Invesco Mortgage Capital: Ditch The Common For The Preferreds

Ryan Bowen
1.25K Followers

Summary

  • Invesco Mortgage Capital is an mREIT with common shares and two preferred shares.
  • The common shares have a history of severe negative returns and total returns. The preferreds have at least generated positive total returns.
  • A repurchase program on the preferred shares is active currently and each offer a much safer dividend yield around 9%.
  • If you own IVR, I'd suggest reallocating to either of the preferreds.
Smiling young woman contemplating a piggy bank

Gotta keep that Yellow Piggy Bank safe. If investing in IVR, seems like the preferreds are the way do that.

stockfour/iStock via Getty Images

Invesco Mortgage Capital (NYSE:IVR) is a mortgage based real estate investment trust (mREIT) which has been hammered in the last few years. The stock price has fallen from a high of $157 in February 2020 to $15.63 today which is a 90% decline. Historically the company

---

Microcap Review is a service offering multiple microcap stock picks a month.

We subscribe to the first rule of investing, "Do not lose money," by seeking a discernible margin of safety in investments.

I believe small and microcap stocks, as well as special situations, are the best place to look for value in the markets, as most people overlook these companies, making them more likely to be mis-priced.

Join now to get exclusive research!

This article was written by

Ryan Bowen
1.25K Followers
Joined the Seeking Alpha team as a Senior Editor in 2023. As part of being an Editor I no longer can write for the site but instead focus on ensuring we curate quality content.I am a self-taught value investor along the Graham and Dodd line. My first objective is to not lose money. I seek to do this by ensuring any position I enter has a discernible margin of safety. The second thing I aim for is above-average returns.Always open to questions and dialogue as I believe it only serves to improve us all.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About IVR Stock

SymbolLast Price% Chg
EPS
PE
Div Rate
Yield
Short Interest
Market Cap
Volume
Compare to Peers

More on IVR

Related Stocks

SymbolLast Price% Chg
IVR
--
IVR.PR.B
--
IVR.PR.C
--
Compare

Trending Analysis

Trending News