Some of the highest-yielding dividend stocks on the market carry a hidden cost that erases thousands of dollars every single year, and the bracket you sit in determines just how severe that damage gets.
AGNC Investment Corp. is rated Hold at $10.95 due to a significant premium over its tangible book value of $8.58 per share. Favorable mortgage market dynamics support AGNC's income and dividend, but current valuation leaves little margin for error if spreads widen. AGNC's 13%+ yield is well-covered by net spread and dollar roll income, yet the sustainability depends on stable mortgage spreads and interest rates.
At the 24% federal bracket, a $500,000 portfolio built around mortgage REITs, BDCs, and net-lease REITs throws off enough ordinary-income distributions to hand the IRS roughly $13,000 every year in a taxable account.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 107,929 | $2.71M | $2.75M | $44,496.94 | 1.64% |
Timothy M. Bidwell Hazlett, BURT & WATSON Inc. | 8,000 | $203,520 | $204,160 | $640 | 0.31% |
Curtis Ellergodt Rothschild Investment LLC | 989 | $24,642.39 | $25,239.28 | $596.89 | 2.42% |
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 1.02M | $25.83M | $26.07M | $233,914.83 | 0.91% |
| ABB Alexander Bjornager Bonde Danske Bank A/S | 2,400 | $60,024 | $61,512 | $1,488 | 2.48% |
| Mortgage Real Estate Investment Trusts (REITs) Industry | Financials Sector | Peter J. Federico CEO | NASDAQ (NGS) Exchange | 00123Q104 CUSIP |
| US Country | 54 Employees | 31 Aug 2026 Last Dividend | - Last Split | 8 Sep 2022 IPO Date |
AGNC Investment Corp. operates as a pivotal entity within the United States housing market, providing private capital to accommodate a variety of needs. The organization positions itself as a significant investor in the residential mortgage-backed securities domain, focusing primarily on assets that come with the reliability of government sponsorship or guarantee. It operates under the framework of a real estate investment trust (REIT), a designation that allows it to enjoy certain tax advantages, provided it adheres to specific income distribution guidelines. Originally known as American Capital Agency Corp., the company underwent a rebranding in September 2016 to its current designation, signaling a strategic realignment or expansion of its business model. Founded in 2008, AGNC Investment Corp. is based in Bethesda, Maryland, demonstrating a blend of experience and strategic positioning within the financial and housing sector.
These are investments in pools of residential mortgages that have been securitized. Essentially, the cash flow from the underlying mortgages is passed through to investors. These securities are appealing because they are backed by the government-sponsored enterprises (GSEs) or government agencies, which minimizes the risk of default.
CMOs are a type of mortgage-backed security in which mortgages are pooled and then dissected into various tranches that have different levels of priority in the cash flow from the pool. This structure allows investors to select tranches that match their risk appetite and investment horizon. Just like the residential mortgage pass-through securities, the principal and interest payments of CMOs that AGNC Investment Corp. invests in are guaranteed by a U.S. government-sponsored enterprise or agency.