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4-Star Stocks Poised to Pop: Invesco Mortgage Capital

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mortgage REIT Invesco Mortgage Capital (NYSE: IVR  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Invesco's business and see what CAPS investors are saying about the stock right now.

Invesco facts

Headquarters (founded) Atlanta (2008)
Market Cap $1.96 billion
Industry Mortgage investment
Trailing-12-Month Revenue $215.44 million
Management

President/CEO Richard King

CFO Donald Ramon

Trailing-12-Month Return on Equity 16.6%
Dividend Yield 22.8%
Competitors

Annaly Capital Management (NYSE: NLY  )

Capstead Mortgage (NYSE: CMO  )

Source: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 98% of the 201 members who have rated Invesco believe the stock will outperform the S&P 500 going forward. These bulls include Thomasdgill and MHenage.

Just last month, Thomasdgill tapped Invesco as a particularly timely income opportunity: "With the recent Fed announcement that interest rates will remain at rock bottom levels through the middle of 2013, the attractive yields being offered by REITs like Invesco will persist. In addition, Invesco is trading closer to its 52-week low than most of its peers."

In fact, Invesco currently boasts a whopping dividend yield of 22.8%. That's higher than that of industry peers such as Annaly (14.5%), Capstead (14.7%), and Chimera Investment (NYSE: CIM  ) (17.9%).

CAPS member MHenage expands on the Invesco outperform argument:

The bet on this one is the dividend. ... Given the Fed is looking to keep interest rates on the short term low through at least part of 2013 this should create an environment where IVR and its other REIT brothers can keep doing what they do. I know mortgage rates have moved lower, but that won't last forever as when the stock market finally ends this current downturn bonds will be less attractive and rates will go up. Couple this with low short term rates IVR's spread should be just fine.

What do you think about Invesco, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Invesco? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool owns shares of Annaly and Chimera. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 15, 2011, at 10:53 AM, qqatsii wrote:

    Invesco just announced Q3 Dividend of $.80. Dividend & Yield should read 3.20 (19.00%)

  • Report this Comment On September 16, 2011, at 7:52 AM, dave22q wrote:

    unexplained dividend cut almost 20% concerns me. not quite ready to dump but watching closely.

    the refi scare campaign and the impact on REITs

    is of much less concern but my impression is that most of those reciently reporting are holding their earning and dividend levels.

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DocumentId: 1553686, ~/Articles/ArticleHandler.aspx, 5/28/2012 3:16:18 AM

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Related Tickers

5/25/2012 4:00 PM
IVR $18.18 Up +0.07 +0.39%
Invesco Mortgage C… CAPS Rating: ****
NLY $16.70 Up +0.10 +0.60%
Annaly Capital Man… CAPS Rating: ****
CMO $13.77 Up +0.01 +0.07%
Capstead Mortgage… CAPS Rating: ***
CIM $2.82 Up +0.03 +1.08%
Chimera Investment CAPS Rating: ****

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