Chimera Investment Corporation (CIM), a player in the investment industry, recently made two announcements. The company declared a dividend reduction for the second quarter of 2023 and expanded its common stock repurchase program. These strategic moves aim to align the dividend payout with expected earnings and capitalize on the undervaluation of Chimera's portfolio.

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2nd Quarter Common Stock Dividend Announcement

Chimera's Board of Directors has declared a second quarter cash dividend of $0.18 per share of common stock. This dividend will be payable to the company's common stockholders on July 31, 2023, with a record date of June 30, 2023. It's important to note that the ex-dividend date has been set for June 29, 2023.

According to Mr. Kardis, CEO of Chimera, "Today's dividend cut brings our dividend more in line with our expected earnings performance over the medium term."

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Increase in Common Stock Repurchase Program

In addition to the dividend reduction, Chimera has authorized an increase in the amount available under its common stock repurchase program. As of March 31, 2023, the program had $177 million remaining for repurchase. Following the Board's action, the aggregate amount of common stock available for repurchase under the program has been raised to $250 million.

Chimera intends to execute the repurchases through open market transactions or privately negotiated deals, in compliance with securities laws and other legal requirements. The timing, price, and volume of repurchases will be determined by the company based on economic conditions, market trends, stock price, and applicable regulations. Chimera will prioritize repurchasing shares when the purchase price is lower than the last publicly reported book value per common share.