Ready Capital (RC) Declares $0.40 Dividend

Ready Capital said on March 15, 2023 that its board of directors declared a regular quarterly dividend of $0.40 per share ($1.60 annualized). Previously, the company paid $0.42 per share.

Shares must be purchased before the ex-div date of March 30, 2023 to qualify for the dividend. Shareholders of record as of March 31, 2023 will receive the payment on April 28, 2023.

At the current share price of $9.89 / share, the stock's dividend yield is 16.18%. Looking back five years and taking a sample every week, the average dividend yield has been 11.31%, the lowest has been 7.22%, and the highest has been 34.12%. The standard deviation of yields is 3.94 (n=237).

The current dividend yield is 1.24 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.95. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.04%, demonstrating that it has increased its dividend over time.

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Analyst Price Forecast Suggests 43.10% Upside

As of March 16, 2023, the average one-year price target for Ready Capital is $14.15. The forecasts range from a low of $11.62 to a high of $16.80. The average price target represents an increase of 43.10% from its latest reported closing price of $9.89.

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The projected annual revenue for Ready Capital is $303MM, a decrease of 41.23%. The projected annual non-GAAP EPS is $1.73.

What is the Fund Sentiment?

There are 411 funds or institutions reporting positions in Ready Capital. This is an increase of 5 owner(s) or 1.23% in the last quarter. Average portfolio weight of all funds dedicated to RC is 0.15%, a decrease of 0.23%. Total shares owned by institutions decreased in the last three months by 2.73% to 61,427K shares. The put/call ratio of RC is 2.49, indicating a bearish outlook.

What are Large Shareholders Doing?

IJR - iShares Core S&P Small-Cap ETF holds 7,289K shares representing 6.58% ownership of the company. In it's prior filing, the firm reported owning 7,436K shares, representing a decrease of 2.02%. The firm decreased its portfolio allocation in RC by 2.03% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 3,073K shares representing 2.78% ownership of the company. No change in the last quarter.

Invesco holds 1,775K shares representing 1.60% ownership of the company. In it's prior filing, the firm reported owning 2,599K shares, representing a decrease of 46.44%. The firm decreased its portfolio allocation in RC by 99.99% over the last quarter.

Mission Wealth Management holds 1,745K shares representing 1.58% ownership of the company. In it's prior filing, the firm reported owning 1,771K shares, representing a decrease of 1.52%. The firm decreased its portfolio allocation in RC by 2.26% over the last quarter.

Soltis Investment Advisors holds 1,703K shares representing 1.54% ownership of the company. In it's prior filing, the firm reported owning 1,944K shares, representing a decrease of 14.14%. The firm decreased its portfolio allocation in RC by 15.79% over the last quarter.

Ready Capital Background Information
(This description is provided by the company.)

Ready Capital Corporation is a multi-strategy real estate finance company that originates, acquires, finances and services small to medium balance commercial loans. Ready Capital specializes in loans backed by commercial real estate, including agency multifamily, investor and bridge as well as SBA 7(a) business loans. Headquartered in New York, New York, Ready Capital employs over 500 lending professionals nationwide. The company is externally managed and advised by Waterfall Asset Management, LLC.

This story originally appeared on Fintel.