AGNCP shares are expected to deliver positive returns, though they no longer offer an exciting risk/reward profile. Preferred share prices increased despite higher Treasury yields, leading to fewer attractive investment opportunities and holding more cash. AGNCP's current valuation offers a 7-8% annualized yield to call.
These bullet points are boring. The article is not. AGNCP is one of 5 preferred shares from AGNC Investment, with a floating-rate dividend starting in 2025. Investors should be prepared for short-term rates to fall, causing dividend rates to decrease.