invesco Mortgage Capital (NYSE:IVR) at 26.09%, which covers its payout about 131%, though Book Value dropped 16.1%.
  • Orchid Island Capital (NYSE:ORC) matched its third-quarter dividends one for one after reducing the monthly payment in April.
  • MFA Financial (NYSE:MFA) reached only 72% coverage, while ARMOUR Residential REIT (NYSE:ARR) met roughly 99% of its payout.
  • Redwood Trust (NYSE:RWT) plans a cut to USD 0.02 a quarter, which leaves its 22.09% screen yield an unreliable gauge of income.

1. Invesco Mortgage Capital (NYSE:IVR)

Shares of Invesco Mortgage Capital (NYSE:IVR) show a 26.09% yield at USD 5.52, a 3.95% advance, and its live monthly Dividend of USD 0.12 has the strongest backing of the two highest yielders here. Third-quarter distributable Earnings were USD 0.47 per share, roughly 131% of the USD 0.36 quarterly payout, though below USD 0.50 in the second quarter. Book value is where the pressure sits, dropping 16.1% to USD 6.74, down from USD 8.03 at June 30, and that produced a GAAP loss to common holders of USD 0.92 per share. Leverage moved up to 7.6 times from 6.3 times. Management stated that book value had recovered about 4% in the quarter to date and that the board would take up the dividend. The shares trade near 82% of book value. IVR's payout is covered today, but its base is still contracting.

2. Orchid Island Capital (NYSE:ORC)

Shares of Orchid Island Capital (NYSE:ORC) yield 24.19% at USD 4.96, up 3.55%. The payout was lowered from USD 0.12 to USD 0.10 a month back in April 2026, while the October amount is due November 27. Net Investment income for the third quarter was USD 0.30 per share, equal to the USD 0.30 dividend, so the cover is exactly one to one. Book value dropped about 16.6%, to USD 6.02 from USD 7.22, and the quarter ended with a net loss of USD 0.90 per share. Adjusted leverage sits at 8.8 times, supported by USD 515.7 million of liquidity. ORC repurchased about 1.67 million shares in October, and the stock trades near 82% of book value. No November declaration had been located when this was prepared.

3. ARMOUR Residential REIT (NYSE:ARR)

Shares of ARMOUR Residential REIT (NYSE:ARR) produce a 22.86% yield at USD 12.60, up 3.87%. Its monthly payout is USD 0.24, or USD 2.88 yearly. Third-quarter distributable earnings reached USD 0.71 per share, against USD 0.72 in the second quarter, which amounts to roughly 99% coverage. Leadership expects distributable earnings to remain close to the dividend next quarter. Per-share book value shrank roughly 17%, landing at USD 14.55, and Debt to Equity came in at 8.24 times. ARR's coverage is nearly complete, but earnings have no slack left to absorb further book value declines. The shares trade around 87% of book value.

4. MFA Financial (NYSE:MFA)

Shares of MFA Financial (NYSE:MFA) yield 21.79% at USD 6.61, falling 0.45%. The USD 0.36 quarterly dividend was distributed October 30. Third-quarter distributable earnings of USD 0.26 per share rose from USD 0.12, yet still cover only about 72% of the payout. GAAP book value dropped to USD 11.12 from USD 12.71, while economic book value stands at USD 11.44. The shares trade roughly 41% below GAAP book value. Bryan Wulfsohn is set to replace Craig Knutson as chief executive on July 1, 2027, according to an October 8 announcement. Earnings are recovering but do not yet match the dividend, so a cut is still possible if that gap stays open.

5. Redwood Trust (NYSE:RWT)

Shares of Redwood Trust (NYSE:RWT) yield 22.09% at USD 3.26, up 4.82%, yet that figure is poised to shrink. On November 3, 2026 the company stated that its quarterly dividend would drop to USD 0.02 from USD 0.18 beginning with the December declaration, roughly a 2.5% yield at today's price. Alongside it come a shift to C-corporation status, effective for the year ending December 31, 2027, and a reverse split at a 1-for-5 ratio on January 4, 2027. Book value dropped 4.9%, reaching USD 6.56, and the GAAP loss for the third quarter came to USD 0.39 per share. RWT's screen yield is out of date and should not be taken as a guide to income.

Where Things Stand

Invesco Mortgage Capital, Orchid Island and ARMOUR all pay from earnings, yet each gave up around 16% to 17% of its book value during the quarter and carries leverage between 7.6 and 8.8 times. Only about 72% of MFA Financial's payout is covered, and Redwood Trust has already disclosed a reset. Within this five-name group, Invesco Mortgage Capital shows the firmest current coverage at roughly 131%, with Orchid Island and ARMOUR following at one for one and about 99%. The most secure income is a payout that is covered and not tied to any pending reduction.