RITM: A 10% Yield Built For Higher Rates
Rithm Capital (RITM) offers a 10% dividend yield, well-covered by earnings, making it compelling for income-focused investors in a high-rate environment. RITM's diversified business model, driven by servicing, residential transitional lending, and investment portfolio segments, differentiates it from traditional mREITs. Elevated interest rates enhance the value of RITM's mortgage servicing rights, but commercial real estate exposure and earnings volatility remain notable risks.