Entering text into the input field will update the search result below

Ready Capital: Exceptional 2021 Results

Apr. 04, 2022 3:03 PM ETReady Capital Corporation (RC)10 Comments
Daniel P. Varga profile picture
Daniel P. Varga


  • Enormous growth in 2021, exceptional ROE figures and the company could almost double its net income in a year.
  • RC is yielding at 11.03% and the dividend coverage is healthy for 2022 even with less extensive EPS growth.
  • RC is fairly valued with a price to book ratio of 0.99 and its returns are almost identical to S&P 500’s 2022 returns.

Többcsaládos otthonok featuring Townhomes Ranch-szintű és többszintű rezidenciák Western USA Fotósorozat

eyecrave/iStock via Getty Images

Investment thesis

Ready Capital Corporation (NYSE:RC) closed a fantastic 2021 with record net income, loan originations, CRE originations and acquisitions, and distributable income. Even with a slight dividend increase in 2022 and a more moderate growth, the payout ratio can

This article was written by

Daniel P. Varga profile picture
Started investing more than 10 years ago. Mainly focusing on Large-Caps and occasional story stock. In addition, I am a regular buyer and analyzer of REITs, mREITS, and asset managers. I also have a dividend-focused portfolio with an investment horizon of 15 to 25 years. Follow me for comparison articles such as AAL vs. LUV or USB vs. C.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in RC over the next 72 hours. 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.

Recommended For You

Comments (10)

bazooooka profile picture
yield entices
thebellsareringing profile picture
RC has been profitable for me. It's been dropping recently and I added. Still have a capital gain + the income is very good.
blessed.are.the.brave profile picture
income investor who got in quite by chance around $14. So far, its alright long $RC with 11% yield and 74% payout according to SA
Could you explain how RC can be an income yielding stock even if they don't do M&A ?
MREITS have to replenish Lending what has been paid back to them . Eventually if they don't they go out of business.
thebellsareringing profile picture
@manfac Just announced a bond offering for 120M.
got in FEB. at $14.40 discovered it pretty much by accident .when digging deeper ,it looked almost too good and wondered why nobody on SA covered it. recently saw analyst price targets of $17 and one at $18. appreciate your coverage
Their preferred stock RC-E has been a big loser since it was acquired.
Love this analysis. Much better and with more substance, depth and proof of understanding than the other recent


Thx @Daniel
BartAtTheRanch profile picture

Tend to agree here, but at that other one (the other article), is ABR the best stock to compare RC to?


@BartAtTheRanch the comparison with ABR is strange indeed. RC is more small to medium business loans and ABR multifamily assets. So not comparing Apples with Apples indeed.

But good to have some RC coverage. A true undercovered gem with competent management
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.