5 Extreme Dividend Stocks With Upside Potential

3. Chimera Investment Corporation (NYSE:CIM)

Number of Hedge Fund Holders: 16  

Forward Dividend Yield: 8.52%  

Chimera Investment Corporation (NYSE:CIM) is placed third on our list of extreme dividend stocks with upside potential. The firm stands to benefit from the increase in mortgage rates across the US. Last month, the company declared a quarterly dividend of $0.33 per share, in line with previous. Since June, the company has sponsored two securitizations of residential mortgage loans with a principal balance of $885 million. 

Chimera Investment Corporation (NYSE:CIM) stock has returned more than 78% to investors in the past twelve months. The company beat market expectations on earnings per share in the second quarter by $0.20 and reported a 47% year-on-year increase in the net interest income. 

At the end of the second quarter of 2021, 16 hedge funds in the database of Insider Monkey held stakes worth $105 million in Chimera Investment Corporation (NYSE:CIM), up from 15 the preceding quarter worth $78 million.