5 Best Affordable Dividend Stocks to Buy

2. Two Harbors Investment Corp. (NYSE: TWO)

Dividend Yield: 9.58%
Price as of May 26, 2021: $7.12
No. of Hedge Fund Holders: 32

Minnesota-based residential real estate investment trust (REIT) Two Harbors Investment Corp. (NYSE: TWO) ranks 2nd on the list of 10 best affordable dividend stocks to buy. Founded in 2009, the firm is one of the fastest-growing residential mortgage REITs in the field. The firm invests in, finances, and manages agency residential mortgage-backed assets, mortgage servicing rights, and other financial assets. The company currently pays an annualized dividend of $0.68 per share and offers a high yield of 9.58%. The company has consistently paid its shareholders quarterly dividends for the last 10 years. Two Harbors Investment Corp. recently increased its quarterly payout in January 2021 to $0.17 per share from $0.14 per share in October 2020.

The company has a market cap of $1.95 billion. Shares of TWO surged 49% over the past twelve months. Two Harbors Investment Corp.’s net interest income in the first quarter of 2021 came in at $33.4 million. The stock has gained 49% in the last twelve months.

At the end of the first quarter of 2021, 32 hedge funds in the database of Insider Monkey held stakes worth $200 million in Two Harbors Investment Corp. (NYSE: TWO), up from 18 in the previous quarter worth $58 million.