Uncover Wall Street’s Hidden Income Secrets: How One Giant Profits from RITM’s Dividends

Wall Street is often seen as a playground for big institutional investors, but there are hidden treasures for retail investors too. If you’re looking for ways to earn passive income, pay attention to what the “smart money” is up to.

Vanguard Strikes Gold with Rithm Capital Corp

Among the large institutional investors, The Vanguard Group has struck gold with its investment in Rithm Capital Corp (NYSE:RITM). The recent 13F filings have revealed an intriguing story.

Vanguard’s $11.56 Million Windfall from RITM’s Dividends

In the second quarter, The Vanguard Group made an impressive $11.56 million from Rithm Capital’s dividend payment of 25 cents per share. This massive windfall came as The Vanguard Group owned more than 46.25 million shares of the company.

Retail Investors’ Path to Monthly Income

While most retail investors can’t amass millions of shares like institutional giants, RITM’s 10.11% dividend yield opens doors to an enticing opportunity for generating monthly income.

Setting Your Income Goals with RITM’s Dividends

If your aim is to earn $500 per month from RITM’s dividends, which sums up to $6,000 annually, you’d need approximately 5,882 shares. This translates to an investment of around $59,405 at the current share prices.

A More Modest Approach for Monthly Income

For those looking for a more modest monthly income of $100, you’d require 1,176 shares, with a more affordable investment of $11,881.

Understanding the Dynamics of Dividend Yield

It’s essential to note that dividend yields can fluctuate over time, influenced by changes in both dividend payments and stock prices.

The Calculation Behind Dividend Yield

Dividend yield is calculated by dividing the annual dividend payment by the current stock price. As stock prices change, the dividend yield also changes accordingly.

Real-World Scenarios

For example, if a stock pays an annual dividend of $2 and its current price is $50, the dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

Impact of Changing Dividend Payments

Keep in mind that the dividend payment itself can change over time, which can further impact the dividend yield. If a company increases its dividend payment, the dividend yield will rise, even if the stock price remains constant. Conversely, if a company decreases its dividend payment, the yield will drop.

Wall Street Insights 2023

This article is brought to you by Benzinga, your source for financial news and information. Please note that Benzinga does not provide investment advice.

Plan Your Retirement with Confidence

Navigating retirement can be challenging, and a financial advisor can provide valuable guidance. Finding the right advisor doesn’t have to be difficult. SmartAsset’s free tool matches you with up to three financial advisors in your area, allowing you to interview them at no cost to find the best fit for your needs. If you’re ready to secure your financial future, start your search today.

In a world where Wall Street’s secrets are revealed, The Vanguard Group’s success with Rithm Capital Corp stands as a testament to the potential opportunities that even retail investors can tap into. Whether you dream of substantial monthly income or seek a more modest financial boost, understanding the dynamics of dividend yields and stock prices can be your key to unlocking hidden treasures in the world of finance. So, why wait? Dive into Wall Street’s hidden income secrets today!