Key Highlights

  • 0.25 USD per share is the third quarter common Dividend declared by Rithm Capital Corp. (NYSE:RITM), unchanged from the second quarter, totaling USD 139.6 million, or USD 1.00 annualized (calculated).
  • 0.55 USD per diluted share was Earnings available for distribution, against USD 0.60 in the second quarter, so the dividend consumes about 45% of the measure (calculated) and about 66% of GAAP EPS of USD 0.38.
  • 12.51 USD is Book Value per common share at September 30, 2026, across 558.4 million shares and USD 8.62 billion of Equity attributable to the company, a price to book ratio of about 0.71 (calculated).
  • 878.9 USD billion of servicing unpaid principal balance, including USD 282.8 billion for third parties, underpins Newrez, whose operating Return on Equity was 24% on USD 5.5 billion of average equity.

Dividend Profile: Yield, Payout and Distribution Record of Rithm Capital Corp. (NYSE:RITM)

The board declared a common dividend of USD 0.25 per share for the third quarter of 2026, totaling USD 139.6 million and unchanged from the second quarter. Annualized, that is USD 1.00 per share (calculated), a Yield of 11.2% on a share price of USD 8.93 (calculated). Dividends payable on the Balance Sheet were USD 190.5 million. Preferred dividends were USD 36.2 million in the quarter, against USD 36.1 million in the second quarter, on 67.6 million Preferred Shares with an aggregate Liquidation preference of USD 1.69 billion. The company has not issued numeric earnings guidance.

The Rationale: Earnings, Cash Flow and Dividend Coverage at Rithm Capital Corp. (NYSE:RITM)

GAAP Net Income attributable to common stockholders was USD 217.1 million, or USD 0.38 per diluted share, against USD 20.2 million, or USD 0.04. Earnings available for distribution, a non-GAAP measure that strips out unrealized marks and one-time items, was USD 315.3 million, or USD 0.55 per diluted share, against USD 338.9 million, or USD 0.60. Origination and Servicing earned USD 604.8 million pre-tax, with operating pre-tax income of USD 329.7 million excluding mark-to-market. Funded originations were USD 12.9 billion, down 19% sequentially. Residential Transitional Lending originated USD 1.5 billion, up 25% year on year, and asset management Revenue was USD 107.3 million against USD 142.2 million.

Valuation, Balance Sheet and Risks for Rithm Capital Corp. (NYSE:RITM)

Market Capitalization is about USD 4.99 billion against equity attributable to the company of USD 8.62 billion. Cash and restricted cash were USD 2.45 billion at September 30, 2026. Secured financing agreements were USD 14.24 billion, secured notes and bonds USD 14.01 billion and unsecured notes USD 1.91 billion, against total Assets of USD 56.66 billion. Assets under management were about USD 61 billion, flat on the second quarter, with gross inflows of USD 569 million. Risks include Mortgage rate sensitivity of origination volumes, mark-to-market swings in servicing rights, financing market access and a USD 68.8 million pre-tax loss in asset management.

Where Things Stand

Rithm Capital Corp. (NYSE:RITM) covers its dividend comfortably on the company's own earnings measure, with a payout near 45% of USD 0.55 per diluted share (calculated), though the Margin narrowed as the measure slipped from USD 0.60. Coverage on GAAP EPS of USD 0.38 is thinner at about 66% (calculated), and GAAP results swung widely between quarters, from USD 0.04 to USD 0.38. The diversified model, spanning servicing, origination, transitional lending, asset management and commercial real estate, spreads earnings across rate cycles, and the USD 2.45 billion of cash provides liquidity. A fall in originations, volatile servicing marks or tighter financing would test that cushion.