Core Insights - After experiencing significant losses in 2022, most mortgage REITs (mREITs) have remained within a trading range over the past two years, with the iShares Mortgage Real Estate Capped ETF (REM) fluctuating between $20 [1] Group 1 - The performance of mortgage REITs has been stable following a tumultuous year in 2022, indicating a potential recovery phase in the sector [1] - The iShares Mortgage Real Estate Capped ETF (REM) has shown a consistent trading range, suggesting limited volatility and investor caution [1]

Core Insights - AGNC Investment Inc. (AGNC) is significantly impacted by mortgage rates, with the average 30-year fixed-rate mortgage decreasing to 6.81% as of June 18, 2025, from 6.84% the previous week and 6.87% a year ago, leading to a net interest income (NII) of $159 million in Q1 2025, a recovery from a $30 million loss in the same period last year [1][9] Group 1: Mortgage Rate Impact - The consistent decline in mortgage rates is enhancing housing affordability, which is expected to boost mortgage originations and refinancing activities, thereby alleviating operational and financial challenges for mREITs like AGNC Investment [2] - AGNC's peers, such as Annaly Capital Management (NLY) and Arbor Realty Trust (ABR), are also affected by mortgage rates, with Annaly showing a strong recovery in NII to $264.6 million from a $6.45 million loss a year ago [3][4] Group 2: Peer Performance - Arbor Realty's NII decreased by 27.2% to $75.4 million in Q1 2025, but the decline in mortgage rates is anticipated to improve net interest spreads, easing earnings pressure due to rising funding costs [5] Group 3: Valuation and Estimates - AGNC shares have declined by 5% over the past year, which is better than the industry's decline of 7.5% [6] - The company trades at a forward P/E ratio of 5.67X, below the industry average of 7.89X, despite a 5.4% stock decline [10][9] - The Zacks Consensus Estimate for AGNC's earnings in 2025 and 2026 indicates a year-over-year decline of 11.2% and 3.9%, respectively, with estimates remaining unchanged over the past 30 days [12]

I analyze securities based on value investing, an owner's mindset, and a long-term horizon. I don't write sell articles as those are considered short theses, and I never recommend shorting.Former advisory representative at Fidelity. I do my own investing now and share my research here.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expres ...

Three supercharged income stocks -- sporting an average yield of 10.96% -- can fatten investors' wallets on a monthly basis..With thousands of publicly traded companies and exchange-traded funds (ETFs) to choose from, investors have a myriad of ways to grow their wealth on Wall Street. But among these countless strategies, few have more consistently delivered for investors than buying and holding high-quality dividend stocks.Companies that pay a regular dividend to their shareholders are typically profitabl ...

Group 1: Investment Opportunities - Mortgage REITs, preferred shares, baby bonds, and BDCs are highlighted as high-yielding investment alternatives, with preferred shares and baby bonds generally outperforming mortgage REIT common shares over the long term [1] - BDCs have performed well in recent years, benefiting from higher interest rates which increased their income despite also raising their cost of funds [3] - Preferred shares from mortgage REITs have shown stability in dividends and total returns, contrasting with the declining book value of common shares [5][19] Group 2: Performance Analysis - Fixed-rate preferred shares have underperformed due to significant changes in interest rates, while fixed-to-floating shares have performed well with lower price volatility [4] - Baby bonds have shown impressive performance, with many trading above their maturity value of $25.00, indicating solid investor confidence [7] - The worst-performing baby bond, RCD from Ready Capital, is down only about 4% adjusted for dividends, which is considered a relatively minor loss [8] Group 3: Market Expectations - Q2 2025 is anticipated to be a challenging quarter for mortgage REITs regarding total economic return, which includes changes in book value and dividends [9] - The spread between the yield on assets and the cost of funds for mortgage REITs is currently favorable, suggesting potential for earnings on newly invested capital [10][13] Group 4: Long-Term Trends - Preferred shares have outperformed common shares from the same mortgage REITs since early 2022, demonstrating lower volatility and consistent income generation [19][23] - The performance of fixed-rate agency MBS pools indicates a strong interest in preferred shares, with trading values reflecting healthy demand [16] Group 5: Future Opportunities - There are current opportunities in preferred shares and baby bonds, prompting the company to consider reallocating capital into these investments [24] - The demand for key real estate sectors is expected to increase, presenting a prime opportunity for investment in REITs, preferred shares, and BDCs in 2025 [27]

