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Ready Capital Slashes Dividend, Raising Concerns Among Investors

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 12/16/2025, 11:32 am ET 12/16/2025, 11:32 am ET | 4 min 4 min read
Ready Capital Slashes Dividend, Raising Concerns Among Investors Thumbnail

On Tuesday, Ready Capital Corporation stocks have been trading down by -7.3 percent amid market fatigue and economic uncertainties.

Candlestick Chart

Live Update At 11:32:22 EST: On Tuesday, December 16, 2025 Ready Capital Corporation stock [NYSE: RC] is trending down by -7.3%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

In recent months, Ready Capital’s financial metrics have raised eyebrows. With revenues showing a declining trend over the past three to five years, it’s evident that the company faces pressure. The revenue snapshot suggests not only a decrease but a stark 100% drop within those periods, an unsettling trend for stakeholders. Similarly, profitability has not fared well, as indicated by a troubled return on assets barely hitting 1.06% and a conspicuous negative tilt in return on invested capital at -28.11%. These numbers paint a challenging scenario for sustained profitability.

Diving deeper, the company’s cash flow statement shows dynamic movement. While there is a visible increase in investing cash flows at $493.45M, contrasting large financing cash outflows of $956.11M raise questions about long-term sustainability. Free cash flow signals vitality at a substantial $433.93M, yet a surplus does not mask underlying fiscal strains revealed by this dividend overhaul.

On the stock price front, Ready Capital experienced slight variations but predominantly trends lower. Closing prices fluttered from a high of $2.78 on Dec 4, 2025, to a near-term low of $2.165 on Dec 16, 2025. The consistency with which the stock maintains pressure from these external factors illuminates the company’s volatile trajectory.

Strategic Stock Maneuvers

The recent alterations in dividends at Ready Capital underscore a strategic maneuver likely aimed at fiscal preservation. Transitioning from a robust shareholder reward approach to slashing payments to mere pennies indicates brewing concerns over financial sustainability. The volatility in their common stock performances is mirrored in their sudden quarterly payout reductions, signaling amplified risk and perhaps a strategic cash realignment.

The dividend reduction dovetails with recent price fluctuations. The stock’s minor highs and lows reflect broader market responses to fundamental shifts. Notably, significant capital stays on the sidelines amid such uncertainty, as investors gauge long-term value against immediate gains or losses.

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Conclusion

Ready Capital’s move to decrease its quarterly dividends substantially prompts a critical reconsideration of its fiscal strategies. This decision emanates broader market jitteriness as shareholders grapple with revised income projections. Despite a robust free cash flow, the overarching sentiment shifts toward caution as the company operates through a veil of revenue mishaps and profitability hurdles.

For traders, this backdrop signals a time to reassess correlation with Ready Capital’s growth narratives. As millionaire penny stock trader and teacher Tim Sykes, says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” Traders, therefore, should remain adaptable and attentive to the cyclical complexities and dividend upheavals potentially reshaping its financial landscape in the upcoming quarters. Village by sheer numbers alone may prove misleading without acknowledging these dynamics.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”