2024-07-02 12:43:25 ET
Summary
- Cherry Hill Mortgage Investment Corporation is an mREIT specializing in residential mortgage-backed securities.
- Q1 2024 preferred dividend coverage was superb at 5.2 times but the company will struggle if mortgage spreads or interest rates move higher as in recent years.
- The company is actively buying back its Series B preferred shares which offer a higher current yield but no capital gain potential.
- The Series A preferred shares offer a ~9% yield and potential for capital appreciation if interest rates decline as expected.
- Cherry Hill is exploring strategic alternatives to boost stockholder value, bringing uncertainty until a decision on the future is made.
Introduction
Cherry Hill Mortgage Investment Corporation's Series A 8.2% preferred shares ( CHMI.PR.A ) have performed in line with the iShares Preferred and Income Securities ETF ( PFF ) so far in 2024, posting a mid-single-digit total return:
Cherry Hill Series A preferred shares vs PFF in 2024 (Seeking Alpha)
Read the full article on Seeking Alpha
For further details see:
Cherry Hill Mortgage Investment: Series A Preferred Shares Look Attractive