4-Star Stocks Poised to Pop: Chimera Investment

Brian D. Pacampara, The Motley Fool
Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT Chimera Investment (NYS: CIM) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Chimera's business and see what CAPS investors are saying about the stock right now.

Chimera facts

Headquarters (founded)

New York (2007)

Market Cap

$2.9 billion

Industry

Mortgage REITs

Trailing-12-Month Revenue

$614.1 million

Management

CEO Matthew Lambiase
CFO A. Alexandra Denahan

Trailing-12-Month Return on Equity

17.8%

Cash/Debt

$9.8 million / $6.2 billion

Dividend Yield

15.3%

Competitors

Annaly Capital Management
Capstead Mortgage
MFA Financial


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 96% of the 1,214 members who have rated Chimera believe the stock will outperform the S&P 500 going forward.

Just a couple of days ago, one of those Fools, nccurrie, tapped the stock as a particularly timely income opportunity: "[Ben Bernanke's] promise to keep interest rates low for another 2 years virtually guarantees [Chimera's] operations will continue at their current level, and they MUST distribute the majority of their profits. Plus, the great dividend yield makes it attractive to many conservative investors."

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Chimera may not be your top choice.

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At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Annaly. Motley Fool newsletter services have recommended buying shares of Annaly. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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