Western Asset Mortgage Opportunity Fund Inc.
DMOFinancial Services · Stock · monthly payer
Forward Yield
14.15%
Annual Dividend
$1.44
Payout Ratio
173%
5-Yr Growth
-0.1%
Ex-Date
Sep 23, 2026
Frequency
Monthly
Summary
As of September 2026, Western Asset Mortgage Opportunity Fund Inc. (DMO) yields 14.15% ($1.44 per share annually), with a blended fair-value estimate of $19.47 — +90% upside, so it screens as undervalued. Dividend safety grade: D (46/100). 3 years of dividend growth.
Is DMO a good dividend stock?
MixedWestern Asset Mortgage Opportunity Fund Inc. (DMO) pays a monthly dividend yielding 14.15% ($1.44/yr), with 3 years of growth and a dividend-safety grade of D. The picture is mixed — the dividend pays, but safety or growth signals are weaker than ideal.
Advantages
Risks
- Cut its dividend in 2022
- Elevated payout ratio (173%)
- Dividend has been shrinking, not growing
- Very high yield can signal elevated risk
- Share price is down over the past 5 years
- Below-average dividend safety score
Key Data
- Dividend Yield
- 14.15%
- Payout Ratio
- 173%
- Annual Dividend
- $1.44
- 5-Yr Avg Growth
- -0.1%
- Ex-Dividend Date
- Sep 23, 2026
- Years of Growth
- 3
- Frequency
- monthly
- Beta
- 0.39
- Market Cap
- $115.8M
- P/E Ratio
- 11.8
- 5-Yr Total Return
- -34%
- 52-Week Range
- $10.23 – $12.11
- Dividend Safety
- D · 46/100
- Ever Cut?
- Yes (2022)
Frequently Asked Questions
DMO Price — Last 12 Months
Daily close
Price Return
1 Year
-13%
3 Years
-4%
5 Years
-34%
52-Week Range
$10.23 – $12.11
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is DMO worth?
Undervaluedlow confidenceOur blended fair-value estimate for Western Asset Mortgage Opportunity Fund Inc. is $19.47 per share, versus a market price of $10.23. That implies 90% of upside — a margin of safety of about 47%.
Fair Value
$19.47
Current Price
$10.23
Upside
+90%
Margin of Safety
47%
How we get there
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about 13.5% annual free-cash-flow growth. We model 0.3% — so the price already assumes faster growth than we think is likely.
Assumptions: 7.0% discount rate (CAPM), 0.3% stage-1 growth, 2.5% terminal growth, $0.86 EPS, $1.44 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
DMO Dividend Safety Score
Risky
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Aug 24, 2026 | — | $0.1200 | regular |
| Jul 24, 2026 | — | $0.1200 | regular |
| Jun 23, 2026 | — | $0.1200 | regular |
| May 21, 2026 | — | $0.1200 | regular |
| Apr 23, 2026 | — | $0.1200 | regular |
| Mar 24, 2026 | — | $0.1200 | regular |
| Feb 20, 2026 | — | $0.1200 | regular |
| Jan 23, 2026 | — | $0.1200 | regular |
| Dec 23, 2025 | — | $0.1200 | regular |
| Nov 20, 2025 | — | $0.1300 | regular |
| Oct 24, 2025 | — | $0.1300 | regular |
| Sep 23, 2025 | — | $0.1300 | regular |
| Aug 22, 2025 | — | $0.1300 | regular |
| Jul 24, 2025 | — | $0.1300 | regular |
Income Calculator
At $1.44 / yr per share
