Is Invesco Mortgage Capital the Dividend Stock for You?
What a difference a year makes. Last year at this time, Invesco Mortgage Capital (NYSE: IVR) was in a fight for its life, as the early days of the COVID-19 pandemic and related lockdowns created massive distress in the mortgage-backed securities market. The company cut its dividend from $0.50 per share to $0.02 as it entered forbearance with its banks in order to do an orderly liquidation of its portfolio. Since then, the company has raised its dividend four times in a row. So after all that, is Invesco Mortgage Capital the dividend stock for you?
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Last year was pretty much awful for the entire real estate investment trust (REIT) sector, but the mortgage REITs were hit even harder than the rest. Mortgage REITs are a bit different than the typical REIT in that their assets are generally loans and mortgage-backed securities, not properties. This means periods of financial stress impact them more than the typical REIT.
Source Fool.com
