Core Viewpoint - AGNC Investment offers a high monthly dividend yield of approximately 14%, significantly exceeding the S&P 500's yield, but concerns about the sustainability of this payout exist due to its size [1] Group 1: Dividend Sustainability - The dividend payout ratio is a critical metric for most dividend stocks, but AGNC Investment's use of leverage complicates this assessment [2] - The company employs dynamic risk management strategies to safeguard its portfolio from risks, which differentiates it from typical dividend stocks [2] Group 2: Earnings and Dividend Policy - Earnings-based financial metrics are not the best indicators of dividend stability for AGNC Investment, as stated by CEO Peter Federico [3] - Federico emphasized that the company focuses on current earnings rather than long-term earnings potential when determining its dividend policy [3] Group 3: Key Financial Metrics - The CEO highlighted that the total cost of capital hurdle rate versus expected return is crucial for dividend considerations, requiring a return on equity (ROE) of 16.7% to cover expenses and dividends [4] - Currently, the portfolio's ROE is between 17% and 18.5%, which aligns with the cost of capital and supports the maintenance of the dividend [5]

With its enticing high dividend yield of 14.3%, AGNC Investment Corporation (AGNC 1.02%) stands out as an intriguing choice for income-focused investors. The company pays out monthly dividends and is among the highest-yielding stocks available to investors today.While AGNC offers impressive dividends, its overall performance has been less than stellar in recent years. However, if interest rates stabilize, AGNC could find itself in a position to boost its share price. If you're contemplating an investment in ...

Join for a 100% Risk-Free trial and see if our proven method can help you too. You do not need to pay for the costly lessons from the market itself.My last article on AGNC Investment Corp. (NASDAQ: AGNC ) was published a bit more than a month ago. To wit, that article was titled "AGNC Investment: Let Your Profits Run" and wasSensor Unlimited contributes to the investing group Envision Early Retirement which is led by Sensor Unlimited. They offer proven solutions to generate both high income and high growth ...

AGNC is one of the market's highest-yielding REITs.AGNC Investment (AGNC 1.99%), with a forward dividend yield of 14.3% as of this writing, is one of the market's highest-yielding stocks. It also pays monthly dividends.That massive dividend might look tempting, but is it sustainable? Let's dig deeper into AGNC's business model to see if it's a high-yield trap or a viable income investment. AGNC isn't a traditional REITAGNC is a real estate investment trust (REIT). But unlike traditional REITs -- which buy p ...

Company Overview - AGNC Investment is a mortgage real estate investment trust (REIT) that aims for favorable long-term stockholder returns with a substantial yield component [2] - The company has a strong track record of total return, boasting a 10% annualized return since its IPO in May 2008 through to year-end 2024 [4] Dividend Performance - AGNC Investment has paid 58 consecutive monthly dividends at the same level since 2020, which may seem appealing to income investors [7] - However, the dividend has not increased with inflation, leading to a decrease in purchasing power for investors [8] - The dividend record prior to 2020 shows a long downtrend, which could result in a negative experience for income-focused investors [9] Total Return Analysis - The positive total return is attributed to AGNC Investment paying out more in dividends than the decline in stock price, allowing for long-term capital growth through dividend reinvestment [10] - This perspective on total return may not align with the typical income investor's expectations of reliable income [10] Investment Considerations - While AGNC Investment is a respected mortgage REIT, it may not be suitable for investors seeking to rely on dividends for living expenses [11] - The static dividend over the years does not guarantee reliability for income generation [11]

Economic Outlook - Warning signs of a possible recession are emerging as the U.S. federal government plans to cut jobs and tariffs may trigger a trade war [1] - The Atlanta Federal Reserve's estimate for real GDP growth has shifted from over 2% growth to a 2.4% decline [1] AGNC Investment Overview - AGNC Investment is identified as a high-yielding dividend stock that could perform well in a recessionary environment [2] - AGNC operates as a mortgage real estate investment trust (REIT), generating income through the spread between mortgage yields and funding costs [3] Investment Strategy - AGNC typically uses leverage to enhance returns and employs hedges to stabilize short-term rates, which helps mitigate risks associated with rising funding costs [4] - As of the end of 2024, 98.6% of AGNC's portfolio was in agency-backed mortgage-backed securities (MBS), significantly reducing credit risk [5] Interest Rate Impact - A recession is likely to prompt the Federal Reserve to accelerate interest rate cuts, which could lower funding costs for AGNC and widen spreads [6][9] - AGNC's average net interest spread has decreased from 2.98% in Q1 2024 to 1.91% in Q4 2024, primarily due to reduced hedging income [7] Portfolio Valuation - Lower long-term interest rates are expected to increase the value of AGNC's portfolio, as MBS values are inversely related to interest rates [10] - AGNC's tangible book value (TBV) is projected to rise with falling mortgage rates, which could enhance stock price through higher valuation multiples [10] Dividend Performance - AGNC pays a monthly dividend of $0.12, yielding over 14%, and has maintained this dividend for nearly 60 months [11] - Management projects returns of 17% to 18.5% in the current environment, supporting confidence in sustaining the dividend [11] Conclusion - AGNC is positioned as a solid high-yield stock with moderate potential price upside, expected to perform well even in a recession [12]

BETHESDA, Md., March 13, 2025 /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) ("AGNC" or the "Company") announced today that its Board of Directors has declared cash dividends on the outstanding depositary shares1 of the following series of preferred stock for the first quarter 2025:  Series of Preferred Stock Ticker Per Annum Dividend Rate Dividend Per Depositary Share1 7.00% Series C Fixed-to-Floating Rate AGNCN 9.68019%2 $0.60501 6.875% Series D Fixed-to-Floating Rate AGNCM ...

BETHESDA, Md., March 13, 2025 /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) announced today that its Board of Directors has declared a cash dividend of $0.12 per share of common stock for March 2025. The dividend is payable on April 9, 2025 to common stockholders of record as of March 31, 2025.For further information or questions, please contact Investor Relations at (301) 968-9300 or [email protected].ABOUT AGNC INVESTMENT CORP.Founded in 2008, AGNC Investment Corp. (Nasdaq: AGNC) is a leading inves ...

Group 1 - Real Estate Investment Trusts (REITs) are designed to pass income to shareholders through significant dividend payments, avoiding corporate-level taxation by distributing at least 90% of taxable income [2][4] - REITs provide small investors access to income-producing assets like apartment buildings and malls, making them a viable option for income investors [3] - Not all REITs are equal; they can face challenges such as overexpansion and excessive debt, and there are different types, including property owners and mortgage REITs [4] Group 2 - AGNC Investment offers a high dividend yield of over 13%, while Realty Income has a lower yield of 5.5%, yet Realty Income is preferred for its consistent dividend growth [5][10] - AGNC Investment has experienced multiple dividend cuts, while Realty Income has increased its dividend for three decades, leading to a significant difference in per-share dividend payments over time [10][11] - Realty Income is characterized as an income stock focused on generating reliable and increasing dividends, while AGNC aims for total return through reinvestment of dividends, making it less suitable for long-term income investors [12][13][14]

AGNC Investment (AGNC -1.45%) hit its all-time high closing price of $11.74 per share on June 8, 2021. That was about 45 months ago. Shares are currently well below that price point at around $10.50 per share. This lower price point is why the real estate investment trust (REIT) offers such a monster dividend yield of 13.8%. Its payout is more than 10 times higher than the S&P 500's dividend yield of 1.3%. The mortgage REIT has been able to maintain its massive payout for the past 60 months in a row. That s ...