Core Viewpoint - AGNC Investment is a popular income investment due to its high monthly dividend yield of 12.8%, significantly higher than the S&P 500's yield of 1.2% [1] Group 1: Company Overview - AGNC Investment focuses solely on Agency MBS, which are mortgage-backed securities guaranteed against credit losses by government agencies [3] - Starwood Property Trust, another mortgage REIT, has a diversified investment strategy that includes commercial mortgages, residential and infrastructure loans, and real estate equity investments [3][4] Group 2: Dividend Stability - Starwood Property Trust has maintained a stable dividend for over a decade and has never cut its dividend in its 15 years as a public company [4] - In contrast, AGNC Investment has cut its dividend several times since going public in 2008 and has only maintained its current payment level since 2020 [4] Group 3: Recent Developments - Starwood's recent acquisition of Fundamental Income Properties for $2.2 billion has expanded its portfolio with high-quality properties secured by long-term net leases, supporting its ability to maintain a 10.9% yielding dividend [5] Group 4: Risk Profile - Starwood Property Trust operates with a sub-3.0 times leverage ratio, which lowers its risk profile compared to AGNC's leverage ratio of over 7x [6] - While AGNC's higher leverage can enhance returns in favorable market conditions, it poses greater risks during market downturns [6]

Financial Performance - For 2025, AGNC generated total comprehensive income of $1.74 per diluted common share and an economic return of 22.7% on tangible common equity, compared to $0.84 and 13.2% in 2024 [172]. - Net income available to common stockholders reached $1,509 million in 2025, compared to $731 million in 2024, reflecting a significant increase of 105.0% [212]. - Comprehensive income available to common stockholders was $1,777 million in 2025, compared to $657 million in 2024, an increase of 170.5% [212]. - Economic interest income for fiscal year 2025 reached $4,097 million, a 28% increase from $3,198 million in 2024 [221]. - The total gain on investment securities for fiscal year 2025 was $2,472 million, a significant recovery from a loss of $1,147 million in fiscal year 2024 [245]. Investment Portfolio - The investment portfolio totaled $94.8 billion as of December 31, 2025, an increase of $21.5 billion for the year, with 30-year fixed-rate Agency RMBS and TBAs representing 95% of the portfolio [175]. - As of December 31, 2025, the investment portfolio totaled $94.8 billion, up from $73.3 billion in 2024, representing a growth of approximately 29% [190]. - The fair value of Agency RMBS increased to $81.1 billion in 2025 from $65.5 billion in 2024, reflecting a growth of about 24% [190]. - The total fixed rate Agency RMBS and TBA securities had a fair value of $90.5 billion in 2025, up from $74.0 billion in 2024, representing a growth of approximately 22% [190]. - The total investment securities, including TBA securities, had a fair value of $94.7 billion in 2025, up from $73.2 billion in 2024, marking an increase of approximately 29% [190]. Income and Expenses - Net spread and dollar roll income per diluted common share decreased to $1.50 in 2025 from $1.88 in 2024, primarily due to lower swap income [173]. - Economic interest expense for fiscal year 2025 was $2,276 million, significantly lower than $1,395 million in 2024, resulting in a cost of funds of 2.98% [232]. - The average net interest spread decreased to 1.92% in fiscal year 2025 from 2.42% in fiscal year 2024, reflecting an increase in average asset yield and aggregate cost of funds [241]. - Net interest income turned positive at $675 million in 2025, a substantial recovery from a net interest expense of $246 million in 2023 [212]. Market Conditions - The Federal Reserve's monetary policy shift toward lower short-term interest rates contributed to the positive performance of domestic fixed income asset classes [168]. - Looking ahead, net spread and dollar roll income are expected to benefit from lower funding costs and potential future rate cuts, despite higher hedging costs [180]. - The net supply of new Agency RMBS in 2026 is expected to be approximately $200 billion, with demand remaining robust from GSEs, banks, and other investors [170]. Securities and Rates - The weighted average coupon of the portfolio, excluding TBAs, increased to 5.19% as of December 31, 2025, compared to 5.03% in 2024 [176]. - The 30-Year Agency Current Coupon Yield decreased to 5.04% in 2025 from 5.83% in 2024, a decline of 79 basis points [186]. - The 30-Year Mortgage Rate also decreased to 6.16% in 2025 from 6.86% in 2024, a reduction of 70 basis points [186]. - The weighted average yield on investment securities (excluding TBA and forward settling securities) was 4.93% in 2025, compared to 4.77% in 2024, indicating an increase of 16 basis points [193]. Liquidity and Capital Management - AGNC's liquidity position at year-end was $7.6 billion in unencumbered cash and Agency RMBS, representing 64% of tangible equity [177]. - The company plans to maintain adequate liquidity and capital resources to fund operations and satisfy dividend distribution requirements, with primary sources including unencumbered cash and securities [248]. - Unencumbered assets totaled approximately $7.7 billion, or 65% of tangible equity, compared to $6.2 billion, or 67% of tangible equity, as of December 31, 2024 [262]. Employee and Corporate Governance - As of December 31, 2025, the workforce consisted of 54 full-time employees, with zero employee turnover over the past three years [40]. - 39% of employees were women and 31% were ethnically diverse as of December 31, 2025 [44]. - The company offers a 401(k) Savings Plan with Company matching contributions of 100% up to 6% of each employee's eligible compensation [46]. - The company was recertified as a Great Place to Work™ in 2023 based on employee feedback [41].

