Common Stock Dividend
ATLANTA, May 11, 2020 /PRNewswire/ -- Invesco Mortgage Capital Inc. (NYSE: IVR) today made the following announcements.
(PRNewsfoto/Invesco Mortgage Capital Inc.)
On May 9, 2020, the Company's board of directors approved the payment of the Company's previously declared dividend for the first quarter of 2020 of $0.50 per share of common stock (the "first quarter dividend"). The first quarter dividend will be paid on June 30, 2020 in a combination of cash and shares of the Company's common stock to stockholders of record as of May 21, 2020. Given the uncertain and rapidly changing financial markets resulting from the COVID-19 pandemic, the Company's board of directors has determined that the cash component of the first quarter dividend (other than cash paid in lieu of fractional shares) will not exceed 10% in the aggregate, or $0.05 per share, with the balance payable in shares of the Company's common stock. This will allow the Company to preserve capital and enhance the Company's financial flexibility.
In accordance with the provisions of the applicable IRS Revenue Procedures, stockholders will be asked to make an election to receive the first quarter dividend all in cash or all in shares. To the extent that stockholders elect to receive more than 10% of the aggregate payment in cash, the cash portion of the payment will be prorated. Stockholders who elect to receive the dividend in cash will receive a cash payment of at least $0.05 per share. Stockholders who elect to receive the dividend in Company common stock will only receive shares of Company common stock. Additionally, stockholders who do not make an election will receive 90% of the dividend in Company common stock and 10% of the dividend payment in cash. The number of shares issued as a result of the dividend will be calculated based upon the volume weighted average trading prices of the Company's common stock on the New York Stock Exchange on June 17, June 18 and June 19, 2020. Cash will be paid in lieu of fractional shares so that stockholders receive a whole number of shares of common stock.
An information letter and election form will be mailed to stockholders of record after the May 21, 2020 record date. The properly completed election form to receive cash or common shares must be received by Computershare Trust Company, N.A., the Company's transfer agent, prior to 5:00 p.m. Eastern Time on June 16, 2020 (the "Election Deadline"). Registered stockholders with questions regarding the dividend election may call Computershare Trust Company, N.A. at (800) 756-8200. Stockholders who hold their shares through a bank, broker or nominee, and have questions regarding the dividend election should contact such bank, broker or nominee, who will also be responsible for distributing to such stockholders the information letter and election form and submitting the election form on behalf of such stockholders. Election forms are not available for download from the Company's website.
The board of directors will evaluate future quarterly dividends based on market conditions and other factors. The Company reserves the right to pay future dividends entirely in cash, in stock, or in a combination of cash and shares of common stock.
