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.
|Headquarters (Founded)||New York (2007)|
|Market Cap||$2.71 billion|
|Trailing-12-Month Revenue||$614.1 million|
|Management||CEO Matthew Lambiase
CFO A. Alexandra Denahan
|Trailing-12-Month Return on Equity||17.8%|
|Total Debt||$6.2 billion|
Annaly Capital Management
Sources: S&P Capital IQ and Motley Fool CAPS.
Just last month, ballengerm tapped Chimera as a particularly timely income opportunity: "Including dividends, this stock will outperform until 2013 when the Fed expects to raise interest rates. Cheap now too."
In fact, Chimera currently boasts a whopping dividend yield of 19.7%. That's higher than that of other mortgage REITs like Annaly (14.9%), Capstead (14.1%), and MFA (14.5%).
CAPS member Speachless elaborates on the Chimera bull case:
Buying this stock for the dividend. It is less highly leveraged than its peers in the REIT type business. Does non-conforming rather than sub-prime loans. I think the demand for those loans will continue to rise. I think that the Fed has let the horse out of the barn by saying interest rates will stay low for the next few years. I wish I had their crystal ball! Mine is still pretty cloudy, but since they control interest rates and that is the interest rate spread that makes Chimera money, so be it, let's make some money.
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