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 ...

If you're looking for high-yield dividend stocks, I've got some good news. A couple of mortgage REITs offer eye-popping yields, and there's a chance they'll be able to maintain their payouts.Shares of AGNC Investment (AGNC 2.37%) and Annaly Capital (NLY 2.53%) offer an average yield of 13.2% at recent prices. That means an investment of just $7,580 is enough to set you up with $1,000 in annual dividend income.Before whipping out a brokerage application to buy these stocks, you should know that they are real ...

AGNC Investment (AGNC 2.37%) is not your typical real estate investment trust (REIT). It doesn't own physical properties, but rather invests in a portfolio of mortgage securities. That makes it more similar to a mutual fund than to a traditional REIT, and the difference has material implications for investors. If AGNC Investment's massive dividend, which currently yields 14.2%, looks tempting, there's one big factor you need to be aware of.What's a REIT worth?Technically, there isn't a big difference in the ...

Group 1 - The article discusses the investment strategy of focusing on dividend stocks, particularly those with high yield or extraordinary financial circumstances [1] - The leader of the investing group, The Dividend Dog Catcher, shares at least one new dividend stock idea each week, which is archived for future reference [1] - The article emphasizes the importance of community engagement by inviting readers to comment on their favorite or least favorite stock tickers for future reports [1] Group 2 - The article does not provide specific financial data or performance metrics related to any companies or industries [2]

Colorado Wealth Management is a REIT specialist who began his decades-long investment career in a family-owned realtor office before launching his own company and embracing his drive for deep-dive REIT analysis. He holds an MBA and has passed all 3 CFA exams. He focuses on Equity REITs, Mortgage REITs, and preferred shares. Scott Kennedy is a Certified Public Accountant and Certified in Financial Forensics. He is currently a partner at a national accounting firm.Analyst’s Disclosure: I/we have a beneficial ...

Core Viewpoint - AGNC Investment is a mortgage REIT that offers a high dividend yield of over 13%, but its structure and performance may not be suitable for all investors, particularly those seeking stable income [1][4][12] Company Overview - AGNC Investment operates as a mortgage REIT, purchasing pooled mortgages that are converted into bond-like securities, which are subject to price fluctuations based on interest rates and market dynamics [2] - The company generates income by earning the difference between the interest on its securities and its cost of capital, which includes leverage costs [3] Dividend and Stock Performance - The dividend history shows a concerning trend, with dividends and stock prices declining over the years, indicating potential risks for income-focused investors [4][5] - Despite the declining stock price, AGNC Investment has paid out significant dividends since its IPO, totaling approximately $48.64, which may offset the stock price decline for total return investors [6] Investment Considerations - AGNC Investment may appeal to asset allocators seeking mortgage exposure, but it is not recommended for those who rely on dividends for income [8] - Income investors willing to accept capital loss for higher dividends might find AGNC Investment attractive, although the income stream has been decreasing [9] - Short-term investors looking for high monthly income may consider AGNC Investment due to its high yield, but should focus on short-term gains rather than long-term stability [10][11] Target Investor Profile - AGNC Investment is not suitable for traditional dividend investors aiming for sustainable income, but it may attract total return investors and those comfortable with the complexities of its dividend and share price dynamics [12]

Core Viewpoint - AGNC Investment's recent earnings report indicates a decline in key financial metrics, with a comprehensive loss per share and a downward trend in estimates, raising questions about future performance leading up to the next earnings release [1][3][11]. Financial Performance - The fourth-quarter 2024 net spread and dollar roll income per common share was 37 cents, missing the Zacks Consensus Estimate of 42 cents, and down from 60 cents in the year-ago quarter [2] - Adjusted net interest and dollar roll income was $405 million, an 18.5% decline from the previous year [2] - The comprehensive loss per common share was 11 cents, compared to a comprehensive income of 1 cent per share in the year-ago quarter [3] - For 2024, net spread and dollar roll income per common share was $1.88, missing the consensus estimate of $1.95 and down from $2.61 in 2023 [3] Income and Expenses - Net interest income (NII) was $115 million, missing the Zacks Consensus Estimate by 23.7%, while net interest expenses were $26 million in the prior-year quarter [4] - For 2024, NII was $18 million, significantly below the Zacks Consensus Estimate of $314 million, but improved from $246 million in net interest expenses in 2023 [4] Asset Yield and Cost of Funds - The average asset yield on the portfolio was 5.02% in the fourth quarter, up from 4.55% in the fourth quarter of 2023 [4] - The combined weighted average cost of funds was 2.89%, compared to 1.39% in the fourth quarter of 2023 [5] - The average net interest spread was 1.91%, down from 3.08% in the previous quarter [5] Investment Portfolio - As of December 31, 2024, AGNC's investment portfolio totaled $73.3 billion, including $65.5 billion of Agency mortgage-backed securities [7] - The average actual constant prepayment rate was 9.6%, up from 6.2% in the year-ago quarter [6] Balance Sheet and Cash Position - Cash and cash equivalents totaled $505 million, down 0.4% from the prior quarter [9] - The tangible net book value per common share was $8.41, down 3.3% year-over-year [6] Dividend Information - AGNC announced a dividend of 12 cents per share for each month in the fourth quarter, totaling $0.36 per share [10] - Since its IPO in May 2008, the company has declared $14 billion in common stock dividends [10] Market Sentiment and Outlook - There has been a downward trend in estimates revisions, indicating a negative sentiment among investors [11] - AGNC Investment holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [13]

