Chimera Investment (NYSE:CIM)

As long as interest rates are low, this stock will continue to have a very good dividend. You can also realize a gain in the price of the stock if you rotate around the $3 mark!

divedend

Based on the the low stock price, the Fed's promise to keep interest rates at historic lows and it's double digit dividends, it makes Chimera a good stock for a mid term keeper.

With the Fed freezing interest rates until 2014, the majority of risk with this stock is mitigated.

With interest rates pegged at zero mreits look attractive. CIM is small but owned by NLY. Has a higher div and lower cost to book than peers.

It is a leverage play and pays dividends.

Fed announcing 0% interest rates through 2014 most likely takes pressure off the badly beaten CIM and allows the company to most likely continue its very nice dividend.

As long as rates are low

"When trade times are measured in microseconds, but business value is generated over years, there's a very real potential for a huge gap to open between a stock's price and a company's value. It's by looking for and exploiting those gaps -- and then waiting for the short-sighted computers to catch up with the long term reality -- that you have an edge over today's high tech traders.

One straightforward way to find such opportunities is to look for profitable companies that the market has discarded as being worth more dead than alive..."

(Excerpt from a draft CAPScall article with estimated publication date of 29-DEC-2011)

solid management team (related to NLY) solid dividend and ROA will be maintained

12/17

Lets face it, all mortgage type stocks are down right now. Soon enough there will be a come back and when it happens CIM will take off. (plus who can resist the 19% +/- dividend).

Interest rates to stay low through at least 2012.

Awesome Dividend rate.

dividend play... Risky, but feels good for the next 6 months to a year...

way too risky for even that high of a dividend.

high dividend - very cheap

Including dividends, this stock will outperform until 2013 when the Fed expects to raise interest rates. Cheap now too.

I've played Chimera Investments before, but exited looking for a lower entry. It's a pure dividend play that works best from the lowest possible entry. Overall, however, the risk has been growing in leveraged REIT's. CIM in particular continues to issue massive quantities of stock to leverage even deeper and dividends may not make up for share price drops from further dilution. One might also see a reverse split on this one to get the share price back up. Reverse splits are usually a negative catalyst the first few weeks after they occur.

There have been several cycles of serious dips, a few that I made good entries into, but I'm not patient enough to wait for another.

Dividend plays do best when:
1. They hold their dividends!
2. The S&P is stable or declining, certainly not when it's on a tear.
3. When held for several years and LEFT alone to "mature" from dividend reinvestment...if they stay solvent.