Invesco Mortgage Capital (IVR) Stock: Dividend, Book Value

The dividend against the company’s own earnings number

Quote pages show a yield. The filings show what the dividend is paid from. IVR reports GAAP net income, which swings with the fair value of its mortgage bonds and hedges, and a non-GAAP measure, earnings available for distribution. EAD is net income to common stockholders adjusted for gains and losses on investments, realized and unrealized gains and losses on derivatives and loss on preferred stock repurchases, and it adds in TBA dollar roll income. The company itself says EAD “should not be considered as an indication of the Company's taxable income, a guaranty of its ability to pay dividends or as a proxy for the amount of dividends it may pay.” Here are the last eight quarters as reported:

The ratio column is our arithmetic. Economic return is the company’s measure: change in book value plus dividends declared, over beginning book value. The Q4 2024 EAD of $0.53 includes what the release called a one-time charge on the redemption of the Series B preferred stock. EAD per share has drifted down from $0.64 to $0.50 over five quarters while the dividend went up from $0.34 to $0.36, so the margin of cover narrowed from 1.88 to 1.39 times.

GAAP and EAD point in different directions. In Q1 2026 GAAP was a loss of $0.28 a share (a $23.1 million loss to common stockholders) with a $54.9 million loss on investments, yet EAD was $44.7 million; in Q2 GAAP was $0.34 on a $21.2 million loss on investments and a $31.6 million gain on derivatives. For calendar years, GAAP net income per share was $1.32 in 2025, $0.65 in 2024 and a loss of $0.85 in 2023.

The same coverage in dollars

EAD per share divides by the weighted average share count; the dividend is paid on the shares outstanding at the record date. With a share count that grew 52% in nine months, dollars are the cleaner test:

At 109.1 million shares, three monthly dividends of $0.12 cost $39.3 million a quarter (our arithmetic), against Q2 EAD of $47.1 million. Q3 EAD is not out. Two things in the filings point the other way from Q2: the swap book now pays a higher fixed rate (see below), and the share count is 7% above June 30’s. Two point toward more income: the portfolio ended September at $8.0 billion against $7.3 billion at March 31, and the weighted average MBS yield held at 5.28%.

Book value month by month: where the quarter was lost

IVR changed from quarterly to monthly dividends at the start of 2026. The company’s chief executive said in the December 18, 2025 release that the change was meant “to provide more timely and consistent income for our valued common stockholders.” With the monthly dividend came a monthly 8-K with a preliminary book value:

Book value here is total stockholders’ equity less the Series C preferred’s liquidation preference ($168.1 million at September 30), divided by common shares. Book value fell in all three quarters of 2026: Q1 from $8.72 to $8.08 (the company blamed higher Treasury yields and wider Agency RMBS risk premiums), Q2 to $8.03, and Q3 to $6.74. Estimated book value per common share was $6.74 at September 30, 2026, against $8.03 at June 30, 2026. Implied common equity (book value times shares) went from $822 million to $735 million (our arithmetic) even though the share count rose by about 6.7 million in between. The economic return for Q3, if $6.74 holds, would be a loss of 11.6%; for the nine months, a loss of 10.3% (our arithmetic: change in book value plus $0.36 and $1.08 of dividends declared). These are not the company’s published figures; the Q3 release will give its own.

The company’s own sensitivity tables, in the Q2 10-Q at June 30, put a scale on a quarter like this:

The two tables are independent, and the company warns actual results “could differ significantly.” In this model rates falling by 100 basis points also reduce book value (prepayment assumptions are adjusted for the Manager’s expectations), The fall in September, 12.9% in a month, is bigger than any single row. The filings we read do not say what drove it, so we do not.

