I see compelling value in floating-rate preferred shares and baby bonds, especially as credit spreads widen and many now trade at discounts to call value. Recent market volatility and higher interest rates have created attractive entry points in select REITs, BDCs, preferred shares, and baby bonds. I've allocated a significant portion of my portfolio to preferred shares and baby bonds in March 2026.
AGNC Investment Corp. is rated a buy, with a risk-adjusted price target of $12.51 by 2027 and a projected total return of 44%. AGNC's $94.8 billion portfolio is over 85% government-guaranteed Agency MBS, minimizing default risk amid macroeconomic and geopolitical volatility. AGNC's tangible book value per share rebounded to $8.9 in Q4 2025, and strong dividend coverage is supported by stable net spread income.
AGNC Investment (AGNC) offers a stable, policy-supported carry model with low-teens yield potential despite recent price declines. Spreads, funding costs, and volatility have stabilized since 2024, supporting predictable earnings and resilient book value. Recent price drop (~20%) reflects interest rate pressures, but core earnings fundamentals remain intact and valuation is attractive near book value.
In the most recent trading session, AGNC Investment (AGNC) closed at $9.75, indicating a -5.25% shift from the previous trading day.
Capture the 2026 rotation with RVT, a fund that has beaten its index for nearly four decades. Buy the "bargains" in small-cap value before the market closes the 20-year valuation gap. Position yourself for the "book value balloon" as AGNC transitions into a lower-rate environment.
In the most recent trading session, AGNC Investment (AGNC) closed at $10.39, indicating a -2.62% shift from the previous trading day.
In the latest trading session, AGNC Investment (AGNC) closed at $10.64, marking a -2.39% move from the previous day.
AGNC Investment (AGNC) closed the most recent trading day at $11.21, moving 1.23% from the previous trading session.
High Dividend Opportunities targets an 8–10% portfolio yield, prioritizing sustainable cashflow to replace income in retirement without selling shares. Will Barton shares why they emphasize diversification, favoring CEFs and preferreds, and adapting allocations based on macro conditions, with a current focus on tangible assets like real estate and energy.
AGNC benefits from the stabilization of MBS spreads and the Fed's pivot, while Starwood remains pressured by the office real estate sector. With a 97% dividend coverage and zero credit risk, AGNC's 12.6% yield is structurally superior in the current macro environment. The 2026 outlook favors AGNC as interest rate volatility stabilizes; both mREITs offer complementary roles in an income-focused portfolio.
Regulated Investment Companies or RICs (BDCs, REITs, and CEFs), avoid corporate-level taxes by distributing at least 90% of taxable income as dividends. Trading above NAV (Net Asset Value) allows companies to issue new shares and invest the proceeds at a profit, growing the "pie" for everyone. Credit Quality Resilience: Despite a soft economy, top-tier BDCs are maintaining non-accrual rates well below 2%, outperforming traditional banks.
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