On August 7, 2012, Chimera Investment Corporation (CIM) announced that it plans to initiate a regular quarterly dividend of $0.09 per share for both the third and fourth quarter of 2012. On the same day, CIM filed with the SEC, noting that each of the Company's Annual Reports (10-Ks) since 2008, and all Quarterly Reports (10-Qs) since the third quarter of 2008, need to be restated.
The market reacted positively to the news, with Chimera shares appreciating around ten percent on the date of the announcement. It appears that much of the bump was due to Chimera's plans to maintain its previously announced Q2 dividend rate of nine cents, but the market may be overlooking some of the statements included in these announcements. For example, Chimera noted that portions of the quarterly payout might be a return of capital (which could lower an investor's cost basis), and this rate is only guaranteed until the end of 2012, at which point the Board of Directors will review the policy.
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