7- Invesco Mortgage Capital
Invesco Mortgage Capital is a REIT that invests in real estate (REIT). Residential and commercial mortgage-backed securities and mortgage loans are acquired, financed, and managed by the Trust. In normal circumstances, this is a profitable business, and REITs can typically generate dividend yields of 8%, 10%, or even higher for shareholders. COVID-19, unfortunately, was a disaster for the industry, and Invesco Mortgage Capital came close to dying. Due to the mortgage payment freeze, REITs were unable to receive payments on time, resulting in operating losses and dividend reductions. As a result, the stock of Invesco Mortgage Capital fell from $17 to $2.50 per share.
IVR, on the other hand, is now on the mend. The stock price has risen significantly, and the company has increased its dividend this year. Invesco Mortgage Capital, on the other hand, is a far more cautious company than it was previously, and such business models, on the whole, prefer increased safety to faster growth. Consider purchasing Invesco Mortgage Capital based on its current 8.8% dividend yield, rather than hoping for a return to $16 per share.