[AGNC Investment Corp. Q2 2025 Financial Results](index=1&type=section&id=AGNC%20INVESTMENT%20CORP.%20ANNOUNCES%20SECOND%20QUARTER%202025%20FINANCIAL%20RESULTS) [Financial & Operational Highlights](index=1&type=section&id=SECOND%20QUARTER%202025%20FINANCIAL%20HIGHLIGHTS) AGNC reported a comprehensive loss of **$(0.13) per common share** and a **-1.0% economic return** on tangible common equity, with tangible net book value declining **5.3%**, while maintaining a substantial **$82.3 billion investment portfolio** and **$6.4 billion in liquidity** Q2 2025 Key Financial Metrics | Metric | Value | Change from Q1 2025 | | :--- | :--- | :--- | | Comprehensive Loss per Common Share | $(0.13) | N/A | | Net Loss per Common Share | $(0.17) | N/A | | Net Spread and Dollar Roll Income per Share (Non-GAAP) | $0.38 | Down from $0.44 | | Tangible Net Book Value per Common Share | $7.81 | $(0.44) or -5.3% | | Dividends Declared per Common Share | $0.36 | Unchanged | | Economic Return on Tangible Common Equity | -1.0% | Down from 2.4% | | Investment Portfolio | $82.3 billion | Up from $78.8B (derived) | | Tangible Net Book Value 'at risk' Leverage | 7.6x | Up from 7.5x | * The company maintained a strong liquidity position with **$6.4 billion** in unencumbered cash and Agency MBS, which represents **65%** of its tangible equity[8](index=8&type=chunk) * During the quarter, AGNC issued **92.6 million shares** of common equity through its At-the-Market (ATM) program, raising net proceeds of **$799 million**[8](index=8&type=chunk) [Management Remarks](index=2&type=section&id=MANAGEMENT%20REMARKS) Management attributed the **-1.0% economic return** to wider Agency MBS spreads and increased interest rate volatility, yet expressed a favorable long-term outlook for Agency MBS investments due to historically wide spreads and balanced market dynamics * CEO Peter Federico noted that financial markets repriced significantly in April due to greater governmental policy risk, causing interest rate volatility to increase and Agency MBS spreads to widen, resulting in a **-1.0% economic return** for AGNC[6](index=6&type=chunk) * The company maintains a favorable outlook for levered and hedged Agency MBS, citing elevated spreads, balanced supply/demand, potential for increased bank participation, and the administration's intent to preserve the credit profile of Agency MBS[7](index=7&type=chunk) * CFO Bernice Bell stated that the company navigated April's volatility well, used its ATM program to raise accretive capital, and ended the quarter with **7.6x 'at risk' leverage** and a substantial liquidity position of **$6.4 billion** (**65%** of tangible equity)[7](index=7&type=chunk) [Portfolio and Risk Management](index=3&type=section&id=Portfolio%20and%20Risk%20Management) AGNC's **$82.3 billion investment portfolio** primarily comprised 30-year fixed-rate Agency MBS, with leverage at **7.6x** supported by a robust hedging program covering **89%** of financing liabilities through interest rate swaps and U.S. Treasury positions [Investment Portfolio](index=3&type=section&id=INVESTMENT%20PORTFOLIO) The **$82.3 billion investment portfolio** was heavily concentrated in Agency MBS and TBA securities, with **96%** in 30-year fixed-rate securities, and a projected constant prepayment rate (CPR) of **7.8%** Investment Portfolio Composition as of June 30, 2025 | Security Type | Value (in billions) | | :--- | :--- | | **Agency MBS and TBA Securities** | **$81.6** | | - 30-year fixed-rate MBS & TBA | $78.6 | | - 15 & 20-year MBS & TBA | $0.8 | | - CMOs, adjustable-rate, etc. | $2.2 | | **CRT, non-Agency, and other** | **$0.7** | | **Total Investment Portfolio** | **$82.3** | * The weighted average projected CPR for the life of Agency securities decreased to **7.8%** as of June 30, 2025, from **8.3%** at the end of Q1, while the actual portfolio CPR for Q2 was **8.7%**, up from **7.0%** in the prior quarter[11](index=11&type=chunk) [Leverage and Liquidity](index=5&type=section&id=LEVERAGE) The company's tangible net book value 'at risk' leverage ratio increased slightly to **7.6x**, with the portfolio primarily funded by **$66.0 billion** in repurchase agreements, **53%** of which was through its captive broker-dealer subsidiary * The tangible net book value 'at risk' leverage ratio was **7.6x** as of June 30, 2025, compared to **7.5x** as of March 31, 2025, with the average leverage for the quarter at **7.5x**[21](index=21&type=chunk) * As of quarter-end, **$34.7 billion**, or **53%**, of the Company's Investment Securities Repo was funded through its captive broker-dealer subsidiary, Bethesda Securities, LLC[22](index=22&type=chunk) [Hedging Activities](index=5&type=section&id=HEDGING%20ACTIVITIES) The company's hedging portfolio covered **89%** of its financing liabilities, primarily through **$45.1 billion** in interest rate swaps and a net short U.S. Treasury position that increased to **$20.0 billion** * As of June 30, 2025, various interest rate hedges equaled **89%** of the Company's outstanding balance of Investment Securities Repo, TBA position and other debt, down from **91%** as of March 31, 2025[23](index=23&type=chunk) Key Hedging Positions as of June 30, 2025 | Hedge Instrument | Position (billions) | Change from Q1 2025 (billions) | | :--- | :--- | :--- | | Pay-Fixed Interest Rate Swaps | $45.1 notional | Decreased from $47.8 | | Net Short U.S. Treasury Position | $20.0 | Increased from $15.7 | | Net Payer Swaptions | $1.9 notional | Unchanged | [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) The company's Q2 financial performance saw a **5.3% decline** in tangible net book value and a decrease in non-GAAP net spread and dollar roll income to **$0.38 per share**, with the annualized net interest spread compressing to **2.01%** [Tangible Net Book Value (TNBV)](index=3&type=section&id=TANGIBLE%20NET%20BOOK%20VALUE%20PER%20COMMON%20SHARE) Tangible net book value per common share declined **5.3%** to **$7.81** as of June 30, 2025, from **$8.25** in the prior quarter, excluding goodwill of **$0.50 per share** * As of June 30, 2025, tangible net book value per common share was **$7.81**, a decrease of **$(0.44)** or **-5.3%** for the quarter from **$8.25** as of March 31, 2025[4](index=4&type=chunk)[9](index=9&type=chunk) [Net Spread and Dollar Roll Income](index=4&type=section&id=NET%20SPREAD%20AND%20DOLLAR%20ROLL%20INCOME) The company's non-GAAP net spread and dollar roll income for Q2 2025 was **$0.38 per common share**, a decrease from **$0.44 per common share** in the prior quarter * Net spread and dollar roll income (a non-GAAP measure) was **$0.38 per common share** for Q2 2025, compared to **$0.44 per common share** for Q1 2025[18](index=18&type=chunk) [Asset Yields, Cost of Funds, and Net Interest Spread](index=4&type=section&id=ASSET%20YIELDS%2C%20COST%20OF%20FUNDS%20AND%20NET%20INTEREST%20RATE%20SPREAD) The annualized net interest spread compressed to **2.01%** in Q2 2025 from **2.12%** in Q1, driven by an increased cost of funds to **2.86%** while average asset yield remained stable at **4.87%** Net Interest Spread Components (Q2 2025 vs Q1 2025) | Metric | Q2 2025 (%) | Q1 2025 (%) | | :--- | :--- | :--- | | Average Asset Yield (incl. TBA, excl. catch-up) | 4.87 | 4.87 | | Combined Weighted Average Cost of Funds | 2.86 | 2.75 | | **Annualized Net Interest Spread** | **2.01** | **2.12** | [Other Gain (Loss), Net & OCI](index=5&type=section&id=OTHER%20GAIN%20%28LOSS%29%2C%20NET) AGNC recorded a net loss of **$(274) million** in 'other gain (loss), net,' primarily from losses on interest rate swaps and U.S. Treasury positions, partially offset by **$48 million** in Other Comprehensive Income (OCI) from unrealized gains on Agency securities * The company recorded a net loss of **$(274) million** in other gain (loss), net, which included **$(518) million** of net losses on interest rate swaps and **$(135) million** of net losses on U.S. Treasury positions[26](index=26&type=chunk) * The company recorded other comprehensive income (OCI) of **$48 million**, or **$0.05 per common share**, from net unrealized gains on Agency securities recognized through OCI[27](index=27&type=chunk) [Common Stock Dividends](index=6&type=section&id=COMMON%20STOCK%20DIVIDENDS) AGNC declared total dividends of **$0.36 per common share** for Q2, maintaining its monthly rate, bringing the cumulative common stock dividends since IPO to **$14.7 billion** * The company declared dividends of **$0.12 per share** for April, May, and June, totaling **$0.36 per share** for the second quarter[28](index=28&type=chunk) * From its May 2008 IPO through Q2 2025, AGNC has declared a total of **$14.7 billion** in common stock dividends, or **$49.36 per common share**[28](index=28&type=chunk) [Financial Statements and Key Statistics](index=6&type=section&id=FINANCIAL%20STATEMENTS%2C%20OPERATING%20PERFORMANCE%20AND%20PORTFOLIO%20STATISTICS) This section presents detailed financial statements and key statistics for Q2 