Core Viewpoint - AGNC Investment's recent earnings report indicates a decline in key financial metrics, with a comprehensive loss per share and a downward trend in estimates, raising questions about future performance leading up to the next earnings release [1][3][11]. Financial Performance - The fourth-quarter 2024 net spread and dollar roll income per common share was 37 cents, missing the Zacks Consensus Estimate of 42 cents, and down from 60 cents in the year-ago quarter [2] - Adjusted net interest and dollar roll income was $405 million, an 18.5% decline from the previous year [2] - The comprehensive loss per common share was 11 cents, compared to a comprehensive income of 1 cent per share in the year-ago quarter [3] - For 2024, net spread and dollar roll income per common share was $1.88, missing the consensus estimate of $1.95 and down from $2.61 in 2023 [3] Income and Expenses - Net interest income (NII) was $115 million, missing the Zacks Consensus Estimate by 23.7%, while net interest expenses were $26 million in the prior-year quarter [4] - For 2024, NII was $18 million, significantly below the Zacks Consensus Estimate of $314 million, but improved from $246 million in net interest expenses in 2023 [4] Asset Yield and Cost of Funds - The average asset yield on the portfolio was 5.02% in the fourth quarter, up from 4.55% in the fourth quarter of 2023 [4] - The combined weighted average cost of funds was 2.89%, compared to 1.39% in the fourth quarter of 2023 [5] - The average net interest spread was 1.91%, down from 3.08% in the previous quarter [5] Investment Portfolio - As of December 31, 2024, AGNC's investment portfolio totaled $73.3 billion, including $65.5 billion of Agency mortgage-backed securities [7] - The average actual constant prepayment rate was 9.6%, up from 6.2% in the year-ago quarter [6] Balance Sheet and Cash Position - Cash and cash equivalents totaled $505 million, down 0.4% from the prior quarter [9] - The tangible net book value per common share was $8.41, down 3.3% year-over-year [6] Dividend Information - AGNC announced a dividend of 12 cents per share for each month in the fourth quarter, totaling $0.36 per share [10] - Since its IPO in May 2008, the company has declared $14 billion in common stock dividends [10] Market Sentiment and Outlook - There has been a downward trend in estimates revisions, indicating a negative sentiment among investors [11] - AGNC Investment holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [13]

Core Viewpoint - Investing in real estate, particularly through REITs, can yield significant dividends, with the average REIT offering a 4% dividend yield, substantially higher than the S&P 500's 1.2% yield [1] Group 1: AGNC Investment - AGNC Investment is a mortgage REIT that invests in residential mortgage-backed securities (MBSes) with low credit risk, primarily backed by government agencies [2] - The REIT has maintained a high enough return to cover its operating expenses and dividends for nearly 60 consecutive months, indicating a strong performance [3] - CEO Peter Federico expressed confidence in the sustainability of the dividend, citing a balanced supply and demand outlook for Agency MBS and stable spreads [3] - Despite positive market conditions, potential risks exist, such as policy shifts by the Federal Reserve, which could impact the REIT's ability to cover dividends [3][4] - AGNC Investment is suitable for investors willing to accept higher risk for a lucrative monthly income stream [10] Group 2: Omega Healthcare Investors - Omega Healthcare Investors focuses on skilled nursing and living facilities in the U.S. and UK, utilizing triple-net leases for stable rental income [5] - The REIT produced $2.73 per share in funds available for distribution (FAD), covering its dividend outlay of $2.68 per share, resulting in a high payout ratio of 98% [6] - Omega's payout ratio improved from 2023 due to $1.1 billion in new investments, which enhanced revenue and FAD, funded by issuing $1.2 billion in stock [7] - Despite tenant issues affecting rental income, Omega expects financial metrics to improve, with recent investments anticipated to increase FAD [9] - The REIT has the potential for sustainable high-yielding dividends and may be positioned to increase its dividend in the future [9][10]

