Cherry Hill Mortgage Investment's Series A Preferred Stock Yield Pushes Past 10%

CHMI.PRA was yielding above 10% on Monday based on a quarterly dividend annualized to $2.05, with shares trading as low as $20.41. The market-implied yield materially exceeds the 8.20% stated coupon, indicating price weakness in the series A preferred that may offer attractive income for yield-seeking buyers but also signals elevated risk/pricing pressure in this mortgage REIT preferred security.

Analysis

CHMI.PRA was yielding above 10% on Monday based on a quarterly dividend annualized to $2.05, with shares trading as low as $20.41. The market-implied yield materially exceeds the 8.20% stated coupon, indicating price weakness in the series A preferred that may offer attractive income for yield-seeking buyers but also signals elevated risk/pricing pressure in this mortgage REIT preferred security.