Dividends4Life: Why Not Buy The 7.9%-Yielding Series B Preferred Stock?

Dividend Growth Stocks News

These preferred shares are an attractive alternative to the mortgage REIT's common shares. Specifically, I think the Series B fixed-to-floating preferred stocks offers income investors a lot of value in terms of dividend income and principal protection. I discuss advantages and disadvantages of investing in the preferred stock layer. An investment in the Series B preferred stock yields 7.9 percent.

Chimera Investment Corp. (CIM) is a high-yielding mortgage REIT with both common shares and preferred shares outstanding. Investors that don't want to take maximum risk with the mortgage REIT's common shares might want to think about buying Chimera's Series B preferred stock instead. The Series B has a couple of unique features that I will discuss. An investment in Chimera Investment Corp.'s preferred stock layer comes with a flat dividend yield of 7.93 percent.

Source: Seeking Alpha

Related Articles:
- 6 Dividend Stocks That Gave Me A 20%+ Annualized Return
- 3 Simple Steps For A Successful Retirement
- 6 Rainy Day Dividend Stocks
- With Dividend Growth Stocks, Cash Is King
- When A Stock Fails To Raise Its Dividend: Is It Time To Sell?

________________________________________________________________

0 comments

Post a Comment

Note: Only a member of this blog may post a comment.