Floating rate preferreds are subject to a phenomenon of timing, which is makes them interesting yield plays and potentially opportunistic. Many of these issues were created in a very different environment, and now that the environment has shifted, they are yielding somewhere around 10%. A yield that was never intended, but is available today due to the timing phenomenon. The Timing Phenomenon Many preferred issues were incepted around 4 to 7 years ago during the zero interest rate period. At that time, they ...

Dividend Policy - AGNC Investment Corp. has a strong dividend policy, currently yielding 16.04%, significantly higher than the industry average of 11.3%, with a payout ratio of 75% [1] - The company has a share repurchase plan, recently authorizing up to $1 billion in stock repurchases through December 31, 2026 [3] Peer Comparison - AGNC's peers, Annaly Capital Management and Ellington Credit Company, offer competitive dividend yields of 14.87% and 20.25%, respectively [4] Stock Performance - AGNC's shares appreciated by 7.2% over the past year, contrasting with a 3.8% decline in the industry [6] - The company generated a positive economic return of 13.2% in 2024, benefiting from a favorable agency MBS market [15] Interest Rate Environment - AGNC's performance is heavily influenced by interest rate changes, with the Federal Reserve's monetary policy impacting profitability [9][10] - The Fed has lowered interest rates by 100 basis points in 2024, with potential further cuts in 2025, which may positively affect AGNC's net interest spread and book value [11][12] Investment Strategy - AGNC focuses on agency mortgage-backed securities (RMBS), positioning itself as a strong player in this market segment [13] - The management believes that the agency MBS market could benefit from a steepening yield curve and reduced rate volatility [14] Financial Estimates - Zacks Consensus Estimates for AGNC's financials show significant year-over-year growth projections, with estimates of $1.64 billion in sales for 2026, reflecting a 117.64% growth [16] Valuation - AGNC is currently trading at a forward price-to-tangible book (P/TB) multiple of 1.05X, above the industry average of 0.89X, indicating a premium valuation [19]

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about AGNC Investment (AGNC) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.AGNC Investment currently ...

Core Viewpoint - The article discusses the challenges and unpredictability of financial markets, emphasizing the importance of historical knowledge in making investment decisions [1]. Group 1 - The author highlights a personal passion for financial history and its application to market analysis [1]. - There is an acknowledgment of the difficulty in predicting market trends and spotting value, suggesting a cautious approach to investment [1]. Group 2 - The article does not provide specific company or industry insights, focusing instead on the author's perspective and experiences [1].

Core Insights - Hoya Capital Research & Index Innovations is affiliated with Hoya Capital Real Estate, providing investment advisory services focused on publicly traded securities in the real estate industry [2] - The commentary published by Hoya Capital is intended for informational and educational purposes only, and does not constitute investment, tax, or legal advice [2] - The views expressed in the commentary are subject to change and should not be considered a complete analysis of the subjects discussed [2] Company and Industry Summary - Hoya Capital Real Estate is a registered investment advisory firm based in Rowayton, Connecticut, serving ETFs, individuals, and institutions [2] - The firm offers non-advisory services including market commentary, research, and index administration [2] - The commentary emphasizes that past performance is not indicative of future results and that investing involves risks, particularly in real estate and housing industry sectors [3]

Core Viewpoint - Realty Income and Vici Properties are suggested as better REIT options for income investors compared to AGNC Investment, which has a high yield but faces declining profitability due to interest rate cuts [1][4]. Group 1: AGNC Investment Overview - AGNC Investment is a mortgage REIT with a significant 14% yield, focusing on originating mortgages and investing in mortgage-backed securities [1]. - The company allocates 89.4% of its $73.3 billion portfolio to agency MBS assets to mitigate housing crisis risks [2]. - In 2024, AGNC's net spread and dollar roll income per share fell 28% to $1.88 due to the Federal Reserve's interest rate cuts [2]. - Analysts predict a further 15% decline in net spread and dollar roll income for 2025, estimating it to drop to $1.60 per share [3]. Group 2: Realty Income Overview - Realty Income is a retail REIT owning approximately 15,600 properties, with major tenants including Dollar General and Walgreens [5]. - The company has maintained an occupancy rate above 96% since its IPO in 1994, indicating resilience despite tenant struggles [6]. - Realty Income has raised its dividend 130 times since 1994, currently offering a forward yield of 5.7% [7]. - From 2014 to 2024, its adjusted funds from operations (AFFO) per share grew at a CAGR of 5%, with expectations for 2025 to reach $4.22-$4.28 per share [8]. Group 3: Vici Properties Overview - Vici Properties is an experiential REIT with a portfolio of 93 casino and entertainment properties, maintaining a 100% occupancy rate since its IPO in 2018 [9]. - The company has locked tenants into long-term leases with rent increases tied to the consumer price index, ensuring rent growth aligns with inflation [9]. - Vici's AFFO per share grew at a CAGR of 8% from 2018 to 2024, with expectations for 2025 to reach $2.32-$2.35 per share [10]. - The forward annual dividend rate is $1.73 per share, resulting in a forward yield of 5.5% [10].

