Dividend coverage remains highly inconsistent, with the Div/AFFO ratio fluctuating between 0.40 and 1.49 over the last ten quarters, indicating significant pressure on recurring cash flow.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Cash from Operations | 90.81M | 76.25M | 200.12M | 108.74M | 366.08M | 120.29M | 38.4M | 215.78M | 147.88M | 176.07M | 85.51M | 282.17M | 255.81M | 298.09M | 310.39M | 334.41M | 245.94M | 269.96M | 186.43M | 68.68M | 15.88M | 136.19M | 128.3M | 112.15M | 83.37M | 21.67M | 4.92M | 10.3M | 400K |
| Operating CF Growth % | 247.11% | -61.9% | 84.04% | -70.3% | 204.32% | 213.3% | -82.21% | 45.91% | -16.01% | 105.9% | -69.7% | 10.3% | -14.18% | -3.96% | -7.18% | 35.97% | -8.9% | 44.81% | 171.45% | 332.4% | -88.34% | 6.15% | 14.4% | 34.53% | 284.71% | 340.3% | -52.22% | 2475% | - |
| Operating CF / Revenue % | 13.96% | 8.71% | 71.57% | 46.46% | -541.37% | 35.67% | -6.91% | 49.79% | 42.51% | 47.2% | 23.84% | 79.27% | 71.3% | 87.5% | 88.91% | 93.37% | 83.06% | 97.21% | 288.22% | 158.25% | 96.72% | 331.61% | 140.11% | 169.05% | 134.47% | 89.8% | 47.68% | 100% | 8.7% |
| Net Income | 134.62M | 176.78M | 119.25M | 80.16M | -231.58M | 328.87M | -679.39M | 378.12M | 301.8M | 322.39M | 312.67M | 313.23M | 313.5M | 302.71M | 306.84M | 316.41M | 269.76M | 268.19M | 45.8M | 30.21M | 8.76M | 6.71M | 78.07M | 57.85M | 56.09M | 3.78M | 7.87M | 7.6M | 2.9M |
| Depreciation & Amortization | 0 | 0 | 0 | 4.2M | -27.31M | 6.6M | 0 | 3.32M | 1.82M | 1.52M | 964K | 860K | 1.19M | 5.83M | 3.53M | 2.66M | 730K | 512K | 18.79M | 27.71M | 31.63M | 58.93M | 50.93M | 45.88M | 28.09M | 5.55M | 1.89M | 1.4M | 300K |
| Stock-Based Compensation | 0 | 0 | 0 | 15.62M | 10.21M | 9.58M | 0 | 9.24M | 8.01M | 8.03M | 9.16M | 7.83M | 8.58M | 4.16M | 6.49M | 4.38M | 3.28M | 1.91M | 1.36M | 511K | 539K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -18.32M | -112.39M | 64.28M | 26.72M | 597.01M | -203.18M | 728.66M | -159.19M | -137.3M | -144.49M | -117.72M | -94.48M | -96.2M | -34.66M | -3.36M | 14.86M | -34.37M | 17.93M | 98.87M | 638K | -5.71M | 39.12M | -371K | 265K | 3.27M | 13.72M | -3.02M | 100K | -300K |
| Working Capital Changes | -26.48M | 11.85M | 16.59M | -17.97M | 27.96M | -5.39M | -10.87M | -15.71M | -26.45M | -11.38M | -119.56M | 54.74M | 28.74M | 20.05M | -3.12M | -3.37M | -4.6M | 2.93M | -1.56M | -11.67M | -41.91M | 31.43M | -331K | 8.15M | -4.09M | 9.4M | -1.81M | 1.2M | -2.5M |
| Cash from Investing | -1.53B | -1.79B | -424.6M | -1.55B | -1.13B | -2.17B | 6.38B | -1.13B | -2.16B | 1.82B | 1.03B | 550.08M | 451M | 1.6B | -650.43M | -2.38B | 915.38M | 1.77B | -1.97B | -1.95B | -623.97M | 938.9M | -2.48B | -967.12M | -1.55B | -1.45B | -9.28M | -250.5M | -189.2M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | 6.12M | 0 | 3.76B | 338.4M | 1.59B | 0 | 636.29M | -34.73M | 0 | 0 | 0 | -915.38M | -808.89M | 0 | 231K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Purchase of Investments | -2.45B | -2.75B | -869.15M | -588.91M | -3.18B | -2.5B | -163.75M | -4.67B | -3.14B | -86.32M | -84.61M | -95.38M | -89.18M | 0 | 0 | -4.83B | -3.11B | -12K | -5.2B | -4.49B | -4.13B | -2.31B | -4.59B | -3.4B | -2.96B | -1.75B | -121.07M | -356M | -240.9M |
| Sale of Investments | 11.68M | 46.81M | 129.64M | 173.95M | 68.78M | 157.3M | 4.42B | 908.7M | 538.67M | 243.08M | 3.43B | 70.75M | 123.91M | 574.87M | 268.86M | 2.44B | 4.03B | 2.58B | 3.23B | 2.54B | 3.48B | 3.25B | 2.12B | 2.43B | 1.4B | 308.38M | 112.55M | 113.3M | 48M |
