According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate.
AGNC Investment (AGNC) reported earnings 30 days ago. What's next for the stock?
Could the Fed cut rates—and actually cause interest rates to rise?
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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.
Does AGNC Investment face earnings pressure from relatively high mortgage rates despite a hefty dividend yield and strong agency MBS focus? Let us find out.
AGNC's Q2 book value per share slid 7% as widening mortgage spreads and MBS losses pressured portfolio valuations.
We take a look at the action in preferreds and baby bonds through the fourth week of July and highlight some of the key themes we are watching. Preferreds market remained stable with credit spreads at relatively tight levels. Agency mortgage REITs like DX, AGNC, and NLY increased common equity, significantly boosting equity/preferred coverage and making their preferreds especially appealing at ~9.5% yields.
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AGNC preferreds remain attractive for income investors, offering high yields and improved equity coverage despite recent book value declines. Floating-rate AGNC preferreds are unlikely to see significant price drops if the Fed cuts rates, as credit spreads matter more than short-term rates. Redemption risk for floating-rate preferreds is low and price impact minimal, making AGNCN, AGNCO and others compelling high-quality income holdings.
The Dividend Harvesting Portfolio hit new milestones: $30,000 balance, 30%+ ROI, and $2,428 in forward annualized dividend income. Strong earnings season and potential Fed pivot in September could further boost technology, REIT, and financial holdings in the portfolio. Strategic diversification across 103 positions with sector and position caps has mitigated risk while compounding dividend income accelerates.