Current Report: Rithm Capital Might Gain Near 37% In Price This Year

The company was founded in 2011 and is headquartered in New York, NY.

Rithm Capital Corp (RITM) provides real estate, credit, and financial services.

Three key data points gauge RITM (or any dividend-paying entity):

(1) Price 

(2) Dividends

(3) Returns

Those three keys also indicate if any company has made, is making, and will make money.

RITM Price

Rithm’s single share price dropped  $1.99 (or about 18%) from $11.13 to $9.14 in the past year, per Tuesday’s opening market report.

Nine analysts cover the stock. Their median target price predicted a $4.47 gain in price to $13.61 in the next year. Furthermore, 3 years of price history shows an average  $0.29 annual price gain. So, I’ll split the difference between the Analysts and three-year reckoning and calculate a $2.38 annual return, after I discuss dividends.  

RITM Dividends

Rithm Capital has paid quarterly dividends since July, 2013.  

The most recent Q dividend of $0.25 was paid April 30th (to shareholders on record as of April 6th) and the resulting annual $1.00 payout yields a forward-looking 10.99% (per Tuesday’s opening market report.}

RITM Returns

Putting it all together, as of June 2nd, a possible gross gain of $3.38 was projected. The $2.38 per share compromised annual gain was added to the $1.00 forward-looking annual dividend.

A little over $1000 invested in RITM at Tuesday’s $9.14 opening share price would buy 109 shares, which multiply the $3.38 gross gain to $369.80 for the coming year, or 36.96%.

My dividend dogcatcher rule is to only buy initial shares of a dividend stock that pay an annual dividend (from $1000 invested) that is greater than the cost of one share.

Rithm’s projected annual dividend from $1K invested is $109.90. So RITM shows a dividend from $1,000 invested over 12 times its $9.14 single share price as of Tuesday’s opening.

The exact track of RITM’s future share price and dividend will entirely be determined by market action and company finances. 

Remember the best way to track stock performance and dividend payments is through direct ownership of company shares.