2025, including a Consolidated Balance Sheet showing **$102.0 billion** in total assets, a Consolidated Statement of Operations detailing a net loss of **$(178) million**, and reconciliations for non-GAAP measures like Net Spread and Dollar Roll Income of **$388 million** [Consolidated Balance Sheets](index=7&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets increased to **$102.0 billion**, driven by Agency securities and reverse repurchase agreements, with total liabilities rising to **$91.7 billion** and total stockholders' equity reaching **$10.3 billion** Selected Balance Sheet Data (in millions) | Account | June 30, 2025 (millions) | March 31, 2025 (millions) | | :--- | :--- | :--- | | Agency securities, at fair value | $73,232 | $70,363 | | Total assets | $102,021 | $95,889 | | Repurchase agreements | $69,153 | $66,138 | | Total liabilities | $91,674 | $85,847 | | Total stockholders' equity | $10,347 | $10,042 | [Consolidated Statements of Operations](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q2 2025, the company reported net interest income of **$162 million**, but a total other loss of **$(274) million** led to a net loss of **$(140) million**, with a comprehensive loss available to common stockholders of **$(130) million** or **$(0.13) per share** Selected Statement of Operations Data (in millions) | Account | Three Months Ended June 30, 2025 (millions) | | :--- | :--- | | Net interest income | $162 | | Total other (loss) gain, net | $(274) | | Net income (loss) | $(140) | | Net income (loss) available to common stockholders | $(178) | | Comprehensive income (loss) available to common stockholders | $(130) | [Reconciliation to Non-GAAP Measures](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20COMPREHENSIVE%20INCOME%20%28LOSS%29%20TO%20NET%20SPREAD%20AND%20DOLLAR%20ROLL%20INCOME%20%28NON-GAAP%20MEASURE%29) The company reconciled its GAAP comprehensive loss of **$(130) million** to a non-GAAP Net Spread and Dollar Roll Income of **$388 million** for Q2 2025, adjusted for items like unrealized gains/losses and swap income * For Q2 2025, the company reconciled a GAAP comprehensive loss attributable to common stockholders of **$(130) million** to a non-GAAP Net Spread and Dollar Roll Income of **$388 million**[37](index=37&type=chunk) * Key adjustments included adding back net unrealized and realized losses on securities and derivatives, and including periodic interest rate swap income of **$282 million** and TBA dollar roll income of **$24 million**[37](index=37&type=chunk) [Key Statistics](index=11&type=section&id=KEY%20STATISTICS%2A) The Key Statistics table provides a quarterly comparison of critical metrics, highlighting a period-end tangible 'at risk' leverage of **7.6x**, an average actual CPR of **8.7%**, and a negative economic return of **-1.0%** on tangible common equity for Q2 2025 Selected Key Statistics (Q2 2025 vs Q1 2025) | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Tangible net book value "at risk" leverage - period end | 7.6:1 | 7.5:1 | | Average actual CPR for securities held | 8.7% | 7.0% | | Average forecasted CPR - period end | 7.8% | 8.3% | | Combined net interest spread (excl. catch-up) | 2.01% | 2.12% | | Economic return (loss) on tangible common equity | (1.0)% | 2.4% | [Company and Investor Information](index=13&type=section&id=Company%20and%20Investor%20Information) This section provides corporate and investor information, including details for the upcoming stockholder conference call and a detailed explanation of the company's use of non-GAAP financial measures for greater transparency * AGNC will host a stockholder call on July 22, 2025, at 8:30 am ET, with a corresponding slide presentation available on its website[44](index=44&type=chunk)[45](index=45&type=chunk) * The company is a leading investor in Agency residential mortgage-backed securities (MBS), which are guaranteed against credit loss by Fannie Mae, Freddie Mac, or Ginnie Mae[48](index=48&type=chunk) * The press release includes a detailed explanation of its non-GAAP measures, such as "net spread and dollar roll income," stating they provide greater transparency into the information used by management for financial and operational decision-making[53](index=53&type=chunk)[55](index=55&type=chunk)

