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NewtekOne, Inc. Declares Initial Dividend on Series B Preferred Shares

Newtekone Inc Declares Initial Dividend — here’s what’s new, why it matters, and what to watch next.

NewtekOne, Inc. Declares Initial Dividend on Series B Preferred Shares

At a Glance

On September 29, 2025, NewtekOne, Inc., a company listed on NASDAQ under the ticker NEWT, announced a dividend payment on its Series B Preferred Shares. The declared amount is $9.44 per Preferred Share, equivalent to $0.2361 per depositary share. This payment is set to be disbursed on October 1, 2025, to shareholders recorded as of September 29, 2025. This initial dividend is pro-rated based on the issuance date of the Preferred Shares on August 20, 2025.

Background & Timeline

NewtekOne, Inc. has established itself as a significant player in the financial services sector, particularly focusing on providing various business solutions, including lending and payment processing. The Series B Preferred Shares were introduced as part of the company’s strategy to enhance its capital structure and provide investors with a reliable income stream.

  • August 20, 2025: NewtekOne, Inc. issues its Series B Preferred Shares, establishing an 8.500% fixed-rate reset non-cumulative perpetual structure designed to attract investors seeking stable returns.
  • September 29, 2025: The company announces its first dividend payment on the Preferred Shares, indicating a commitment to returning value to its shareholders.
  • October 1, 2025: Scheduled date for the distribution of the dividend.
  • This timeline illustrates the swift progress the company has made since the issuance of these shares, reflecting its proactive approach to shareholder value.

    What’s New

    The recent announcement marks the first dividend declaration for the Series B Preferred Shares, which were only recently issued. This pro-rated dividend payment of $9.44 is indicative of the company’s financial health and its commitment to rewarding its investors. The fact that the dividend is non-cumulative means that if the company misses a future dividend payment, it is not obligated to pay any missed amounts, thus placing emphasis on the importance of maintaining a stable financial performance.

    The dividend is payable to shareholders recorded as of September 29, 2025, suggesting that the company is keen to establish a reliable schedule for dividend payments going forward. For many investors, this could be seen as a signal of confidence from NewtekOne’s management regarding the company’s future profitability.

    Why it Matters

    Declaring a dividend is often viewed as a positive sign in the financial markets. For NewtekOne, Inc., this initial dividend on its Series B Preferred Shares indicates a few crucial points:
    1. Financial Stability: The ability to declare a dividend suggests that NewtekOne is in a strong financial position, capable of generating enough earnings to support this commitment.
    2. Attraction to Investors: Offering dividends can make a company more appealing to potential investors, especially those seeking income-generating assets. The fixed-rate nature of the Series B Preferred Shares is likely to attract a specific demographic of investors who prioritize income stability.
    3. Market Confidence: By instituting a dividend, NewtekOne may also be signaling to the market that it is confident in its operational strategies and future earnings potential.
    4. Support for Share Price: Dividends can also support the share price during volatile market conditions, as investors may perceive dividend-paying stocks as less risky than non-dividend-paying counterparts.

    What to Watch Next

    As NewtekOne prepares to distribute the upcoming dividend, there are several factors that investors and analysts will be keeping an eye on:

  • Future Dividend Announcements: Will NewtekOne continue to declare dividends in the future, and if so, will they increase with time? Investors will be looking for consistency and growth in dividend payments to assess the company’s long-term viability.
  • Financial Performance: Monitoring quarterly earnings reports will be crucial to understanding whether the company can maintain its financial health and continue paying dividends. Significant changes in revenue or operational costs could impact future dividends.
  • Market Conditions: Economic factors and market conditions could influence investor sentiment and the company’s operational success, making it essential to watch how external factors might affect NewtekOne’s business model.
  • Investor Response: The market’s reaction to the dividend announcement and subsequent payments could provide insights into investor confidence in NewtekOne’s direction and strategy.

FAQ

Q1: What are Series B Preferred Shares?
A1: Series B Preferred Shares are a type of equity security that provides investors with a fixed dividend, typically prioritized over common stock in case of liquidation. These shares are often non-cumulative, meaning that missed dividends do not accumulate.

Q2: How does the dividend payout work for the Preferred Shares?
A2: The dividend payout is structured as a fixed percentage of the share value. In this case, NewtekOne declared a payment of $9.44 per Preferred Share, which is paid to shareholders who own the shares as of a specific record date.

Q3: What does a pro-rated dividend mean?
A3: A pro-rated dividend is a payment that is adjusted based on the time period that the shares have been outstanding. In this instance, the initial dividend reflects the period from the issuance date to the record date.

Q4: What should investors consider before buying Preferred Shares?
A4: Investors should consider the company’s financial stability, dividend history, market conditions, and their own investment strategy to determine if Preferred Shares align with their financial goals.

Q5: Can the dividend amount change in the future?
A5: Yes, dividends can be modified based on the company’s performance, board decisions, and market conditions. Investors should stay informed about the company’s financial health and any announcements regarding dividend adjustments.

Takeaways

The declaration of a dividend by NewtekOne, Inc. on its Series B Preferred Shares represents a significant step in the company’s strategy to attract and retain investors. The financial implications of this announcement could resonate positively within the market, as it signals financial stability and commitment to shareholder value. Observing how the company navigates its financial responsibilities in the upcoming quarters will be crucial for stakeholders.


Sources & Credits: Reporting synthesized from multiple reputable outlets and official releases.

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For context and confirmations, see reputable wires like Reuters or AP News.


Source: Original Source. Reporting synthesized from multiple reputable outlets and official releases.

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