Published on April 10th, 2026 by Bob Ciura
Invesco Mortgage Capital (IVR) has two appealing investment characteristics:
#1: It is a high-yield stock based on its 17.2% dividend yield.Related: List of 5%+ yielding stocks.
#2: It pays dividends monthly instead of quarterly.Related: List of monthly dividend stocks
You can download our full Excel spreadsheet of all 118 monthly dividend stocks (along with metrics that matter, like dividend yield and payout ratio) by clicking on the link below:
The stock’s high dividend yield and monthly payments make it a solid choice for income investors.
This article will discuss the investment prospects of IVR in detail.
Business Overview
Invesco Mortgage Capital is a Maryland real estate investment trust focused on investing in, financing, and managing mortgage-backed securities and other mortgage-related assets.
Its investment portfolio is centered on Agency RMBS and Agency CMBS, with historical investments also such as non-Agency RMBS, non-Agency CMBS, TBAs, unconsolidated real estate-related ventures, and U.S. Treasury securities.
The company conducts its business through IAS Operating Partnership L.P. and is externally managed by Invesco Advisers, Inc., an indirect subsidiary of Invesco Ltd.
The company has no employees of its own and relies on its external manager for investment, risk management, and operational support.
On January 29th, 2026, Invesco Mortgage Capital posted its annual results for the period ending December 31st, 2025. For the year, net income was $101.3 million or $1.32 per diluted share, up from $34.8 million, or $0.65 per diluted share, in 2024.
Net interest income increased to $75.4 million from $36.8 million, as interest income rose to $295.3 million from $286.5 million and interest expense fell to $219.9 million from $249.7 million.
Total other income was $44.4 million, driven by a $149.3 million gain on investments, partly offset by a $104.9 million loss on derivative instruments, while total expenses declined slightly to $18.6 million.
Total assets increased to $6.48 billion from $5.69 billion, and total stockholders’ equity rose to $797.5 million from $730.7 million.
For 2026, we expect EPS of $2.32.
Growth Prospects
Invesco Mortgage Capital has a wildly volatile EPS history. Between 2016 and 2019, IVR operated a high-alpha strategy involving a mix of Agency and higher-yielding Non-Agency credit.
The strong EPS in 2016, 2017, and 2019 was driven by a relatively stable interest rate environment and successful “carry trades.”
The sharp 2018 loss of ($10.32), though, was triggered by a rapid rise in interest rates that caused significant mark-to-market GAAP losses on their mortgage-backed securities (MBS) portfolio, which their hedges failed to fully offset.
The huge loss in 2020 was the company’s defining breaking point. When COVID-19 froze the mortgage market, IVR faced a wave of margin calls and was forced to liquidate its riskier credit and commercial assets at steep losses, permanently damaging its capital base.
From 2021 to 2023, it struggled to rebuild as a smaller, Agency-only REIT while rising Fed rates kept pressure on book value and earnings.
By 2024 and 2025, the new IVR began to stabilize. Positive EPS came from its shift to mostly lower-risk, government backed Agency RMBS, along with improving spreads and financing costs as Fed expectations eased.
Earnings remained well below the legacy era, but the business became more sustainable and focused on liquidity and capital preservation.
Going forward, we expect EPS and the dividend to decline by about 10% per year.
This rather pessimistic assumption is for us to take into account potential risks related to dilution from recent share offerings, pressure on book value, and tighter margins as financing costs stay high and faster prepayments reduce yields on the Agency RMBS portfolio.
Dividend & Valuation Analysis
IVR is a low-quality, higher-risk business because its results depend far more on rates, spreads, leverage, and funding markets than on any durable franchise strength.
It does not really have a moat, since this is essentially a managed mortgage REIT vehicle rather than a business with pricing power or sticky customer relationships.
Any edge comes from portfolio management and hedging, which can help around the margins but do not change the underlying fragility of the model.
For that reason, we view IVR as a way to play a specific mortgage market setup, not as a long-term holding where investors should place high confidence in the dividend through a full cycle.
Final Thoughts
IVR is a high-yield, high-risk mortgage REIT that can only work as a tactical spread trade. This is not a durable long-term compounder. Any possible upside is tied to stable funding and mortgage markets.
However, meaningful downside is very likely to come from leverage and book value erosion. While out total return forecast stands at an attractive 17.2%, this is based on dynamics that can easily change from day to day.
We rate the stock a very speculative hold.
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