Financial Highlights - AGNC Investment Corp. reported a tangible net book value per common share of $7.81 as of June 30, 2025, a decrease of 5.3% from $8.25 as of March 31, 2025 [7] - The company's investment portfolio totaled $82.3 billion, with 96% consisting of 30-year fixed-rate Agency MBS and TBA securities [8] - The economic return on tangible common equity for the second quarter was -1.0%, comprising $0.36 in dividends per common share and a $(0.44) decline in tangible net book value per common share [6][9] Management Remarks - The company's President noted that financial markets experienced significant repricing due to governmental policy risks, leading to increased interest rate volatility and negative investor sentiment [5] - Despite most asset class valuations recovering, Agency MBS underperformed, resulting in wider spreads to benchmark rates during the second quarter [5] Investment Portfolio - As of June 30, 2025, the weighted average coupon for fixed-rate Agency MBS and TBA securities was 5.13%, up from 5.03% as of March 31, 2025 [8] - The company maintained a substantial liquidity position of $6.4 billion in unencumbered cash and Agency MBS, representing 65% of its tangible equity [6] Leverage and Risk Management - The tangible 'at risk' leverage ratio was 7.6x as of June 30, 2025, compared to 7.5x as of March 31, 2025 [20] - The company issued 92.6 million shares of common equity through At-the-Market offerings, raising net proceeds of $799 million [9] Income and Expenses - The company recognized net spread and dollar roll income of $0.38 per common share for the second quarter, down from $0.44 per common share in the prior quarter [17] - Interest income for the second quarter was $830 million, while interest expense was $668 million, resulting in a net interest income of $162 million [32] Other Comprehensive Income - The company recorded other comprehensive income of $48 million, or $0.05 per common share, during the second quarter, compared to $93 million, or $0.10 per common share, in the prior quarter [28]

Core Viewpoint - The article discusses five monthly dividend-paying stocks with yields ranging from 5.8% to 16.3%, highlighting their potential for consistent income generation compared to traditional quarterly dividends [2][3]. Group 1: Monthly Dividend Stocks Overview - Monthly Dividend 1: Healthpeak Properties (DOC) is a healthcare REIT with a diverse portfolio of approximately 700 properties, including outpatient medical facilities, laboratories, and senior housing [5]. - Healthpeak announced a switch to monthly dividends starting in April 2025, increasing its dividend from 30 cents to 30.5 cents per share, translating to 10.17 cents monthly [6]. - The payout ratio for Healthpeak is less than 75% of projected adjusted funds from operations (AFFO) for 2025, indicating room for modest dividend growth [7]. Group 2: EPR Properties - Monthly Dividend 2: EPR Properties (EPR) focuses on experiential real estate, with a portfolio of 331 properties, including theaters and recreational facilities [9]. - Theaters account for 36% of EPR's adjusted EBITDA, benefiting from a rebound in box office revenues, with a 7.5% rent increase from AMC kicking in [10]. - EPR is experiencing improving costs of capital, allowing for potential acquisitions, although its price-to-AFFO ratio has increased from 9 to around 12 [11]. Group 3: Gladstone Commercial - Monthly Dividend 3: Gladstone Commercial (GOOD) owns 141 net-leased properties, with an overall occupancy rate of 98.4% [13]. - The company has reduced its exposure to office properties from 65% to 35% of annualized straight-line rent over the past seven years [14]. - Gladstone's monthly dividend is $1.20 annually, with FFO of $1.43 over the trailing 12 months, indicating a payout ratio of 85% [15]. Group 4: Prospect Capital - Monthly Dividend 4: Prospect Capital (PSEC) is a business development company with 114 portfolio investments across 33 industries [16]. - PSEC is currently trading at 46% of NAV, offering a yield above 16%, but has a history of dividend cuts, raising concerns about its sustainability [18]. - The company is viewed as a high-risk investment due to its declining net investment income [18]. Group 5: AGNC Investment Corp. - Monthly Dividend 5: AGNC Investment Corp. (AGNC) is a mortgage REIT with a market cap exceeding $9 billion, focusing on agency mortgage-backed securities [19][21]. - AGNC benefits from a safer investment profile due to government backing of its securities, but faces challenges with high interest rates [22]. - The company is currently trading at less than 6 times earnings estimates, with a dividend coverage ratio of approximately 90% [23].