The S&P 500 currently has a rather pedestrian dividend yield of around 1.1%. That's near its record low. As a result, you'd only generate about $34 of annual passive income by investing $3,000 into an S&P 500 index fund. Several companies offer dividend yields well above the market average. That enables you to generate a lot more income from the same investment. For example, investing $3,000 into the following three ultra-high-yielding dividend stocks would produce hundreds of dollars in passive income eac ...

Core Insights - The primary focus of High Dividend Opportunities is to provide high-yield investments that can replace the income lost upon retirement, aiming for a yield of 8 to 10% to ensure consistent cash flow for living expenses without the need to sell shares [4][7][18]. Investment Strategy - The investment strategy emphasizes the importance of cash flow, with a portfolio designed to yield 8 to 10% annually, allowing for reinvestment and withdrawals to maintain income levels [7][20]. - The company has shifted focus towards fixed income opportunities, particularly preferred equities and bonds, as interest rates have risen, making these investments more attractive [21][24]. - A diversified portfolio is maintained, with no more than 2 to 3% allocated to any single investment to mitigate risks associated with dividend cuts [17][58]. Market Context - The current market environment has seen a rotation towards value investments, with a focus on tangible assets such as real estate and energy, which are expected to benefit from lower interest rates in the future [43][46][48]. - The company has observed that many dividend-paying stocks have seen price declines due to rising interest rates, but the focus remains on the cash flow generated by these investments rather than short-term price fluctuations [76][79]. Portfolio Composition - The portfolio is divided into four parts: two equity-focused (core one with closed-end funds and core two with individual high cash flow stocks) and two fixed income-focused (maturity ladder and preferred equity) [29][32][34]. - Closed-end funds (CEFs) are favored over ETFs due to their ability to trade at discounts during market downturns, providing opportunities for higher total returns [35][39]. Risk Management - The company emphasizes the importance of understanding the sustainability of dividends, particularly in sectors like REITs, where income can be variable due to regulatory requirements [26][27]. - Recent experiences with unexpected dividend cuts, such as Oxford Lane Capital's 50% reduction, highlight the need for ongoing assessment of company strategies and cash flow sustainability [60][62]. Educational Focus - High Dividend Opportunities places a strong emphasis on educating investors about the rationale behind investment choices and the importance of tracking cash flow, rather than solely focusing on share price [49][104]. - The company aims to empower investors to construct their own plans and understand the dynamics of dividend investing, fostering a community for ongoing discussion and support [69][106].

Core Viewpoint - AGNC Investment Corp. is a real estate investment trust specializing in Agency residential mortgage-backed securities, employing a leveraged investment strategy and dynamic risk management to mitigate interest rate and market risks [1][5]. Group 1: Company Overview - AGNC focuses on Agency residential mortgage-backed securities, which are backed by guarantees from entities like Fannie Mae, Freddie Mac, or Ginnie Mae [1][5]. - The company has a market capitalization of approximately $12.14 billion and a trading volume of 15.5 million shares [4]. Group 2: Financial Performance - AGNC has maintained a high dividend yield, consistently above 10%, although the dividend has shown volatility and a downward trend over the past decade [3]. - The company recently declared a monthly cash dividend of $0.12 per share for February 2026, payable on March 10, 2026, to stockholders on record as of February 27, 2026 [3][5]. - AGNC boasts a 97% dividend coverage and zero credit risk, with a current yield of 12.6% [4]. Group 3: Stock Performance - The stock price of AGNC is currently at $11.32, with a slight increase of 0.01, or 0.088%, for the day, having seen a low of $11.26 and a high of $11.38 [2]. - Over the past year, the stock has reached a high of $12.19 and a low of $7.85 [4]. - The company has outperformed the S&P 500 since its IPO in May 2008 [3].

