* Q1 EPS $0.58 vs analysts view of $0.54

* Q1 total interest income $88.1 million

* Says may raise more capital in future periods

April 30 (Reuters) - Capstead Mortgage Corp (CMO.N: Quote, Profile, Research) posted higher-than-expected quarterly profit, helped by lower borrowing rates and higher prices for its residential-mortgage securities due to recent government actions.

"As anticipated, interest rates on our short-term borrowings declined considerably during the first quarter, resulting in a pronounced expansion in our net interest margins," Chief Executive Andrew Jacobs said in a statement.

The company said it expects the core investment strategy of managing a conservative portfolio to produce attractive risk-adjusted returns over the long term. The real-estate investment trust reported a net income of $42.1 million, or 58 cents a share, compared with $30.1 million, or 53 cents a share, a year ago.

Interest income for the quarter stood at $88.1 million from $107.2 million, last year.

Analysts had expected the company to earn 54 cents a share, on revenue of $86.7 million, according to Reuters Estimates.

In March, the company raised its first-quarter dividend to 56 cents a share from 36 cents a share declared in the December quarter. In December, Capstead had reduced its dividend to 36 cents from 55 cents. [ID:nBNG433271]