Company Performance - AGNC Investment (AGNC) closed at $10.13, reflecting a -0.39% change compared to the previous day, underperforming the S&P 500 which gained 1.77% [1] - Over the last month, AGNC shares decreased by 3.51%, while the Finance sector lost 1.46% and the S&P 500 lost 5.73% [1] Earnings Projections - The upcoming earnings report for AGNC is projected to show earnings per share (EPS) of $0.40, a decrease of 31.03% from the same quarter last year [2] - Revenue is estimated at $155.42 million, representing an increase of 618.05% from the prior-year quarter [2] Full Year Estimates - For the full year, earnings are projected at $1.61 per share, a decline of 14.36% from the previous year, while revenue is expected to be $754 million, an increase of 4088.89% [3] - Recent revisions to analyst forecasts for AGNC are important as they reflect short-term business trends and analyst sentiment [3] Valuation Metrics - AGNC Investment is currently trading at a Forward P/E ratio of 6.31, which is lower than the industry average Forward P/E of 8.57, indicating a discount [6] - The REIT and Equity Trust industry, part of the Finance sector, has a Zacks Industry Rank of 202, placing it in the bottom 20% of over 250 industries [6] Zacks Rank System - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with 1 rated stocks averaging an annual return of +25% since 1988 [5] - AGNC Investment currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [5]

Core Insights - The article highlights three high-yield dividend stocks with an average yield of 10.25%, which can provide significant monthly income for investors [1][3]. Group 1: Dividend Stock Performance - A study by Hartford Funds and Ned Davis Research shows that dividend-paying stocks have significantly outperformed non-payers over the past 50 years, with annualized returns of 9.17% compared to 4.27% [2]. - Companies that consistently pay dividends are characterized by their long-term outperformance and ability to navigate economic challenges [5]. Group 2: AGNC Investment - AGNC Investment offers a 13.99% yield and has maintained a double-digit yield in 14 of the last 15 years, making it a strong candidate for generating monthly income [4]. - The company is expected to benefit from a rate-easing cycle initiated by the Federal Reserve, which historically improves the performance of mortgage REITs [7][10]. - AGNC focuses on agency assets, which are backed by the federal government, allowing it to leverage its mortgage-backed securities investments while sustaining high dividend yields [9]. Group 3: Realty Income - Realty Income provides a 5.7% yield and has increased its dividend for 110 consecutive quarters, showcasing its reliability [11]. - The company owns over 15,600 commercial real estate properties, with 91% considered resilient to economic downturns [12]. - Realty Income's tenant vetting process and low rental delinquencies contribute to its strong occupancy rate of 98.2%, which is significantly higher than the S&P 500 REITs average [14]. Group 4: PennantPark Floating Rate Capital - PennantPark Floating Rate Capital offers an 11.06% yield and focuses on debt investments in middle-market companies, which typically pay higher interest rates due to limited access to financial services [16][18]. - The company's entire debt portfolio is variable rate, allowing it to benefit from rising interest rates, and it has maintained a low delinquency rate of 0.4% [19][20]. - Currently trading at a 2% discount to its book value, PennantPark presents an attractive opportunity for income-seeking investors [20].

Core Viewpoint - AGNC Investment is primarily recognized for its high dividend yield of 14%, attracting dividend investors, but its focus is on total returns rather than consistent income generation [1][3]. Company Overview - AGNC Investment operates as a mortgage real estate investment trust (REIT), which involves buying mortgages pooled into bond-like securities, making it more complex than traditional property-owning REITs [2][3]. - The company employs leverage to enhance returns, which is backed by the value of its mortgage securities portfolio [2]. Financial Performance - Since its inception, AGNC Investment has averaged a total return of about 10% per year, aligning with broader market expectations [4]. - In 2024, AGNC paid out $1.44 per share in dividends while generating $1.88 in net spread and dollar roll income per common share, resulting in a payout ratio of approximately 77%, indicating a reasonable level of dividend safety for the near term [5]. Dividend History and Strategy - The dividend has experienced fluctuations, including a spike post-IPO followed by a reduction, which negatively impacted both income and capital for those relying on dividends for living expenses [6]. - Reinvesting dividends has proven beneficial for total returns, contrasting with the experience of those who spent their dividends [6]. Investment Considerations - For short-term investors seeking dividend income, AGNC Investment may be a viable option in the upcoming year [7]. - Long-term investors focused on total returns may find AGNC Investment a solid choice, but it may not suit long-term dividend investors looking for reliable income [7].

Core Insights - AGNC Investment Corp. has announced a leadership change, with Peter Federico becoming both President and CEO, and Chief Investment Officer, while Christopher Kuehl transitions to Head of Investment Research and Strategy [1][2] - The company aims to adapt to the evolving macroeconomic environment and leverage advancements in financial technology and data analysis to enhance investment decision-making and portfolio management [2][3] Company Overview - AGNC Investment Corp. is a prominent investor in Agency residential mortgage-backed securities (Agency MBS), which are backed by guarantees from Fannie Mae, Freddie Mac, or Ginnie Mae [3] - The company employs a leveraged investment strategy, primarily financing its Agency MBS assets through repurchase agreements, and utilizes dynamic risk management strategies to mitigate interest rate and market risks [3][4] Financial Performance - AGNC has a strong track record of delivering long-term returns to shareholders, having paid over $14 billion in common stock dividends since its inception [4]