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Redwood Trust Inc. (RWT) logo

Redwood Trust Inc.

S&P 500

RWT/Real Estate · REIT - Mortgage/NYSE

Dividend Yield

14.47%

$0.72 · Annual Dividend

Stock Price$4.73P/E27.3MCap623.6MLast update: Jun 26, 2026 at 06:56

Dividend Safety Rating

43/ 100Caution

RWT's dividend shows some areas that warrant monitoring. Strengths include a 0.8% fcf payout ratio & 1.0% cfo payout ratio. Areas of concern: 328.6% earnings payout ratio & 92.3% net debt / total assets. As a REIT, higher payout ratios are normal since they are required to distribute most taxable income.

Based on 13 of 15 metrics

Strengths

  • FCF Payout Ratio: 0.8%Free cash flow comfortably covers the dividend.
  • CFO Payout Ratio: 1.0%Operating cash flow strongly supports the payout.
  • Current Ratio: 72.3xStrong short-term liquidity to meet obligations.

Risks

  • Earnings Payout Ratio: 328.6%High earnings payout ratio leaves little safety margin.
  • Net Debt / Total Assets: 92.3%Net debt is high relative to total assets.
  • Debt-to-Equity: 2656.2Debt-to-equity is elevated for the sector.

Payout & Coverage

Safe

Balance Sheet

Warning
72.3xVery Safe
2656.2Danger

Profitability

Danger

Dividend Track Record

Caution
11+ yrsVery Safe
NoneVery Safe
UnstableDanger

About Redwood Trust Inc.

Redwood Trust Inc. is a financial company specializing in real estate investment trusts (REITs) with an emphasis on residential and commercial mortgage banking operations. The primary purpose of Redwood Trust is to provide investors with exposure to income-generating real estate assets, specifically focusing on the origination and acquisition of residential jumbo loans and high-quality securities backed by diversified physical properties. Its operations include mortgage-backed securities and real estate-related compositions, providing crucial capital and liquidity in the mortgage finance market. A notable feature of Redwood Trust is its engagement in securitization activities, making significant contributions to the secondary mortgage market. As a result, Redwood Trust plays a pivotal role in facilitating housing finance and extending financial solutions to under-served market segments. The company’s robust presence within the real estate sector underlines its importance in stabilizing and expanding available resources for homebuyers while offering investors steady income streams. By bridging the gap between mortgage originators and the end-market, Redwood Trust adds vital support to housing affordability and financial innovation in the housing finance ecosystem.

Dividend Overview

Dividend Yield

14.47%

Annual Dividend

$0.72

Frequency

Quarterly

Payout Ratio

328.57%

FCF Payout Ratio

0.83%

52-Week Range

$4.71 - $6.97

Dividend History (2016–2025)

RWT annual dividend per share and yield history

Earnings & Profitability

RWT earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

June 23, 2026

Next Payment Date

June 30, 2026

Dividend Growth

3-Year Dividend CAGR

-7.85%

5-Year Dividend CAGR

-0.14%

10-Year Dividend CAGR

-4.32%

3-Year Total Growth

-21.74%

5-Year Total Growth

-0.69%

10-Year Total Growth

-35.71%

Income Calculator

RWT Dividend Calculator

Total Investment

$473.00

Annual Income

$72.00

Quarterly Income

$18.00

Monthly Income

$6.00

Frequently Asked Questions

What is RWT's current dividend yield?
Redwood Trust Inc. (RWT) currently has a dividend yield of 14.47%, based on a stock price of $4.73 and an annual dividend of $0.72.
When is RWT's next dividend payment date?
RWT's next ex-dividend date is 2026-06-23 and the next payment date is 2026-06-30. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does RWT pay in dividends per year?
Redwood Trust Inc. paid $0.72 per share in annual dividends in 2025. The dividends are paid quarterly.
Has RWT been increasing its dividend?
Redwood Trust Inc. has grown its dividend at a 5-year CAGR of -0.14% and a 10-year CAGR of -4.32%.
Is RWT's dividend safe?
Redwood Trust Inc. has a payout ratio of 328.57%. Its free cash flow payout ratio is 0.83%. The payout ratio is above 100%, which may indicate the company is paying more in dividends than it earns. This could be unsustainable long-term.
How is RWT's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Redwood Trust Inc.'s dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for real estate companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.