AGNC Investment (AGNC -0.38%), a mortgage real estate investment trust (mREIT), pays a whopping forward dividend yield of 15.7%. It makes those payments on a monthly basis.
AGNC Investment Corp. currently yields above 15%. While likely not sustainable in the longer term, a yield capture opportunity seems on the cards. A July 21st earnings release could have a material impact. Combining AGNC's WALA, 30-year mortgage rates, 10-year yields, and the MOVE index suggests a commendable Q2 report might surface. The mREIT's preferred shares, especially C, E, and F convey sound yields. However, they are priced above their liquidation values, have reset options, and yield lower than the commons.
The prevailing sentiment surrounding AGNC Investment Corp. has turned quite bullish recently. I believe the bulls overlooked several key risks. The top ones in my model are the narrow/inverted yield curve spread and its use of leveage.
AGNC's Q2 results are expected to reflect higher interest income, but will book value and valuation raise investor caution? Let us find out.
AGNC Investment (AGNC) closed at $9.2 in the latest trading session, marking a -1.18% move from the prior day.
Similar preferred shares trade at materially different prices. One of these preferred shares is surprisingly expensive. One of the best BDCs is nearing an incredibly rare threshold.
High-dividend stocks that pay dividends every 30 days give investors the best of both worlds: steady cash flow and dependable income without constant trading.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Chasing high dividend yields is risky due to unsustainable payouts and eroding book value. One of the biggest players here is still showing strong earnings, but it's temporary. It's driven by expiring interest rate swaps. Earnings have declined substantially over the last two years as the net spread shrank.
The prevailing sentiment surrounding AGNC Investment Corp. has turned quite bullish since my last writing. I believe the bulls overlooked several key risks, such as the rise of mortgage delinquency rates and the inverted yield curve. These developments could further pressure the spread between AGNC's asset yield and cost of funds.
AGNC stock has a simple thesis. We go over it in three parts. We also remind investors how to make good money in this company.
The Dividend Harvesting Portfolio hit a new profitability milestone, now up 27% with $28,718.15 in value and $2,367.69 forward annual dividend income. I expect strong corporate earnings, especially from financials and big tech, to drive markets higher, with rate cuts likely benefiting my portfolio holdings. Weekly dividend income continues to grow, and I'm reinvesting aggressively, aiming to surpass $2,600 in forward dividend income by year-end.