Rithm Capital Corp (RITM)

[ThSeeker]

11% Dividend And 18-24 Percent Upside, This Cash Cow Has It All
Summary
Following are comments from Seeking Alpha:

New Residential Investment offers a unique mix of a high, covered dividend and significant upside.

New Residential Investment handsomely covered its dividend with core earnings in the past, leaving room for dividend growth or a special dividend.

New Residential is far from being overvalued at today's price point.

An investment in NRZ yields ~11 percent and has ~18-24 percent upside
*****

New Residential Investment is unique in the sense that it affords income investors with a covered, high dividend of 11 percent, and that it has upside in an environment of higher short-term interest rates. I think a ~10x multiple on New Residential Investment's core earnings would better reflect the company's high earnings quality. Therefore, New Residential Investment's fair value sits at $20-$21/share in my opinion, leaving 18-24 percent upside on the table. Buy for income and capital appreciation.