Invesco Mortgage Capital Inc. Declares Q2 2025 Common Stock Dividend

ATLANTA, GA – June 24, 2025 – Invesco Mortgage Capital Inc. (NYSE: IVR), a leading real estate investment trust (REIT) focused on investing in, financing, and managing mortgage-backed securities and other mortgage-related assets, today announced that its Board of Directors has declared a cash dividend of $0.34 per share of common stock for the second quarter of 2025. This declaration underscores the company's commitment to returning value to its shareholders through consistent dividend payments.

The dividend is scheduled to be paid on July 25, 2025, to stockholders of record as of the close of business on July 7, 2025. The ex-dividend date, which is the date on or after which a stock trades without the right to receive the declared dividend, has also been set for July 7, 2025. Investors looking to receive this dividend must ensure they own shares of IVR before the ex-dividend date.

Understanding IVR's Dividend Strategy

Invesco Mortgage Capital Inc. operates as a mortgage REIT (mREIT), a business model that typically involves borrowing money at short-term rates and investing in mortgage-backed securities (MBS) that yield higher long-term rates. The spread between these rates generates income, a significant portion of which is then distributed to shareholders as dividends. As a REIT, IVR is generally required to distribute at least 90% of its taxable income to shareholders annually to maintain its tax-advantaged status, making dividends a core component of its investment appeal.

This consistent dividend declaration reflects the company's ongoing operational stability and its ability to generate distributable income from its portfolio. For income-focused investors, IVR's dividend yield is often a key metric, providing a regular income stream that can be particularly attractive in volatile market conditions or for those seeking portfolio diversification beyond traditional equity growth stocks.

Market Context and Implications for Investors

The declaration of a quarterly dividend is a routine but important announcement for mREITs. It signals management's confidence in the company's financial health and its outlook for future earnings. In the current interest rate environment, mREITs like IVR face unique challenges and opportunities. Fluctuations in interest rates, particularly the Federal Reserve's monetary policy decisions, can significantly impact their net interest margin. A stable or declining interest rate environment can often be beneficial for mREITs as it can reduce borrowing costs and potentially increase the value of their MBS holdings.

Investors should consider this dividend announcement in the broader context of IVR's financial performance, including its net interest income, portfolio composition, and hedging strategies. While a high dividend yield can be appealing, it's crucial to assess the sustainability of these payments. Factors such as the company's leverage, credit risk exposure within its MBS portfolio, and its ability to manage interest rate risk are paramount.

Investment Insights and Considerations

For current shareholders, this dividend declaration confirms the expected income stream. For prospective investors, it provides an opportunity to evaluate IVR as a potential addition to an income-generating portfolio. When analyzing IVR, investors should:

• Monitor Interest Rate Trends: Keep an eye on Federal Reserve announcements and broader interest rate movements, as these directly impact IVR's profitability.
• Review Portfolio Quality: Understand the types of mortgage-backed securities IVR holds and their credit quality.
• Assess Dividend Sustainability: Look beyond just the yield and examine the company's distributable earnings per share to ensure the dividend is well-covered.
• Consider Diversification: While mREITs can offer attractive yields, they also carry specific risks. Diversifying across different asset classes and sectors is always advisable.

Invesco Mortgage Capital Inc.'s consistent dividend policy, as evidenced by this latest declaration, reinforces its position as a significant player in the mREIT sector, offering income opportunities for investors willing to navigate the nuances of the mortgage finance market.