This Series B preferred stock is a compelling alternative to the mortgage REIT's common shares, especially for investors with an average risk tolerance. The Series B combines fixed with floating rate dividend payments. The Series B preferred stock offers income investors a good mix of principal protection and high, recurring dividend income. Investors pay a ~4 percent premium to the liquidation preference value. An investment in this Series B preferred stock yields 7.7 percent.
Chimera Investment Corp. (CIM) is a high-yielding mortgage REIT that has issued both common and preferred shares. The mortgage REIT's common shares currently offer investors a 10.6 percent yield, but shares have proven to be volatile, thus reflect a high degree of risk. Chimera Investment Corp.'s preferred stock layer, on the other hand, allows investors to dial down investment risk while still capturing attractive dividend income. An investment in Chimera Investment Corp.'s preferred stock - which I discuss in this article - comes with a dividend yield of 7.7 percent.
Source: Seeking Alpha
Related Articles:
- Stock Dividends, The Gift of Nothing
- What's More Powerful Than Compound Interest?
- Dividends vs. Stock Buybacks
- 5 Lessons Learned About Investing In Dividend Growth Stocks
- 4 High Rated, Lower Debt Dividend Stocks With A Reasonable Payout
This 7.7%-Yielding Preferred Stock Is Worth A Shot
Posted by D4L | Friday, August 03, 2018 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Boring stocks to buy and hold almost always align with deeply established businesses. While they won’t offer the outstanding growth potentia...
-
Did you know that if a company were to increase its dividends by 5% per year, it would take 14 years for its payouts to double? And if its r...
-
The quick rise in interest rates over the past year turned investor sentiment toward REITs negative. Higher interest rates make it harder fo...
-
While there are many paths investors can take to generate long-term wealth, our preferred method is to buy-and-hold quality dividend stocks ...
-
Dividend Kings are stocks that have increased their dividends annually for at least 50 consecutive years. That's five full decades or mo...
-
Indeed, with recession on the horizon, investors are increasingly emphasizing quality, safety and dividends in their portfolio selections. W...
-
While it is prudent to build a more robustly diversified portfolio than just three stocks, the three discussed in this article are sure to g...
-
Cash is king when you’re looking to add dividend stocks to your portfolio There’s ample reason for caution. In case you haven’t noticed, a l...
-
Linked here is a detailed quantitative analysis of Texas Instruments Inc. (TXN). Below are some highlights from the above linked analysis: C...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.