Cherry Hill's 15.4% Yield Looks Tempting, But a String of Dividend Cuts Tells a Cautionary Tale

15.04% annualized dividend yield at a $2.66 share price for Cherry Hill Mortgage Investment Corporation (NYSE: CHMI). The stock trades at a meaningful discount to book value of $3.44 per share, implying ~22.7% downside to book. Company is a real estate finance firm founded in 2012; the high yield and discount may attract income-oriented investors but reflects firm- or sector-specific risk.

Analysis

15.04% annualized dividend yield at a $2.66 share price for Cherry Hill Mortgage Investment Corporation (NYSE: CHMI). The stock trades at a meaningful discount to book value of $3.44 per share, implying ~22.7% downside to book. Company is a real estate finance firm founded in 2012; the high yield and discount may attract income-oriented investors but reflects firm- or sector-specific risk.