High yielding REIT Redwood Trust announces 2024 hike
RWT increases dividend by 6.3% and now yields 9.2%
Redwood Trust (RWT) will raise its quarterly dividend by 6.3% to $0.17 quarterly per share. The dividend yield jumps to 9.2%. Last year Redwood announced a 30.4% dividend cut from 23 cents to 16 cents.
The Board has authorized the declaration of a third quarter 2024 regular common stock dividend of $0.17 per share, a 6.25% increase from the second quarter of 2024. This marks the Company's 101st consecutive quarterly common dividend. The third quarter 2024 common stock dividend is payable on September 30, 2024 to stockholders of record on September 23, 2024.
“We are pleased to announce an increase in our common dividend, reflecting our continued confidence in the strength of our balance sheet and our outlook heading into a more accommodative interest rate environment,” said Christopher Abate, Chief Executive Officer of Redwood. “This increase underscores the progress we’ve made towards the goals laid out at our March 2024 Investor Day and reaffirms our commitment to generating long-term value for our shareholders. Moving forward, we anticipate the evolving macro environment to facilitate further scale in our mortgage banking operations and unlock the embedded value in our investment portfolio, driving earnings and book value expansion through time.”
Redwood Trust, Inc. is a specialty finance company providing liquidity to underserved segments of the U.S. housing market. Focused on areas of housing credit not typically supported by government programs, Redwood Trust offers customized housing credit investments to a broad range of investors through its leading securitization platforms, whole-loan distribution, and publicly traded shares. Operating across three key segments—Residential Consumer Mortgage Banking, Residential Investor Mortgage Banking, and Investment Portfolio—the company aims to deliver attractive returns through earnings growth, dividends, and capital appreciation. Through its venture investing arm, RWT Horizons®, Redwood Trust supports early-stage companies that align with its operating platforms. Additionally, the Aspire platform enables the direct origination of home equity investments (HEI) to homeowners, further expanding the company’s reach.
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