Are the Market's Hottest Dividends Doomed?

The following video is part of our "Motley Fool Conversations" series, in which analyst Jim Royal and industrials editor/analyst Brendan Byrnes discuss topics across the investing world.

In this edition, Jim and Brendan discuss the recent dividend cut from Chimera, a stock that most investors own for its hefty double-digit yield. That cut follows in the footsteps of similar sequential dividend cuts from Annaly Capital, American Capital Agency, and Armour Residential. Watch the video to find out why Jim is worried about these stocks' dividends.

Of course, these aren't the only great dividends you can buy -- in fact, they aren't even close. You can learn about more in our report: "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.

Brendan Byrnes has no positions in the stocks mentioned above. Jim Royal owns shares of Annaly Capital Management. The Motley Fool owns shares of Annaly Capital Management. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (2) | Recommend This Article (4)

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  • Report this Comment On April 12, 2012, at 12:15 PM, gcdavis03 wrote:

    How low do you think the yields will go?

  • Report this Comment On April 12, 2012, at 2:53 PM, bghel wrote:

    This is old news about CIM's dividend; it is now heading into a 3rd quarter of 11 cents per share. CIM is different than most of the others mentioned in that it has an very low debt ratio insulating its dividend from additional degradation. Even if it were to drop some more, it would still be north of 10%, not bad when the markets are gyrating as they have been.

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