Chimera Declares Third Quarter 2024 Preferred Stock Dividends

Rhea-AI Summary

Chimera Investment (NYSE: CIM) has declared preferred stock dividends for the third quarter of 2024. The company's Board of Directors announced the following dividends:

• 8% Series A: $0.50 per share
• 8% Series B: $0.7111 per share (11.37721% rate)
• 7.75% Series C: $0.484375 per share
• 8% Series D: $0.7006 per share (10.96521% rate)

All dividends are payable on September 30, 2024, to shareholders of record as of September 3, 2024. The ex-dividend date for all series is also September 3, 2024. Series B and D rates are based on three-month CME Term SOFR plus adjustments and spreads.

Positive

• Consistent dividend payments across all preferred stock series
• Higher dividend rates for Series B (11.37721%) and Series D (10.96521%) due to floating rate structure

Negative

• None.

Insights

Financial Analyst

Chimera's declaration of preferred stock dividends for Q3 2024 signals financial stability and commitment to shareholder returns. The consistent dividend payments across multiple series of preferred stock demonstrate the company's ability to meet its obligations to preferred shareholders.

Of particular interest is the floating rate component in Series B and D, tied to the CME Term SOFR. With rates of 11.37721% and 10.96521% respectively, these dividends reflect the current high-interest rate environment. This benefits preferred shareholders but may indicate increased costs for Chimera.

While this news is positive for preferred stockholders, common shareholders should note that preferred dividends take priority. The impact on common dividends and overall financial health requires further analysis of Chimera's complete financial statements.

Market Research Analyst

This dividend declaration aligns with market expectations for REITs like Chimera. The consistency in dividend payments across multiple preferred stock series suggests stability in Chimera's income streams, likely from its mortgage-backed securities portfolio.

The floating rate components tied to SOFR in Series B and D are particularly noteworthy. These high rates (11.37721% and 10.96521%) reflect the current macroeconomic environment and could attract yield-seeking investors in the short term. However, they also indicate higher borrowing costs for Chimera, which could pressure profitability if sustained.

Investors should monitor how these dividend obligations impact Chimera's financial flexibility and ability to capitalize on opportunities in the dynamic mortgage market. The sustainability of these dividend rates in a potentially changing interest rate environment will be important for long-term investor confidence.

• BOARD DECLARES THIRD QUARTER 2024 DIVIDEND OF $0.50 PER SHARE OF 8% SERIES A CUMULATIVE REDEEMABLE PREFERRED STOCK
  
  
  
  
• BOARD DECLARES THIRD QUARTER 2024 DIVIDEND OF $0.7111 PER SHARE OF 8.00% SERIES B FIXED-TO-FLOATING RATE CUMULATIVE REDEEMABLE PREFERRED STOCK
  
  
  
  
• BOARD DECLARES THIRD QUARTER 2024 DIVIDEND OF $0.484375 PER SHARE OF 7.75% SERIES C FIXED-TO-FLOATING RATE CUMULATIVE REDEEMABLE PREFERRED STOCK
  
  
  
  
• BOARD DECLARES THIRD QUARTER 2024 DIVIDEND OF $0.7006 PER SHARE OF 8.00% SERIES D FIXED-TO-FLOATING RATE CUMULATIVE REDEEMABLE PREFERRED STOCK

NEW YORK--(BUSINESS WIRE)-- The Board of Directors of Chimera announced the declaration of its third quarter cash dividend of $0.50 per share of 8% Series A Cumulative Redeemable Preferred Stock. The dividend is payable September 30, 2024 to preferred shareholders of record on September 3, 2024. The ex-dividend date is September 3, 2024.

The Board of Directors of Chimera also announced the declaration of its third quarter cash dividend of $0.7111 per share of 8% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, which reflects a rate of 11.37721%, equal to three-month CME Term SOFR (plus a spread adjustment of 0.26161%) on the dividend determination date plus a spread of 5.791%. The dividend is payable September 30, 2024 to preferred shareholders of record on September 3, 2024. The ex-dividend date is September 3, 2024.

The Board of Directors of Chimera also announced the declaration of its third quarter cash dividend of $0.484375 per share of 7.75% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock. The dividend is payable September 30, 2024 to preferred shareholders of record on September 3, 2024. The ex-dividend date is September 3, 2024.

The Board of Directors of Chimera also announced the declaration of its third quarter cash dividend of $0.7006 per share of 8% Series D Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock, which reflects a rate of 10.96521%, equal to three-month CME Term SOFR (plus a spread adjustment of 0.26161%) on the dividend determination date plus a spread of 5.379%. The dividend is payable September 30, 2024 to preferred shareholders of record on September 3, 2024. The ex-dividend date is September 3, 2024.

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; 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 inflation, interest rates and mortgage prepayment rates; prepayments of the mortgage and other loans underlying our mortgage-backed securities, or MBS, or other asset-backed securities, or ABS; rates of default, forbearance, deferred payments, 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; 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; our ability to find and retain qualified personnel; our ability to maintain our classification as a real estate investment trust, or, REIT, for U.S. federal income tax purposes; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended, or 1940 Act; our expectations regarding materiality or significance; and the effectiveness of our disclosure controls and procedures.

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 any 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 are Chimera's preferred stock dividend rates for Q3 2024?

Chimera (CIM) declared the following preferred stock dividends for Q3 2024: Series A at $0.50, Series B at $0.7111, Series C at $0.484375, and Series D at $0.7006 per share.

When will Chimera (CIM) pay its Q3 2024 preferred stock dividends?

Chimera will pay its Q3 2024 preferred stock dividends on September 30, 2024, to shareholders of record as of September 3, 2024.

What is the ex-dividend date for Chimera's Q3 2024 preferred stock dividends?

The ex-dividend date for all of Chimera's (CIM) Q3 2024 preferred stock dividends is September 3, 2024.

How are the dividend rates determined for Chimera's Series B and D preferred stocks?

Chimera's Series B and D preferred stock dividend rates are based on the three-month CME Term SOFR plus a spread adjustment and an additional spread, resulting in rates of 11.37721% and 10.96521% respectively for Q3 2024.