Core Viewpoint - AGNC Investment is a mortgage REIT that offers a high dividend yield of over 13%, but its structure and performance may not be suitable for all investors, particularly those seeking stable income [1][4][12] Company Overview - AGNC Investment operates as a mortgage REIT, purchasing pooled mortgages that are converted into bond-like securities, which are subject to price fluctuations based on interest rates and market dynamics [2] - The company generates income by earning the difference between the interest on its securities and its cost of capital, which includes leverage costs [3] Dividend and Stock Performance - The dividend history shows a concerning trend, with dividends and stock prices declining over the years, indicating potential risks for income-focused investors [4][5] - Despite the declining stock price, AGNC Investment has paid out significant dividends since its IPO, totaling approximately $48.64, which may offset the stock price decline for total return investors [6] Investment Considerations - AGNC Investment may appeal to asset allocators seeking mortgage exposure, but it is not recommended for those who rely on dividends for income [8] - Income investors willing to accept capital loss for higher dividends might find AGNC Investment attractive, although the income stream has been decreasing [9] - Short-term investors looking for high monthly income may consider AGNC Investment due to its high yield, but should focus on short-term gains rather than long-term stability [10][11] Target Investor Profile - AGNC Investment is not suitable for traditional dividend investors aiming for sustainable income, but it may attract total return investors and those comfortable with the complexities of its dividend and share price dynamics [12]

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]