This 12%-Yielding Dividend Stock Believes 2026 Will Be Another Exceptional Year

Core Viewpoint - AGNC Investment has had an exceptional year, generating robust returns and maintaining a high monthly dividend yield of over 12%, with expectations for continued strong performance in 2026 [1][3]. Group 1: Financial Performance - In 2025, AGNC reported an impressive economic return on tangible common equity of 22.7% and a total stock return of 34.8%, nearly double that of the S&P 500 [3]. - The company's strategy of investing solely in Agency MBS resulted in a total return of 8.6% for the year, marking the best full-year return for Agency MBS since 2002 [4]. Group 2: Market Environment - The favorable conditions for Agency MBS, including lower interest rates and reduced volatility, are expected to persist into early 2026, creating a constructive investment environment [5]. - Recent actions by Fannie Mae and Freddie Mac to purchase Agency MBS aim to lower mortgage rates, further supporting AGNC's optimistic outlook for the Agency MBS market [5]. Group 3: Capital Position - AGNC issued over $350 million in new shares during the fourth quarter, enhancing its capital base to pursue new investment opportunities [6]. - With a strong liquidity position and a positive market environment, AGNC is well-positioned to continue generating favorable returns and maintain its high-yielding dividend [6].