After years of suffering from a tumultuous interest rate environment, macro forces have finally aligned in favor of agency mortgage REITs. Dynex Capital (DX) and AGNC Investment (AGNC) each reported huge gains in 2025 with massive comprehensive income and book value growth. Additional macro developments, which we will detail later, portend a similarly strong 2026. Despite this strength, I would caution investors that the sharp gains are one-time in nature and that both AGNC and DX are slightly overvalued ev ...

Group 1 - Rida Morwa is a former investment and commercial banker with over 35 years of experience, advising clients on high-yield investment strategies since 1991 [1] - The Investing Group High Dividend Opportunities focuses on sustainable income through high-yield investments with a targeted safe yield of over 9% [1] - The service includes features such as a model portfolio with buy/sell alerts, preferred and baby bond portfolios for conservative investors, and regular market updates [1] Group 2 - The article emphasizes the importance of community and education in investing, advocating that no one should invest alone [1] - The service closely monitors all positions and issues buy and sell alerts exclusively for its members [3]

AGNC Investment Corp. (NASDAQ:AGNC) is included among 10 Best Monthly Dividend Stocks to Buy Now. Wells Fargo Sees Rate Cuts Supporting AGNC Investment Corp. (AGNC)'s Spread Income and Book Value On January 28, Wells Fargo raised its price target on AGNC Investment Corp. (NASDAQ:AGNC) to $12 from $10 and kept an Overweight rating. The firm pointed out that AGNC reported Q4 core EPS of $0.35, which came in below its $0.38 estimate and the $0.37 consensus. During the earnings call, management said the Octo ...

Core Insights - The mortgage REIT sector experienced significant declines, primarily driven by the poor performance of PennyMac Financial Services (PFSI), which saw a 33% drop in stock price, impacting the entire sector [19][21][27] - The declines were exacerbated by hotter-than-expected CPI/PPI data and the reporting of compressed gain-on-sale/loan margins and larger mortgage servicing rights (MSR) amortization by PMT and PFSI [20][27] - The valuation of PFSI was deemed excessively high prior to earnings, trading at an 80% premium to its current book value, which raised concerns about its sustainability [23][26] Mortgage REITs and BDCs Performance - A table of mortgage REITs and BDCs showed substantial declines in share prices, with notable drops including Two Harbors (TWO) down 13.69% and PennyMac (PMT) down 12.44% [16][17] - The overall sentiment in the mortgage REIT sector was negative, with many companies experiencing declines regardless of their individual fundamentals [20][27] Preferred Shares and Baby Bonds - The company has been shifting its portfolio towards preferred shares and baby bonds, which have historically provided strong performance on a risk-adjusted basis and have outperformed other sectors [28]

AGNC Investment Corp. (NASDAQ:AGNC) ranks among the most undervalued REIT stocks to buy right now. Piper Sandler raised its price target for AGNC Investment Corp. (NASDAQ:AGNC) to $11 from $11 on January 15, while keeping an Overweight rating on the company’s stock. The boost reflects narrowing agency MBS spreads, which Piper Sandler believes will benefit AGNC’s forward tangible book values. Moreover, earlier in January, AGNC Investment Corp. (NASDAQ:AGNC) announced a number of financial and structural u ...

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.Considering buying CALC stock? Here’s what analysts think: Photo via Shutterstock ...

Core Viewpoint - AGNC Investment has had an exceptional year, generating robust returns and maintaining a high monthly dividend yield of over 12%, with expectations for continued strong performance in 2026 [1][3]. Group 1: Financial Performance - In 2025, AGNC reported an impressive economic return on tangible common equity of 22.7% and a total stock return of 34.8%, nearly double that of the S&P 500 [3]. - The company's strategy of investing solely in Agency MBS resulted in a total return of 8.6% for the year, marking the best full-year return for Agency MBS since 2002 [4]. Group 2: Market Environment - The favorable conditions for Agency MBS, including lower interest rates and reduced volatility, are expected to persist into early 2026, creating a constructive investment environment [5]. - Recent actions by Fannie Mae and Freddie Mac to purchase Agency MBS aim to lower mortgage rates, further supporting AGNC's optimistic outlook for the Agency MBS market [5]. Group 3: Capital Position - AGNC issued over $350 million in new shares during the fourth quarter, enhancing its capital base to pursue new investment opportunities [6]. - With a strong liquidity position and a positive market environment, AGNC is well-positioned to continue generating favorable returns and maintain its high-yielding dividend [6].

AGNC Investment Corp. ( AGNC ) managed to grow its portfolio of MBS in the fourth quarter and delivered high single-digit growth in its tangible book value compared to the year-earlier period. If federal fundAnalyst’s Disclosure: I/we have a beneficial long position in the shares of AGNC, NLY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business r ...

Key Takeaways AGNC posted Q4 net spread income of 35 cents per share, missing estimates and the year-ago level.AGNC faced pressure from lower asset yields and a higher weighted average cost of funds in the quarter.AGNC's portfolio value improved, with tangible book value per share rising 5.6% year over year.AGNC Investment Corp.’s (AGNC) fourth-quarter 2025 net spread and dollar roll income per common share (excluding estimated "catch-up" premium amortization benefit) of 35 cents missed the Zacks Consensus ...

Federico noted that the Bloomberg Aggregate Agency Index produced a total return of 8.6% in 2025 and outperformed the Treasury Index by 2.3 percentage points for the year. He also pointed to sizable late-year purchases of MBS by the government-sponsored enterprises (GSEs) as a key driver of spread tightening.Reduced uncertainty around GSE reform as Treasury and other officials emphasized mortgage market stability, improved housing affordability, and reducing agency MBS spreads.The Federal Reserve’s shift to ...