Here's How Rithm Capital Can Afford Its 9.7% Dividend Yield
Most mortgage companies have struggled over the past 18 months as the Federal Reserve has hiked interest rates to defeat inflation. Mortgage originators saw volumes collapse as refinancing incentives disappeared, while mortgage real estate investment trusts (REITs) have struggled with declining asset values.
Most mortgage REITs have been forced to cut their dividends. Rithm Capital (NYSE: RITM) has managed to buck this trend and has a 9.7% dividend yield. How does it do it?
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Source Fool.com