Redwood Trust, Inc. (NYSE:RWT) Raises Dividend to $0.17 Per Share

Redwood Trust, Inc. (NYSE:RWT) declared a quarterly dividend on Wednesday, September 11th, RTT News reports. Stockholders of record on Monday, September 23rd will be given a dividend of 0.17 per share by the real estate investment trust on Monday, September 30th. This represents a $0.68 annualized dividend and a dividend yield of 8.81%. This is an increase from Redwood Trust’s previous quarterly dividend of $0.16.

Redwood Trust has a payout ratio of 86.5% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings tumble. Equities analysts expect Redwood Trust to earn $0.74 per share next year, which means the company should continue to be able to cover its $0.64 annual dividend with an expected future payout ratio of 86.5%.

Redwood Trust Price Performance

Shares of RWT stock traded up $0.32 during trading on Thursday, hitting $7.72. The company had a trading volume of 253,357 shares, compared to its average volume of 1,139,137. The stock’s 50-day moving average is $7.19 and its two-hundred day moving average is $6.55. The stock has a market capitalization of $1.02 billion, a price-to-earnings ratio of 105.71 and a beta of 1.58. The company has a quick ratio of 50.47, a current ratio of 50.47 and a debt-to-equity ratio of 12.97. Redwood Trust has a 52 week low of $5.45 and a 52 week high of $8.00.

Redwood Trust (NYSE:RWT) last posted its quarterly earnings data on Thursday, August 1st. The real estate investment trust reported $0.13 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.01. Redwood Trust had a net margin of 4.45% and a return on equity of 4.93%. During the same quarter in the previous year, the company posted $0.14 EPS. As a group, analysts predict that Redwood Trust will post 0.5 EPS for the current fiscal year.

Wall Street Analyst Weigh In

RWT has been the topic of a number of research reports. Wedbush raised their price objective on Redwood Trust from $6.50 to $7.00 and gave the company a “neutral” rating in a report on Friday, August 2nd. Piper Sandler boosted their price objective on shares of Redwood Trust from $6.50 to $7.50 and gave the stock a “neutral” rating in a report on Monday, August 5th. JPMorgan Chase & Co. increased their target price on shares of Redwood Trust from $7.00 to $7.50 and gave the company an “overweight” rating in a report on Tuesday, July 16th. Finally, JMP Securities boosted their price target on shares of Redwood Trust from $8.00 to $8.50 and gave the stock a “market outperform” rating in a research note on Friday, July 19th. Four investment analysts have rated the stock with a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $7.81.

Redwood Trust Company Profile

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through three segments: Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio. The Residential Consumer Mortgage Banking segment operates a mortgage loan conduit that acquires residential loans from third-party originators for subsequent sale, securitization, or transfer to its investment portfolio.