Share issuance: raising capital near book value

IVR sells common stock through an at-the-market program. The table below is from the Q2 10-Q and subsequent events note:

Issuing at close to book value does little to book value per share; issuing below it dilutes it. Q2’s average net price of $7.95 was 1% below the $8.03 book value at June 30; July’s $7.68 was 1% below the July 31 estimate (our arithmetic). The bigger effect is on scale and leverage: more equity lets the portfolio grow ($5.7 billion at September 30, 2025 to $8.0 billion a year later, total including TBAs) and the 1.50% management fee is charged on equity, so it grows with the equity base ($3.3 million in Q2 2026). On February 23, 2026 the company ended its August 2025 agreement (25,000,000 shares authorised, 17,996,980 sold) and signed a new one for up to 40,000,000 shares, with placement agents paid up to 2.00% of gross proceeds. We did not find a filing that says how many of the 40 million remained. The company did not repurchase any common stock in 2025; 1,816,359 shares were still authorised for repurchase at December 31, 2025.

Leverage, repo and hedges

IVR is an Agency REIT. At September 30, 2026, its $8.0 billion portfolio was 83.2% 30-year fixed-rate Agency RMBS ($6.6 billion), 8.5% Agency CMBS ($681 million) and 8.3% TBAs ($660 million, counted at implied market value). By coupon, 5.0% pools were 25.1%, 5.5% 24.6%, 6.0% 16.4% and 4.5% 14.8%. The preliminary table lists only Agency securities; in June, Agency CMO (interest-only) was 0.8% of the portfolio.

All the repo is short: a 20-day average maturity means almost the whole book reprices or rolls within a month, and lenders set the haircut at each roll (at June 30 the weighted haircut was 4.3% on Agency RMBS and 4.9% on Agency CMBS, with 22 counterparties). Liquidity fell by $147 million from June to September while repo grew by $633 million. The swap carry row is a simple snapshot: floating rate received minus fixed rate paid, times notional. It fell about 24% because new swaps carry higher fixed rates (the average fixed rate paid rose from 1.99% to 2.72%), not because of a change in SOFR. In Q2 the contractual net interest on swaps was $20.8 million, or $83 million at an annual rate, which is why the run-rate view is a fair read of the June book. Treat the September number as a direction, not a forecast of Q3 EAD.

Structure: external manager, preferred stock, reverse split and who runs it

• Manager. IVR is externally managed by Invesco Advisers, Inc., which is paid 1.50% of stockholders’ equity a year. If IVR ends the management agreement without cause it owes a termination fee of three times the average annual management fee over the prior 24 months. Dynex, by contrast, is internally managed (see below).
• Preferred. One series is outstanding: 7.50% Fixed-to-Floating Series C (NYSE: IVR PrC), 6,742,221 shares at June 30, 2026 with a $168.6 million liquidation preference, paying $0.46875 a share each quarter ($3.2 million in Q2). Series B (4,247,989 shares) was redeemed at $25.00 on December 27, 2024.
• Reverse split. One-for-ten, effected after the close of business on June 3, 2022; per-share figures before then are restated in the filings. There is no reverse split in 2024-2026 filings we read.
• Management. John Anzalone retired as chief executive effective April 30, 2026; Kevin Collins (President since 2017) became CEO on May 1 and David Lyle (chief operating officer since 2017) President. Board chair John Day retired December 31, 2025. Peter Graham, chief financial officer of Sallie Mae, joined the board on August 3, 2026.
• Holders and tax. 131 common stockholders of record at February 20, 2026. The 10-K says all 2025 and 2024 common dividends were characterized as ordinary income. Your Form 1099-DIV governs.

What changed in the latest filing

• The October 14, 2026 8-K declared $0.12 for October (record and ex-dividend date October 26, payment November 16) and gave preliminary September 30 data: book value $6.74 (from $7.74 at August 31), debt-to-equity 7.6 times, economic 8.3 times, repo $6.84 billion, cash and unencumbered investments $401.3 million (from $534.7 million at August 31).
• The Q2 10-Q (filed August 5, 2026): EAD $47.1 million, $0.50 a share; net income $0.34; book value $8.03 (from $8.08); economic return 3.8%; shares 102.4 million.
• Between those two dates the dividend did not change. The only capital action was continued at-the-market issuance (5,380,335 shares to August 5; share count 107.6 million at July 31 and 109.1 million at September 30).

