The US economy is tipped to experience both negative economic growth and rising price pressures in 2025, ramping up the specter of stagflation. AGNC is set to see its dividend coverage improve sequentially in the first quarter of its fiscal 2025 on the growth of its net spread and dollar roll income. The mortgage REIT has seen its premium over tangible net book value get eliminated on recession fears from the ongoing trade war.
AGNC Investment (AGNC) is technically in oversold territory now, so the heavy selling pressure might have exhausted. This along with strong agreement among Wall Street analysts in raising earnings estimates could lead to a trend reversal for the stock.
AGNC is slated to report first-quarter 2024 results next week. Read on to learn how to play the stock now.
AGNC Investment's preferred stock offers a 9.8% dividend yield with a margin of safety, outperforming the S&P 500 amid market volatility and high tariffs. AGNCO's floating yield formula benefits from rising inflation and interest rates, making it an attractive option for conservative and income-oriented investors. Despite economic uncertainties and potential recessions, AGNC's preferred dividends are fairly secure, supported by the company's historical resilience and current financial health.
Sometimes, you need to take a break, but you should never turn off your income stream. Dive into a foxhole of income security while the bombshells of the news go off around you. AGNC buys up no-risk assets and leverages them for income production.
The latest trading day saw AGNC Investment (AGNC) settling at $8.41, representing a -0.36% change from its previous close.
If you have an extra $1,000 laying around, you may want to put it to use in high-yielding stocks.
AGNC's focus on agency securities largely isolates it from weakness in U.S. economic growth. Preferred dividends were well covered in 2024, with book values likely to rise in Q1 2025. The Series C shares offer an attractive value proposition marginally below par value, allowing investors to achieve a long-term return close to 8%.
We warned investors against high price-to-book ratios, especially in agency mortgage REITs. We've got a new batch of charts as of market close on 04/08/2025. Unfortunately, they tend to get outdated within hours. Tariffs on China drastically increased, creating uncertainty and challenges, especially for industrial REITs.
The normally steady prices of big-yield (10%-plus) BDCs, CEFs, and REITs just sold off hard, thereby creating some unusually attractive opportunities. We share data on many names across all three groups, and then highlight one top idea from each group that's particularly compelling and worth considering. We conclude with an important takeaway about investing in big-yield opportunities, especially in the current "flash crash" environment.
Floating rate preferreds, initially created in a zero interest rate environment, now yield around 10% due to the timing phenomenon and changes in interest rates. Key factors for analysis include company stability, size of preferred issue relative to common equity, discount/premium to par value, and adjustment above SOFR. Risks include rapid yield curve fluctuations and potential Fed rate cuts, which could lower SOFR and subsequently reduce yields on floating rate preferreds.
AGNC's lucrative dividend yield looks attractive to investors. But does that make it a smart buy right now?