The mortgage REIT offers a prodigious dividend yield.
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The latest trading day saw AGNC Investment (AGNC) settling at $10.46, representing a -0.66% change from its previous close.
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.
The latest trading day saw AGNC Investment (AGNC) settling at $10.36, representing a -1.24% change from its previous close.
AGNCN offers a floating rate yield of about 10.3%, but future dividends should be lower due to the recent cut by the Federal Reserve. AGNCO is a better deal than AGNCN, with a similar floating spread and a lower stripped price, reducing call risk and simply offering more cash in the pocket. The primary risk factor for AGNC's preferred shares is the path of future interest rates. Recession fears can become relevant if they're significant.
AGNC Investment offers a monster monthly dividend. The REIT's payout makes up all of its return.
During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.
Income stocks have more than doubled the average annual return of non-payers over the last half-century. Wall Street's "most-hated" industry has faced a multitude of challenges over the last few years, including the Fed's most aggressive rate-hiking cycle in four decades.
Mortgage REITs struggled the past few years to manage a rate-hike cycle and widening MBS-to-Treasury spreads. The sector is set to rebound with the Fed potentially cutting rates this week and spreads possibly tightening.
In the latest trading session, AGNC Investment (AGNC) closed at $10.55, marking a +1.93% move from the previous day.