Invesco Mortgage cuts quarterly dividend to 40c from 65c

Invesco Mortgage Capital announced that its board declared a cash dividend of 40c per share of common stock for Q1, down from 65c. The dividend will be paid on April 27, to stockholders of record on April 10, with an ex-dividend date of April 6. "Our investment portfolio continues to generate strong earnings available for distribution despite the sharp increase in short-term interest rates given a high percentage of our funding is hedged with a relatively low-cost legacy swap portfolio. We reduced our common stock dividend to retain capital and enhance book value by continuing to invest in agency residential mortgage-backed securities at historically attractive valuations. We believe this represents a compelling environment for longer-term investors. The dividend reduction allows us to pay a competitive dividend consistent with Agency RMBS market levered returns and helps increase the ratio of our common stock to total stockholders’ equity," said John Anzalone, Chief Executive Officer.