We recently compiled a list of the 10 Dividend Paying Stocks Insiders Are Buying. In this article, we are going to take a look at where Chimera Investment Corporation (NYSE:CIM) stands against the other dividend paying stocks.
Uncertainty is not among the market’s favorites. Yet, at present, uncertainty is prevailing throughout the market. The U.S.-China trade escalation and the new tariffs on all other U.S. trading partners have left investors scrambling to find stable ground.
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Just this week, CNBC reported President Trump’s announcement to charge steep fees on ships built in China, presently docking at the U.S. ports, a move the analysts perceive could cause the shipping costs to go high and send a ripple through consumer prices. China, the significant retaliator to Trump’s tariffs, has started targeting the U.S. service sector by threatening everything from tourism to tech talent pipelines. Even the blue-chip stocks find the current climate unfavorable, thus increasing the adoption rate of another strategy: dividend-paying stocks. And here’s the kicker – insiders are loading up on them.
Dividends are the financial shock absorbers when growth stocks swing wildly on trade war headlines. Investors in such an unfavorable market condition often prioritize the cash flow today rather than the promises of growth tomorrow. Historically, in many instances, when the market is experiencing turbulence, the dividend-paying stocks outperformed their non-dividend peers. In addition to padding the portfolio, the dividend stocks have signaled corporate resilience. And right now, insiders like executives and board members are betting big on the stability of the dividend stocks.
Corporate leaders buy shares of their companies to add credibility to the stocks. At the same time, it also indicates that they see an undervalued potential in their stocks. Unlike analysts, the insiders have first-hand information regarding earnings forecasts, balance sheets, and the company’s strategies that would allow it to weather the upcoming storms.
The recent U.S.-China tariff escalations stand as a prime example of such storms. The headlines focus on the two countries’ shipping fees and rare-earth export controls. Meanwhile, board members of some companies are scooping up stocks. But these are not speculative plays; they are calculated decisions made using the unique knowledge of the company’s cash flows, debt, and history of raising dividends.
Now, let us zoom out. The market position is clear. According to CNBC, volatility has become the new normal with China’s retaliation squeezing the services trade sector, where the U.S. holds a $32 billion surplus. Finding an appropriate dividend that could add some resilience to the portfolio becomes a necessity. Using insider backing to find the best stock offers a rare blend of defensive positioning and growth potential.
In this regard, we have done the legwork to uncover 10 dividend-paying stocks with high insider confidence. In addition to offering a positive yield, our picks could fortify your investments against the market chaos caused by the trade war. You may be hedging against inflation, chasing reliable income, or simply copying the moves of those in the know.
Our Methodology
When putting together our top 10 picks for the best dividend-paying stocks investors are buying, we followed a few criteria. We set the dividend yield at a minimum of 3%. This criterion is in place to provide investors with optimal income-generating stocks. We did not include stocks with an insider ownership change of less than 4% in the last six months since a larger percentage correlates with a significant shift in ownership, potentially based on recent and relevant information. Stocks with an average volume of over 200,000 are included in the list, suggesting much trading activity with strong interest from buyers and sellers. Additionally, we have considered only those stocks with a positive return on equity (ROE). With this criterion, we ensured that our picks generated income for the investments made by the shareholders.
All the data in the article was taken from financial databases and analyst reports, with all information updated as of April 16, 2025. And we have ranked our picks based on the percentage change in insider ownership.
A businessperson examining financial graphs and charts of the company’s portfolio, while surrounded by residential mortgage loan documents.
Chimera Investment Corporation (NYSE:CIM)
Change in Insider Ownership: 8.14%
Dividend Yield: 12.99%
Chimera Investment Corporation (NYSE:CIM) is a real estate investment trust (REIT) based in New York. The focus is on mortgage assets, including agency- and non-agency residential mortgage-backed securities, mortgage loans, and other credit-sensitive investments. The company utilizes a hybrid strategy, balancing yield and risk through active portfolio management to gain a strong foothold amidst heavy competition. In addition to credit performance, the company prioritizes asset diversification and interest rate hedging to survive volatile fixed-income markets.
Chimera Investment Corporation (NYSE:CIM) reported a GAAP net loss of $168.3 million in the Q4 of 2024. However, the quarterly dividend increased by 12%, indicating confidence in the company’s financial health and a strong commitment to shareholders. The acquisition of the Palisades Group is expected to assist Chimera Investment Corporation (NYSE:CIM) in diversifying its revenue stream by offering a new fee-based source of income that would elevate its earnings. Completing significant share repurchases and maintaining consistency in dividend payments has also earned the company confidence among shareholders and insiders. The company’s plans for the year include diversifying the portfolio and increasing liquidity to stabilize its dividends amid the market volatility.
Chimera Investment Corporation (NYSE:CIM) insiders expressed their growing confidence in the company through an 8.14% increase in holdings. The firm offers a sizable dividend yield of 12.99% and gains the top spot in the list of best dividend stocks for income-focused portfolios.
Overall CIM ranks 1st on our list of the dividend paying stocks insiders are buying. While we acknowledge the potential of CIM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CIM but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.