Is Invesco Mortgage Capital a Buy at Less Than Half of Book Value?

The sell-off in the stock market has spared few sectors, and mortgage real estate investment trusts (mREIT) are no exception. One such stock is Invesco Mortgage Capital (NYSE: IVR), which has been crushed.

Does a stock trading at less than half of book value and a currently offering a 37% dividend yield grab your attention? Read on...

Invesco had a solid 2019, raising its dividend by 6% and reporting an increase in book value per share of 6.7% to $16.29. In 2019, Invesco paid $1.85 per share in dividends and declared a first-quarter dividend of $0.5 a share on March 17 (in the midst of the coronavirus sell-off). With Invesco trading at $5.44 a share, this works out to a discount to book value of 67% and a prospective dividend yield of 37%.

Source Fool.com