Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT Chimera Investment
With that in mind, let's take a closer look at Chimera's business and see what CAPS investors are saying about the stock right now.
Chimera facts
Headquarters (founded) |
New York (2007) |
Market Cap |
$3.3 billion |
Industry |
Mortgage REIT |
Trailing-12-Month Revenue |
$621.6 million |
Management |
CEO Matthew Lambiase CFO A. Alexandra Denahan |
Trailing-12-Month Return on Equity |
17.8% |
Cash/Debt |
$22.2 million / $6.2 billion |
Dividend Yield |
16.7% |
Competitors |
Capstead Mortgage
MFA Financial |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96% of the 1,044 members who have rated Chimera believe the stock will outperform the S&P 500 going forward. These bulls include zackp012 and All-Star TSIF, who is ranked in the top 0.1% of our community.
Earlier this week , zackp012 wrote that Chimera "will continue to benefit while foreclosures and unemployment remains high." Our CAPS member concludes: "It is an excellent dividend paying stock and should be able to maintain the payouts as long as the economy is in a downturn. I expect this to last for at least 3-5 more years."
In fact, Chimera currently sports a whopping dividend yield of 16.7%. That's higher than that of other mortgage-backed security managers such as Capstead (14.7%), MFA (13%), and Annaly Capital
CAPS All-Star TSIF elaborates on the bull case:
Chimera Investments is part of a "newer breed" of REIT's that plays a little game with the interest spreads. ... One should never bank on a yield of any equity, especially a high flyer. The deck could fall. The risk reward seems good here and while a dividend payer that doesn't also have share price appreciation is a tough pick here on CAPS to beat the S&P ... the compounding will evenentually work in my favor. The cheaper I can get the equity, the higher the interest, the sooner I compound my way to a bigger moat. ... Again, in the long run, the risk/reward does cause the teeter totter to wobble, but I'll take my chances that I'm on the right side. I'll see you in 2-3 years and we'll see how this play works out.
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