Rithm Capital

RITM

Market cap $5.59B

Rithm Capital delivered robust Q4 results, with distributable earnings exceeding expectations and asset management revenues surging over 323% quarter-over-quarter. RITM's dividend is exceptionally well covered, with a Q4 coverage ratio of 296%, reflecting strong earnings and a resilient investment platform. The company's evolution into a diversified alternative asset manager, surpassing $100B in investable assets, underpins its high-quality, high-yield profile.

Rithm Capital may be the best-managed mREIT. RITM has greatly outperformed the sector over the last 5 years and pays a nice dividend yield of 9.45%. RITM has been focusing on becoming a large asset manager and moving away from simply being an mREIT. This means a likely conversion to a C corporation structure. A change to a C corporate structure means that dividends on its preferred stocks would become “qualified,” giving RITM preferred stocks huge after-tax yields.

Rithm Capital Corp. preferreds are compared, with Series C retaining a Buy rating, but Series F also merits consideration. RITM.PR.C offers a 9.4% yield and is attractive below Par, balancing yield and call risk for long-term investors. The recent acquisition of Paramount Group expands RITM's commercial real estate platform and supports future growth ambitions.

NEW YORK--(BUSINESS WIRE)-- #creditratingagency--KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM3 (NRMLT 2026-NQM3), a $475.8 million non-prime RMBS transaction sponsored by Rithm Capital Corp. (formerly New Residential Investment Corp.), a publicly traded (NYSE: RITM) real estate investment trust (REIT). The underlying mortgages in the subject pool were primarily originated by NewRez LLC (57.5%). In addition, all loans will be serviced by New.

Rithm Capital's preferred share RITM-D offers a 7.07% yield and a yield-to-call near 8.3%, with a reset rate likely around 10%. I see a high probability of RITM-D being called or trading above $25 as the 11/15/2026 call date approaches, especially if Treasury rates hold. RITM-D is currently slightly attractive; a 1.5% price decline would make it a strong buy due to improved yield-to-call.

Investors love dividend stocks, especially high-yield varieties, because they offer a significant income stream and have substantial total return potential.

Rithm Capital Corp. is rated a Buy, driven by robust EAD coverage, a 9.3% dividend yield, and a discounted valuation to book value. RITM's EAD of $0.74 per share covers its $0.25 dividend by 296%, supporting both common and preferred shares with strong payout sustainability. Growth in asset management, notably via Sculptor Capital and the Crestline acquisition, could drive multiple expansion from recurring fee income.

Rithm Capital Corp. (RITM) Q4 2025 Earnings Call Transcript

NEW YORK--(BUSINESS WIRE)-- #creditratingagency--KBRA assigns preliminary ratings to 10 classes of mortgage-backed notes from New Residential Mortgage Loan Trust 2026-NQM2 (NRMLT 2026-NQM2), a $508.0 million non-prime RMBS transaction sponsored by Rithm Capital Corp. (formerly New Residential Investment Corp.), a publicly traded (NYSE: RITM) real estate investment trust (REIT). The underlying mortgages in the subject pool were primarily originated by NewRez LLC (67.6%). In addition, all loans will be serviced by New.

Although the revenue and EPS for Rithm (RITM) give a sense of how its business performed in the quarter ended December 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.