Image Source: PixabayInvesco Mortgage Capital Inc (IVR) is a REIT that invests, finances, and manages residential and commercial mortgage-backed securities and mortgage loans.The company’s portfolio consists of residential mortgage-backed securities (RMBS) that are guaranteed by a U.S. government agency such as the Government National Mortgage Association, or a federally chartered corporation such as the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation; Commercial mortgage-backed securities (CMBS) that are not guaranteed by a U.S. government agency or a federally chartered corporation; RMBS that are not guaranteed by a U.S. government agency or a federally chartered corporation; and other real estate-related financing arrangements.The company was incorporated in 2008 and is headquartered in Atlanta, Georgia.Three key data points gauge Invesco Mortgage Capital Inc. or any dividend paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.IVR PriceIVR’s share price increased 2.2% in the past year from $8.21 to $8.39 as of Monday’s market close.In the past 3 years the company’s share price has rarely been less than $6.39 nor more than $31.00. It did reach an all time high of $249.20 in March, 2011.If shares trade in the range of $8.00 to $10.00 this next year, the recent $8.39 share price might grow to $8.80. Of course, IVR shares could also drop about the same $0.41 estimated amount, or more.My $0.41 price upside estimate is in line with the medan of one year target prices projected by six analysts tracking IVR for brokers.IVR DividendInvesco Mortgage Capital Inc has paid variable quarterly dividends since November 2009. The company’s most recent Q dividend of $0.40 was declared September 24th for shareholders of record October 7th and the payout was made October 25th.The forward annual dividend of $1.60 yields 19.07% per Monday’s closing price.IVR ReturnsPutting it all together, a $2.01 estimated annual gross gain per share shows up by adding IVR’s annual $1.60 dividend to the estimated price upside of $0.41, totaling that $2.01 gross gain.A little over $1000 buys 120 shares at Friday’s $8.39 share price.A $10 broker fee (if charged), collected half at purchase and half at sale, might take about $0.083 per share out of the $2.01 gross-gain to give us a net gain of $1.927 X120 shares = $231.24 for about a 23% estimated net gain for the year.Furthermore, the $190.70 annual estimated dividend paid from $1k invested is over 22 times greater than the $8.39 single share price. By these numbers, IVR may be an ideal financial dividend dog.Therefore, you might choose to pounce on Invesco Mortgage Capital Inc. It is a 16 year-old Quarterly dividend paying business development company with a 15-year dividend record.The exact track of IVR’s future price and dividend will entirely be determined by market action and company finances.Remember the best measure of stock value is through direct ownership of shares.More By This Author:Current Report – CION Investment Corp. (CION)
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