NewtekOne: 7.5% Dividend Yield And 10% Discount To Tangible Book Value

2025-11-24 03:40:48 ET

NewtekOne ( NEWT ) has dipped so much this year that its dividend yield has expanded to a record high, and it's now swapping hands at a double discount to tangible book value ("TBV") per share at the end of the third quarter. The financial holding company last declared a quarterly cash dividend of $0.19 per share , kept unchanged from its prior distribution, and $0.76 per share annualized for a 7.5% dividend yield. NEWT also reported a fiscal 2025 third-quarter tangible book value of $11.22 per share , a material expansion of about 6.4% from the second quarter, and around 25.6% from its year-ago comp. NEWT has been able to continually grow its TBV per share on the back of sustained profitability, with earnings far ahead of its dividends and a net cash and short-term investments position that continues to grow. This ended the third quarter at $192.2 million, up 18% over its year-ago comp. What's the play here? The common shares. A position in these is locking in a near-record 8% dividend yield with a discount that could prove to be retrospectively transient....

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