3 Reasons to Buy AGNC Investment Stock Like There's No Tomorrow

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]