Inland Real Estate Corporation (IRC), American Capital Agency Corp. (AGNC): Insiders Love These High Yielding Financial Stocks

Invesco Mortgage Capital Inc (NYSE:IVR) is another mortgage REIT that has investments in both Agency and non-Agency residential mortgage backed securities. This is why it’s called a hybrid mortgage REIT.

The company is currently yielding 12.7% in dividends on its quarterly dividend rate of $0.65 per share. The company has been paying this dividend since December 2011, while its most recent quarter’s cash dividend coverage ratio comes out to 1.5 times. Therefore, it’s fair to say that you can expect the dividends to continue in the coming future.

The U.S. mortgage REITs are facing a challenging environment due to the prevailing interest rate environment and the Fed’s bond buying programs. Still, there are some mREITs which have re-positioned their investment portfolio to outmaneuver the Fed. This is why insiders are bullish on the growth prospects of these companies. Invesco Mortgage Capital Inc (NYSE:IVR)’s CEO, King Richard, added a few more shares, after he purchased 5,000 shares at an average price of $19.92 per share.

Conclusion

Relatively stable, sustainable, and elevated dividend yields coupled with insider buying makes me bullish on the aforementioned stocks. Therefore, I recommend investors buy Inland Real Estate Corporation (NYSE:IRC), American Capital Agency Corp. (NASDAQ:AGNC) and, Invesco Mortgage Capital Inc (NYSE:IVR).

The article Insiders Love These High Yielding Financial Stocks originally appeared on Fool.com is written by Adnan Khan.

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