Dallas, Texas 10/07/2013 (Financialstrend) – Like most other players operating in the Mortgage REITs sector, Chimera Investment Corporation (NYSE:CIM) too is contemplating to cut its dividend payout plan for the reminder of the year. This follows the September 18 Fed decision which opted for a “ No taper for now” track. With prospects for a loan increase thus being doused for now, most REIT have opted to cut down on the dividends payout in order to tide over the situation where the margins of operations are coming under stress.
In the most recent dividend payout plan, the REIT firm had opted to payout a quarterly dividend of $0.09 per share to its share holders on August 23. The divided was due to be paid on October 4. The $0.09 pay out was in line with its previous payouts which added up to $0.36 per share for the trailing 12 months period. That translates to a 12% forward yield return from this fund, which compares well with the payout from its peers. It is from this perspective that one can expect to see a cut from CIM over the reminder dividend payouts in the year.
In a related development, the company has provided an update to its previously reported extension it had received from New York Stock Exchange to files its 2012 annual report. The extended deadline is January 31, 2014 and the company says it is focusing on filing all pending quarter reports including the FY12 annual report before the deadline. The firm has a market cap of close to $3.09 billion with over 1.03 billion shares outstanding. As of close of business on October 4, CIM shares were trading at $3, up 0.67% from its previous day close. This translates to a 5.2% increase in the stock market value over the past 30 days.