Redwood Trust, Inc. (NYSE: RWT) declared a third quarter 2026 common stock dividend of $0.18 per share, maintaining the rate from the previous quarter. The payout represents the company’s 109th consecutive quarterly dividend.

The Board of Directors also authorized a Series A preferred stock dividend of $0.625 per share for the third quarter of 2026.

Dividend Details

The common stock dividend is payable on September 30, 2026, to stockholders of record on September 23, 2026. The amount remains unchanged from the second quarter of 2026.

The Series A dividend applies to the 10.00% Series A Fixed-Rate Reset Cumulative Redeemable Preferred Stock. Payments for this class are scheduled for October 15, 2026, with a record date of October 1, 2026.

What the Numbers Show

The maintenance of the $0.18 common dividend rate signals continuity in capital return policy, extending the streak of consecutive payouts to 109 quarters without interruption or reduction.

Keefe, Bruyette & Woods analyst Bose George has lowered the price target for Redwood Trust (NYSE: RWT) from $6 to $5.5 while maintaining an Outperform rating. The adjustment reflects a recalibration of the stock's valuation ceiling, though the firm continues to view the investment favorably relative to peers. This change signals a more conservative near-term expectation without altering the long-term bullish stance held by the research team.

Analyst Action Details

The rating change was issued by Bose George, an analyst at Keefe, Bruyette & Woods. The firm keeps the recommendation at "Outperform," indicating that it expects Redwood Trust to outperform the broader market or its sector peers over the next 12 months. However, the specific price target has been reduced by $0.50.

Market Implications

The maintenance of the Outperform rating suggests that Keefe, Bruyette & Woods still identifies fundamental strengths in Redwood Trust's business model or growth trajectory. The lowering of the price target to $5.5 may reflect broader market conditions, sector-specific headwinds, or a normalization of earnings expectations. Investors should note that while the upside potential has been trimmed, the core thesis supporting the stock remains intact according to the analyst's view.