Why Is Chimera's Dividend So High?
This past year has been particularly difficult for companies in the mortgage market. The abrupt increase in interest rates has crushed mortgage originators, as borrowers no longer have an incentive to refinance their home loans.
Mortgage originators have also struggled with declining home sales, which also has been driven by rising rates and soaring home prices. Finally, the mortgage real estate investment trust (REIT) sector has seen investment portfolios underperform Treasuries, which has caused these companies to report declining book values.
The mortgage REIT sector now has many companies with double-digit dividend yields, and investors are beginning to wake up to the opportunities. So why does Chimera Investment Corp. (NYSE: CIM) have such a high dividend yield?
Source Fool.com
