Redwood Trust, Inc. to Issue Quarterly Dividend of $0.18 (NYSE:RWT)

Redwood Trust, Inc. (NYSE:RWT) announced a quarterly dividend on Thursday, March 13th, RTT News reports. Investors of record on Monday, March 24th will be paid a dividend of 0.18 per share by the real estate investment trust on Monday, March 31st. This represents a $0.72 dividend on an annualized basis and a dividend yield of 11.28%. The ex-dividend date is Monday, March 24th.

Redwood Trust has decreased its dividend payment by an average of 4.9% annually over the last three years. Redwood Trust has a dividend payout ratio of 94.7% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. 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 Stock Performance

Shares of RWT stock opened at $6.39 on Friday. Redwood Trust has a 1 year low of $5.45 and a 1 year high of $8.15. The business has a fifty day moving average of $6.44 and a 200 day moving average of $7.00. The company has a debt-to-equity ratio of 14.09, a current ratio of 44.36 and a quick ratio of 44.36. The firm has a market capitalization of $846.14 million, a price-to-earnings ratio of 19.35 and a beta of 1.63.

Redwood Trust (NYSE:RWT) last released its earnings results on Thursday, February 13th. The real estate investment trust reported $0.13 earnings per share for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.03). The business had revenue of $27.60 million during the quarter, compared to analysts’ expectations of $26.00 million. Redwood Trust had a return on equity of 6.91% and a net margin of 9.35%. As a group, research analysts expect that Redwood Trust will post 0.78 earnings per share for the current year.

Wall Street Analyst Weigh In

RWT has been the subject of several research analyst reports. JMP Securities restated a “market outperform” rating and issued a $8.00 price objective on shares of Redwood Trust in a research note on Friday, February 14th. JPMorgan Chase & Co. cut their price target on Redwood Trust from $7.00 to $6.50 and set a “neutral” rating for the company in a research note on Tuesday, January 21st. Finally, StockNews.com upgraded shares of Redwood Trust from a “sell” rating to a “hold” rating in a report on Wednesday, March 5th. Five research analysts have rated the stock with a hold rating, two have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $7.75.

About Redwood Trust

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.