Jones Trading Reaffirms Buy Rating on Redwood Trust, Adjusts Price Target to $6.25
Fastest News Alerts: Benzinga Pro offers real-time intelligence to help traders stay updated and make informed decisions in the stock market.
Exclusive Stories: The platform provides unique stories and insights generated by Benzinga reporters, enhancing the trading experience for its users.
Community of Traders: Over 10,000 serious traders are part of the Benzinga Pro community, benefiting from shared knowledge and resources.
Market Intelligence: Benzinga Pro is positioned as a source for the most accurate and timely stock market intelligence available.
Trade with 70% Backtested Accuracy
Analyst Views on RWT
About RWT
About the author
Redwood Trust Announces Tax Information for 2025 Dividends
- Dividend Distribution Overview: Redwood Trust expects that 39% of its 2025 common stock dividend distributions will be classified as ordinary income, 2% as qualified dividends, and 59% as return of capital, which will impact shareholders' tax filings and cash flow.
- Preferred Stock Distribution Details: The preferred stock dividends for 2025 are anticipated to be 96% ordinary income and 4% qualified dividends, necessitating shareholders to plan their taxes accordingly to mitigate potential tax burdens.
- REIT Tax Implications: As Redwood operates as a Real Estate Investment Trust (REIT), the portion of qualified dividend income available to shareholders is limited, which may affect their overall tax liabilities and investment returns.
- Investor Consultation Recommendation: The company advises shareholders to consult tax advisors to ensure their tax filings align with Redwood's dividend distribution information, thereby avoiding potential tax issues from misreporting.
Redwood Trust Announces 2025 Dividend Tax Information
- Dividend Distribution Overview: Redwood Trust expects that 39% of its 2025 common stock dividend distributions will be classified as ordinary income, 2% as qualified dividends, and 59% as return of capital, impacting shareholders' tax filings and cash flow.
- Preferred Stock Dividend Details: The preferred stock dividends for 2025 are anticipated to be 96% ordinary income and 4% qualified dividends, which shareholders must report on their 2025 federal tax returns, affecting their tax liabilities.
- Tax Deduction Opportunities: Individual taxpayers may benefit from a 20% deduction on ordinary income REIT dividends under Section 199A, provided they meet specific holding period requirements, potentially offering tax advantages to shareholders.
- REIT Structure Implications: Due to Redwood's classification as a REIT, the portion of dividends classified as qualified dividends is limited, and corporate shareholders generally do not qualify for the dividend-received deduction, which may influence their investment strategies.
KBW Announces Q4 2025 Index Rebalancing with Changes Across Six Indices
- Index Component Changes: The KBW Nasdaq Insurance Index will add four companies, including Arthur J. Gallagher & Co. and Chubb Limited, while dropping four others like Ameriprise Financial, indicating shifts in market dynamics.
- Regional Banking Index Update: The KBW Nasdaq Regional Banking Index will add Axos Financial, Inc. and remove Synovus Financial Corp., reflecting a focus on emerging banks in the sector.
- Financial Sector Dividend Yield Index Adjustments: This index will add eight companies, such as Blue Owl Capital and Franklin BSP Realty Trust, while removing eight others, demonstrating a continued pursuit of high-yield investments.
- REIT Index Expansion: The KBW Nasdaq Premium Yield Equity REIT Index will add twelve companies, showcasing confidence in the real estate market, while removing nine, reflecting a trend of market consolidation.
KBW Announces Q4 2025 Index Rebalancing with Changes Across Six Indices
- Index Component Changes: The KBW Nasdaq Insurance Index adds four companies, including Arthur J. Gallagher & Co. and Chubb Limited, while dropping four others, reflecting market dynamics.
- Regional Banking Index Update: The KBW Nasdaq Regional Banking Index adds Axos Financial, Inc. and removes Synovus Financial Corp., indicating a focus on emerging fintech companies.
- Dividend Yield Index Adjustments: The KBW Nasdaq Financial Sector Dividend Yield Index adds eight companies and drops eight, demonstrating ongoing investor interest in high-yield investments.
- REIT Index Expansion: The KBW Nasdaq Premium Yield Equity REIT Index adds twelve companies while removing nine, reflecting the vibrancy of the real estate market and investor confidence.
The Resurgence of Small-Caps May Propel These 7%-14% Dividend Stocks
Small-Cap Stocks on the Rise: Small-cap stocks are gaining attention as interest rates decline, with four notable stocks yielding between 7.1% and 13.3%, signaling potential bullish trends as we approach 2026.
Nuveen Churchill Direct Lending (NCDL): NCDL offers a high dividend yield of 13.0% and is involved in financing small businesses, benefiting from lower borrowing costs despite a complex relationship with Fed rate changes.
UWM Holdings (UWMC): As America's largest home mortgage lender, UWMC has a 7.1% dividend yield and is positioned to benefit from lower mortgage rates, although its shares are not considered cheap.
Redwood Trust (RWT) and Franklin BSP Realty Trust (FBRT): RWT, with a 12.7% yield, focuses on jumbo mortgages and is expected to improve earnings, while FBRT, yielding 13.3%, deals in commercial mortgage-backed securities but faces challenges in maintaining its dividend.
Redwood Trust Sets Pricing for $100 Million Senior Notes Issuance
Public Offering Announcement: Redwood Trust, Inc. has priced a public offering of $100 million in 9.50% senior notes due 2030, with an option for underwriters to purchase an additional $15 million. The offering is expected to close on November 19, 2025.
Use of Proceeds: The net proceeds from the offering will be used for general corporate purposes, including funding operating businesses, investment activities, and strategic acquisitions.
