Financial Performance - AGNC generated a positive economic return of 13.2% in 2024, with monthly dividends totaling $1.44 per common share and a decline of tangible net book value of $0.29 per common share [157]. - Total comprehensive income for AGNC was $0.84 per diluted common share in fiscal year 2024, up from $0.30 per share in 2023 [161]. - Net spread and dollar roll income per diluted common share decreased to $1.88 in 2024 from $2.61 in 2023, primarily due to a narrowing of the net interest rate spread, which averaged 242 basis points in 2024, down from 306 basis points in 2023 [161]. - Economic interest income for 2024 was $3,198 million, up 25% from $2,560 million in 2023 [205]. - Net income available to common stockholders reached $731 million in 2024, a significant increase from $32 million in 2023 [196]. - Comprehensive income available to common stockholders for fiscal year 2024 was $657 million, a significant increase from $187 million in 2023, compared to a loss of $2,268 million in 2022 [227]. - Net spread and dollar roll income available to common stockholders for fiscal year 2024 was $1,474 million, down from $1,617 million in 2023 and $1,676 million in 2022 [227]. - Total loss on investment securities for fiscal year 2024 was $1,147 million, compared to a gain of $266 million in 2023 and a loss of $7,684 million in 2022 [230]. - Gain on derivative instruments and other securities for fiscal year 2024 was $2,028 million, a notable increase from $386 million in 2023 and $4,630 million in 2022 [232]. Investment Portfolio - As of December 31, 2024, the investment portfolio totaled $73.3 billion, up from $60.2 billion in 2023, representing a 21.5% increase [174]. - The fair value of Agency RMBS increased to $65.5 billion in 2024 from $53.8 billion in 2023, a growth of 21.8% [174]. - The total investment securities, including TBA securities, reached $76.3 billion in fair value as of December 31, 2024, compared to $60.2 billion in 2023, marking a 26.7% increase [174]. - The total net TBA securities fair value was $6.9 billion in 2024, up from $5.4 billion in 2023, indicating a 27.8% increase [174]. - The fair value of non-Agency RMBS decreased to $15 million in 2024 from $43 million in 2023, a decline of 65.1% [180]. - The total carrying value of CRT securities was $633 million in 2024, slightly down from $723 million in 2023, a decrease of 12.4% [180]. - The total fixed-rate Agency RMBS and TBA securities accounted for 99% of the total investment securities in 2024, consistent with 98% in 2023 [180]. Leverage and Borrowings - AGNC's average "at risk" leverage for 2024 was 7.2x tangible stockholders' equity, compared to 7.4x in 2023 [165]. - As of December 31, 2024, total mortgage borrowings amounted to $66,313 million, up from $54,247 million in 2023 [236]. - The leverage ratio as of December 31, 2024, was 7.2x, compared to 7.0x in 2023, indicating a slight increase in leverage [235]. - The average daily net TBA position was $59,690 million, with a leverage ratio of 7.2:1 [212]. - The average mortgage borrowings increased by 11% in fiscal year 2024 compared to the previous year [220]. Interest Rates and Economic Conditions - The 30-year primary mortgage rate was near 7% at year-end 2024, with expectations for Agency RMBS supply in 2025 to align with investor demand [159]. - The average interest rate on mortgage borrowings, excluding interest rate swap periodic income, increased by 18 basis points in fiscal year 2024 [220]. - Changes in long-term interest rates significantly impact prepayment rates, with rates generally increasing when interest rates fall [188]. - The average interest rate swap pay-fixed rate for fiscal year 2024 was 1.16%, up from 0.55% in 2023 [225]. Regulatory and Compliance - The company is subject to regulatory requirements as a REIT, including maintaining at least 55% of its assets in qualifying real estate interests [29]. - The company has not maintained relationships with unconsolidated entities or financial partnerships for off-balance sheet arrangements as of December 31, 2024 [251]. Employee and Workplace Culture - The company maintained a workforce of 53 full-time employees as of December 31, 2024, with a low voluntary turnover rate averaging less than 1 employee per year over the past three years [36]. - The company was recertified as a Great Place to Work™ in 2023 based on employee feedback, reflecting high levels of employee satisfaction [38]. - As of December 31, 2024, 40% of the company's employees were women and 32% were ethnically diverse [41]. - The company offers a 401(k) Savings Plan with matching contributions of 100% up to 6% of each employee's eligible compensation [43]. - The company maintains a pay-for-performance compensation philosophy, with higher-level employees receiving a greater proportion of variable incentive-based compensation [42]. - The company provides comprehensive medical coverage, including dental and vision, as well as paid time off and parental leave [43]. - The company conducts mandatory compliance training on various topics, including insider trading and anti-harassment policies [40]. - The company promotes open communication and has a Code of Ethics and Conduct that applies to all employees [39]. - The company offers professional development programs, including reimbursement for approved courses and mentoring opportunities [40].

