5 Cheap Dividend Stocks that Will Help You Retire Before 40

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

Number of Hedge Fund Holders: 30
Dividend Yield: 10.4%

Stock Price as of August 23: $6.36

Two Harbors Investment Corp. (NYSE: TWO), another real estate investment trust, focuses on investing in, financing, and managing residential mortgage-backed securities (RMBS) and a range of other financial assets in the US. The company targets agency RMBS collateralized by fixed-rate mortgage loans, adjustable-rate mortgage loans, and hybrid adjustable-rate mortgage (ARM), among other assets. It ranks 2nd on our list of cheap dividend stocks that will help you retire before 40.

Douglas Harter, an analyst at Credit Suisse, has a Hold rating on shares of Two Harbors Investment Corp. (NYSE: TWO) as of this June. The analyst also placed a $7.50 price target on the stock.

In the second quarter of 2021, Two Harbors Investment Corp. (NYSE: TWO) had an FFO of $0.19, beating the previous quarter’s FFO of $0.17. The company’s revenue was $19.04 million, missing estimates by $24.47 million. Two Harbors Investment Corp. (NYSE: TWO) has gained 1.13% year to date and 14.47% in the past year.

By the end of the second quarter of 2021, 30 hedge funds out of the 873 tracked by Insider Monkey held stakes in Two Harbors Investment Corp. (NYSE: TWO) worth roughly $160 million. This is compared to 32 hedge funds in the previous quarter with a total stake value of approximately $200 million.