Too high of a dividend yield for New Residential

|By:, SA News Editor

Newcastle Investment (NCT) spinoff New Residential (NRZ) soars 6.9% premarket after declaring its first full quarterly dividend of $0.175 per share for a 10.95% yield (based on last night's close).

Nearly 11% is a whopper of a yield considering peers like Redwood (RWT), HLSS, and Pennymac (PMT) are in the 5-10% range.