Core Viewpoint - The article promotes a platform called "The Dividend Dogcatcher," which offers insights into dividend stocks and investment opportunities through a live video series and community engagement [1]. Group 1 - The platform provides a free two-week trial for new subscribers, allowing potential investors to explore its offerings [1]. - A live video series, "Underdog Daily Dividend Show," is hosted by Fredrik Arnold, focusing on portfolio candidates [1]. - The article encourages community interaction by inviting comments on favorite or curious stock tickers for future reports [1].

Core Viewpoint - AGNC Investment's high dividend yield of 12.6% is not indicative of a reliable dividend stock due to its historical volatility and long-term downward trend in dividends [1][2]. AGNC Investment Analysis - AGNC Investment has maintained a dividend yield above 10% for most of its existence, but this does not equate to reliability as a dividend stock [1]. - The company emphasizes total return, which includes reinvesting dividends, and has outperformed the S&P 500 since its IPO in May 2008 [2]. - If dividends are used for living expenses rather than reinvested, investors would experience reduced income and capital, which is not favorable for those relying on dividends for retirement [3]. Realty Income Analysis - Realty Income has consistently increased its dividend annually for over 30 years, with an annualized growth rate of approximately 4.2%, slightly above the long-term inflation rate [4]. - Despite a lower yield of 4.9%, Realty Income offers a more reliable income stream compared to AGNC Investment, especially when compared to the S&P 500's yield of 1.1% and the average REIT's yield of 3.8% [5]. - Realty Income is designed to be a reliable dividend stock with a diversified portfolio and conservative financial practices, making it a preferable choice for those seeking stable income [6].

Core Insights - The article compares the performance and characteristics of AGNC Investment Corp. and Starwood Property Trust, highlighting their fundamentally different business models in the mREIT sector [1]. Group 1: Company Analysis - AGNC Investment Corp. is positioned as a key player in the mREIT market, with a focus on maximizing returns through a combination of economic knowledge and investment analysis [1]. - Starwood Property Trust operates under a different business model, which is not detailed in the provided text but is implied to contrast with AGNC's approach [1]. Group 2: Investment Strategy - The analysis aims to provide actionable investment ideas to build a balanced portfolio of U.S. securities, emphasizing the importance of macro-economic analysis and real-world trading experience [1]. - The goal is to identify profitable and undervalued investment opportunities primarily within the U.S. market, aiming for a high-yield, balanced portfolio [1].

Core Viewpoint - The article compares the performance and characteristics of AGNC Investment Corp. and Starwood Property Trust, highlighting their fundamentally different business models within the mREIT sector [1]. Group 1: Company Analysis - AGNC Investment Corp. is positioned as a long-term investment opportunity, with a beneficial long position indicated by the analyst [2]. - Starwood Property Trust operates under a different business model, which may present unique investment characteristics compared to AGNC [1]. Group 2: Investment Strategy - The analysis aims to provide actionable investment ideas to build a balanced portfolio of U.S. securities, leveraging macro-economic analysis and trading experience [1]. - The goal is to identify profitable and undervalued investment opportunities primarily in the U.S. market, focusing on high-yield potential [1].

Core Viewpoint - AGNC Investment has shown strong performance in 2026, with shares up over 5% year to date, and offers a high dividend yield of 12.7%, significantly above the S&P 500's yield of approximately 1.2% [1]. Company Overview - AGNC Investment is a mortgage REIT that focuses exclusively on investing in Agency MBS (residential mortgage-backed securities protected by government agencies against credit risk) [5]. - The company has maintained its monthly dividend payment for over five consecutive years, demonstrating stability despite interest rate volatility [4]. Dividend Analysis - The current monthly dividend yield allows a $500 investment to generate $5.28 in monthly income, equating to an annualized income of $63.40, which is higher than most other assets available [3]. - Although the current yield is lower than the previous year's average of over 14%, it remains attractive compared to alternatives with similar risk profiles [6]. Investment Environment - The current environment for Agency MBS investments is strong, which supports AGNC Investment's ability to generate returns sufficient to cover its cost of capital, including operating costs and dividend payments [5]. - The company possesses a strong liquidity position, enabling it to fund new investments effectively [5]. Investment Consideration - For investors seeking a lucrative stream of monthly dividend income, now may be a good time to invest in AGNC Investment, despite the recent rally in share price [6]. - However, for those looking for higher total return potential, the recent price increase may suggest that it is not the optimal time to invest [6].