Key Points in This Article: Dividend stocks have proved to be superior investments for decades, and those yielding 10% or more are top-tier performers.
AGNC is an income-focused investment, delivering 246.8% of its initial share price in dividends over 17 years despite share price declines. The current 15.55% yield, monthly payouts, and strong compounding potential make AGNC attractive for income investors, not those seeking capital appreciation. AGNC's improved profitability is driven by higher asset yields, optimized hedging, lower funding costs, and strategic TBA dollar roll management.
AGNC Investment Corp. offers a compelling 15%+ yield, paid monthly, making it a top choice for income-focused portfolios as rates and housing stabilize. The company's diversified, agency-backed mortgage portfolio and strong historical returns support a long-term bullish thesis, despite recent rate-driven volatility. I see opportunity to enhance returns by selling AGNC call options, reinvesting dividends, and using options for cost-effective hedging while awaiting recovery.
AGNC Investment Corp. is in a more stable position, with refinancing risk low and cash flow recovering as it shifts toward higher rate mortgage-backed securities. Recent book value gains have been offset by equity dilution, which I view as a negative for shareholder value, especially given AGNC's low price-to-book ratio last year. AGNC's book value is safer than it was, with low refinancing risk and declining MBS spreads, creating a goldilocks environment for leveraged mortgage owners.
AGNC is rebounding on lower mortgage rates, with first-quarter net interest income turning positive after last year's loss.
I maintain my hold rating on AGNC Investment due to ongoing uncertainties around interest rates, tariffs, and the future of Fannie Mae and Freddie Mac. AGNC's high yield remains attractive, but the lack of Fed rate cuts continues to pressure margins and delay potential dividend growth. Trump's possible end to Fannie and Freddie conservatorship introduces new risks regarding the creditworthiness of agency MBS in AGNC's portfolio.
The latest trading day saw AGNC Investment (AGNC) settling at $9.19, representing a -1.5% change from its previous close.
AGNC's 15.43% yield and rising NII look appealing, but its premium valuation and mortgage market risks suggest caution. Let us find out.
Charts? Dog photos? Me? An Opportunity to learn? So many reasons to like this article. Beware of extremely high return on equity figures. It looks great today, but you need to evaluate the source of the income.
BETHESDA, Md. , June 12, 2025 /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) ("AGNC" or the "Company") announced today that its Board of Directors has declared cash dividends on the outstanding depositary shares1 of the following series of preferred stock for the second quarter 2025: Series of Preferred Stock Ticker Per Annum Dividend Rate Dividend Per Depositary Share 1 7.00% Series C Fixed-to-Floating Rate AGNCN 9.63315%2 $0.60876 6.875% Series D Fixed-to-Floating Rate AGNCM 8.85415%3 $0.55953 6.50% Series E Fixed-to-Floating Rate AGNCO 9.51515%4 $0.60130 6.125% Series F Fixed-to-Floating Rate AGNCP 9.21915%5 $0.58260 7.750% Series G Fixed-Rate Reset AGNCL 7.750 % $0.48438 1.
BETHESDA, Md. , June 12, 2025 /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) announced today that its Board of Directors has declared a cash dividend of $0.12 per share of common stock for June 2025.
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.