When the next filing arrives

The last EDGAR filing for IVR as of October 19, 2026 is the October 14 8-K. We found no announcement of the Q3 date. Last year IVR released Q3 results on October 30, 2025 and filed the 10-Q on November 5, 2025, and this year the Q2 release came on July 30 and the 10-Q on August 5, so a release around the end of October and a 10-Q in the first week of November would match the pattern (our inference from past dates, not a company statement). When it lands, check four numbers: whether the Q3 book value matches $6.74 (the 8-K is preliminary), EAD per share against the $0.12 monthly dividend ($0.36 a quarter), the company’s own economic return for the quarter, and the repo, swap and spread sensitivity tables as of September 30.

How IVR compares with the other mortgage REIT pages

IVR is an externally managed Agency REIT that pays monthly and issues shares at the market. Dynex Capital (DX) is its closest relative on this site: internally managed, also monthly, much larger, and it reports the same kind of EAD-versus-dividend gap with a very different result (EAD below the dividend, bridged by tax hedge gains). Orchid Island (ORC) and ARMOUR (ARR) are the other two small monthly-pay agency REITs, with their own dividend and book value histories. Our AGNC and Annaly page covers the two large ones. A non-traded REIT or interval fund is a different instrument: IVR’s book value is re-marked every month in an 8-K and its shares trade daily; the filings give the book value, not the price anyone would pay.

What a shareholder can do with this

• Read the dividend and the book value together. EAD covered the dividend 1.36 times in dollars in Q2; book value is down 16.1% since. Estimated book value per common share was $6.74 at September 30, 2026, against $8.03 at June 30, 2026.
• Watch share count and leverage in the next filing. 109.1 million shares and 7.6 times at September 30 against 71.8 million and 7.0 times at year-end 2025.
• Use the company’s own sensitivities. A 10 basis point move in Agency MBS spreads is 4.8% of book value in the June table, which is what the company’s table says about spread risk.
• Know the tax side. 2025 common dividends were ordinary income. See our pages on return of capital, the Section 199A deduction and the 1099-DIV due date.
• Price is outside this page. We do not say whether to buy, sell or hold, and we use no stock price.

If a mortgage REIT is a large part of what you live on, the questions are about your whole position rather than this filing: how much of your income is this dividend, what happens if it is cut, and how much sits in one issuer and one sector.

If you want to know when IVR files again, the alert below emails you when it does. Invesco Mortgage Capital (CIK 1437071) filed its most recent document on EDGAR on October 14, 2026; the Q3 release and 10-Q are expected from late October to early November.

FAQ

Sources, read and saved on October 19, 2026: Invesco Mortgage Capital Inc. (CIK 1437071) earnings releases (Form 8-K Exhibit 99.1) for Q4 2024 (accession 0001437071-25-000003), Q1 2025 (0001437071-25-000015), Q2 2025 (0001437071-25-000022), Q3 2025 (0001437071-25-000047), Q4 2025 (0001437071-26-000008), Q1 2026 (0001437071-26-000031) and Q2 2026 (0001437071-26-000054); monthly dividend and financial update releases of December 18, 2025 (0001437071-25-000055), January 15 (0001437071-26-000004), February 13 (0001437071-26-000012), March 13 (0001437071-26-000022), April 15 (0001437071-26-000028), May 14 (0001437071-26-000044), June 12 (0001437071-26-000047), August 14 (0001437071-26-000067), September 15 (0001437071-26-000073) and October 14, 2026 (0001437071-26-000076); Forms 10-Q 0001437071-26-000038 and 0001437071-26-000064; Forms 10-K 0001437071-25-000007 and 0001437071-26-000015; Forms 8-K 0001437071-24-000043 (Series B redemption), 0001193125-26-064454 (equity distribution agreement), 0001437071-26-000025 (chief executive change), 0001437071-26-000058 (director) and 0001437071-25-000041 (board chair). Ratios, sums, growth rates, implied equity, per-share issue prices and run-rate swap carry are our arithmetic. Each company measure uses its own definition. This is analysis of public documents, not investment, legal or tax advice.