Core Viewpoint - AGNC Investment Inc.'s performance is significantly influenced by mortgage rates, which have recently declined, positively impacting loan demand and operational challenges for mREITs like AGNC [1][2][10] Group 1: Mortgage Rates and Market Conditions - The average rate on a 30-year fixed-rate mortgage was 6.84% as of June 12, 2025, down from 6.95% a year ago, indicating a favorable trend for housing affordability [1] - Lower mortgage rates are expected to increase loan demand, leading to a positive trend in mortgage originations and refinancing [2] - The Federal Reserve's interest rate cuts by 100 basis points in 2024 have stabilized funding costs for AGNC, easing earnings pressure and potentially increasing dividend payouts [3] Group 2: Dividend and Financial Profile - AGNC's current dividend yield is 15.43%, significantly higher than the industry average of 11.68%, attracting investors seeking steady income [4] - The company has a stock repurchase plan authorizing up to $1 billion of common stock through December 31, 2026, enhancing shareholder value [7] - AGNC generated an economic return of 2.4% in Q1 2025, supported by its compelling monthly dividend [11] Group 3: Investment Strategy and Market Position - AGNC focuses on agency mortgage-backed securities (RMBS), positioning itself as a strong player in this specialized market segment [8] - Despite market volatility and increased spreads following the April tariff announcement, the fundamental outlook for agency MBS assets has shown improvement [9][10] - AGNC's shares have gained 8.1% in the past six months, outperforming the industry average of 3.2% [13] Group 4: Valuation and Future Outlook - AGNC is currently trading at a premium valuation with a forward 12-month price-to-tangible book (P/TB) multiple of 1.09X, above the industry average of 0.96X [19][22] - The company is expected to benefit from lower mortgage rates and anticipated interest rate cuts in 2025, which could boost net interest spread and book value [15] - Investors are advised to analyze upcoming interest rate changes and the mortgage market for a more appropriate entry point due to AGNC's premium valuation [23]

Let’s get educational! It’s like going to college but with more numbers and no parties. On the positive side, the price is right. Why educational articles? That’s too many questions. We’re going to talk about AGNC Investment Corp (AGNC) because consensus EPS was around $1.62 for the year and that would be 19.6% on the Q1 2025 tangible book value of $8.25. That’s really high. If you’re not familiar with mortgage REITs, that might sound reasonable. It is not. Now we’re looking into the earnings: AGNCYou’ll no ...

BETHESDA, Md., June 12, 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 June 2025. The dividend is payable on July 10, 2025 to common stockholders of record as of June 30, 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 investor ...

Core Insights - The article emphasizes the importance of preferred shares and baby bonds for achieving strong risk-adjusted returns, alongside the positive performance of Business Development Companies (BDCs) [1][19] - It highlights the irrational behavior of the market, where some investors continue to buy underperforming stocks despite deteriorating fundamentals [2] - The article discusses the current favorable environment for agency mortgage REITs to issue new shares due to high price-to-book ratios, while hybrid mortgage REITs are struggling [3][6] Agency Mortgage REITs - AGNC Investment (AGNC) maintains a high price-to-book ratio, allowing it to issue new shares effectively [3] - The top three agency mortgage REITs, Dynex Capital (DX), Annaly Capital (NLY), and AGNC, have the highest price-to-book ratios and are expected to capitalize on this by issuing additional shares [4] - A projection indicates that agency mortgage REITs will see a decline in book value in Q2 2025, affecting their price-to-book ratios [5] Hybrid Mortgage REITs - The environment is unfavorable for hybrid mortgage REITs, with only Ellington Financial (EFC) trading close to its projected book value [6] Business Development Companies (BDCs) - Main Street Capital (MAIN) is recognized as a leading BDC, but it is challenging to find it at a bargain valuation [7] - MAIN's Total Economic Return (TER) reflects its performance through changes in book value and dividends, with share issuance above NAV enhancing its value [7][9] - The article notes that MAIN's ability to drive NAV per share higher is attributed to successful investments and effective management [13] Preferred Shares - There are emerging opportunities in preferred shares, which have historically provided strong risk-adjusted returns [14] Market Outlook - The year 2025 is identified as a prime opportunity for investing in REITs, preferred shares, and BDCs due to increasing demand and insufficient supply in key real estate sectors [19]

Company Overview - AGNC Investment operates as a mortgage real estate investment trust (REIT), purchasing pooled mortgages that are converted into bond-like securities, which is a more complex model compared to traditional property-owning REITs [2][4] Dividend and Stock Performance - AGNC Investment boasts a high dividend yield of over 15%, but the company has experienced a steady downtrend in its dividend over the past decade, which has also affected its stock price [5][14] - The tangible net book value per share of AGNC Investment was reported at $8.25 at the end of Q1 2025, down from $13.12 at the end of Q1 2022, indicating significant fluctuations in its portfolio value [8] - The stock price often trades above the tangible net book value per share, with a 52-week high of $10.85, despite the tangible net book value not exceeding $8.84 in the last four quarters [9][10] Investment Strategy - Investors should be cautious about paying more than the tangible net book value per share unless they anticipate a significant increase in that value; buying below this figure may present a better investment opportunity [12] - The focus of AGNC Investment is on total return rather than just income, with dividends being a component of total return that assumes reinvestment [14][15]