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Chimera Investment Corporation, known by the ticker symbol CIM, is a large-cap Mortgage Real Estate Investment Trust, operating in the real estate business sector. This is my first report on Chimera Investment Corporation for this Viital portfolio or any of my previous six portfolios.

Chimera Investment Corporation is a real estate investment trust primarily engaged in investing in a portfolio of mortgage assets on a leveraged basis. 

These investments include a variety of government-sponsored agency residential mortgage-backed securities, or RMBS, non-agency RMBS, agency commercial mortgage-backed securities, residential mortgage loans, and other real estate-related securities. 

Agency mortgage-backed securities represent the largest share of this portfolio, while subprime residential mortgage loans and non-agency RMBS also make up substantial shares. 

A significant percentage of these securities are backed by properties in California. Chimera generates nearly all of its income from interest payments derived from its investments.

The company has elected to be taxed as a REIT under the Internal Revenue Code of 1986 and would not be subject to federal corporate income taxes, if it distributes at least 90% of its taxable income to its stockholders. 

The company was incorporated in 2007 and is based in New York, New York.

Three key data points gauge any dividend equity or fund such as Chimera Investment Corporation (CIM):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

CIM Price

Chimera's price per share was $12.11 as of yesterday's market close. One year ago its price was $12.75. Therefore, Chimera's share price fell $0.64 or 5% in the past year. 

If CIM's stock trades in the range of $11.00 to $15.00 this next year, its recent $12.11 share price might rise by $1.89 to reach $14.00 by March 31, 2023. My $1.89 estimate is $0.31 less than the median of target price estimates from four analysts covering CIM for various brokerages. 

CIM Dividends 

Chimera Investment Corporation's most recent quarterly dividend of $0.33 will be paid April 28 to shareholders on record as of March 30th. Assuming the same rate holds true for the coming months, the resulting annual dividend payout per share of $1.32 yields 10.9% at yesterday's $12.11 closing price. 

CIM has paid variable quarterly payouts since January 25, 2008. That stretch marked 14 years in January. 

CIM Returns

Adding the $1.32 Chimera Investment Corporation annual dividend to the estimated one-year price upside of $1.892 shows a $3.21 potential gross gain, per share, to be reduced by any costs to trade CIM shares.

At yesterday's $12.11 price per share, a little over $1000 would buy 83 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.12 per share.

Subtract that maybe $0.12 brokerage cost from my estimated $3.21 gross gain estimate per share results in a net gain of $3.09 X 83 shares = $256.47 for a 25.6% net gain on a $1,005.13 investment.

So it is that Chimera Investment Corporation (CIM): shows a possible 25.6% net gain including a 10.9% forward looking dividend yield. 

Over the next year at this time our $1000 investment in Chimera Investment Corporation (CIM) could generate $109.00 in cash dividends alone. Note that a single share of CIM stock bought at yesterday's price of $12.11 is about 1/9 of the anticipated dividend income from our $1000.00 invested. So, by my dogcatcher ideal, now maybe the time to buy Chimera Investment Corporation (CIM) shares. The estimated next-year dividend from $1K invested is 9 times greater than yesterday's single share price. Consider yourself alerted. Its a sign! 

All of the estimates above are speculation based on the past history of Chimera Investment Corporation (CIM). Only time and money invested in this stock will determine its market value.