10 Ultra-High Dividend Small-Cap Stocks You Should Know About, Part 2

Chimera Investment Corporation (NYSE:CIM)

– Elite Investors with Long Positions (as of September 30): 16

– Aggregate Value of Elite Investors’ Holdings (as of September 30): $291 million

Moving on, shares of Chimera Investment Corporation (NYSE:CIM) suffered a serious beating during the second quarter, but because they have remained range-bound since, their year-to-date losses have been contained at 15.85% currently. The number of hedge funds covered by us that held shares of Chimera Investment Corporation (NYSE:CIM) declined by only one during the third quarter. However, the aggregate value of their Chimera holdings declined by 15% during the same period. On December 11, the company announced that its Board of Directors agreed to keep its quarterly dividend constant at $0.48 per share for the fourth quarter. Based on Chimera Investment Corporation’s current stock price, this quarterly dividend translates into an attractive dividend yield of 14.35%. After decreasing his stake in the company by 77% during the second quarter, billionaire Leon Cooperman‘s Omega Advisors again reduced its stake in Chimera Investment Corporation in the third quarter, by 1% to slightly over 14 million shares.

MFA Financial, Inc. (NYSE:MFA)

– Elite Investors with Long Positions (as of September 30): 17

– Aggregate Value of Elite Investors’ Holdings (as of September 30): $51.5 million

MFA Financial, Inc. (NYSE:MFA) is among the few REITs that, despite being in a downtrend and declining in the third quarter, saw its popularity rise among hedge funds. Not only did the number of hedge funds that were long the REIT climb by three during the July-to-September period, but the aggregate value of their holdings in the stock also rose by $2.78 million. With its shares having declined by 16% year-to-date and it still managing to pay a $0.20 per share quarterly dividend, for an annual dividend yield of 11.94%, it’s not hard to understand why hedge funds find MFA Financial, Inc. (NYSE:MFA) attractive. On December 3, analysts at Credit Suisse reiterated their ‘Neutral’ rating on the stock, but lowered their price target on it to $8.25 from $8.50. Charles Clough‘s Clough Capital Partners was one of the hedge funds that initiated a stake in MFA Financial, Inc. during the third quarter; it held 356,300 shares of the company as of September 30.

PennyMac Mortgage Investment Trust (NYSE:PMT)

– Elite Investors with Long Positions (as of September 30): 17

– Aggregate Value of Elite Investors’ Holdings (as of September 30): $131 million

Finally, the decline that shares of PennyMac Mortgage Investment Trust (NYSE:PMT) have suffered since the start of the year weighed heavily on its popularity among hedge funds during the third quarter. The number of funds that disclosed being long PennyMac declined by six during the quarter, while the aggregate value of their collective PennyMac holdings declined by 32.4%. However, the 17 funds covered that disclosed owning a stake in it still accounted for over 11% of the outstanding shares of the company. The company slashed its latest quarterly dividend by $0.14 to $0.47 per share. However, this reduced dividend still represents an annual dividend yield of over 12%. On December 10, analysts at Barclays initiated coverage on PennyMac Mortgage Investment Trust (NYSE:PMT)’s stock with an ‘Overweight’ rating and $21 price target. Having initiated a stake in the company by purchasing over 2.6 million shares during the third quarter, John Khoury’s Long Pond Capital became its largest shareholder among the funds covered by us as of September 30.

Disclosure: None