Inconsistency Plagues This 11% Yielder

Should you dodge this "dodgy" dividend?‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

AN OXFORD CLUB PUBLICATION

View in browser SPONSORED 3 "Big Money" Things in 7 Minutes (Can Transform Your Trading!) If you've got seven minutes... You'll discover the three "big money" things that can help transform your trading. How regular folks just got the chance at 19 wins in 23 trades. How a single Wednesday afternoon move led to these big profits. How to get an 83% win rate GUARANTEE with these unusual trade recommendations moving forward. >>> Click here for Three Big Things in Seven Minutes FINANCIAL LITERACY You Still Can't Count on This 11% Yielder Marc Lichtenfeld, Chief Income Strategist, The Oxford Club Way back in 2018, I wrote about Chimera Investment Corp. (NYSE: CIM) and warned investors that its then $0.50 quarterly dividend was likely to be cut. Sure enough, in June 2020, the dividend was slashed 40% to $0.30 per share. I suspect another dividend cut may be on the horizon. Chimera is a mortgage real estate investment trust (REIT). It borrows money in the short term and lends it out in the long term at higher rates. The difference is called net interest income (NII), and it's the way we determine a mortgage REIT's ability to afford its dividend. Chimera's NII is inconsistent. We'd prefer to see it grow every year, but Chimera has been unable to do that. Here's Chimera's NII over the past few years: 2018: $594 million 2019: $602 million 2020: $514 million 2021: $611 million 2022 estimate: $553 million. The REIT seems to alternate between growth and decline. That's not good, and Safety Net penalizes companies with negative growth. It's a sign that the dividend may be unsustainable in the future. SPONSORED "My First Impression Was 'You've GOT to Be KIDDING Me!'" - Bill O'Reilly In this jaw-dropping video clip, Bill O'Reilly hears THE FOUR SHOCKING WORDS that will help SUPERCHARGE AMERICANS' RETIREMENTS in 2022 and beyond... REGARDLESS of divisive politics... record-high debt... even the pandemic! Click Here to Watch Now (and Get the Four Shocking Words) Fortunately, Chimera's NII is high enough to afford the current dividend. In 2021, it paid $372 million in dividends. This year, it's forecast to pay $313 million. So the company has plenty of NII with which it can pay the dividend. But Chimera has a dodgy dividend history. In fact, the dividend is currently lower than it was in 2009. You can see in the chart how often the company lowers the dividend. When the going gets tough, Chimera cuts the dividend. As mentioned, Chimera presently generates enough NII to pay the dividend. But its checkered history of generating inconsistent NII and consistently lowering dividends means that you cannot rely on the dividend to remain at the current levels in the future. Dividend Safety Rating: D If you have a stock whose dividend safety you'd like analyzed, leave the ticker symbol in the comments section. You can also check to see whether we've written about your favorite stock recently. Just click on the magnifying glass in the upper right corner of the Wealthy Retirement homepage and type the company name in the box. Good investing, Marc Leave a Comment TYPE A COMPANY'S NAME BELOW MORE FROM WEALTHY RETIREMENT Another Great Homebuilding Buying Opportunity How to Handle Your Investments During Wartime Should You Buy the Dip in Russian Stocks? Running for Shelter: War-Torn Ukraine and Russia Turn to Crypto Facebook Twitter Email Share Push Alert SPONSORED The Best $8 5G Stock It's hard to find a good bargain in today's overvalued market. But this 5G stock is an exception. Its shares trade for $8, and it's locked in partnerships with ALL the major telecoms. That's why you need to get in NOW - before it's all over the mainstream press. Details here... You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our FAQs. Trying to reach us? Contact us here. 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