Notes Details: The senior unsecured notes will bear interest at 9.50% per year, payable quarterly, and will mature on December 1, 2030. Redwood has the option to redeem the notes starting December 1, 2027.
Company Overview: Redwood Trust is a specialty finance company focused on providing liquidity in the U.S. housing market, operating through platforms like Sequoia, Aspire, and CoreVest, and is structured as a real estate investment trust (REIT).
Redwood Trust Announces Tax Information for 2025 Dividends
- Dividend Distribution Overview: Redwood Trust expects that 39% of its 2025 common stock dividend distributions will be classified as ordinary income, 2% as qualified dividends, and 59% as return of capital, which will impact shareholders' tax filings and cash flow.
- Preferred Stock Distribution Details: The preferred stock dividends for 2025 are anticipated to be 96% ordinary income and 4% qualified dividends, necessitating shareholders to plan their taxes accordingly to mitigate potential tax burdens.
- REIT Tax Implications: As Redwood operates as a Real Estate Investment Trust (REIT), the portion of qualified dividend income available to shareholders is limited, which may affect their overall tax liabilities and investment returns.
- Investor Consultation Recommendation: The company advises shareholders to consult tax advisors to ensure their tax filings align with Redwood's dividend distribution information, thereby avoiding potential tax issues from misreporting.
Redwood Trust Announces 2025 Dividend Tax Information
- Dividend Distribution Overview: Redwood Trust expects that 39% of its 2025 common stock dividend distributions will be classified as ordinary income, 2% as qualified dividends, and 59% as return of capital, impacting shareholders' tax filings and cash flow.
- Preferred Stock Dividend Details: The preferred stock dividends for 2025 are anticipated to be 96% ordinary income and 4% qualified dividends, which shareholders must report on their 2025 federal tax returns, affecting their tax liabilities.
- Tax Deduction Opportunities: Individual taxpayers may benefit from a 20% deduction on ordinary income REIT dividends under Section 199A, provided they meet specific holding period requirements, potentially offering tax advantages to shareholders.
- REIT Structure Implications: Due to Redwood's classification as a REIT, the portion of dividends classified as qualified dividends is limited, and corporate shareholders generally do not qualify for the dividend-received deduction, which may influence their investment strategies.
KBW Announces Q4 2025 Index Rebalancing with Changes Across Six Indices
- Index Component Changes: The KBW Nasdaq Insurance Index will add four companies, including Arthur J. Gallagher & Co. and Chubb Limited, while dropping four others like Ameriprise Financial, indicating shifts in market dynamics.
- Regional Banking Index Update: The KBW Nasdaq Regional Banking Index will add Axos Financial, Inc. and remove Synovus Financial Corp., reflecting a focus on emerging banks in the sector.
- Financial Sector Dividend Yield Index Adjustments: This index will add eight companies, such as Blue Owl Capital and Franklin BSP Realty Trust, while removing eight others, demonstrating a continued pursuit of high-yield investments.
- REIT Index Expansion: The KBW Nasdaq Premium Yield Equity REIT Index will add twelve companies, showcasing confidence in the real estate market, while removing nine, reflecting a trend of market consolidation.
KBW Announces Q4 2025 Index Rebalancing with Changes Across Six Indices
- Index Component Changes: The KBW Nasdaq Insurance Index adds four companies, including Arthur J. Gallagher & Co. and Chubb Limited, while dropping four others, reflecting market dynamics.
- Regional Banking Index Update: The KBW Nasdaq Regional Banking Index adds Axos Financial, Inc. and removes Synovus Financial Corp., indicating a focus on emerging fintech companies.
- Dividend Yield Index Adjustments: The KBW Nasdaq Financial Sector Dividend Yield Index adds eight companies and drops eight, demonstrating ongoing investor interest in high-yield investments.
- REIT Index Expansion: The KBW Nasdaq Premium Yield Equity REIT Index adds twelve companies while removing nine, reflecting the vibrancy of the real estate market and investor confidence.
The Resurgence of Small-Caps May Propel These 7%-14% Dividend Stocks
Small-Cap Stocks on the Rise: Small-cap stocks are gaining attention as interest rates decline, with four notable stocks yielding between 7.1% and 13.3%, signaling potential bullish trends as we approach 2026.
Nuveen Churchill Direct Lending (NCDL): NCDL offers a high dividend yield of 13.0% and is involved in financing small businesses, benefiting from lower borrowing costs despite a complex relationship with Fed rate changes.
UWM Holdings (UWMC): As America's largest home mortgage lender, UWMC has a 7.1% dividend yield and is positioned to benefit from lower mortgage rates, although its shares are not considered cheap.
Redwood Trust (RWT) and Franklin BSP Realty Trust (FBRT): RWT, with a 12.7% yield, focuses on jumbo mortgages and is expected to improve earnings, while FBRT, yielding 13.3%, deals in commercial mortgage-backed securities but faces challenges in maintaining its dividend.
Redwood Trust Sets Pricing for $100 Million Senior Notes Issuance
Public Offering Announcement: Redwood Trust, Inc. has priced a public offering of $100 million in 9.50% senior notes due 2030, with an option for underwriters to purchase an additional $15 million. The offering is expected to close on November 19, 2025.
Use of Proceeds: The net proceeds from the offering will be used for general corporate purposes, including funding operating businesses, investment activities, and strategic acquisitions.
Notes Details: The senior unsecured notes will bear interest at 9.50% per year, payable quarterly, and will mature on December 1, 2030. Redwood has the option to redeem the notes starting December 1, 2027.
Company Overview: Redwood Trust is a specialty finance company focused on providing liquidity in the U.S. housing market, operating through platforms like Sequoia, Aspire, and CoreVest, and is structured as a real estate investment trust (REIT).
