Dividends & Buybacks
Invesco Agrees $1.5 Billion Preferred Buyback, Saving $88.5 Million in Dividends
By News Desk ·
Key takeaways
- Invesco agreed to repurchase $1.5 billion of preferred stock, bringing total preferred redemptions to $3 billion over 18 months.
- The buyback is funded with a lower-cost bank loan and saves $88.5 million in annual preferred dividends, lifting earnings available to common shareholders to $177 million.
- Invesco reported operating margin of 40.7% and net long-term asset inflows of $35.1 billion in the third quarter of 2026.
Invesco agreed to repurchase $1.5 billion of preferred stock, a move that brings its total preferred redemptions to $3 billion over 18 months and saves $88.5 million in annual dividends. The asset manager announced the buyback on its third-quarter 2026 earnings call, The Motley Fool reported. Invesco is a global asset manager offering ETFs, mutual funds and alternative investments, with $2.2 trillion in assets under management and the flagship QQQ Nasdaq-100 ETF.
How the Preferred Buyback Works
Invesco reached an agreement to repurchase $1.5 billion of preferred stock, shares that pay a fixed dividend ahead of common equity. Funding the buyout with a lower-cost bank loan lowers overall capital costs and permanently eliminates recurring dividend payments.
"By repurchasing the preferred stock, we will save an additional $88.5 million in annual preferred stock dividends, bringing the total to $177 million that now becomes earnings available to common shareholders," Chief Financial Officer Allison Dukes said on the call, which was held on October 27, 2026.
Higher fee-earning revenue alongside controlled expenses drove operating margin expansion to 40.7% in the quarter. Net long-term asset inflows reached $35.1 billion, with well over half coming from outside the U.S., including Europe, the Middle East and Africa as well as Asia-Pacific markets.
"We are going to continue to stay focused on our highly defined growth strategy with an emphasis on relentless execution, client-focused innovation, and teamwork across our firm," President and Chief Executive Officer Andrew Schlossberg said.
Invesco's Scale in Company Records
According to akta.pro company records, Invesco reported total assets under management of $2.2 trillion as of March 31, 2026. The Invesco QQQ Trust held $481 billion in assets under management as of July 2026, and the combined QQQ and QQQM funds held $570 billion. The same records list a June 2026 post-IPO debt round of $1.2 billion.
Earlier Invesco Fund Results
Invesco's Invesco Galaxy Bitcoin ETF reported third-quarter 2026 net income of $126.74 million, a 257.3% year-over-year increase, TradingView reported. The Invesco DB Precious Metals Fund posted net income of $6.25 million for the quarter, down 81.9% year over year, according to TradingView. Invesco's Invesco S&P 500 Equal Weight ETF added 498 positions on November 4, with gross trades of $939 million and net buying of $585.6 million, Yahoo reported.
Dukes at the BMO Financials Conference
Invesco said Dukes will take part in a fireside chat at the BMO Financials Conference on November 9, 2026 at 1:15 p.m. ET, PR Newswire reported.