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 (NYS: 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.
|Headquarters (founded)||Atlanta (2008)|
|Market Cap||$1.96 billion|
|Trailing-12-Month Revenue||$215.44 million|
President/CEO Richard King
CFO Donald Ramon
|Trailing-12-Month Return on Equity||16.6%|
Annaly Capital Management (NYS: NLY)
Capstead Mortgage (NYS: CMO)
Source: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
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 (NYS: 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.
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