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AGNC: Buy, Sell, or Hold?
The Motley Fool· 2025-03-18 09:35
With its enticing high dividend yield of 14.3%, AGNC Investment Corporation (AGNC 1.02%) stands out as an intriguing choice for income-focused investors. The company pays out monthly dividends and is among the highest-yielding stocks available to investors today.While AGNC offers impressive dividends, its overall performance has been less than stellar in recent years. However, if interest rates stabilize, AGNC could find itself in a position to boost its share price. If you're contemplating an investment in ...
AGNC Investment: Yield Curve Inverted, Time To Sell
Seeking Alpha· 2025-03-17 20:48
Join for a 100% Risk-Free trial and see if our proven method can help you too. You do not need to pay for the costly lessons from the market itself.My last article on AGNC Investment Corp. (NASDAQ: AGNC ) was published a bit more than a month ago. To wit, that article was titled "AGNC Investment: Let Your Profits Run" and wasSensor Unlimited contributes to the investing group Envision Early Retirement which is led by Sensor Unlimited. They offer proven solutions to generate both high income and high growth ...
Is This Stock's Massive 14.3% Dividend Yield Sustainable?
The Motley Fool· 2025-03-17 12:46
AGNC is one of the market's highest-yielding REITs.AGNC Investment (AGNC 1.99%), with a forward dividend yield of 14.3% as of this writing, is one of the market's highest-yielding stocks. It also pays monthly dividends.That massive dividend might look tempting, but is it sustainable? Let's dig deeper into AGNC's business model to see if it's a high-yield trap or a viable income investment. AGNC isn't a traditional REITAGNC is a real estate investment trust (REIT). But unlike traditional REITs -- which buy p ...
58 Monthly Dividends Later and This Ultra-High-Yielder Still Isn't a Dividend Stock You Can Count On
The Motley Fool· 2025-03-14 07:41
Company Overview - AGNC Investment is a mortgage real estate investment trust (REIT) that aims for favorable long-term stockholder returns with a substantial yield component [2] - The company has a strong track record of total return, boasting a 10% annualized return since its IPO in May 2008 through to year-end 2024 [4] Dividend Performance - AGNC Investment has paid 58 consecutive monthly dividends at the same level since 2020, which may seem appealing to income investors [7] - However, the dividend has not increased with inflation, leading to a decrease in purchasing power for investors [8] - The dividend record prior to 2020 shows a long downtrend, which could result in a negative experience for income-focused investors [9] Total Return Analysis - The positive total return is attributed to AGNC Investment paying out more in dividends than the decline in stock price, allowing for long-term capital growth through dividend reinvestment [10] - This perspective on total return may not align with the typical income investor's expectations of reliable income [10] Investment Considerations - While AGNC Investment is a respected mortgage REIT, it may not be suitable for investors seeking to rely on dividends for living expenses [11] - The static dividend over the years does not guarantee reliability for income generation [11]
Why This 14%-Yielding Dividend Stock May Perform Well in a Recession
The Motley Fool· 2025-03-13 21:16
Economic Outlook - Warning signs of a possible recession are emerging as the U.S. federal government plans to cut jobs and tariffs may trigger a trade war [1] - The Atlanta Federal Reserve's estimate for real GDP growth has shifted from over 2% growth to a 2.4% decline [1] AGNC Investment Overview - AGNC Investment is identified as a high-yielding dividend stock that could perform well in a recessionary environment [2] - AGNC operates as a mortgage real estate investment trust (REIT), generating income through the spread between mortgage yields and funding costs [3] Investment Strategy - AGNC typically uses leverage to enhance returns and employs hedges to stabilize short-term rates, which helps mitigate risks associated with rising funding costs [4] - As of the end of 2024, 98.6% of AGNC's portfolio was in agency-backed mortgage-backed securities (MBS), significantly reducing credit risk [5] Interest Rate Impact - A recession is likely to prompt the Federal Reserve to accelerate interest rate cuts, which could lower funding costs for AGNC and widen spreads [6][9] - AGNC's average net interest spread has decreased from 2.98% in Q1 2024 to 1.91% in Q4 2024, primarily due to reduced hedging income [7] Portfolio Valuation - Lower long-term interest rates are expected to increase the value of AGNC's portfolio, as MBS values are inversely related to interest rates [10] - AGNC's tangible book value (TBV) is projected to rise with falling mortgage rates, which could enhance stock price through higher valuation multiples [10] Dividend Performance - AGNC pays a monthly dividend of $0.12, yielding over 14%, and has maintained this dividend for nearly 60 months [11] - Management projects returns of 17% to 18.5% in the current environment, supporting confidence in sustaining the dividend [11] Conclusion - AGNC is positioned as a solid high-yield stock with moderate potential price upside, expected to perform well even in a recession [12]
