3 Hold-Rated Dividend Stocks: FTR, IVR, ECA
Invesco Mortgage Capital (NYSE: IVR) shares currently have a dividend yield of 12.30%. Invesco Mortgage Capital Inc., a real estate investment trust (REIT), focuses on investing in, financing, and managing residential and commercial mortgage-backed securities and mortgage loans. It invests in residential mortgage-backed securities for which a U.S. The company has a P/E ratio of 5.25. The average volume for Invesco Mortgage Capital has been 1,755,200 shares per day over the past 30 days. Invesco Mortgage Capital has a market cap of $2.2 billion and is part of the real estate industry. Shares are down 17.5% year to date as of the close of trading on Friday. TheStreet Ratings rates Invesco Mortgage Capital as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and feeble growth in the company's earnings per share. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.8%. Since the same quarter one year prior, revenues rose by 26.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, INVESCO MORTGAGE CAPITAL INC's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for INVESCO MORTGAGE CAPITAL INC is currently very high, coming in at 91.84%. Regardless of IVR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, IVR's net profit margin of 79.59% significantly outperformed against the industry.
- INVESCO MORTGAGE CAPITAL INC has improved earnings per share by 39.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, INVESCO MORTGAGE CAPITAL INC reported lower earnings of $2.89 versus $3.45 in the prior year. For the next year, the market is expecting a contraction of 19.2% in earnings ($2.34 versus $2.89).
- IVR has underperformed the S&P 500 Index, declining 22.76% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full Invesco Mortgage Capital Ratings Report.
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