It's a bit late for the holidays, but shareholders will appreciate Invesco Mortgage Capital's (IVR -1.42%) parting gift for 2020. The company announced a 60% raise to its quarterly common stock dividend, lifting it to $0.08 per share from the previous $0.05. The new distribution will be handed out on Jan. 26 to investors of record as of Jan. 12.

This is Invesco's second dividend raise in a row; that $0.05 per share was lifted from the preceding quarter's $0.02 per share.

Prior to that, however, the company rewarded its shareholders far more handsomely. From September 2015 to May 2020 it had been consistently raising its payout, which grew from $0.40 to $0.50 per share across that stretch. 

DIVIDEND written in wooden blocks.

Image source: Getty Images.

The sharp $0.50-to-$0.02 cut was made because Invesco was in crisis near the start of the coronavirus pandemic. The company is a mortgage real estate investment trust (mREIT), which unlike the more common equity REIT, does not invest directly in property but owns mortgages.

When the pandemic set in, the mortgage market was squeezed and Invesco's lenders made significant margin calls; the company then entered forbearance with its creditors. During this difficult period it sold large chunks of its portfolio, realigning it in favor of government-backed mortgage securities (which are considered to be safer and more secure investments).

While the company is in better shape, it is still not a popular stock. Boosting its dividend should help with that sentiment, although whether even a chunky raise will bring the bulls roaring back is doubtful given the company's turbulent recent history.

The upcoming dividend would yield 9.5% at Invesco's most recent closing stock price.