PennyMac Mortgage Investment Trust (PMT) will cut its quarterly dividend by 46.8 percent to $0.25 per share in 2020. This is the first dividend cut by the mortgage REIT since 2015.

The next dividend will be paid on April 30, 2020, to common shareholders of record as of April 15, 2020. A new annual rate of $1.00 per share yields 7.8% at a stock price of $12.85.

In today's press release the company explains the dividend cut: “We are confident in the return potential of PMT’s investment strategies as outlined in our investor update last week and recent market dislocations have improved the attractiveness of future investments generated through our platform; however, we believe that a reduction in the quarterly dividend to common shareholders is appropriate at this time,” said Stanford L. Kurland, PMT's Executive Chairman. “In recent years, our dividends to common shareholders have included a return of capital, and had we maintained a quarterly dividend of $0.47, we projected a significant return of capital for 2020 as well. A quarterly dividend of $0.25 per common share, combined with the dividends for our preferred shares, is consistent with PMT’s expectations for taxable income in 2020, which is the basis for REIT distribution requirements.”

PennyMac Mortgage Investment Trust is a mortgage real estate investment trust (REIT) that invests primarily in residential mortgage loans and mortgage-related assets. PennyMac Mortgage Investment Trust operates through two segments: correspondent production and investment activities. PMT is externally managed by PNMAC Capital Management, LLC, a wholly-owned subsidiary of PennyMac Financial Services, Inc. (PFSI). The company has paid a dividend every year since 2010.