Redwood Trust, Inc. (NYSE:RWT) Declares $0.18 Quarterly Dividend

Key Points

• Redwood Trust declared a quarterly dividend of $0.18 per share (annualized $0.72), payable March 31 with an ex‑dividend/record date of March 24, representing a 12.2% yield.
• The dividend is currently covered by earnings with a payout ratio of 86.7%; analysts project $0.90 EPS next year (implying an expected payout ratio of ~80%), but coverage could be strained if earnings decline.
• Analysts give the stock a consensus rating of Moderate Buy with an average target of $6.96; shares trade around $5.90 with a market cap near $738 million.

Redwood Trust, Inc. (NYSE:RWT - Get Free Report) announced a quarterly dividend on Thursday, March 12th. Stockholders of record on Tuesday, March 24th will be given a dividend of 0.18 per share by the real estate investment trust on Tuesday, March 31st. This represents a c) dividend on an annualized basis and a dividend yield of 12.2%. The ex-dividend date of this dividend is Tuesday, March 24th.

Redwood Trust has decreased its dividend payment by an average of 0.0%per year over the last three years and has increased its dividend every year for the last 1 years. Redwood Trust has a dividend payout ratio of 86.7% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Research analysts expect Redwood Trust to earn $0.90 per share next year, which means the company should continue to be able to cover its $0.72 annual dividend with an expected future payout ratio of 80.0%.

Redwood Trust Price Performance

Shares of Redwood Trust stock opened at $5.90 on Friday. The company has a current ratio of 55.15, a quick ratio of 55.15 and a debt-to-equity ratio of 24.34. Redwood Trust has a 1-year low of $4.68 and a 1-year high of $6.97. The firm has a fifty day simple moving average of $5.87 and a 200-day simple moving average of $5.73. The stock has a market capitalization of $737.94 million, a price-to-earnings ratio of -9.68 and a beta of 1.55.

Redwood Trust (NYSE:RWT - Get Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.22 by ($0.02). The firm had revenue of $140.33 million during the quarter, compared to the consensus estimate of $24.88 million. Redwood Trust had a negative net margin of 5.93% and a positive return on equity of 12.00%. On average, sell-side analysts expect that Redwood Trust will post 0.78 earnings per share for the current year.

Analyst Ratings Changes

A number of analysts have issued reports on the company. Wall Street Zen raised Redwood Trust from a "sell" rating to a "hold" rating in a report on Sunday, February 15th. JonesTrading reaffirmed a "buy" rating and set a $6.25 price objective on shares of Redwood Trust in a research report on Tuesday, March 3rd. Keefe, Bruyette & Woods increased their price objective on shares of Redwood Trust from $5.75 to $7.00 and gave the company a "market perform" rating in a report on Wednesday, February 18th. Citigroup reissued a "market perform" rating on shares of Redwood Trust in a research note on Wednesday, February 18th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Redwood Trust in a research note on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $6.96.

Redwood Trust Company Profile

Redwood Trust, Inc NYSE: RWT is a publicly traded real estate investment trust specializing in the U.S. residential mortgage market. Headquartered in Mill Valley, California, the company focuses on investing in a diversified portfolio of residential mortgage assets, including whole loans, agency and non-agency mortgage-backed securities, and structured credit products.

The company's core activities encompass the acquisition, financing, and management of prime residential mortgage whole loans and mortgage-backed securities.

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