AGNC Investment (AGNC 1.83%) has one of the highest dividend yields aroun d . At over 17%, it's more than 10 times higher than the broader market (the S&P 500 's dividend yield is less than 1.5%).
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
AGNC Investment Corp. offers a high dividend yield of over 17%, driven by a recent major dip in stock price. AGNC is a cyclical investment influenced by interest rate movements and management's portfolio positioning, rather than a stable income play. The company primarily invests in Agency securities and enhances the yield with short-term financing.
AGNC Investment Corp. (NASDAQ:AGNC ) Q1 2025 Earnings Conference Call April 22, 2025 8:30 AM ET Company Participants Katherine Turlington - IR Peter Federico - Director, President and CEO Bernice Bell - EVP and CFO Christopher Kuehl - EVP and Chief Investment Officer Conference Call Participants Bose George - KBW Crispin Love - Piper Sandler Doug Harter - UBS Trevor Cranston - JMP Securities Matthew Erdner - JonesTrading Jason Stewart - Janney Montgomery Scott Eric Hagen - BTIG Rick Shane - JPMorgan Harsh Hemnani - Green Streets Operator Good morning, and welcome to the AGNC Investment Corp. First Quarter 2025 Shareholder Call. All participants will be in listen-only mode.
AGNC's first-quarter 2025 results reflect a rise in asset yield and declines in book value per share and interest spread.
Market volatility has increased, making it challenging to predict future Treasury rates and impacting the frequency of my article publications. Price-to-book ratios reveal bargains. Preferred shares offer lower risk and high yields; recent trades in DX-C and EFC-B have been profitable.
AGNC Investment (AGNC) came out with quarterly earnings of $0.44 per share, beating the Zacks Consensus Estimate of $0.41 per share. This compares to earnings of $0.58 per share a year ago.
AGNC has delivered subpar returns, with only 1% annualized over a decade. The bulk of this was powered by selling stock above tangible equity and not from the base business. We dive into how an income investor, even one requiring very high yields, can do better with other lower-yielding plays.
A huge yield can be a siren call to dividend-focused investors. AGNC Investment's (AGNC 0.42%) huge 17% dividend yield is more like a rock opera, given that the S&P 500 index (^GSPC 0.13%) is only yielding 1.3% or so and the average real estate investment trust (REIT) is yielding just 4%.
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.