| Other Investing | 903.73M | 916.69M | 314.92M | -1.13B | 1.99B | 185.67M | 2.13B | -1.13B | 107.94M | 66.29M | 1.11B | -60.02M | 451.79M | 1.03B | -918.84M | 11.37M | 915.38M | -666K | 3.23B | -231K | 23.53M | 938.9M | 258K | 1.5M | 345K | -397K | -754.79K | -7.8M | 3.7M |
| Cash from Financing | 1.36B | 1.49B | 337.58M | 1.43B | 850.21M | 1.63B | -5.74B | 964.92M | 1.63B | -1.8B | -1.02B | -849.69M | -1.09B | -1.73B | 347.31M | 2.1B | -1.47B | -1.75B | 1.91B | 2.07B | 590.99M | -1.08B | 2.28B | 930.59M | 1.48B | 1.47B | -7.14M | 254.1M | 184.6M |
| Dividends Paid | -144.4M | -40.32M | -176.75M | -175.98M | -216.91M | -189.01M | -143.3M | -376.56M | -344.76M | -323.59M | -312.89M | -312.38M | -309.67M | -608.58M | -349.39M | -337.42M | -268.39M | -229.66M | -139M | -37.73M | -24.24M | -55.81M | -77.39M | -60.22M | -47.57M | -10.74M | -5.32M | -7.3M | -5.6M |
| Common Dividends | -123.01M | -188.5M | -143.87M | -143.1M | -184.03M | -156.14M | -113.51M | -361.56M | -329.76M | -308.59M | -297.89M | -297.38M | -294.67M | -594.83M | -341.23M | -329.26M | -260.23M | -221.5M | -130.84M | -37.73M | -24.24M | -55.81M | -77.39M | -60.22M | -47.57M | -10.74M | -5.32M | -7.3M | -5.6M |
| Debt Issuance (Net) | 1000K | 1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | -1000K | -1000K | -1000K | -1000K | -1000K | 1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K |
| Share Repurchases | 5.19M | -15.31M | -1.57M | -7K | -102.31M | -85.59M | -50.84M | 0 | 0 | 0 | 0 | 0 | 0 | -112.28M | -9.71M | 0 | 0 | 0 | 0 | 0 | -6.13M | -12.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.69B | -177.11M | -34.99M | -12.59M | -16.39M | -7.14M | -90.28M | -40.03M | 1.06M | 30.43M | 14.64M | -450.18M | -561.64M | -597.91M | -113.82M | 1.17B | -104.08M | -82.76M | -152.75M | -4.9M | -12.95M | -134K | -2.58M | -137K | 35.76M | -39M | 3.21M | -100K | -100K |
| Net Change in Cash | -62.48M | -214.64M | 113.1M | -5.87M | 89.63M | -417.07M | 686.86M | 45.95M | -375.03M | 189.65M | 95.11M | -17.43M | -382.93M | 164.08M | 7.27M | 48.78M | -308.22M | 292.29M | 126.76M | 187.21M | -17.1M | -4.04M | -71.37M | 75.62M | 5.55M | 50.13M | -11.5M | 13.9M | 184.6M |
| Exchange Rate Effect | 24.14M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 188.8M |
| Cash at Beginning | 386.67M | 601.31M | 488.21M | 494.08M | 404.45M | 821.52M | 134.66M | 88.71M | 463.74M | 260.11M | 165.01M | 182.44M | 565.37M | 401.29M | 394.02M | 345.24M | 653.46M | 361.17M | 234.41M | 47.2M | 64.3M | 68.34M | 139.71M | 64.09M | 58.53M | 8.4M | 19.9M | 6M | 10.1M |
| Cash at End | 410.81M | 386.67M | 601.31M | 488.21M | 494.08M | 404.45M | 821.52M | 134.66M | 88.71M | 449.76M | 260.11M | 165.01M | 182.44M | 565.37M | 401.29M | 394.02M | 345.24M | 653.46M | 361.17M | 234.41M | 47.2M | 64.3M | 68.34M | 139.71M | 64.09M | 58.53M | 8.4M | 19.9M | 194.7M |
| Free Cash Flow | 90.81M | 76.25M | 200.12M | 108.74M | 365.78M | 108.25M | 33.53M | 213.9M | 146.75M | 175.2M | 84.8M | 280.61M | 255.03M | 297.71M | 309.94M | 332.07M | 245.5M | 269.98M | 186.43M | 68.45M | 15.88M | 136.19M | 128.3M | 112.15M | 83.37M | 21.67M | 4.92M | 10.3M | 400K |
| FCF Growth % | -31.25% | -61.9% | 84.04% | -70.27% | 237.92% | 222.79% | -84.32% | 45.76% | -16.24% | 106.59% | -69.78% | 10.03% | -14.34% | -3.95% | -6.66% | 35.26% | -9.07% | 44.82% | 172.36% | 330.94% | -88.34% | 6.15% | 14.4% | 34.53% | 284.71% | 340.3% | -52.22% | 2475% | - |