Core Viewpoint - Investing in real estate, particularly through REITs, can yield significant dividends, with the average REIT offering a 4% dividend yield, substantially higher than the S&P 500's 1.2% yield [1] Group 1: AGNC Investment - AGNC Investment is a mortgage REIT that invests in residential mortgage-backed securities (MBSes) with low credit risk, primarily backed by government agencies [2] - The REIT has maintained a high enough return to cover its operating expenses and dividends for nearly 60 consecutive months, indicating a strong performance [3] - CEO Peter Federico expressed confidence in the sustainability of the dividend, citing a balanced supply and demand outlook for Agency MBS and stable spreads [3] - Despite positive market conditions, potential risks exist, such as policy shifts by the Federal Reserve, which could impact the REIT's ability to cover dividends [3][4] - AGNC Investment is suitable for investors willing to accept higher risk for a lucrative monthly income stream [10] Group 2: Omega Healthcare Investors - Omega Healthcare Investors focuses on skilled nursing and living facilities in the U.S. and UK, utilizing triple-net leases for stable rental income [5] - The REIT produced $2.73 per share in funds available for distribution (FAD), covering its dividend outlay of $2.68 per share, resulting in a high payout ratio of 98% [6] - Omega's payout ratio improved from 2023 due to $1.1 billion in new investments, which enhanced revenue and FAD, funded by issuing $1.2 billion in stock [7] - Despite tenant issues affecting rental income, Omega expects financial metrics to improve, with recent investments anticipated to increase FAD [9] - The REIT has the potential for sustainable high-yielding dividends and may be positioned to increase its dividend in the future [9][10]

Core Viewpoint - AGNC Investment offers a high forward dividend yield of 13.8% and has seen a stock price increase of approximately 10% over the past year, making it an attractive option for income-oriented investors [1][2]. Company Overview - AGNC Investment is a mortgage real estate investment trust (mREIT) that originates its own mortgages and purchases mortgage-backed securities (MBSes), rather than owning physical properties [2][3]. - The company generates net profits by booking interest from the mortgages and MBSes it holds, benefiting from high-interest-rate environments [3]. Financial Performance - In 2024, AGNC's net spread and dollar roll income per share decreased by 28% to $1.88 due to three consecutive interest rate cuts by the Federal Reserve, but still covered its $1.44 in dividends [7]. - Quarterly net spread and dollar roll income per share showed a sequential decline throughout 2024, with tangible net book value also shrinking year over year [7][8]. Market Position and Strategy - AGNC maintains a positive outlook for Agency MBS as the Federal Reserve shifts its monetary policy, preferring a stabilization of interest rates to support the mortgage market [8]. - The company allocates over 89% of its portfolio to Agency MBS assets, which are backed by government entities, significantly reducing credit risk [8]. - AGNC has a unique "captive" broker-dealer agreement with Bethesda Securities, allowing access to lower wholesale funding rates and reduced collateral requirements compared to other mREITs [8]. Investment Consideration - AGNC's stock trades at $10.47, representing a 24% premium to its tangible net book value of $8.41, with a sustainable high forward dividend yield of 13.8% that limits downside potential [9]. - The stock is considered a good buy for dividend-seeking investors, especially if interest rates decline further, making it more appealing compared to CDs and T-bills [10].

Core Viewpoint - The article highlights the current low dividend yields of the S&P 500, which is around 1.2%, and presents higher-yielding dividend stock options for income-seeking investors, specifically AGNC Investment, Broadstone Net Lease, and Medical Properties Trust, with yields ranging from 6.4% to 13.7% [1]. AGNC Investment - AGNC Investment offers a high dividend yield of 13.7%, maintaining this payout consistently for over 58 months [2]. - The REIT focuses on agency-backed residential mortgage-backed securities (MBSes) and uses leverage to enhance returns, which increases its risk profile [3]. - The REIT believes it can sustain its dividend due to sufficient returns under current market conditions, although past market downturns have led to dividend reductions [4][5]. Broadstone Net Lease - Broadstone Net Lease has a dividend yield of 7.5%, supported by rental income from a diversified portfolio of commercial properties [6]. - The REIT generates stable rental income as tenants cover all operating costs through net leases, with significant income coming from industrial buildings (57.8%) and other sectors [6]. - The company plans to invest $436.3 million in new projects over the next two years, which is expected to enhance its adjusted funds from operations (FFO) and support dividend growth [7][8]. Medical Properties Trust - Medical Properties Trust currently offers a 6.4% dividend yield but has faced challenges, including two dividend cuts due to tenant bankruptcies [9]. - The REIT is improving its financial health by replacing bankrupt tenants and refinancing debt, which may allow for a more sustainable dividend in the future [10][12]. - The new tenants are expected to increase rental payments over the next two years, stabilizing the REIT's income and supporting its dividend [11]. Conclusion - AGNC Investment, Broadstone Net Lease, and Medical Properties Trust present high dividend yields, appealing to investors with a higher risk tolerance, but they also carry associated risks that need to be considered [13].