Cherry Hills 15.4% Yield Looks Tempting, But a String of Dividend Cuts Tells a Cautionary Tale

• Cherry Hill Mortgage Investment (CHMI) trades at $2.66 with a 15.4% annualized dividend yield, but its quarterly payout has been slashed from $0.64 in 2017-2018 to the current $0.10 after a 33% cut in September 2025, with Q3 2025 GAAP EPS of $0.05 failing to cover the dividend entirely and earnings available for distribution remaining thin at $0.11 per share in Q4 2025.

• Cherry Hill faces headwinds from a 37.2% year-over-year revenue decline, MSR portfolio shrinkage from $17.0B to $15.9B, RMBS net interest spread compression from 3.55% to 2.52%, and rising prepayment speeds that could reach 15% if mortgage rates fall, making dividend sustainability uncertain in a challenging 2026 rate environment.

• A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.

Founded in 2012, Cherry Hill Mortgage Investment Corporation, a prominent real estate finance company (NYSE:CHMI) is flashing a 15.04% annualized dividend yield at a stock price of $2.66, trading at a meaningful discount to a book value of $3.44 per share. For income investors, the number is hard to ignore, but you have to dig into the history to know why it deserves attention.

This yield did not arrive from strength, as Cherry Hill’s dividend has been cut repeatedly over recent years, and quarterly payouts that once reached $0.49 per share in 2017-2018 have been reduced in stages to the current $0.10 per quarter. The most recent cut came in September 2025, when the board slashed the payout by 33% from $0.15, following a Q2 2025 quarter in which the $0.15 dividend exceeded earnings available for distribution of $0.10 per share, a clear signal that the prior rate was unsustainable.

Overall, coverage has been inconsistent, and in Q3 2025, GAAP EPS of $0.05 failed to cover the $0.10 dividend. Q4 2025 offered more relief, with diluted EPS of $0.14 covering the $0.10 payout with some cushion. However, earnings available for distribution came in at just $0.11 per share, leaving a thin margin above the dividend.

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This infographic dissects Cherry Hill Mortgage Investment Corp.’s dividend performance and financial health, highlighting concerns about its sustainability despite a high annualized yield.