About RWT Dividend Returns
Redwood Trust, Inc. (RWT) is a dividend-paying stock. When dividends are reinvested through a DRIP (Dividend Reinvestment Plan), they purchase additional shares, which then generate their own dividends—creating a compounding effect that can significantly boost long-term returns.
How We Calculate Total Return
Our total return calculator simulates dividend reinvestment (DRIP) by assuming each dividend payment is used to purchase additional shares at the closing price on the ex-dividend date. This methodology provides an accurate representation of how a dividend reinvestment plan would perform.
Frequently Asked Questions
Q1What is the total return of RWT over the past year?
Redwood Trust, Inc. (RWT) delivered a total return of 4.81% over the past year when dividends are reinvested. The price-only return was -8.02%, meaning dividends contributed an additional 12.83 percentage points to total returns.
Q2How much would $10,000 invested in RWT be worth today?
A $10,000 investment in Redwood Trust, Inc. one year ago would be worth $10,481 today with dividends reinvested (DRIP). Without reinvesting dividends, the same investment would be worth $9,198. Dividend reinvestment added $1,283 to the portfolio value.
Q3Does RWT pay dividends?
Yes, Redwood Trust, Inc. (RWT) pays dividends. In the last year, RWT paid approximately $0.76 per share in dividends (14.73% yield). Reinvesting these dividends through a DRIP can significantly boost long-term returns — over 20+ years, dividend compounding can account for 30–50% of total returns for dividend-paying stocks.
Q4Did RWT beat the S&P 500?
No, Redwood Trust, Inc. (RWT) underperformed the S&P 500 by 20.18 percentage points over the past year. RWT delivered a total return of 4.81%, compared to the S&P 500's 24.99%. This means a passive S&P 500 index fund outperformed RWT by 20.18pp during this period.
Q5What is RWT's worst drawdown?
Redwood Trust, Inc. (RWT) experienced a maximum drawdown of -23.80% over the past year, declining from its peak on 2026-02-12 to its trough on 2026-06-08. The stock has not yet fully recovered to its prior peak. Maximum drawdown measures the worst peak-to-trough decline and is an important risk metric for investors.
Q6What is RWT's long-term total return over 10, 20, or 30 years?
Here are Redwood Trust, Inc. (RWT)'s long-term returns with dividends reinvested. Over 10 years, the total return is -0.0% (-0.0% CAGR) — $10,000 would have grown to $9,996. Over 20 years: -23.9% total return (-1.4% CAGR) — $10,000 → $7,608. Over 30 years: 179.3% total return (3.5% CAGR) — $10,000 → $27,933. Long-term investors benefit from compounding: dividends buy additional shares, which generate their own dividends, creating an exponential growth effect.
Q7What was RWT's best and worst year?
Redwood Trust, Inc.'s best calendar year was 1996 with a total return of 98.7%. Its worst year was 2008 with a total return of -54.7%. This range shows the volatility investors should expect — the difference between the best and worst year is 153.4 percentage points.
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