Redwood Trust Declares First Quarter 2024 Common and Preferred Dividends

Rhea-AI Summary

Redwood Trust, Inc. (RWT) declares first quarter 2024 common stock dividend of $0.16 per share and Series A preferred stock dividend of $0.625 per share. The Company continues its streak of 99 consecutive quarterly common dividends, emphasizing its commitment to shareholders.

Insights

Financial Analyst

Redwood Trust's declaration of its 99th consecutive quarterly common dividend is a testament to the company's financial stability and commitment to shareholder returns. The consistency in paying out dividends can be an indicator of a company's predictable cash flow and mature business model. A dividend of $0.16 per share, while modest, can be attractive to income-focused investors, particularly in a low-interest-rate environment where fixed income yields may be less competitive.

However, it is crucial to assess the dividend yield in the context of the current share price and compare it with industry benchmarks. Investors should also consider the payout ratio, which is the proportion of earnings paid out as dividends, to evaluate whether the dividends are sustainable in the long term without compromising the company's growth prospects or financial health.

Market Research Analyst

The authorization of a Series A preferred stock dividend at a rate of 10.00% reflects a substantial yield, which is often higher than common stock dividends due to the preferential treatment of preferred shares in terms of dividends and liquidation. Preferred shares, such as Redwood's Series A, are typically less volatile than common shares and can be appealing to risk-averse investors. However, the attractiveness of these dividends also depends on the overall interest rate environment and the availability of alternative investment opportunities with similar risk profiles.

It is important for investors to understand the fixed-rate reset feature associated with Redwood's Series A preferred stock. This feature implies that the dividend rate is subject to reset at predetermined intervals, which can impact the investment's return profile, especially in a changing interest rate landscape. This could affect the demand for the Series A preferred stock and consequently its market price.

MILL VALLEY, Calif.--(BUSINESS WIRE)-- Redwood Trust, Inc. (NYSE: RWT; “Redwood” or the “Company”), a leader in expanding access to housing for homebuyers and renters, today announced that its Board of Directors (the “Board”) has declared first quarter 2024 common and preferred stock dividends.

Common Stock Dividend

The Board has authorized the declaration of a first quarter 2024 regular common stock dividend of $0.16 per share. This marks the Company's 99^th consecutive quarterly common dividend. The first quarter 2024 common stock dividend is payable on March 28, 2024 to stockholders of record on March 21, 2024.

Preferred Stock Dividend

In accordance with the terms of Redwood’s 10.00% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock (“Series A”), the Board authorized the declaration of a Series A dividend for the first quarter of 2024 of $0.625 per share. Dividends for the Series A are payable on April 15, 2024 to stockholders of record on April 1, 2024.

About Redwood

Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of housing credit. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the U.S. housing market not well served by government programs. We deliver customized housing credit investments to a diverse mix of investors, through our best-in-class securitization platforms; whole-loan distribution activities; and our publicly traded shares. Our aggregation, origination and investment activities have evolved to incorporate a diverse mix of residential, business purpose and multifamily assets. Our goal is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation, and a commitment to technological innovation that facilitates risk-minded scale. We operate our business in three segments: Residential Mortgage Banking, Business Purpose Mortgage Banking and Investment Portfolio. Additionally, through RWT Horizons^®, our venture investing initiative, we invest in early-stage companies strategically aligned with our business across the lending, real estate, and financial technology sectors to drive innovations across our residential and business-purpose lending platforms. Since going public in 1994, we have managed our business through several cycles, built a track record of innovation, and established a best-in-class reputation for service and a common-sense approach to credit investing. Redwood Trust is internally managed and structured as a real estate investment trust ("REIT") for tax purposes. For more information about Redwood, please visit our website at www.redwoodtrust.com or connect with us on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240314321623/en/

Kaitlyn Mauritz

Head of Investor Relations

Phone: 866-269-4976

Email: investorrelations@redwoodtrust.com

Source: Redwood Trust, Inc.

FAQ

What is the first quarter 2024 common stock dividend declared by Redwood Trust, Inc. (RWT)?

Redwood Trust, Inc. (RWT) declared a first quarter 2024 regular common stock dividend of $0.16 per share.

When is the first quarter 2024 common stock dividend payable to Redwood Trust, Inc. (RWT) stockholders?

The first quarter 2024 common stock dividend is payable on March 28, 2024, to stockholders of record on March 21, 2024.

What is the Series A preferred stock dividend declared by Redwood Trust, Inc. (RWT) for the first quarter of 2024?

Redwood Trust, Inc. (RWT) authorized a Series A dividend for the first quarter of 2024 of $0.625 per share.

When are the dividends for the Series A preferred stock payable to Redwood Trust, Inc. (RWT) stockholders?

The dividends for the Series A preferred stock are payable on April 15, 2024, to stockholders of record on April 1, 2024.