Summary

• Rithm Capital Corporation (RITM) offers six preferred stocks with varying coupons, call protections, and floating/fixed structures for diverse investor needs.
• RITM’s preferred dividend coverage is nearly 6x, and total common equity coverage is just under 5x, indicating adequate risk buffers despite rising preferred obligations.
• Series E and F preferreds offer years of call protection, while Series D loses protection this fall; Series E is the only fixed coupon option.
• Investor strategy should align time horizon and rate outlook with preferred features; RITM also recently issued $500M of 8.5% senior unsecured notes due 2031.
• Sell D, Hold C, Buy E or F Series.
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Introduction

Rithm Capital Corporation (RITM) has six preferred stocks to pick from, offering investors floating (two base rates) or fixed coupons, some still with Call protection. Last winter I reviewed three of those choices, Buy rating one but suggesting readers consider one not reviewed then

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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.

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