Chimera Increases Second Quarter 2024 Common Stock Dividends to $0.35
The Board of Directors of Chimera Investment declared a second quarter 2024 cash dividend of $0.35 per common share.
This marks an increase from the first quarter dividend of $0.33 per share, adjusted for a reverse stock split.
The dividend will be payable on July 31, 2024, to shareholders of record as of June 28, 2024. The ex-dividend date is also June 28, 2024.
- Increased dividend to $0.35 per common share for Q2 2024.
- Dividend increase from $0.33 to $0.35 per share, reflecting confidence in financial stability.
- Payment date set for July 31, 2024, ensuring timely returns to shareholders.
- Dividend increase might signal reinvestment opportunities.
- Reverse stock split adjustment could imply past financial structuring issues.
Insights
Chimera Investment Corporation's decision to increase its second-quarter dividend from
However, it's important to assess whether this dividend increase is sustainable. An analysis of Chimera's recent earnings reports and cash flow statements would be essential to determine if the company can maintain or further increase its dividends without compromising its financial health. A payout ratio – the proportion of earnings paid out as dividends – that is too high could indicate that the company might struggle to sustain these higher dividend payments, especially in economic downturns.
For retail investors, while increased dividends are attractive, it's vital to consider the long-term stability of these payments. They should look at the company's historical dividend trends, earnings stability and broader economic indicators that could impact Chimera's future performance.
From a market perspective, Chimera's increased dividend might signal confidence in its business model and future prospects. The company's decision to raise dividends can be interpreted as a positive indicator of its financial health and management's commitment to returning value to shareholders. This move can also set Chimera apart from peers, potentially making it more attractive to investors who prioritize dividend income.
However, it's important to consider the broader market context. Rising interest rates and changing economic conditions can impact mortgage REITs like Chimera, as they often rely on borrowing to finance their investments. Market analysts should evaluate how external factors, such as interest rate trends and housing market conditions, could affect Chimera's ability to continue delivering robust dividends.
Additionally, investors should be mindful of the timing of the dividend payout. The ex-dividend date of June 28, 2024, means that investors must hold the stock by this date to be eligible for the dividend, which could influence short-term trading behaviors and stock price volatility leading up to this date.
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BOARD DECLARES SECOND QUARTER 2024 DIVIDEND OF
$0.35
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
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
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www.chimerareit.com
Source: Chimera Investment Corporation
FAQ
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