Group 1 - The core idea is to create a portfolio that generates income without the need for selling assets, making retirement investing less stressful and straightforward [1] - Members of High Dividend Opportunities benefit from significant rewards during periods of negative sentiment, often caused by misunderstandings of the sector [2] - The service offers features such as a model portfolio with buy/sell alerts, preferred and baby bond portfolios, and regular market updates, emphasizing community and education [2][4] Group 2 - The service philosophy is centered around the belief that no one should invest alone, fostering a vibrant community for income investors [2] - The contributors to High Dividend Opportunities include various analysts who monitor positions closely and provide exclusive buy/sell alerts to members [4]

Core Viewpoint - AGNC Investment, a mortgage REIT, offers a high forward dividend yield of 15.7% but faces significant near-term challenges impacting its profitability and stock performance [1][2][4]. Group 1: Business Model - AGNC operates as a mortgage REIT, originating its own mortgages and purchasing mortgage-backed securities (MBS) rather than owning physical properties, generating profits from interest on these investments [5]. - The company allocates 89.2% of its $78.9 billion portfolio to agency MBS assets backed by government entities, which provides a level of protection against housing crises [6]. Group 2: Recent Performance - Over the past year, AGNC's stock has declined by 12%, resulting in a total return of less than 3% when accounting for reinvested dividends [2]. - Key profitability metrics, including net spread and dollar roll income per share, have decreased from $0.58 in Q1 2024 to $0.37 in Q4 2024, while tangible net book value per share has also declined from $8.84 to $8.41 during the same period [9][10]. Group 3: Future Outlook - Analysts predict a further decline in AGNC's net spread and dollar roll income per share, estimating it will drop to $1.66 in 2025 and $1.63 in 2026, although this still covers the forward annual dividend rate of $1.44 per share [11]. - If AGNC's stock trades at five times its forward net spread and dollar roll income per share, the stock price could fall to approximately $8 by early 2026, indicating limited upside potential in the near term [12].

Group 1 - AGNC Investment Corp. is scheduled to release its second quarter earnings results on July 21st, which is anticipated to be significant due to the mREIT's yield profile and various emerging inflection points [1] - The investment fund Pearl Gray specializes in systematic analysis, focusing primarily on Bonds, Preferreds, and REITs, with a primary emphasis on the Financials and Real Estate sectors [1] Group 2 - The mission of Pearl Gray is to discover actionable total return ideas that integrate rigorous academic theories, practical experience, and common sense [1]

Core Insights - AGNC Investment Corp. is set to report its second-quarter 2025 earnings on July 21, with earnings per share (EPS) expected at 42 cents, reflecting a 20.8% decline year-over-year [1][3][6] - The company's first-quarter 2025 results showed an improvement in average asset yield, but its net book value per common share decreased compared to the prior-year quarter [1][6] - AGNC's earnings history indicates it outperformed the Zacks Consensus Estimate once in the last four quarters, missed twice, and matched once, with an average negative surprise of 3.27% [1][2] Earnings and Revenue Estimates - The consensus estimate for AGNC's revenues is $254.2 million, a significant increase from negative revenues of $3 million reported in the same quarter last year [4][7] - Interest income is projected to rise by 4.5% due to higher prepayment rates and net premium amortization [6][7] Market Trends and Performance - Despite interest rate cuts by the Federal Reserve in 2024, mortgage rates remained stable in the mid-to-upper 6% range, leading to growth in refinancing activities and origination volumes [5][6] - The primary-secondary spread averaged 1.06% in Q2 2025, slightly lower than the previous quarter's average of 1.12%, indicating market volatility [8][9] Valuation and Investment Outlook - AGNC's stock is currently trading at 1.08X forward 12 months price/tangible book TTM, which is above the industry average of 0.98X, suggesting a relatively expensive valuation [16][19] - The company offers a high dividend yield of 15.47%, significantly above the industry average of 11.8%, making it an attractive option for income-seeking investors [21] Strategic Positioning - AGNC is positioned to benefit from an active portfolio-management policy, focusing on leveraged investments in Agency residential mortgage-backed securities (MBS) [20] - Expected interest rate cuts in 2025 may enhance AGNC's net interest spread and book value, providing a potential boost to its stock performance [21]

