Rithm Capital: In The Dividend Space, The Transformation Is Still Mispriced (Earnings Review)

Rithm Capital reported a strong Q2, with EAD of $0.60 per share, supporting a 19.7% ROE and a secure 10%+ dividend yield. RITM's diversified platform—mortgage origination/servicing, real estate private credit, and asset management—positions it for a potential valuation rerating if reclassified as an asset manager. Newrez posted a 212% QoQ earnings increase and Genesis achieved record originations, while asset management AUM surpassed $61B, driving fee-based growth. I maintain a buy rating below $10, with the C-corp conversion as a key catalyst for a possible re-rating to $14, though timing remains uncertain. Rithm Capital Corp. ( RITM ) just released its Q2 earnings. We discussed it back in April, highlighting how the company was no longer a mortgage REIT, but was becoming a diversified financial platform. The core operating This article was written by Luca Socci 8K Followers Follow I’m a long-term investor focused on U.S. and European equities, with a dual emphasis on undervalued growth stocks and high-quality dividend growers. Through years of experience, I’ve learned that sustained profitability—evident in strong margins, stable and expanding free cash flow, and high returns on invested capital—is a more reliable driver of returns than valuation alone. I manage one of my portfolios publicly on eToro, where I qualified as a Popular Investor, allowing others to copy my real-time investment decisions. My background spans Economics, Classical Philology, Philosophy and Theology. This interdisciplinary foundation sharpens both my quantitative analysis and my ability to interpret market narratives through a broader, long-term lens. I started investing when I became a father. By managing wisely what I received and earn, I aim to ensure for me and my children that we don't have so much that we don't have to do anything, but that we have enough assets to be free to do what we want. The goal is not to free myself from work, but to make sure I can work in the place and in a way where I can fully express myself.I partner with iREIT®+HOYA Capital, where I share exclusive content and run a dividend growth portfolio with buy/sell alerts. Analyst’s Disclosure: I/we have a beneficial long position in the shares of RITM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.