Why Is Rithm Capital's Dividend So High?
This year has been extraordinarily difficult for companies in the mortgage business. Mortgage originators saw a collapse in volume as rising rates made refinancing unattractive for homeowners. Mortgage real estate investment trusts (REITs) were beset by a combination of rising rates and mortgage-backed security underperformance. As a result, many of these companies now have quite high dividend yields.
Rithm Capital (NYSE: RITM) is a combination mortgage originator and mortgage REIT and its dividend yield now hovers around 11%. Is that dividend sustainable?
Image source: Getty Images.
Source Fool.com