Core Viewpoint - AGNC Investment offers a high dividend yield exceeding 15%, significantly higher than the S&P 500's 1.3% and the average REIT's 4.1%, but investors should be cautious as high yields do not guarantee sustainable income [1]. Group 1: Company Overview - AGNC Investment operates as a mortgage REIT, which differs from traditional property-owning REITs that buy and lease properties [2]. - The company purchases pooled mortgages that are structured into bond-like securities, resembling a bond mutual fund rather than direct property ownership [4]. Group 2: Dividend Trends - AGNC Investment's dividend has been on a declining trend for years, with historical volatility in its payouts [5]. - The mortgage REIT sector, including AGNC, often experiences fluctuating dividends, which can lead to yield traps for investors expecting consistent income [7]. Group 3: Total Return Perspective - AGNC Investment aims for attractive total returns, with reinvested dividends playing a crucial role in achieving this goal [8]. - Despite a significant drop in stock price, AGNC's total return has been competitive with the S&P 500, and in some periods, it has outperformed the index [10]. Group 4: Investment Strategy - For investors seeking strong long-term results, reinvesting dividends is essential, as spending them can lead to diminished income and capital [11]. - While there is potential for AGNC to increase its dividend, the company has a history of dividend cuts, making it important for investors to understand the inherent volatility in the mREIT business model [12].

Group 1: Ellington Financial Preferred Shares - EFC-B trades at $22.75 while EFC-C trades at $24.84, indicating a $2.09 difference that may not be justified given EFC-C's higher coupon rate of 8.625% compared to EFC-B's 6.25% [3][4] - EFC-C pays an additional $0.595 per share annually, amounting to $0.8925 over the next 18 months, while EFC-B may have a higher coupon rate if the 5-year Treasury rate exceeds 3.64% [4][5] - EFC-D has a fixed coupon rate of 7% and trades at $23.10, with a stripped yield of approximately 7.62%, which is low for a fixed-rate share from a mortgage REIT [7][8] Group 2: Main Street Capital - Main Street Capital consistently increases its Net Asset Value (NAV) per share while providing an attractive dividend, trading at nearly twice its trailing book value per share [11][12] - The ability to issue shares at a premium enhances book value per share and drives earnings growth, creating a favorable cycle for the company [12][13] - Despite being an outstanding BDC, the current share price is considered too expensive, as the valuation may not be sustainable without the ability to issue shares at high prices [13]

Core Viewpoint - AGNC Investment offers a high monthly dividend yield exceeding 15%, significantly higher than the S&P 500, but has not increased its dividend in over 15 years and has cut it several times, making it less ideal for passive income seekers [1][13] Group 1: AGNC Investment - AGNC Investment focuses solely on mortgage-backed securities (MBS) that are protected from credit risk by government agencies, resulting in low returns [5] - The company enhances its returns by investing in MBS on a leveraged basis, which increases its risk profile [5] - Since its IPO in mid-2008, AGNC has cut its dividend several times, leading to a 50% loss in stock value since its IPO, despite a total return of over 10% annually [9][11] Group 2: Main Street Capital - Main Street Capital is a business development company (BDC) that provides capital solutions to lower middle market companies and has a higher risk profile but offers much higher returns, with a weighted average effective yield of 12.7% [6] - The company has never cut its monthly dividend since its IPO in 2007 and has increased its payout by 132% over the years, also providing supplemental dividends since 2013 [8] - Main Street Capital's stock price has increased nearly 10% annually, contributing to higher total returns compared to AGNC [11][12] Group 3: Comparison and Investment Considerations - While AGNC offers a substantial monthly dividend, its lack of growth in payouts and potential for future cuts may lead to lower long-term total returns [13] - In contrast, Main Street Capital provides an attractive and growing monthly dividend, supplemented by quarterly payouts, making it a potentially better long-term option for passive income [14]