Invesco Mortgage Capital: Preferred Dividend Coverage Likely To Improve
Summary
- Invesco Mortgage Capital is a mREIT focused on agency RMBS and CMBS.
- Preferred dividends were well covered by net income in 2024.
- The company recently redeemed its Series B preferred shares, likely improving dividend coverage for the remaining Series C preferred shares in 2025.
- The company's common stock trades at a significant discount to book value, presenting a buying opportunity.
- A rise in long-term interest rates is a key risk to consider for the common shares, while preferred shareholders should consider the Fed's neutral interest rate outlook.
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.