PennyMac Mortgage Investment Trust (PMT) will hike its quarterly dividend by 40.0 percent to $0.40 per share in the third quarter of 2020. In the previous quarter the mortgage REIT cut its dividend.

The next dividend will be paid on July 30, 2020, to common shareholders of record as of July 15, 2020. A new annual rate of $1.60 per share yields 9.4% at a stock price of $17.

In the company press release announcing this dividend President and CEO David Spector commented, “While we expect PMT's run-rate quarterly GAAP earnings potential to exceed $0.40 per share, we seek to set a consistent dividend level for our common shares which, combined with the dividends for our preferred shares, reflects our expectations for PMT's taxable income. Our expectations for taxable income in 2020 have increased since the first quarter, largely due to gains realized in the Interest Rate Sensitive Strategies segment.”

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.