Rithm Capital Corp. (RITM)
Rithm Capital: The 9% Yielding Preferred Shares Caught My Attention
Rithm Capital benefits from higher rates, with robust earnings and a $54 billion balance sheet anchored by mortgage servicing rights. RITM's preferred dividends are well-covered, with a nearly 300% coverage ratio and common dividends covered by a ~50% payout ratio. The Series F preferred shares (RITM.PR.F) offer a ~9% yield, trading below par, and feature a fixed-to-floating structure post-2031.
Rithm Capital Preferreds: Balancing Yield Against Call Risk (Part II)
Rithm Capital Corp. preferreds present differentiated risk/reward profiles across Series D, E, and F, each with distinct yield and convexity characteristics. RITM.PR.E offers a fixed-rate structure trading at par, with limited upside in declining rates and downside exposure if rates rise due to negative convexity. RITM.PR.D provides a speculative reset opportunity, potentially yielding above 10% if not redeemed, but carries the risk of early redemption given current market conditions.
Rithm Capital Offers A Variety Of Preferreds
Rithm Capital Corporation (RITM) offers six preferred stocks with varying coupons, call protections, and floating/fixed structures for diverse investor needs. RITM's preferred dividend coverage is nearly 6x, and total common equity coverage is just under 5x, indicating adequate risk buffers despite rising preferred obligations. Series E and F preferreds offer years of call protection, while Series D loses protection this fall; Series E is the only fixed coupon option.
Rithm Capital's Updated Sector Comparative Analysis - Part 1 (Includes Recommendation For 17 Peers As Of 6/12/2026)
Part 1 of this article compares RITM's recent investment composition, leverage, hedging coverage ratio, quarterly BV, economic return (loss), and current valuation to 17 mREIT peers. Due to what has occurred during Q2 2026 (fluctuating rates/yields), understanding the composition of RITM's MSR/investment and derivatives portfolio is crucial in understanding current/future performance. My current RITM BV projection and updated price target is in the “Conclusions Drawn” section. RITM is currently deemed notably undervalued (strong buy recommendation).
Rithm (RITM) Stock Dips While Market Gains: Key Facts
In the latest trading session, Rithm (RITM) closed at $9.19, marking a -1.29% move from the previous day.
9.8% Yield Worthy Of A Buy From Rithm Capital
Rithm Capital Corp. (RITM) preferred share RITM-B is in our buy range, offering a compelling risk-reward profile for income-focused investors. RITM-B trades below call value with a stripped yield of 9.78%, and an annualized yield-to-call of 18%, making it attractive relative to sector peers. RITM-B is suitable for low-risk and buy-and-hold investors seeking higher yield, though it carries slightly more risk than Annaly Capital Management's preferreds.
Rithm Capital: Buy The 11% Yield That The Rate Cycle Cannot Easily Break
Rithm Capital is a diversified origination, servicing, and asset management company, not a traditional agency-focused mortgage REIT. RITM's income is driven by fee and servicing businesses, with a large MSR portfolio naturally hedging book value against rising rates. The Buy rating is based on a reliable ~11% yield, covered roughly twice by distributable earnings, with discount closure optionality but no near-term catalyst.
7% Dividend Yield That Resets Soon By Rithm Capital
Rithm Capital Corp. preferred D shares offer an attractive risk-reward profile near current prices, with a 7.08% stripped yield. RITM-D provides a compelling 9.1% annualized yield-to-call if redeemed soon after call protection ends on 11/15/2026. If not called, RITM.PR.D resets to a strong floating yield (10.56% at current rates), likely trading above par barring a recession.
Rithm (RITM) Outpaces Stock Market Gains: What You Should Know
Rithm (RITM) concluded the recent trading session at $9.25, signifying a +1.65% move from its prior day's close.
Rithm Capital: MSR Portfolio An Asset In A Rising-Rate World
Rithm Capital is evolving into a diversified investment firm, expanding its asset management and third-party investment services. RITM's core mortgage servicing rights benefit from a higher-for-longer rate environment, supporting distributable earnings and dividend stability. First-quarter 2026 distributable earnings of $0.51/share covered the $0.25 dividend with a robust 204% coverage ratio.
Don't Chase mREIT Yield: Rithm Outshines AGNC Investment
Rithm Capital offers a more attractive risk/reward profile than AGNC Investment despite a lower headline yield (10.2% vs. 13.4%). RITM trades at a valuation discount: 4.33x FY1 P/E and 22% below book, versus AGNC's 6.83x P/E and 20% premium to book. RITM's diversified revenue, lower leverage ratio, and lower dividend payout ratio (43% vs. AGNC's 96%) enhance resilience in uncertain rate environments.
Rithm Capital: Diversification In Progress - Rich Dividends Trigger Buy Rating
Rithm Capital delivers robust mREIT, office REIT, and alternative asset management monetization trends, better positioning the diversified company no matter the rate environment. For now, the mREIT segment enjoys rich net interest incomes and robust loan origination gains, aided by their fully hedged MSR portfolios working out as intended. RITM's diversification into asset management and office rentals are also top-line accretive, thanks to the expanded AUM and higher leasing/occupancy rates supporting its resilient growth prospects.
