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

Redwood Trust, Inc. (NYSE:RWT) announced a quarterly dividend on Thursday, March 13th, RTT News reports. Stockholders of record on Monday, March 24th will be given 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 11.44%. The ex-dividend date is Monday, March 24th.

Redwood Trust has decreased its dividend by an average of 4.9% annually over the last three years. Redwood Trust has a payout ratio of 94.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Equities 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 $6.30 on Friday. Redwood Trust has a twelve month low of $5.46 and a twelve month high of $8.15. The company has a quick ratio of 44.36, a current ratio of 44.36 and a debt-to-equity ratio of 14.09. The company has a 50-day simple moving average of $6.44 and a two-hundred day simple moving average of $6.96. The stock has a market capitalization of $834.21 million, a price-to-earnings ratio of 19.08 and a beta of 1.63.

Redwood Trust (NYSE:RWT) last issued its quarterly earnings data on Thursday, February 13th. The real estate investment trust reported $0.13 earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.03). Redwood Trust had a return on equity of 6.91% and a net margin of 9.35%. The business had revenue of $27.60 million during the quarter, compared to analyst estimates of $26.00 million. Analysts forecast that Redwood Trust will post 0.78 EPS for the current year.

Analysts Set New Price Targets

RWT has been the subject of several analyst reports. JMP Securities reiterated 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. decreased their target price on shares of Redwood Trust from $7.00 to $6.50 and set a “neutral” rating on the stock in a report on Tuesday, January 21st. Finally, StockNews.com raised shares of Redwood Trust from a “sell” rating to a “hold” rating in a report on Wednesday, March 5th. Five equities 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 MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price 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.