NYSE:MFAMortgage REITs
Dividend Coverage Strain Might Change The Case For Investing In MFA Financial (MFA)
In recent months, MFA Financial has been paying dividends that significantly exceed its Q3 2025 earnings and operating cash flow, raising questions about how those payouts are being funded.
With a very large payout ratio, a debt-to-equity ratio of 3.62x, and US$1.88 billions of retained losses, the REIT’s dividends appear to be coming more from capital than from ongoing distributable earnings, especially as credit losses on legacy loans weigh on results.
Next, we’ll examine how concerns...