AGNC Investment Corp. Declares First Quarter Dividends on Preferred Stock
Prnewswire· 2025-03-13 20:01
Core Viewpoint - AGNC Investment Corp. has declared cash dividends for its preferred stock series for the first quarter of 2025, reflecting its ongoing commitment to providing returns to shareholders through dividend income [1][3]. Dividend Details - The following series of preferred stock dividends have been declared: - **Series C**: 9.68019% per annum, $0.60501 per depositary share [1] - **Series D**: 8.90119% per annum, $0.55632 per depositary share [1][2] - **Series E**: 9.56219% per annum, $0.59764 per depositary share [1][3] - **Series F**: 6.125%, $0.3828125 per depositary share [1] - **Series G**: 7.750%, $0.48438 per depositary share [1] Payment Information - Dividends for all series will be payable on April 15, 2025, to holders of record as of April 1, 2025 [3]. Company Overview - AGNC Investment Corp. is a leading investor in Agency residential mortgage-backed securities, benefiting from guarantees against credit losses by government-sponsored entities [4]. - The company employs leveraged financing primarily through repurchase agreements and utilizes dynamic risk management strategies to protect its portfolio [4]. Historical Performance - AGNC has a strong track record of providing long-term returns, having paid over $14 billion in common stock dividends since its inception [5].
AGNC Investment Corp. Declares Monthly Common Stock Dividend of $0.12 per Common Share for March 2025
Prnewswire· 2025-03-13 20:01
BETHESDA, Md., March 13, 2025 /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) announced today that its Board of Directors has declared a cash dividend of $0.12 per share of common stock for March 2025. The dividend is payable on April 9, 2025 to common stockholders of record as of March 31, 2025.For further information or questions, please contact Investor Relations at (301) 968-9300 or [email protected].ABOUT AGNC INVESTMENT CORP.Founded in 2008, AGNC Investment Corp. (Nasdaq: AGNC) is a leading inves ...
AGNC Investment Corp.: Why I Would Prefer Half the Dividend and 100% More Certainty
The Motley Fool· 2025-03-12 22:23
Group 1 - Real Estate Investment Trusts (REITs) are designed to pass income to shareholders through significant dividend payments, avoiding corporate-level taxation by distributing at least 90% of taxable income [2][4] - REITs provide small investors access to income-producing assets like apartment buildings and malls, making them a viable option for income investors [3] - Not all REITs are equal; they can face challenges such as overexpansion and excessive debt, and there are different types, including property owners and mortgage REITs [4] Group 2 - AGNC Investment offers a high dividend yield of over 13%, while Realty Income has a lower yield of 5.5%, yet Realty Income is preferred for its consistent dividend growth [5][10] - AGNC Investment has experienced multiple dividend cuts, while Realty Income has increased its dividend for three decades, leading to a significant difference in per-share dividend payments over time [10][11] - Realty Income is characterized as an income stock focused on generating reliable and increasing dividends, while AGNC aims for total return through reinvestment of dividends, making it less suitable for long-term income investors [12][13][14]
It's Been 45 Months Since AGNC Investment Corp. Set Its All-Time High. Here's 1 Reason to Buy Today.
The Motley Fool· 2025-03-11 08:10
AGNC Investment (AGNC -1.45%) hit its all-time high closing price of $11.74 per share on June 8, 2021. That was about 45 months ago. Shares are currently well below that price point at around $10.50 per share. This lower price point is why the real estate investment trust (REIT) offers such a monster dividend yield of 13.8%. Its payout is more than 10 times higher than the S&P 500's dividend yield of 1.3%. The mortgage REIT has been able to maintain its massive payout for the past 60 months in a row. That s ...
Want $1,000 in Dividend Income? Invest $7,580 in These 2 Ultra-High-Yield Stocks
The Motley Fool· 2025-03-09 08:37
If you're looking for high-yield dividend stocks, I've got some good news. A couple of mortgage REITs offer eye-popping yields, and there's a chance they'll be able to maintain their payouts.Shares of AGNC Investment (AGNC 2.37%) and Annaly Capital (NLY 2.53%) offer an average yield of 13.2% at recent prices. That means an investment of just $7,580 is enough to set you up with $1,000 in annual dividend income.Before whipping out a brokerage application to buy these stocks, you should know that they are real ...