Redwood Trust Dividend Stands Strong Amid Net Loss and Debt Restructuring

Redwood Trust, Inc. (NYSE:RWT) is one of the 14 Best Cheap Dividend Stocks to Buy Under $10.

The company’s second-quarter earnings call highlights a significant net loss while it moves toward debt restructuring.

Redwood Trust Dividend Stands Strong Amid Net Loss and Debt Restructuring

Redwood Trust, Inc. (NYSE:RWT) is a specialty finance company focused on investing in residential and commercial real estate. The company was founded in 1994 with its headquarters in California. Operating through four segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, and Redwood Investments, the company primarily invests in mortgage loans and other real estate-related assets, including jumbo residential loans and small-balance commercial loans.

On July 30, 2025, Redwood Trust, Inc. (NYSE:RWT) announced a GAAP Net loss of $100.2 million or $0.76 per share for the second quarter. On a positive note, the mortgage banking revenue saw an increase of 88% compared to the same period last year. The earnings call for Q2 2025 also included a note of the company’s repurchase of 2.4 million shares from the start of the second quarter.

Recently, on August 25, 2025, the company announced the issuance of $50 million in 7.75% Convertible Senior Notes due 2027. The notes were issued in addition to the series of notes originally issued in 2022 and 2024, increasing the total outstanding notes to $297.17 million. Though it elevates the company’s unsecured debt obligations, the conversion options and redemption rights allow some flexibility in managing them.

Redwood Trust, Inc. (NYSE:RWT) offers an attractive dividend yield of 11.96%, while being available at a closing price of $6.02.

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