Should You Buy AGNC Investment While It's Below $11?

Core Viewpoint - AGNC Investment offers a high dividend yield of 13.7%, making it an attractive option for passive income seekers, but it is sensitive to interest rate fluctuations and economic conditions [1][11]. Company Overview - AGNC Investment operates in the residential housing market and is affected by interest rate changes and the overall economy [2]. - The company is structured as a real estate investment trust (REIT), which allows it to avoid corporate taxes by distributing at least 90% of its taxable income to shareholders [4]. Financial Performance - AGNC's stock is currently priced below $11 per share, and its market capitalization is approximately $11 billion [5][6]. - The company has a gross margin of 100% and a dividend yield of 14.87% [6]. - AGNC's tangible net book value per share increased from $7.81 to $8.28 over the third quarter [9]. Interest Rate Impact - Lower interest rates are expected to benefit AGNC by improving its business economics and reducing borrowing costs, which could enhance net spread and dollar roll income [10][12]. - The company’s at-risk leverage ratio is about 7.5 times its tangible net book value, which can amplify returns when interest spreads are favorable [8]. Management Insights - CEO Peter Federico noted that AGNC's improved performance is linked to the Federal Reserve's shift to a less restrictive monetary policy, which has positively influenced financial market performance and investor sentiment [11].