Chimera Investment Corporation (CIM)

[richrichrich]

I think though, when people are interested in better returns for their money, they will always throw in the "but safe" addition to their request. That's the problem with these high dividend yielding stocks, they are not necessarily safe. No one can predict the mortgage related future for these REITs. They could stop the dividend tomorrow, and the bailing would be tremendous, leaving most investors "stunned". I bought in to a Canadian REIT a few years ago, which had a similar high dividend, and payed monthly. Because of the collapse in oil/gas drilling in Canada, they claimed they would only pay quarterly dividends, and also dropped the rate, severely. Well, people bailed immediately, causing the stock to plummet quickly. It still hasn't returned to its former glory, after several years.......... On the other hand, no pain no gain. Snooze you lose. To be afraid of loss with these REITs, can mean big time money missed out on.