Core Viewpoint - AGNC Investment offers a high forward dividend yield of 13.8% and has seen a stock price increase of approximately 10% over the past year, making it an attractive option for income-oriented investors [1][2]. Company Overview - AGNC Investment is a mortgage real estate investment trust (mREIT) that originates its own mortgages and purchases mortgage-backed securities (MBSes), rather than owning physical properties [2][3]. - The company generates net profits by booking interest from the mortgages and MBSes it holds, benefiting from high-interest-rate environments [3]. Financial Performance - In 2024, AGNC's net spread and dollar roll income per share decreased by 28% to $1.88 due to three consecutive interest rate cuts by the Federal Reserve, but still covered its $1.44 in dividends [7]. - Quarterly net spread and dollar roll income per share showed a sequential decline throughout 2024, with tangible net book value also shrinking year over year [7][8]. Market Position and Strategy - AGNC maintains a positive outlook for Agency MBS as the Federal Reserve shifts its monetary policy, preferring a stabilization of interest rates to support the mortgage market [8]. - The company allocates over 89% of its portfolio to Agency MBS assets, which are backed by government entities, significantly reducing credit risk [8]. - AGNC has a unique "captive" broker-dealer agreement with Bethesda Securities, allowing access to lower wholesale funding rates and reduced collateral requirements compared to other mREITs [8]. Investment Consideration - AGNC's stock trades at $10.47, representing a 24% premium to its tangible net book value of $8.41, with a sustainable high forward dividend yield of 13.8% that limits downside potential [9]. - The stock is considered a good buy for dividend-seeking investors, especially if interest rates decline further, making it more appealing compared to CDs and T-bills [10].

Core Viewpoint - The article highlights the current low dividend yields of the S&P 500, which is around 1.2%, and presents higher-yielding dividend stock options for income-seeking investors, specifically AGNC Investment, Broadstone Net Lease, and Medical Properties Trust, with yields ranging from 6.4% to 13.7% [1]. AGNC Investment - AGNC Investment offers a high dividend yield of 13.7%, maintaining this payout consistently for over 58 months [2]. - The REIT focuses on agency-backed residential mortgage-backed securities (MBSes) and uses leverage to enhance returns, which increases its risk profile [3]. - The REIT believes it can sustain its dividend due to sufficient returns under current market conditions, although past market downturns have led to dividend reductions [4][5]. Broadstone Net Lease - Broadstone Net Lease has a dividend yield of 7.5%, supported by rental income from a diversified portfolio of commercial properties [6]. - The REIT generates stable rental income as tenants cover all operating costs through net leases, with significant income coming from industrial buildings (57.8%) and other sectors [6]. - The company plans to invest $436.3 million in new projects over the next two years, which is expected to enhance its adjusted funds from operations (FFO) and support dividend growth [7][8]. Medical Properties Trust - Medical Properties Trust currently offers a 6.4% dividend yield but has faced challenges, including two dividend cuts due to tenant bankruptcies [9]. - The REIT is improving its financial health by replacing bankrupt tenants and refinancing debt, which may allow for a more sustainable dividend in the future [10][12]. - The new tenants are expected to increase rental payments over the next two years, stabilizing the REIT's income and supporting its dividend [11]. Conclusion - AGNC Investment, Broadstone Net Lease, and Medical Properties Trust present high dividend yields, appealing to investors with a higher risk tolerance, but they also carry associated risks that need to be considered [13].

