Anworth dividend payment triggers preferreds conversion rate increase

By Marisa Wong

Madison, Wis., April 13 - Anworth Mortgage Asset Corp. said it adjusted the conversion rate on its 6.25% series B cumulative convertible preferred stock to 3.4778 shares of common stock from 3.4094 shares, effective April 12.

The adjustment follows from a dividend payment of $0.25 per share announced on March 31 and payable on April 27.

The conversion rate is adjusted if a cash dividend payout during any quarterly fiscal period to stockholders results in an annualized stock dividend yield of greater than 6.25%, according to a press release.

The company's board of directors also declared a dividend of $0.390625 per preferred for the second quarter of 2011, which is payable on July 15.

Anworth is a Santa Monica, Calif.-based real estate investment trust focusing on mortgage-backed securities and residential mortgage loans.

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