Chimera Declares First Quarter 2024 Preferred Stock Dividends
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Insights
The declaration of dividends for Chimera's Series A, B, C and D preferred stocks underscores the company's commitment to providing consistent returns to its preferred shareholders. The dividends, ranging from 7.75% to 8% on an annualized basis, are indicative of the company's financial health and ability to generate sufficient cash flow. This can be seen as a positive signal to investors, reflecting stability and a potentially lower risk profile for the preferred stocks.
However, it is crucial for investors to understand the nature of these fixed-to-floating rate cumulative redeemable preferred stocks. Initially, these stocks offer a fixed dividend rate, which later transitions to a floating rate tied to a benchmark, often adding an additional spread. This structure can be beneficial in a rising interest rate environment, as it allows investors to potentially benefit from higher yields over time.
The timing and consistency of Chimera's dividend declarations align with industry norms, which can build investor confidence in the predictability of returns. The scheduled announcements for common stock dividends later in the year also provide transparency and aid investors in their portfolio planning. It is important for investors to note the ex-dividend date, as it determines the cutoff for eligibility to receive the declared dividend. Missing this date means investors will not be eligible for the current dividend payout.
For potential investors, the attractiveness of these preferred stocks may be compared to other investment opportunities in the market, taking into account the prevailing economic conditions, such as interest rate trends and the overall investment climate. A thorough market analysis would be necessary to gauge the competitiveness of Chimera's dividend yields relative to other similar financial instruments.
The dividend declarations come at a time when the economy may be experiencing fluctuating interest rates, which can significantly affect the performance of fixed-income securities. An economist's perspective would consider the macroeconomic factors that could impact the value of Chimera's preferred stocks. For instance, if the Federal Reserve is in a cycle of raising interest rates to combat inflation, the floating rate aspect of these preferred stocks might become more appealing, as they could offer higher yields in the future.
On the other hand, if the economy is headed towards a recession, investors might prioritize the stability of fixed returns, which could make fixed-rate dividends more desirable. Therefore, the fixed-to-floating rate structure offers a hedge against interest rate risk, but it also requires investors to be cognizant of the economic outlook and corresponding monetary policy trends.
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BOARD DECLARES FIRST QUARTER 2024 DIVIDEND OF
$0.50 8% SERIES A CUMULATIVE REDEEMABLE PREFERRED STOCK
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BOARD DECLARES FIRST QUARTER 2024 DIVIDEND OF
$0.50 8% SERIES B FIXED-TO-FLOATING RATE CUMULATIVE REDEEMABLE PREFERRED STOCK
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BOARD DECLARES FIRST QUARTER 2024 DIVIDEND OF
$0.48 43757.75% SERIES C FIXED-TO-FLOATING RATE CUMULATIVE REDEEMABLE PREFERRED STOCK
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BOARD DECLARES FIRST QUARTER 2024 DIVIDEND OF
$0.50 8% SERIES D FIXED-TO-FLOATING RATE CUMULATIVE REDEEMABLE PREFERRED STOCK
The Board of Directors of Chimera also announced the declaration of its first quarter cash dividend of
The Board of Directors of Chimera also announced the declaration of its first quarter cash dividend of
The Board of Directors of Chimera also announced the declaration of its first quarter cash dividend of
We expect to announce first quarter dividends on the Company’s common stock in late-March, second quarter dividends in mid-June, third quarter dividends in mid-September and fourth quarter dividends in mid-December, which schedule is consistent with many of our market peers.
Disclaimer
This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Actual results may differ from expectations, estimates and projections and, consequently, readers should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results, including, among other things, those described in our most recent Annual Report on Form 10-K, and any subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, under the caption “Risk Factors.” Factors that could cause actual results to differ include, but are not limited to: our business and investment strategy; our ability to accurately forecast the payment of future dividends on our common and preferred stock, and the amount of such dividends; our ability to determine accurately the fair market value of our assets; availability of investment opportunities in real estate-related and other securities, including our valuation of potential opportunities that may arise as a result of current and future market dislocations; effect of the novel coronavirus (or COVID-19) pandemic on real estate market, financial markets and our Company, including the impact on the value, availability, financing and liquidity of mortgage assets; how COVID-19 may affect us, our operations and our personnel; our expected investments; changes in the value of our investments, including negative changes resulting in margin calls related to the financing of our assets; changes in interest rates and mortgage prepayment rates; prepayments of the mortgage and other loans underlying our mortgage-backed securities, or RMBS, or other asset-backed securities, or ABS; rates of default, delinquencies or decreased recovery rates on our investments; general volatility of the securities markets in which we invest; our ability to maintain existing financing arrangements and our ability to obtain future financing arrangements; our ability to effect our strategy to securitize residential mortgage loans; interest rate mismatches between our investments and our borrowings used to finance such purchases; effects of interest rate caps on our adjustable-rate investments; the degree to which our hedging strategies may or may not protect us from interest rate volatility; the impact of and changes to various government programs, including in response to COVID-19; impact of and changes in governmental regulations, tax law and rates, accounting guidance, and similar matters; market trends in our industry, interest rates, the debt securities markets or the general economy; estimates relating to our ability to make distributions to our stockholders in the future; our understanding of our competition; availability of qualified personnel; our ability to maintain our classification as a real estate investment trust, or, REIT, for
Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Chimera does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning these, and other risk factors is contained in Chimera’s most recent filings with the Securities and Exchange Commission (SEC). All subsequent written and oral forward-looking statements concerning Chimera or matters attributable to Chimera or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.
Readers are advised that the financial information in this press release is based on company data available at the time of this presentation and, in certain circumstances, may not have been audited by the Company’s independent auditors.
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Investor Relations
888-895-6557
www.chimerareit.com
Source: Chimera Investment Corporation
FAQ
What is the dividend amount per share for Chimera's 8% Series A Cumulative Redeemable Preferred Stock?
When is the ex-dividend date for Chimera's preferred stock dividends?
When will the first quarter dividends be payable to preferred shareholders?
What is the dividend amount per share for Chimera's 7.75% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock?
What is the dividend amount per share for Chimera's 8% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock?
