Addressing Performance Concerns: Redwood Trust Manages Decreased Earnings and Adjusts Dividends

Invesco Mortgage Capital Inc. +1.98%
Redwood Trust, Inc. +0.89%

Invesco Mortgage Capital Inc.

IVR

8.25

+1.98%

Redwood Trust, Inc.

RWT

5.68

+0.89%

As the day concludes, Redwood Trust (NYSE:RWT) is preparing to distribute a dividend payout of $0.16 per share, resulting in an annualized dividend yield of 8.98%. This payout is exclusive to investors who held the stock before the ex-dividend date on December 19, 2023.

Redwood Trust Recent Dividend Payouts

Ex-Date Payments per year Dividend Yield Announced Record Payable
2023-12-19 4 $0.16 8.98% 2023-12-07 2023-12-20 2023-12-28
2023-09-21 4 $0.16 8.26% 2023-09-12 2023-09-22 2023-09-29
2023-06-22 4 $0.16 9.83% 2023-06-13 2023-06-23 2023-06-30
2023-03-23 4 $0.23 13.51% 2023-03-14 2023-03-24 2023-03-31
2022-12-19 4 $0.23 12.11% 2022-12-08 2022-12-20 2022-12-28
2022-09-22 4 $0.23 12.43% 2022-09-13 2022-09-23 2022-09-30
2022-06-22 4 $0.23 9.94% 2022-06-09 2022-06-23 2022-06-30
2022-03-23 4 $0.23 8.54% 2022-03-14 2022-03-24 2022-03-31
2021-12-16 4 $0.23 6.92% 2021-12-07 2021-12-17 2021-12-28
2021-09-22 4 $0.21 6.85% 2021-09-13 2021-09-23 2021-09-30
2021-06-22 4 $0.18 6.01% 2021-06-10 2021-06-23 2021-06-30
2021-03-23 4 $0.16 6.49% 2021-03-10 2021-03-24 2021-03-31

Redwood Trust's dividend yield falls in the middle range when compared to its industry peers, with Invesco Mortgage Capital (NYSE:IVR) having the highest annualized dividend yield at 16.70%.

Analyzing Redwood Trust Financial Health

Companies that pay out steady cash dividends are attractive to income-seeking investors, and companies that are financially healthy tend to maintain their dividend payout schedule. For this reason, investors can find it insightful to see if a company has been increasing or decreasing their dividend payout schedule and if their earnings are growing.

YoY Growth in Dividend Per Share

dividend chart graph

The company experienced a decrease in dividend per share from 2019 to 2022, with the dividend per share decreasing from $1.20 to $0.92. This decline in dividends is concerning for investors and demands further analysis to determine the contributing factors.

YoY Earnings Growth For Redwood Trust

earning chart graph

From 2019 to 2022, Redwood Trust experienced a decrease in earnings per share, dropping from $1.51 to $0.85. This declining earnings trend may be worrisome for income-seeking investors, as it indicates a potential impact on the company's ability to sustain or increase its cash dividend payouts. Further analysis is necessary to understand the underlying reasons for this decrease.

Recap

In this article, we delve into Redwood Trust's recent dividend payout and examine how it impacts shareholders. The company has announced a dividend distribution of $0.16 per share today, resulting in an annualized dividend yield of 8.98%.

Redwood Trust's dividend yield falls in the middle range when compared to its industry peers, with Invesco Mortgage Capital having the highest annualized dividend yield at 16.70%.

The decrease in both dividend per share and earnings per share from 2019 to 2022 for Redwood Trust suggests financial challenges, which may require a cautious approach in distributing profits to shareholders.

Keeping a close watch on the company's performance in the coming quarters will enable investors to stay abreast of any modifications in financials or dividend disbursements.

[See current stock movements Redwood Trust on Benzinga.](https://www.benzinga.com/quote/Redwood Trust (NYSE: RWT))

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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