AGNC Investment Corp. (NASDAQ:AGNC) UBS Financial Services Conference February 27, 2024 2:40 PM ET Company Participants Peter Federico - President, CEO Conference Call Participants Douglas Harter - UBS Douglas Harter Thanks, everyone, for joining us. Happy to welcome AGNC back to now the UBS Financial Services Conference. Joined by President and CEO, Peter Federico, on the stage; and Head of Corporate Development, Sean Reid is also joining us as well. Peter, first of all, thanks for joining us. Peter Feder ...

Summary of AGNC Investment Corp. Conference Call Company Overview - **Company**: AGNC Investment Corp. (NASDAQ: AGNC) - **Industry**: Mortgage Real Estate Investment Trusts (REITs) - **Anniversary**: Celebrated 15 years as a public entity in May 2023, with a total stock return of approximately 350% since its IPO in 2008, averaging a 10% annual return, comparable to the S&P 500 [2][3] Investment Strategy and Market Environment - **Investment Focus**: Primarily invests in agency mortgage-backed securities (MBS), which are backed by the U.S. government [2][11] - **Market Size**: The agency MBS market is valued at approximately $8.5 trillion, but access is limited for retail investors [7] - **Current Environment**: The last two years have been challenging due to aggressive monetary policy tightening by the Federal Reserve, raising short-term rates by 525 basis points and reducing its balance sheet by $1.3 trillion [4][5] - **Future Outlook**: The company anticipates a favorable investment environment with potential mid-teens returns on leveraged investments in MBS due to current wide spreads [9][19] Mortgage Spreads and Risk Management - **Spread Dynamics**: Mortgage spreads have widened significantly, reaching nearly 200 basis points, which presents attractive investment opportunities [9][16] - **Hedging Strategy**: The company maintains a hedge ratio of over 100%, effectively converting short-term debt to longer-term debt to mitigate interest rate risk [22][50] - **Interest Rate Volatility**: Stability in interest rates is crucial for maximizing returns; the company expects reduced volatility as the Fed transitions from tightening to a pause [19][52] Dividend Policy and Earnings - **Dividend Status**: The company has maintained its dividend at the current level for three years, significantly over-earning it, with a net interest margin of 308 basis points [31][32] - **Earnings Projection**: The projected return on the portfolio is mid-teens, which aligns with the cost of capital, indicating a sustainable dividend policy [33][34] Capital Management and Funding - **Leverage**: Currently operating at a leverage ratio of 7x, with over $5 billion in unencumbered assets, providing capacity to withstand market volatility [25][24] - **Capital Raising Strategy**: The company prefers raising capital through its at-the-money (ATM) program, which is cost-effective and beneficial for existing shareholders [39][40] Competitive Advantages - **Internal Broker-Dealer**: AGNC operates its own broker-dealer, Bethesda Securities, which enhances funding efficiency and reduces costs [44][48] - **Market Position**: The company believes agency MBS are currently the cheapest fixed-income asset class, offering better yields compared to investment-grade debt [11][12] Conclusion - **Market Sentiment**: The company is optimistic about the future, with expectations of improved earnings and potential for trading at a premium to book value as market conditions stabilize [55][57]

Core Insights - The article discusses the potential investment opportunities in monthly pay (MoPay) dividend stocks, highlighting that many of these equities can provide annual dividends exceeding their share prices from a $1,000 investment. This suggests a favorable entry point for investors looking for high-yield stocks [1][6]. Investment Opportunities - The top ten MoPay equities are projected to yield net gains ranging from 14.66% to 125.55% by February 2025, with six of these stocks identified as top gainers based on analyst target prices [1][15]. - Orchid Island Capital Inc (ORC) is highlighted as the top pick, with an estimated net gain of $1,255.50 based on analyst estimates and dividends [2][3]. - Other notable stocks include Ellington Residential Mortgage REIT (EARN) with a projected gain of $250.17, Modiv Industrial Inc (MDV) at $231.33, and EPR Properties (EPR) at $227.52 [3][4]. Risk and Volatility - The article notes that the beta values for these stocks indicate varying levels of risk, with ORC showing a beta of 2, suggesting it is 82% more volatile than the market [2][3]. - The average estimated net gain across the top ten MoPay stocks is 30.69%, with an average risk/volatility 33% greater than the market [5]. Monthly Pay Dividend Characteristics - Monthly pay dividend stocks are characterized by their ability to provide regular income, which is appealing to investors. However, the article also mentions the risk of dividend cuts, as seen in past instances during market downturns [8][10]. - The article emphasizes the importance of monitoring dividend announcements, as reductions can lead to immediate selling opportunities to mitigate losses [8]. Market Trends - The U.S. exchange MoPay segment is described as volatile but recovering, with an increase in active monthly pay equities from 71 in October 2021 to over 100 by February 2024 [11][12]. - The article indicates that the current market for MoPay stocks is robust, with a focus on real estate and financial services sectors, which dominate the top yield lists [12][14].

It has been about a month since the last earnings report for AGNC Investment (AGNC) . Shares have lost about 2.6% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is AGNC Investment due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. AGNC Investment Tops on Q4 Net Sprea ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-34057 AGNC INVESTMENT CORP. (Exact name of registrant as specified in its charter) _________________________________________________________ Delaware 26-1701984 (State or Other Jurisdic ...

Once every quarter, professional and everyday investors alike are given an opportunity to peer over the proverbial shoulders of Wall Street's top money managers to see what they've been buying or selling. Wednesday, Feb. 14, marked Form 13F filing day for the fourth quarter with the Securities and Exchange Commission.Although most investors are likely fixated on what Wall Street's brightest minds are doing with artificial intelligence (AI) stocks, the under-the-radar moves made by billionaire investors can ...

BETHESDA, Md., Feb. 14, 2024 /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) ("AGNC" or the "Company") announced today that Peter Federico, the Company's President and CEO, is scheduled to participate in fireside chats at the following investor conferences in February: BofA Securities Financial Services Conference on February 21, 2024 at 1:40 pm ET  UBS Financial Services Conference on February 27, 2024 at 2:40 pm ET The presentations will be webcast live on the Events & Presentations page in the Inv ...

It's a rare opportunity to secure a reliable 15% dividend yield, but that appears to be the case with AGNC Investment Corp. (AGNC -3.46%) stock. On Feb. 9, the company paid a $0.12 dividend per share, the same rate it has been paying monthly for nearly four years.Is this your chance to buy into one of the market's highest-paying dividend stocks?High dividends make senseIt should come as no surprise that AGNC has paid an eye-popping dividend for years. In many ways, the entire business model is built around ...

ATU Images/The Image Bank via Getty Images Generally speaking, real estate investment trusts, or REITs (VNQ), are well-positioned to continue growing their dividend payments in 2024 and beyond. That's because: REIT payout ratios are historically low. REIT balance sheets are the strongest they have ever been. Rents keep growing in most property sectors. Since REITs retain lots of cash flow, they can keep buying more properties. Interest rates are expected to drop further in the near term. Data by YCharts ...

Want $1000 in Passive Income? Invest $1500 in These 5 Stocks Andrey Maximenko / iStock via Getty Images Work smarter, not harder, says the adage. Passive income is derived from ownership rather than labor or active involvement in an enterprise. One of the best ways for investors to create a stream of passive income is by owning stocks with healthy and reliable dividends or distributions.We screened our 24/7 Wall St. dividend equity research database, looking for stocks that pay massive dividends, and we f ...