Looking for a safe high dividend yielding stock? Chimera Investment Corporation (NYSE:CIM) has reported earnings and it is the second quarter in a row where the company has missed against expectations. This is pretty surprising as this name has performed well in the last two years, outperforming the mREIT sector as whole. We believe that when it comes to this sector, why own anything else? This is because it is generally stable.
Two misses in a row give us pause. Still, even with the headline numbers looking less than stellar, when we dig deeper, it really continues to be just one of the best names in the space since we first got behind it. That said this powerhouse is not immune to market movement, timing of deals and interest rate movements. As far as share prices are concerned, Chimera has fallen about 9% from its 52-week high but it still remains at a premium price.
Make no mistake, this is a name we have been bullish on even in the weak environment for mREITs that persisted for the last 10 quarters. It has consistently delivered for us and we will give it benefit of the doubt when it reports a quarter that misses our high expectations, given its history of outperforming the sector. But, we will not give it a free pass. We have to look under the hood. …….READ MORE