If there's one type of investment I criticize all the time on this channel, it's mortgage REITs. That's because the vast majority of them experience poor long term performance due to their risky investing strategies and the high amounts of leverage they employ. Whenever I do get on my soapbox about them, I always add a little disclaimer, which is that there are a couple exceptions that exist. Although nearly all of the big names in this sector aren't very good, I always say that there are a couple that are good. So I thought we'd take a look at one of those exceptions. Unlike the vast majority of their peers, Rithm Capital is a company that's seen a lot of success following a serious transformation of their business.

Unlike every other mortgage REIT, their stock has done significantly well in the last year. The share price of Rithm is currently up about 34% compared to a year ago, and that doesn’t even account for the huge dividends it pays. And the reason for this I think has to do with how well the company's positioned themselves and how they’ve evolved over the years. So in today's video we'll take a look at what makes this company so successful, and why things continue to look really good for them. Rithm Capital ticker RITM, is an asset manager focused on real estate, credit, and financial services. It operates through four segments, which are Origination and Servicing, Investment Portfolio, Mortgage Loans Receivable, and Asset Management segments. Its investment portfolio primarily comprises of mortgage servicing rights and MSR financing receivables. They also hold real estate securities, call rights, single family rental properties, and consumer and business purpose loans.

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