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]

Group 1 - HDO is the largest community of income investors and retirees with over 6,800 members [2] - The Income Method employed by HDO generates strong returns regardless of market volatility, simplifying retirement investing [2] - HDO offers a Model Portfolio targeting a yield of 9-10% [2] Group 2 - HDO is currently providing a 28% discount on its annual price of $599.99 [2]

Group 1 - The article discusses the performance of AGNC Investment Corp.'s preferred shares, highlighting their popularity among investors due to their high-quality profile and attractive yields in the high single-digit range [1] - The preferred shares of AGNC have experienced a rally, indicating strong investor interest and confidence in the company's offerings [1] Group 2 - The article suggests exploring Systematic Income for income portfolios that consider both yield and risk management, indicating a strategic approach to investment in the current market [1] - It mentions the availability of Interactive Investor Tools for navigating various investment markets, including BDC, CEF, OEF, preferred shares, and baby bonds, which can aid investors in making informed decisions [1]

Core Viewpoint - AGNC Investment offers an attractive dividend yield of over 14%, but potential investors should carefully consider the associated risks and the price they pay for the stock [1][2][3] Dividend Yield and Risks - The S&P 500 index yields 1.2% and the average REIT yields approximately 3.9%, making AGNC's yield appear very appealing for income-focused investors [2] - High yields are common in the REIT sector, but a 14% yield indicates additional risks that investors must acknowledge [3] - AGNC has experienced a steady decline in dividends over the years, which is contrary to the expectations of most dividend investors [4][5] Stock Price and Tangible Net Book Value - AGNC's stock price is closely tied to its portfolio value, which is represented by its tangible net book value per share, reported at $8.41 at the end of Q4 2024 [7] - The tangible net book value fluctuates daily based on various factors, including interest rates and housing market dynamics [8] - If AGNC's stock price exceeds its tangible net book value, investors may be overpaying for the stock [9] Equity Issuance and Book Value Accretion - In Q3 2024, AGNC issued $781 million in common equity, benefiting from a price-to-book premium, which contributed to book value accretion [10] - The CFO noted that the premium allows the company to acquire more securities than it could at the current market rate [10] Investment Considerations - Investors should avoid paying above the tangible net book value unless they have strong conviction that the value will increase [11][12] - Given the complex nature of AGNC's investment profile, conservative dividend investors may be better off avoiding this stock [13]

Group 1 - AGNC (NASDAQ: AGNC) is reporting a more stable marketplace, indicating a valued position for future growth [1] - The stock price of AGNC has impressed Wall Street, now exceeding $10 [1] Group 2 - The article reflects the author's long-term investment experience, including surviving major market crashes [1] - The author utilizes trading systems developed with TradeStation, benefiting from both buy and hold strategies as well as trading [1]

Core Viewpoint - AGNC Investment Corp. reported mixed fourth-quarter results for 2024, with both revenue and earnings missing consensus estimates, raising concerns about its dividend sustainability despite a high dividend yield [1][4][6]. Financial Performance - AGNC reported a comprehensive net loss of $0.11 per share in Q4 2024, compared to a comprehensive income of $0.01 per share in the same quarter of the previous year [5]. - The average tangible net book value "at risk" leverage ratio decreased to 7.2X from 7.4X year-over-year, contributing to a negative 0.6% economic return on tangible common equity for the quarter [6]. - The average asset yield on AGNC's portfolio increased to 5.02% in Q4 2024 from 4.55% in Q4 2023, indicating improved asset performance [7]. Dividend Policy - AGNC maintains a high dividend yield of 14.59%, significantly above the industry average of 11.39%, which attracts income-focused investors [9]. - The company has a share repurchase plan, recently authorizing up to $1 billion in stock buybacks through December 31, 2026 [10]. Market Position and Strategy - AGNC focuses on agency mortgage-backed securities (RMBS), which are backed by U.S. government agencies, positioning it favorably in the market [12]. - The management believes that the agency MBS market could benefit from a steepening yield curve and reduced rate volatility, leading to a positive economic return of 13.2% in 2024 [14]. Interest Rate Impact - AGNC's performance is heavily influenced by the interest rate environment, with higher rates since early 2022 leading to a significant drop in net interest income from $965 million in 2022 to just $18 million in 2024 [17]. - The company's book value per share declined by 17% from December 31, 2022, to $8.41 as of December 31, 2024, due to rising borrowing costs and spread risks [17]. Valuation - AGNC is currently trading at a forward 12-month price-to-tangible book (P/TB) multiple of 1.05X, which is higher than the industry average of 0.88X and more expensive than peers like NLY and EARN [20][23]. Earnings Estimates - The Zacks Consensus Estimate for AGNC's earnings shows a year-over-year decline, with estimates for the current year at $1.63, down from $1.88 the previous year, indicating a potential 13.30% decrease [27].

Core Insights - AGNC Investment Corp. reported a fourth-quarter 2024 net spread and dollar roll income per common share of 37 cents, missing the Zacks Consensus Estimate of 42 cents and declining from 60 cents in the year-ago quarter [1][2] - The company experienced a comprehensive loss per common share of 11 cents in the fourth quarter, compared to a comprehensive income of 1 cent per share in the same quarter last year [2] Financial Performance - Adjusted net interest and dollar roll income for the fourth quarter was $405 million, down 18.5% from the previous year [2] - For the full year 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] - Adjusted net interest and dollar roll income for 2024 was $1.8 billion, reflecting a 9% increase from 2023 [3] Income and Expenses - Net interest income (NII) for the fourth quarter was $115 million, missing the Zacks Consensus Estimate by 23.7%, with net interest expenses of $26 million in the prior-year quarter [4] - For 2024, NII was reported at $18 million, significantly below the Zacks Consensus Estimate of $314 million, but improved from $246 million in net interest expenses in 2023 [4] Asset Management - The average asset yield on AGNC's portfolio increased to 5.02% in the fourth quarter, up from 4.55% in the same quarter of 2023 [4] - The combined weighted average cost of funds rose to 2.89% compared to 1.39% in the fourth quarter of 2023 [5] - The average net interest spread decreased to 1.91%, down from 3.08% in the previous quarter [5] Portfolio and Valuation - As of December 31, 2024, AGNC's investment portfolio totaled $73.3 billion, including $65.5 billion in Agency mortgage-backed securities [7] - The tangible net book value per common share was $8.41, down 3.3% year-over-year [6] - The economic return on tangible common equity was negative 0.6%, compared to 12.1% in the year-ago quarter [6] Dividend Information - AGNC announced a dividend of 12 cents per share for each month of the fourth quarter, totaling $0.36 per share [9] - Since its IPO in May 2008, the company has declared $14 billion in common stock dividends, equating to $48.64 per share [10] Strategic Outlook - The fourth-quarter results were positively influenced by increased asset yields and higher net interest spreads, while the company's strategic portfolio repositioning is designed to mitigate the impacts of higher interest rates and prepayments [11]

STOCKHOLDER PRESENTATION Q4 JANUARY 28, 2025 THE PREMIER AGENCY RESIDENTIAL MORTGAGE REIT © 2025 AGNC Investment Corp. All Rights Reserved. 2 CAPITAL STRUCTURE HIGHLIGHTS | AGNC Common Stock | | | --- | --- | | Ticker | Nasdaq: AGNC | | IPO Date | May 2008 | | Market Capitalization | $8.3 B | | Total Dividends Paid Since IPO1 | $14.0 B | | Total Stock Return Since IPO2 | 389% | | Dividend Yield | 15.6% | THE OBJECTIVE Favorable long-term stockholder returns with a substantial dividend yield component THE OP ...