Invesco Mortgage Capital (NYSE:IVR)

MHenage (40.87) Submitted: 8/22/2011 4:10:38 PM : Start Price: $14.65 IVR Score: +6.97

The bet on this one is the dividend, if you look at projected earnings for say next year and multiply times 90% (their required payout percentage) you get a dividend just under 21%. Given the Fed is looking to keep interest rates on the short term low through at least part of 2013 this should create an environment where IVR and it's other REIT brothers can keep doing what they do. I know mortgage rates have moved lower, but that won't last forever as when the stock market finally ends this current downturn bonds will be less attractive and rates will go up. Couple this with low short term rates IVR's spread should be just fine.