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Redwood TrustSTU:R2V -2.78%23 5-Year Yield-on-Cost % is 14.00 as of Aug. 06, 2026, which is 83% above its 10-year median of 7.66. GuruFocus rates STU:R2V with a GF Score™ of 23/100. The stock has 5 warning signs investors should review. Among 858 REITs companies, Redwood Trust ranks better than 80.77% on this metric.
Redwood Trust's yield on cost for the quarter that ended in Mar. 2026 was 14.00.
The historical rank and industry rank for Redwood Trust's 5-Year Yield-on-Cost % or its related term are showing as below:
STU:R2V'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 4.1 Med: 7.66 Max: 42.86
Current: 14
During the past 13 years, Redwood Trust's highest Yield on Cost was 42.86. The lowest was 4.10. And the median was 7.66.
STU:R2V's 5-Year Yield-on-Cost % is ranked better than 80.77% of 858
companies
in the REITs industry
Industry Median: 7.325
vs STU:R2V: 14.00
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Redwood Trust 5-Year Yield-on-Cost % Related Terms
STU:R2V vs FBRT, TRTX, BRSP: 5-Year Yield-on-Cost % Comparison
For the REIT - Mortgage subindustry, Redwood Trust's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Redwood Trust 5-Year Yield-on-Cost % vs REITs Industry
For the REITs industry and Real Estate sector, Redwood Trust's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Redwood Trust's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of Redwood Trust is calculated as
Redwood Trust (STU:R2V) has a 5-Year Yield-on-Cost % of 14.00 as of Aug. 06, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Redwood Trust and its competitors. This is 83% above median its historical median of 7.66. Over the past decade, Redwood Trust's 5-Year Yield-on-Cost % has ranged from 4.10 to 42.86. According to the industry distribution chart, Redwood Trust ranks #165 out of 858 companies in the REITs industry, placing it in the top 19.2%.
Is Redwood Trust's 5-Year Yield-on-Cost % too high?
Redwood Trust's current 5-Year Yield-on-Cost % of 14.00 is 83% above median its 10-year median of 7.66. Over the past 10 years, this metric has ranged from a low of 4.10 to a high of 42.86. The REITs industry median 5-Year Yield-on-Cost % is 7.33. Redwood Trust's value of 14.00 is 91.1% above this industry median. Based on the distribution chart, Redwood Trust ranks #165 out of 858 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Redwood Trust has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does Redwood Trust's 5-Year Yield-on-Cost % compare to FBRT and TRTX?
According to the REITs industry distribution chart, Redwood Trust ranks #165 out of 858 companies for 5-Year Yield-on-Cost %. This places Redwood Trust in the top 19% of its industry — outperforming the majority of peers. The industry median 5-Year Yield-on-Cost % is 7.33. Redwood Trust's value of 14.00 is 91.1% above this benchmark. Historically, Redwood Trust's own 5-Year Yield-on-Cost % has ranged from 4.10 to 42.86 over the past decade. While the company's 10-year median is 7.66 vs. the industry median of 7.33, Redwood Trust has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a REITs company?
The median 5-Year Yield-on-Cost % among REITs companies is 7.33, based on 858 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Redwood Trust's current 5-Year Yield-on-Cost % of 14.00 is 91.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Redwood Trust and its competitors. For the REITs industry, the median 5-Year Yield-on-Cost % is 7.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Redwood Trust's current 5-Year Yield-on-Cost % is 14.00, which is 83% above median its own 10-year median of 7.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Redwood Trust stock overvalued right now?
Redwood Trust (STU:R2V) has a current 5-Year Yield-on-Cost % of 14.00. The current 5-Year Yield-on-Cost % is 14.00, which is 83% above median its 10-year median of 7.66 and 91.1% above the REITs industry median of 7.33. Redwood Trust's overall GF Score™ is 23/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Redwood Trust (STU:R2V), the current 5-Year Yield-on-Cost % is 14.00 as of Aug. 06, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Redwood Trust Inc is a specialty finance company focused on several distinct areas of housing credit. The company delivers customized housing credit investments to a diverse mix of investors through securitization platforms, whole-loan distribution activities, and its publicly traded securities. The company has four reportable segments: Sequoia Mortgage Banking, CoreVest Mortgage Banking, Redwood Investments, and Legacy Investments. Maximum revenue is generated from the Sequoia Mortgage Banking segment, comprising a mortgage loan conduit that acquires residential consumer loans from third-party originators for subsequent sale to whole loan buyers, securitization through its SEMT private-label securitization program, or transfer into its Redwood Investments portfolio.
23GF Score
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