Financial Performance - AGNC generated a positive economic return of 13.2% in 2024, with monthly dividends totaling $1.44 per common share and a decline of tangible net book value of $0.29 per common share [157]. - Total comprehensive income for AGNC was $0.84 per diluted common share in fiscal year 2024, up from $0.30 per share in 2023 [161]. - Net spread and dollar roll income per diluted common share decreased to $1.88 in 2024 from $2.61 in 2023, primarily due to a narrowing of the net interest rate spread, which averaged 242 basis points in 2024, down from 306 basis points in 2023 [161]. - Economic interest income for 2024 was $3,198 million, up 25% from $2,560 million in 2023 [205]. - Net income available to common stockholders reached $731 million in 2024, a significant increase from $32 million in 2023 [196]. - Comprehensive income available to common stockholders for fiscal year 2024 was $657 million, a significant increase from $187 million in 2023, compared to a loss of $2,268 million in 2022 [227]. - Net spread and dollar roll income available to common stockholders for fiscal year 2024 was $1,474 million, down from $1,617 million in 2023 and $1,676 million in 2022 [227]. - Total loss on investment securities for fiscal year 2024 was $1,147 million, compared to a gain of $266 million in 2023 and a loss of $7,684 million in 2022 [230]. - Gain on derivative instruments and other securities for fiscal year 2024 was $2,028 million, a notable increase from $386 million in 2023 and $4,630 million in 2022 [232]. Investment Portfolio - As of December 31, 2024, the investment portfolio totaled $73.3 billion, up from $60.2 billion in 2023, representing a 21.5% increase [174]. - The fair value of Agency RMBS increased to $65.5 billion in 2024 from $53.8 billion in 2023, a growth of 21.8% [174]. - The total investment securities, including TBA securities, reached $76.3 billion in fair value as of December 31, 2024, compared to $60.2 billion in 2023, marking a 26.7% increase [174]. - The total net TBA securities fair value was $6.9 billion in 2024, up from $5.4 billion in 2023, indicating a 27.8% increase [174]. - The fair value of non-Agency RMBS decreased to $15 million in 2024 from $43 million in 2023, a decline of 65.1% [180]. - The total carrying value of CRT securities was $633 million in 2024, slightly down from $723 million in 2023, a decrease of 12.4% [180]. - The total fixed-rate Agency RMBS and TBA securities accounted for 99% of the total investment securities in 2024, consistent with 98% in 2023 [180]. Leverage and Borrowings - AGNC's average "at risk" leverage for 2024 was 7.2x tangible stockholders' equity, compared to 7.4x in 2023 [165]. - As of December 31, 2024, total mortgage borrowings amounted to $66,313 million, up from $54,247 million in 2023 [236]. - The leverage ratio as of December 31, 2024, was 7.2x, compared to 7.0x in 2023, indicating a slight increase in leverage [235]. - The average daily net TBA position was $59,690 million, with a leverage ratio of 7.2:1 [212]. - The average mortgage borrowings increased by 11% in fiscal year 2024 compared to the previous year [220]. Interest Rates and Economic Conditions - The 30-year primary mortgage rate was near 7% at year-end 2024, with expectations for Agency RMBS supply in 2025 to align with investor demand [159]. - The average interest rate on mortgage borrowings, excluding interest rate swap periodic income, increased by 18 basis points in fiscal year 2024 [220]. - Changes in long-term interest rates significantly impact prepayment rates, with rates generally increasing when interest rates fall [188]. - The average interest rate swap pay-fixed rate for fiscal year 2024 was 1.16%, up from 0.55% in 2023 [225]. Regulatory and Compliance - The company is subject to regulatory requirements as a REIT, including maintaining at least 55% of its assets in qualifying real estate interests [29]. - The company has not maintained relationships with unconsolidated entities or financial partnerships for off-balance sheet arrangements as of December 31, 2024 [251]. Employee and Workplace Culture - The company maintained a workforce of 53 full-time employees as of December 31, 2024, with a low voluntary turnover rate averaging less than 1 employee per year over the past three years [36]. - The company was recertified as a Great Place to Work™ in 2023 based on employee feedback, reflecting high levels of employee satisfaction [38]. - As of December 31, 2024, 40% of the company's employees were women and 32% were ethnically diverse [41]. - The company offers a 401(k) Savings Plan with matching contributions of 100% up to 6% of each employee's eligible compensation [43]. - The company maintains a pay-for-performance compensation philosophy, with higher-level employees receiving a greater proportion of variable incentive-based compensation [42]. - The company provides comprehensive medical coverage, including dental and vision, as well as paid time off and parental leave [43]. - The company conducts mandatory compliance training on various topics, including insider trading and anti-harassment policies [40]. - The company promotes open communication and has a Code of Ethics and Conduct that applies to all employees [39]. - The company offers professional development programs, including reimbursement for approved courses and mentoring opportunities [40].

