How can they continue to pay such a high dividend ?
Leverage. The wonderful world of low cost debt purchasing high yield assets. As long as debt costs remain low and the assets perform as expected the dividend can be paid.
CIM's leverage was onlt 2:1 or something close to that. They could easily increase leverage to the normal 5:1 to 8:1 range that other mortgage REITs have if they wanted, but CIM management has been conservative with leverage.
The short answer is: Because they can. It's not that the yield that's so high, it's stock price that's so low.
Will the 100 million new shares dilute the stock to the point they have to cut the dividend ?
Also, because it is a reit it has to pay out 90% of its' profits in the form of a dividend for tax purposes.