Invesco Mortgage Capital's (IVR) Series C 7.5% fixed-to-floating preferreds (IVR.PR.C) have slipped in recent weeks after trading close to book value earlier in the year. This comes as market pricing for Fed rate cuts shifts from 2026 to 2027, presenting a near-term headwind for fixed-rate preferred shares. The Series C preferred shares only convert to a floating rate in Q4 2027, allowing them to deliver capital gains should the Fed finalize its policy normalization next year.
Invesco's ETF product evolution continues with the launch of the Invesco QQQ Equal Weight ETF (QEW) and the Invesco Diversified Dividend Opportunities ETF (DVVY). QEW expands on the firm's iconic Innovation Suite, which is headlined by the Invesco QQQ Trust (QQQ).
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Invesco (IVZ) have what it takes?
At quarter end, Invesco Summit Fund's largest overweights were in industrials, energy and communication services. The fund's industrials exposure also includes companies we believe are poised to benefit from higher global defense spending. Financials, which in our view should benefit from stimulus from tax cuts and bank deregulation, was close to equal weight.
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Linde was purchased due to its essential and resilient business model, anchored by long-term contracts and leadership in industrial gases. We sold Oracle due to concerns about downside risk as its investment in AI infrastructure has caused rising debt and negative free cash flow. Stryker, a medical technology company, was sold because we believed the risk/reward profile had become less attractive as its valuation rose.
We maintain our valuation discipline and our focus on companies with competitive advantages and skilled management teams that we believe are executing better than their peers. We initiated a position in Tractor Supply after recent share weakness created a compelling entry point, in our view. Tyler Technologies was sold because the software provider's revenue growth has decelerated, which reduced our conviction in its upside potential.
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Invesco (IVZ) have what it takes?
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
Wondering how to pick strong, market-beating stocks for your investment portfolio? Look no further than the Zacks Style Scores.
IVZ shares climb 16.6% in three months on steady AUM growth and strategic deals, but rising costs and goodwill risks cloud near-term margins.
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