BTIG named Rithm its top pick for 2026 H2, citing its mix of servicing and origination operations expected to deliver mid-to-high-teens ROE and an 11% dividend yield. Price targets for Rithm and peers were cut by roughly 30% to reflect tougher interest-rate and profitability outlook.
BTIG said the U.S. mortgage sector remains attractive on a medium-term risk/reward basis and identified Rithm as its top pick for the second half of 2026. The firm highlighted Rithm’s balanced mix of mortgage servicing rights and origination operations, projecting mid-to-high-teens ROE and noting its 11% dividend yield provides investor patience as management unlocks value.
Rithm Capital offers six preferred stock series with varying fixed and floating coupons, call protection terms and risk profiles to suit diverse investor needs. Preferred dividend coverage stands near 6x and total common equity coverage just under 5x, while Series E is the only fixed-coupon issue and Series D will lose call protection this fall.
A comparative analysis of 17 mortgage REIT peers as of June 12 finds Rithm’s book value growth and economic returns outperforming its peer group. The review deems Rithm notably undervalued and sets an updated price target to reflect its relative valuation advantage.
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