Core Viewpoint - AGNC Investment Corp.'s performance is heavily influenced by mortgage rates, which are currently stable around 7%, but may change due to proposed tariffs by the Trump administration [1][2]. Mortgage Rate Influences - The Trump administration's tariff plans, including a 25% duty on steel and aluminum and increased levies on Chinese goods, are expected to impact mortgage rates [2][3]. - Higher tariffs could lead to increased costs for home-building materials, raising construction costs and home prices, which may prompt the Federal Reserve to maintain or raise interest rates, subsequently increasing mortgage rates [3]. Challenges for AGNC - Prolonged high mortgage rates could reduce demand for mortgage refinances, limiting the availability of new agency mortgage-backed securities (MBS) for AGNC, potentially stalling portfolio growth and decreasing the value of current MBS holdings [4]. Dividend and Financial Profile - AGNC has a strong dividend policy with a current yield of 13.8%, significantly higher than the industry average of 10.7%, and a payout ratio of 75% [6]. - The company has a share repurchase plan allowing it to buy back up to $1 billion of common stock through December 31, 2026, contingent on the repurchase price being lower than the tangible net book value [8]. Agency MBS Outlook - AGNC focuses on agency MBS, which are backed by U.S. government agencies, positioning it favorably in the market [9]. - The outlook for agency MBS has improved, with management noting potential benefits from a steepening yield curve and reduced rate volatility [10]. Performance Metrics - AGNC generated a positive economic return of 13.2% in 2024, attributed to its monthly dividend and favorable market conditions [11]. - The stock trades at a forward P/E multiple of 6.56X, below the industry average of 8.54X, indicating it is undervalued compared to peers [12][14]. Stock Performance - Despite mortgage market volatility, AGNC shares have increased by 27.9% over the past year, outperforming the industry's growth rate of 13.3% [19]. - The current discounted valuation suggests that investors should consider holding the stock while monitoring market changes [21].

Group 1 - AGNC Investment has experienced a significant upward revaluation this year due to expectations of an improving lending environment [1] - The favorable outlook for a re-pricing of mortgage-backed securities has contributed to the positive sentiment surrounding AGNC Investment [1] - The company is classified as a top-tier mortgage REIT, indicating its strong position within the industry [1]

Core Viewpoint - AGNC Investment Corp. has declared a cash dividend of $0.12 per share for February 2025, payable on March 11, 2025, to stockholders of record as of February 28, 2025 [1] Company Overview - AGNC Investment Corp., founded in 2008, is a leading investor in Agency residential mortgage-backed securities (Agency MBS), which are guaranteed against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae [2] - The company employs a leveraged investment strategy, primarily financing its Agency MBS assets through repurchase agreements, and utilizes dynamic risk management strategies to protect its portfolio from interest rate and market risks [2] Financial Performance - AGNC has a strong track record of providing favorable long-term returns to stockholders, having paid over $14 billion in common stock dividends since its inception [3] - The company serves as a significant source of private capital for the U.S. residential housing market and has extensive experience in managing mortgage assets across various market cycles [3]

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2][3] - It emphasizes the importance of conducting individual research before making investment decisions [2]

Group 1 - The article discusses AGNC Investment Corp. (NASDAQ: AGNC) and previously rated it as a "Buy" on January 11, 2025, indicating a favorable outlook for the company [1] - Sensor Unlimited, an economist with a PhD, has been covering the mortgage market, commercial market, and banking industry for the past decade, focusing on asset allocation and ETFs related to these sectors [2] Group 2 - The investing group Envision Early Retirement, led by Sensor Unlimited, offers solutions for generating high income and growth through dynamic asset allocation, including two model portfolios for different investment strategies [1]