Core Viewpoint - AGNC Investment Corp.'s performance is heavily influenced by mortgage rates, which are currently stable around 7%, but may change due to proposed tariffs by the Trump administration [1][2]. Mortgage Rate Influences - The Trump administration's tariff plans, including a 25% duty on steel and aluminum and increased levies on Chinese goods, are expected to impact mortgage rates [2][3]. - Higher tariffs could lead to increased costs for home-building materials, raising construction costs and home prices, which may prompt the Federal Reserve to maintain or raise interest rates, subsequently increasing mortgage rates [3]. Challenges for AGNC - Prolonged high mortgage rates could reduce demand for mortgage refinances, limiting the availability of new agency mortgage-backed securities (MBS) for AGNC, potentially stalling portfolio growth and decreasing the value of current MBS holdings [4]. Dividend and Financial Profile - AGNC has a strong dividend policy with a current yield of 13.8%, significantly higher than the industry average of 10.7%, and a payout ratio of 75% [6]. - The company has a share repurchase plan allowing it to buy back up to $1 billion of common stock through December 31, 2026, contingent on the repurchase price being lower than the tangible net book value [8]. Agency MBS Outlook - AGNC focuses on agency MBS, which are backed by U.S. government agencies, positioning it favorably in the market [9]. - The outlook for agency MBS has improved, with management noting potential benefits from a steepening yield curve and reduced rate volatility [10]. Performance Metrics - AGNC generated a positive economic return of 13.2% in 2024, attributed to its monthly dividend and favorable market conditions [11]. - The stock trades at a forward P/E multiple of 6.56X, below the industry average of 8.54X, indicating it is undervalued compared to peers [12][14]. Stock Performance - Despite mortgage market volatility, AGNC shares have increased by 27.9% over the past year, outperforming the industry's growth rate of 13.3% [19]. - The current discounted valuation suggests that investors should consider holding the stock while monitoring market changes [21].

Group 1 - AGNC Investment has experienced a significant upward revaluation this year due to expectations of an improving lending environment [1] - The favorable outlook for a re-pricing of mortgage-backed securities has contributed to the positive sentiment surrounding AGNC Investment [1] - The company is classified as a top-tier mortgage REIT, indicating its strong position within the industry [1]

Core Viewpoint - AGNC Investment Corp. has declared a cash dividend of $0.12 per share for February 2025, payable on March 11, 2025, to stockholders of record as of February 28, 2025 [1] Company Overview - AGNC Investment Corp., founded in 2008, is a leading investor in Agency residential mortgage-backed securities (Agency MBS), which are guaranteed against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae [2] - The company employs a leveraged investment strategy, primarily financing its Agency MBS assets through repurchase agreements, and utilizes dynamic risk management strategies to protect its portfolio from interest rate and market risks [2] Financial Performance - AGNC has a strong track record of providing favorable long-term returns to stockholders, having paid over $14 billion in common stock dividends since its inception [3] - The company serves as a significant source of private capital for the U.S. residential housing market and has extensive experience in managing mortgage assets across various market cycles [3]

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2][3] - It emphasizes the importance of conducting individual research before making investment decisions [2]

Group 1 - The article discusses AGNC Investment Corp. (NASDAQ: AGNC) and previously rated it as a "Buy" on January 11, 2025, indicating a favorable outlook for the company [1] - Sensor Unlimited, an economist with a PhD, has been covering the mortgage market, commercial market, and banking industry for the past decade, focusing on asset allocation and ETFs related to these sectors [2] Group 2 - The investing group Envision Early Retirement, led by Sensor Unlimited, offers solutions for generating high income and growth through dynamic asset allocation, including two model portfolios for different investment strategies [1]

Group 1 - HDO is the largest community of income investors and retirees with over 6,800 members [2] - The Income Method employed by HDO generates strong returns regardless of market volatility, simplifying retirement investing [2] - HDO offers a Model Portfolio targeting a yield of 9-10% [2] Group 2 - HDO is currently providing a 28% discount on its annual price of $599.99 [2]

Group 1 - The article discusses the performance of AGNC Investment Corp.'s preferred shares, highlighting their popularity among investors due to their high-quality profile and attractive yields in the high single-digit range [1] - The preferred shares of AGNC have experienced a rally, indicating strong investor interest and confidence in the company's offerings [1] Group 2 - The article suggests exploring Systematic Income for income portfolios that consider both yield and risk management, indicating a strategic approach to investment in the current market [1] - It mentions the availability of Interactive Investor Tools for navigating various investment markets, including BDC, CEF, OEF, preferred shares, and baby bonds, which can aid investors in making informed decisions [1]

Core Viewpoint - AGNC Investment offers an attractive dividend yield of over 14%, but potential investors should carefully consider the associated risks and the price they pay for the stock [1][2][3] Dividend Yield and Risks - The S&P 500 index yields 1.2% and the average REIT yields approximately 3.9%, making AGNC's yield appear very appealing for income-focused investors [2] - High yields are common in the REIT sector, but a 14% yield indicates additional risks that investors must acknowledge [3] - AGNC has experienced a steady decline in dividends over the years, which is contrary to the expectations of most dividend investors [4][5] Stock Price and Tangible Net Book Value - AGNC's stock price is closely tied to its portfolio value, which is represented by its tangible net book value per share, reported at $8.41 at the end of Q4 2024 [7] - The tangible net book value fluctuates daily based on various factors, including interest rates and housing market dynamics [8] - If AGNC's stock price exceeds its tangible net book value, investors may be overpaying for the stock [9] Equity Issuance and Book Value Accretion - In Q3 2024, AGNC issued $781 million in common equity, benefiting from a price-to-book premium, which contributed to book value accretion [10] - The CFO noted that the premium allows the company to acquire more securities than it could at the current market rate [10] Investment Considerations - Investors should avoid paying above the tangible net book value unless they have strong conviction that the value will increase [11][12] - Given the complex nature of AGNC's investment profile, conservative dividend investors may be better off avoiding this stock [13]

Group 1 - AGNC (NASDAQ: AGNC) is reporting a more stable marketplace, indicating a valued position for future growth [1] - The stock price of AGNC has impressed Wall Street, now exceeding $10 [1] Group 2 - The article reflects the author's long-term investment experience, including surviving major market crashes [1] - The author utilizes trading systems developed with TradeStation, benefiting from both buy and hold strategies as well as trading [1]