If a dividend normally reflects earnings then why does Cim include return of capital to pay out a
normal qtr divy of 9 cents unless they are in trouble.Just can't get my head around this
Perhaps someone more knowledgable than I could put me straight.
CIM is not in serious financial trouble, but is pushing the envelope regarding what is considered acceptable behavior for a $3 billion company. They have decided to stabilize the dividend to avoid additional damage to the stock price, but if a sizable chuck continues to be return of capital, the market could begin discounting the stock price.