425: Two Harbors Declares Q1 2026 Dividends, UWMC Merger Update

Two Harbors Investment Corp. declared its first quarter 2026 common and preferred stock dividends while providing an update on its pending all-stock merger with UWM Holdings Corporation.

Summary

• Declared a common stock dividend of $0.34 per share for the first quarter of 2026.
• Declared preferred stock dividends for the first quarter of 2026: Series A at $0.50781 per share, Series B at $0.47656 per share, and Series C at $0.55899 per share.
• The common stock dividend is payable on April 15, 2026, to common stockholders of record as of April 2, 2026.
• The preferred stock dividends are payable on April 27, 2026, to applicable preferred stockholders of record as of April 10, 2026.
• The all-stock merger agreement with UWM Holdings Corporation (UWMC) is expected to close in the second quarter of 2026.
• Two Harbors intends to pay regular quarterly dividends consistent with past practice for all completed quarterly periods prior to the merger closing.
• No partial dividend will be paid for the quarter in which the merger closes if the closing does not occur as of quarter-end.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a neutral-to-slightly-positive update. The consistent dividend declaration is positive, but the merger introduces inherent uncertainties and risks, even if the transaction itself is a strategic move.

Positives

• Declaration of a regular quarterly common stock dividend of $0.34 per share, consistent with past practice.
• Declaration of regular quarterly preferred stock dividends for Series A, B, and C, providing income to preferred shareholders.
• Confirmation of intent to continue paying regular quarterly dividends for completed periods prior to the merger closing.

Negatives

• No partial dividend will be paid for the quarter in which the merger closes if the closing does not occur at quarter-end, which could impact shareholders expecting a pro-rata payment.

Risks

• Uncertainty regarding the expected timing and likelihood of completion of the proposed transaction.
• Potential difficulties in successfully integrating the businesses of Two Harbors and UWMC.
• Risk of any event, change, or circumstance that could lead to the termination of the proposed transaction.
• Potential failure to receive required approvals, including Two Harbors stockholder approval, or to satisfy other closing conditions in a timely manner or at all.
• Risks related to the value of the UWMC securities to be issued in the proposed transaction.
• Disruption of management's attention from ongoing business operations due to the proposed transaction.
• Adverse effects on the market price of common stock of UWMC or Two Harbors due to transaction announcements.
• Risk that the proposed transaction could adversely affect the ability of Two Harbors and UWMC to retain and hire key personnel.
• Outcome of any legal proceedings relating to the proposed transaction, including stockholder litigation.
• Restrictions during the pendency of the proposed transaction may impact Two Harbors' or UWMC's ability to pursue certain business opportunities or strategic transactions.
• Adverse effects from other economic, business, or competitive factors.
• Changes in future loan production, availability of suitable investment opportunities, interest rates, the yield curve, prepayment rates, and the availability and terms of financing.
• General economic conditions, market conditions, and conditions in the market for mortgage-related investments.
• Legislative and regulatory changes that could adversely affect the business of Two Harbors or UWMC.

Future Outlook

The all-stock merger with UWM Holdings Corporation (UWMC) is expected to close in the second quarter of 2026. Prior to the closing, Two Harbors intends to pay regular quarterly dividends consistent with past practice for all completed quarterly periods. However, no partial dividend will be paid for the quarter in which the closing occurs if the closing does not happen at quarter-end.

Management Comments

• TWO intends to pay regular quarterly dividends in the ordinary course consistent with past practice for all completed quarterly periods prior to the closing of the merger.
• TWO does not intend to pay a partial dividend for the quarter in which the closing occurs in the event the closing does not occur as of quarter-end.

Industry Context

StockSavvy.ai notes that this dividend declaration by a mortgage REIT (MSR-focused) is a routine announcement, but its context within a pending all-stock merger with UWM Holdings Corporation (UWMC) highlights the ongoing consolidation and strategic shifts within the mortgage and real estate investment trust sectors. The merger indicates a move towards potentially larger, more diversified entities in response to market conditions and regulatory landscapes.

Legal Proceedings

• Potential stockholder litigation in connection with the proposed transaction is identified as a risk.

Stakeholder Impact

• Shareholders (Common): Will receive a Q1 2026 dividend; will become shareholders of UWMC upon merger closing; face risks related to UWMC stock value and merger completion.
• Shareholders (Preferred): Will receive Q1 2026 dividends.
• Employees: Potential impact on retention and hiring due to merger-related disruption.
• Management: Attention may be disrupted by merger activities.

Next Steps

• Completion of the all-stock merger with UWMC, expected in the second quarter of 2026.
• Two Harbors stockholders will vote on the proposed transaction.

Key Dates

Recommendation

The declaration of expected dividends provides stability, but the pending all-stock merger with UWMC introduces significant uncertainty regarding the future value for Two Harbors shareholders, as it depends on the performance and integration of the combined entity and the value of UWMC stock. Investors should hold and monitor merger progress and UWMC's performance.

Keywords

Two Harbors, TWO, UWMC, UWM Holdings Corporation, merger, dividend, common stock, preferred stock, REIT, mortgage servicing rights, residential mortgage-backed securities, financial assets, Q1 2026, corporate action