Cherry Hill Mortgage Investment Corp. : CHMI-US: Dividend Analysis : September 29th, 2017 (record date) : By the numbers : October 13, 2017

Our analysis is based on comparing Cherry Hill Mortgage Investment Corp. with the following peers – Hannon Armstrong Sustainable Infrastructure Capital, Inc., Redwood Trust, Inc., Walter Investment Management Corp., MFA Financial, Inc. and Chimera Investment Corporation (HASI-US, RWT-US, WAC-US, MFA-US and CIM-US).

Cherry Hill Mortgage Investment Corp.’s dividend yield is 11.36 percent and its dividend payout is 28.08 percent. This compares to a peer median dividend yield of 9.22 percent and a payout level of 63.64 percent. This relatively higher dividend yield and lower payout ratio makes the company a good candidate for dividend investors looking for good current dividend income within this peer group. On the contrary, the company’s average dividend quality score of 50 out of a possible score of 100, lessens its attractiveness for dividend investors.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Over the last twelve months (prior to June 30, 2017), CHMI-US paid a medium quality dividend, which represents a yield of 10.55% at the current price.
  • Dividends were paid for 3 of the last five years — all of them were also of medium quality.
  • The ending cash balance, with a dividend coverage of 2.70x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to June 30, 2017), CHMI-US paid a medium quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 2.42x), investing cash flow (coverage of -45.42x), issuance cash flow (coverage of 45.32x) and twelve-month prior cash (coverage of 1.39x), for a total dividend coverage of 3.70x.

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) N/A 0 10.65 15.37 11.6 11.36
Dividend Payout (%) N/A 3.6 654.84 112.5 59.39 28.08

A complete list of metrics and analysis is available on the company page.

Company Profile

Cherry Hill Mortgage Investment Corp. is a real estate finance company, which acquires, invests in and manages a portfolio of excess mortgage servicing rights. The company operates through the following segments: Investments in RMBS, Investments in Servicing Related Assets and All Other segment. It also invests in agency residential mortgage backed securities, prime jumbo mortgage loans and other residential mortgage assets. The company was founded on October 31, 2012 and is headquartered in Moorestown, NJ.

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