Any thoughts............I am buying on any dips for the long haul but I am very surpised this one isn't in the 20's. They are thawing out the CDO market by themselves!!!! Is there something I am missing. I think as the stock rises these folks are smart enough to know how to keep their divi yield up and this will really make it run after 2010.
As I recall, they have a board meeting in November when they decide the dividend policy for the coming year. But, the founder/CEO has retired so the new guys may have different thoughts.
It certainly will not be soon.
My criticism is that the price of this stock has been absolutely flat since October 2008 reflecting a flat dividend. During that time, RWT has in fact made progress in improving earnings on a GAAP basis. They have paid management generously but have not shared the wealth with the shareholders by increasing the dividend.
I agree that, during the November board meeting, they should increase the dividend. Then, depending on the size of the increase, we will see some signficant recovery in the price of the stock. If they do not increase the dividend, mid 20s any time soon is not going to happen.
I view RWT as a dividend MREIT that is competing with other MREITS yielding substantially more. Until RWT begins raising the dividend substantially, the stock will suffer from comparison with these other companies.
The days of being able to generate outlandish profit [and special dividends] from the subprime syndication era, which drove this stock to $60 are over. Yes, RWT can do transactions like the most recent one. And, yes RWT's prospects are brighter from that success. But, it remains to be seen how profitable that transaction was and how far and fast syndications like this can drive earnings and dividends.
It is very encouraging that RWT did a successful syndication. But, the ultimate driver of the stock price will be increasing the dividend.
Last Trade 14.7400
Trade Time 11:06:49AM ET
Last Trade Exchange
Today's Change 0.2000
Today's % Change 1.38%
Bid Size N/A
Bid Exchange N/A
Ask Size N/A
Ask Exchange N/A
Primary Exchange NYSE
Day High 14.9000
Day Low 14.5400
Previous Close Price
Average Volume (10-Day) 1,072,961
Average Volume (90-Day) 702,266
Market Capitalization $1.13B
Shares Outstanding 77,897,000
Shares Short* 4,186,552
Short Interest as a % of
P/E (Most Recent Quarter) 6.27
PEG Ratio 1.89
Ex. Dividend Date 06/28/10
Dividend Pay Date 07/21/10
Annualized Dividend Yield 6.88%
* Shares Short and Short Interest data provided by NASDAQ, NYSE, or AMEX and is updated periodically and on a monthly basis (depending on the listing exchange).