This Stock Offers a 9.17% Yield and Trades Below Its Book Value
Dividend Investing Strategy: Dividend investors focus on identifying profitable companies with attractive valuations, utilizing a proprietary DividendRank formula to generate a list of promising stocks for further research.
REITs and Dividend Payments: Real Estate Investment Trusts (REITs) are favored by dividend investors due to their requirement to distribute at least 90% of taxable income as dividends, though this can lead to volatility in dividend payments.
Rithm Capital Corp Dividend: Rithm Capital Corp currently pays an annualized dividend of $1 per share, distributed quarterly, with its last dividend ex-date on October 1, 2025, highlighting the importance of analyzing a company's dividend history.
Author's Perspective: The views expressed in the report are those of the author and do not necessarily represent the opinions of Nasdaq, Inc.
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- Transaction Size: KBRA has assigned preliminary ratings to NRMLT 2026-NQM3, a $475.8 million non-prime RMBS transaction sponsored by Rithm Capital Corp., indicating ongoing activity in the non-prime RMBS market that is likely to attract investor interest.
- Mortgage Pool Characteristics: The transaction is backed by a pool of 884 residential mortgages with a weighted average original credit score of 758 and both loan-to-value (LTV) and combined LTV (CLTV) at 72.1%, reflecting a high credit quality of borrowers that helps mitigate default risk.
- Rating Methodology: KBRA's rating approach incorporates loan-level analysis through its Residential Asset Loss Model (REALM), alongside third-party due diligence results and cash flow modeling, ensuring the accuracy and reliability of the ratings, which enhances market confidence.
- Servicer Role: All loans will be serviced by NewRez LLC, which accounts for 57.5% of the loan pool, and its professional management capabilities are expected to further enhance the transaction's stability and investor trust.
- Transaction Size: KBRA has assigned preliminary ratings to the NRMLT 2026-NQM3 transaction, sponsored by Rithm Capital Corp., which totals $475.8 million, indicating ongoing market demand for non-prime mortgage-backed securities.
- Loan Quality: The pool consists of 884 residential mortgages with a weighted average original credit score of 758 and a weighted average loan-to-value (LTV) ratio of 72.1%, suggesting strong borrower repayment capacity and reduced investment risk.
- Servicer Role: All loans will be serviced by NewRez LLC, which accounts for 57.5% of the loan pool, and its expertise will directly impact loan performance and investor confidence.
- Rating Methodology: KBRA utilized its Residential Asset Loss Model (REALM) for loan-level analysis, incorporating third-party due diligence results and cash flow modeling to ensure the accuracy and transparency of the ratings.
- Earnings Release Schedule: Rithm Property Trust will release its fourth quarter and full year 2025 financial results on February 13, 2026, prior to the NYSE opening, demonstrating the company's commitment to transparency and investor communication.
- Conference Call Timing: Management will host a conference call at 8:00 A.M. Eastern Time on the same day to provide detailed insights into the financial results and address investor inquiries, thereby enhancing investor confidence.
- Webcast Pre-registration: The company encourages participants to pre-register for the webcast, providing a link to ensure investors can smoothly access the latest information, reflecting the company's focus on investor experience.
- Telephonic Replay Service: A telephonic replay will be available two hours after the call's completion until 11:59 P.M. Eastern Time on February 20, 2026, offering convenience for investors who cannot attend live, further enhancing information accessibility.
- Significant Earnings Growth: Rithm Capital reported earnings available for distribution of $2.35 per diluted share for 2025, reflecting a 12% year-over-year increase, indicating strong performance in asset management and real estate that is likely to attract more investor interest.
- Acquisition-Driven Expansion: The acquisition of Paramount has transformed Rithm Capital's position in the commercial real estate sector, making Paramount the fourth largest office owner in New York City, with a purchase price at a 40% discount to pre-COVID values, enhancing market competitiveness.
- New Business Line Development: The Genesis business originated $4.8 billion in 2025, with earnings up 250%, while NewRez's non-agency originations grew by 147% year-over-year, demonstrating the company's ongoing growth potential in high-demand lending sectors.
- Optimistic Future Outlook: Management forecasts a revenue increase of approximately 10% for NewRez in 2026 and emphasizes a cautious strategy in technology investments and capital allocation to ensure sustainable long-term growth.
- Transaction Size: KBRA has assigned preliminary ratings to NRMLT 2026-NQM2, a $508 million non-prime RMBS transaction sponsored by Rithm Capital Corp., indicating increased activity in the non-prime RMBS market that may attract more investor interest.
- Mortgage Pool Characteristics: The transaction is backed by a pool of 882 residential mortgages with a weighted average loan-to-value (LTV) of 72.4%, reflecting relatively high credit quality among borrowers, which could mitigate investment risks.
- Credit Score Analysis: Borrowers in the pool possess a weighted average original credit score of 758, indicating strong overall creditworthiness, which provides confidence to investors and may facilitate the successful issuance of the transaction.
- Rating Methodology: KBRA's rating approach incorporates loan-level analysis through its Residential Asset Loss Model (REALM), alongside third-party due diligence results and cash flow modeling, ensuring accuracy and transparency in ratings, thereby enhancing market trust in the transaction.
- Earnings Beat: Rithm Capital reported Q4 EPS of $0.74, exceeding analyst expectations of $0.58 and rising from $0.54 in Q3, indicating strengthened profitability and operational momentum.
- Revenue Growth: Q4 revenue reached $1.29 billion, surpassing the consensus estimate of $1.24 billion and increasing from $1.11 billion in the prior quarter, reflecting positive contributions from recent acquisitions of Crestline Management and Paramount Group.
- Asset Management Expansion: As of December 31, 2025, Sculptor Capital's assets under management grew to $38 billion, up from $37 billion as of September 30, 2025, showcasing the firm's ongoing growth and appeal in the asset management sector.
- Rising Expenses: Despite revenue growth, Rithm Capital's expenses increased to $1.17 billion from $938.9 million in Q3, indicating cost pressures associated with business expansion, which may impact future profitability.