| FCF / Revenue % | 13.96% | 8.71% | 71.57% | 46.46% | -540.92% | 32.1% | -6.03% | 49.36% | 42.18% | 46.96% | 23.64% | 78.83% | 71.08% | 87.39% | 88.78% | 92.71% | 82.92% | 97.21% | 288.22% | 157.72% | 96.72% | 331.61% | 140.11% | 169.05% | 134.47% | 89.8% | 47.68% | 100% | 8.7% |
High leverage interest sensitivity
As reported in financial statements, MFA's FFO frequently decouples from GAAP operating cash flow, with FFO-to-Net Income ratios swinging wildly from -0.35 in 2025Q1 to 18.86 in 2024Q4, suggesting that non-cash valuation adjustments significantly distort the firm's reported earnings relative to actual cash generation.
The extreme volatility in the FFO-to-Net Income ratio indicates that GAAP metrics are poor proxies for the company's underlying cash-generating capacity. Investors should monitor this divergence, as it suggests that reported earnings are heavily influenced by mark-to-market accounting on the investment portfolio rather than recurring interest income.
Based on reported figures, MFA's dividend payout coverage is inconsistent, with the Div/AFFO ratio fluctuating between 0.40 and 1.49 over the last ten quarters, indicating that the company's ability to fund distributions from recurring cash flow is highly sensitive to interest rate cycles and credit performance.
The lack of a stable dividend coverage ratio suggests that the current payout policy may be vulnerable to periods of margin compression. The reliance on non-recurring gains to support dividends warrants further investigation into the sustainability of the current distribution level.
According to recent SEC filings, the significant gap between GAAP Net Income and FFO highlights the distortive impact of fair value accounting on MFA's financial reporting, as unrealized gains and losses on mortgage-backed securities frequently obscure the actual cash flow available for distribution to shareholders.
Because MFA utilizes fair value accounting for its credit-sensitive assets, reported net income often fails to reflect the underlying cash yield of the portfolio. This accounting treatment necessitates a focus on normalized earnings metrics to assess the true economic health of the firm's lending operations.
Financial disclosures indicate that MFA's reliance on fair value accounting for MSRs and CRT securities introduces significant management judgment, which may lead to earnings volatility that does not necessarily reflect the underlying cash-generating capacity of the firm's credit-sensitive residential loan assets during periods of market stress.
The reliance on internal models to value complex assets like MSRs suggests that reported cash flow figures may be subject to significant revision if market assumptions regarding prepayment speeds or default rates shift. Investors should be cautious of the potential for future impairment charges that are not currently captured in the cash flow statement.
Quick answers to the most common questions about buying MFA stock.
MFA Financial, Inc. (MFA) generated $76.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
MFA Financial, Inc. (MFA) generated $76.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
MFA Financial, Inc. (MFA) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, MFA Financial, Inc. (MFA) returned $40.3M to shareholders via cash dividends and spent $15.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.