I wouldn't be so pessimistic. i think it CIM will stay around a $3.30 - $3.50 trading range for the foreseeable future, but anyone expecting $4 again is dreaming.
CIM really has no way to increase dividends, as it desperately moves to agency paper, but doesn't quite have the leverage to compete with the big boys in that space. I think that move is a tacit acceptance that that gambling on non-agency paper is a bad idea as the stock price has tumbled from a high of $19 to the $3.30s today.
If CIM becomes an agency player? why bother investing in it? i would just move my money to proven players in that category, players with more leverage and better stock price history like NLY.