AGNC Investment Corp. has enjoyed a drastic boost in sentiment in the past few months due to recent rate cuts. Wall Street analysts now rate it as a solid "BUY". Its 13% dividend yield is attractive, but I have concerns about the sustainability of AGNC's payouts given the trend of its net interest income.
If you like big yields, be careful you don't reach too far. Here are two yields worth the risk and one that isn't.
AGNC Investment Corp., a mortgage REIT, focuses on government-backed residential mortgages, offering a high dividend yield of 13.78% with monthly payouts. AGNC provides liquid options that present opportunity for increasing income through collection of premiums. AGNC's dividends are stable and outperform peers, supported by dynamic portfolio rebalancing and hedging, ensuring sustainability despite interest rate fluctuations.
24/7 Wall St. Insights Passive income is a steady stream of unearned income that doesn't require active traditional work.
AGNC's third-quarter 2024 performance is likely to have been impacted by a decline in NII. The fall in mortgage rates is expected to have offered some support.
AGNC Investment (AGNC) closed at $10.37 in the latest trading session, marking a +0.58% move from the prior day.
If you're trying to live off the income your portfolio generates, AGNC is not for you.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
These dividend stocks offer monster yields.
Attractive dividend yield and interest rate cuts are positive for AGNC stock but volatility in the mortgage market might adversely impact its financials.
Investing in AGNC Investment offers a high dividend yield of 14%, but this comes with significant risks, including interest rate, default, pre-payment, and liquidity risks. AGNC's elevated yield is largely a return of investor capital. Investors should be cautious of high-yield investments, as they often result in lower risk-adjusted returns and significant principal losses during market downturns.
With interest rates set to fall over the next year, these three stocks could be smart buys today.