Invesco Mortgage Capital Inc (IVR)

[timboarder]

$Invesco Mortgage Hope everyone enjoys their holiday...I wanted to take a second to lay out why this ticker is one of my favorites and the 2 ways in which it has extremely exciting future potential for growth...

1) Price per share (the obvious one) - these shares are currently priced at huge discounts to pre-Covid levels and the price will gradually continue to grow back towards those levels as the Company recovers it's leverage and assets. I estimate it will take 2-3 years to get back to the $15-$18 pps range, but I don't mind this as it gives me more time to invest at discount prices the small amount of monthly capital/dividend re-investment I have budgeted towards investment.

2) The Dividend - The current 5 cent (20 cent annual) payout comes in around a very respectable 5-6% (annual). If you look at the Company's historic payout for the last few year's, they paid out an annual dividend between 9-12%. This was $1.60-1.80 annual dividend per share when the price per share was between $15-18. It makes sense to me that the company will attempt to get back to around a 10% annual dividend and will therefore continue to raise the dividend as they recover...meaning, shares accumulated at the current discounts will have an exponentially higher dividend value if held through this recovery stage.

...fun stuff to think about?