Redwood Trust, Inc. (NYSE:RWT) to Issue $0.30 Quarterly Dividend

Redwood Trust, Inc. (NYSE:RWT) declared a quarterly dividend on Wednesday, August 7th, RTT News reports. Investors of record on Monday, September 16th will be given a dividend of 0.30 per share by the real estate investment trust on Monday, September 30th. This represents a $1.20 dividend on an annualized basis and a yield of 7.10%.

Redwood Trust has increased its dividend by an average of 1.8% per year over the last three years. Redwood Trust has a payout ratio of 67.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Redwood Trust to earn $1.65 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 72.7%.

RWT traded up $0.23 during trading hours on Wednesday, reaching $16.89. The company’s stock had a trading volume of 72,269 shares, compared to its average volume of 578,530. Redwood Trust has a fifty-two week low of $14.29 and a fifty-two week high of $17.16. The stock has a market cap of $1.62 billion, a PE ratio of 9.36 and a beta of 0.66. The business has a 50-day moving average of $16.50. The company has a current ratio of 4.25, a quick ratio of 4.25 and a debt-to-equity ratio of 5.30.

Redwood Trust (NYSE:RWT) last announced its earnings results on Thursday, August 1st. The real estate investment trust reported $0.39 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.38 by $0.01. The company had revenue of $32.00 million for the quarter, compared to analyst estimates of $42.20 million. Redwood Trust had a return on equity of 10.99% and a net margin of 21.26%. The firm’s quarterly revenue was down 8.6% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.41 earnings per share. As a group, sell-side analysts anticipate that Redwood Trust will post 1.49 earnings per share for the current fiscal year.

Separately, Zacks Investment Research raised Redwood Trust from a “hold” rating to a “buy” rating and set a $19.00 target price on the stock in a research report on Thursday, August 1st. Two investment analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. Redwood Trust currently has an average rating of “Buy” and an average target price of $18.00.

About Redwood Trust

Redwood Trust, Inc, together with its subsidiaries, operates as a specialty finance company in the United States. The company operates through two segments, Investment Portfolio and Residential Mortgage Banking. The Investment Portfolio segment offers a portfolio of investments in residential mortgage-backed securities retained from Sequoia securitizations, as well as issued by third parties and other credit risk-related investments; and invests directly in residential mortgage loans.

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Dividend History for Redwood Trust (NYSE:RWT)

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