| Stock Ticker | Home Page | Asset Class | Sector | Industry | Investment Strategy | Dividend Frequency | Geographic Focus |
|---|---|---|---|---|---|---|---|
| AGNC | AGNC Investment Corp. | Equity / Stock | Real Estate | Real Estate Investment Trusts (REITs) | Ultra-high-yield mortgage REIT | Quarterly (typicaly) | Primarily U.S. real estate market |
AGNC Investment Corp. stands out in the real estate investment trust (REIT) sector for its robust dividend yield, which is a significant draw for income-seeking investors. Amid economic uncertainties, AGNC's commitment to distributing 90% of its annual taxable income as dividends, as mandated by U.S. law for REITs, offers a reliable income stream. The company has a history of paying monthly dividends, and despite a dividend cut during the pandemic in April 2020, it has maintained a consistent payout since then. As of November 2023, AGNC announced a dividend of 12 cents per share, translating to an impressive yield of 16.1%, well above the industry average of 11.5%. This high yield, coupled with a share repurchase plan, underscores AGNC's attractiveness to investors looking for steady income and potential wealth growth.
Financially, AGNC is positioned strongly, with substantial liquidity and a conservative leverage level that allows for capital deployment in promising investment opportunities. The company's portfolio includes $55.9 billion of Agency mortgage-backed securities as of September 2023, which is expected to yield attractive risk-adjusted returns within the fixed-income markets. Moreover, the anticipated slowdown in the Federal Reserve's rate hikes is likely to create a favorable macroeconomic environment for AGNC's investments. These factors contribute to the overall attractiveness of AGNC as an investment option, particularly for those prioritizing dividend income and financial stability.
| Section | Information |
|---|---|
| Overview: | AGNC Investment Corp. is a leading mREIT that invests primarily in mortgage-backed securities (MBS) guaranteed by U.S. government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. This ensures a steady stream of interest payments from the underlying mortgages, which AGNC uses to pay out substantial monthly dividends to its shareholders. AGNC targets institutional and individual investors seeking regular income from the housing market. |
| Business Model: | AGNC generates revenue by purchasing MBS at a discount and holding them until maturity. The interest payments received from these securities represent the majority of AGNC's income. The company utilizes leverage (borrowing funds) to amplify its investment portfolio and maximize returns. Importantly, AGNC actively manages its interest rate and credit risk exposure through hedging strategies. |
| Industry Competition: |
AGNC faces stiff competition from a diverse range of players in the
mREIT space, including:
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| Competitive Advantages: |
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| Management Team: |
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| Financial Performance: | AGNC's recent financial performance has been volatile, with fluctuations in earnings and profitability impacted by changes in interest rates and the housing market. However, the company maintains a solid capital position and has sustained its high dividend payout. |
| Investment Thesis: |
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| Conclusion: | AGNC presents a unique investment opportunity for income-focused investors seeking exposure to the housing market. While its high dividend yield offers significant appeal, investors must carefully consider the associated risks, including interest rate sensitivity and potential housing market downturns. Thorough research and an understanding of your own risk tolerance are crucial before investing in AGNC. |
| Section | Details |
|---|---|
AGNC Dividend Data |
AGNC Investment Corp Inc. (AGNC) has an annual dividend of $0.96 per share. The dividend is paid every three months. The last ex-dividend date was on February 9, 2024. |
AGNC Dividend Yield |
The forward yield of AGNC is 0.53%. This means that for every $100 invested in the company's stock, investors would receive $0.53 in dividends per year. |
AGNC Dividend History |
AGNC Investment Corp has a consistent history of paying dividends. The company has increased its dividends for 13 consecutive years. The most recent quarterly dividend payment of $0.24 per share was made to shareholders on Thursday, February 15, 2024. |
AGNC Dividend Payout & Dividend Payout Ratio |
The dividend payout ratio for AGNC is 14.95% based on the trailing year of earnings. This means that 14.95% of the company's earnings are paid out as dividends. |
AGNC Dividend Growth |
Over the past three years, the company's dividend has grown by an average of 5.57% per year. The most recent change in the company's dividend was an increase of $0.01 on Thursday, May 4, 2023. |
AGNC Dividend Stability |
AGNC Investment Corp's dividend has shown stability with its consistent growth over the years. The company has a track record of raising its dividend for the past 12 consecutive years. This is a positive sign of the company's financial stability and its ability to pay consistent dividends in the future. |
| Category | AGNC Investment (AGNC) | Starwood Property Trust (STWD) | Annaly Capital Management (NLY) | STAG Industrial (STAG) |
|---|---|---|---|---|
| Investment Focus | Agency mortgage-backed securities | Commercial and Residential Lending, Infrastructure Lending, Investing & Servicing, Property | Government-guaranteed mortgages | Industrial properties |
| Forward Dividend Yield | Approximately 15.14% | Approximately 9.85% | Approximately 13.53% | Approximately 3.96% |
| P/E Ratio | Approximately 785.30 | Approximately 18.90 | Approximately -3.98 | Approximately 34.64 |
| Strengths | Focus on mortgage-backed securities, Diversified portfolio, Secure dividend | Broad operating expertise, Large commercial mortgage special servicing business | Government-guaranteed mortgages, Servicing portfolio | Investment in industrial properties |
| Weaknesses | Exposure to interest rate risk, Market volatility | Fed's actions affecting mortgage REITs, Credit exposure | Credit risk, Fed's actions affecting mortgage REITs | Market volatility |
When considering AGNC Investment Corp as part of a diversified portfolio, it's important to weigh the potential risks alongside the attractive dividend yield. AGNC's dividend, which is a key component of its appeal, has a history that can be tracked on platforms like Nasdaq and TipRanks. As of February (Feb), AGNC's dividend amount stood at $1.44 per share per annum, with a history of consistent payments reflected in its stock dividend history. However, investors should note that past performance is not indicative of future results, and the stock dividend may fluctuate. The next dividend payment day, often eagerly awaited by those focused on retirement income, can be found on AGNC's dividend date watchlist. It's crucial to consider the ex-dividend date, as shares purchased after this date will not receive the next dividend.
Additional considerations include the nature of AGNC's investments in mortgage-backed securities, which are sensitive to changes in interest rates. The fixed-to-floating rate cumulative redeemable preferred stock, for instance, accrues dividends based on a rate that includes the three-month CME Term SOFR plus a spread (0.26161 as of the last update). This rate can impact the cash flow and, consequently, the dividend payout. AGNC has redeemed all of the issued and outstanding shares of its series on the first call date before, which can affect the interest in a share. The preferred stock dividend history and the common stock's ceased trading days ago are metrics that can provide additional information for investors looking to select AGNC for their next dividend payment. It's advisable to exclude none of these factors from consideration and to keep an eye on the upcoming ex-dividend date, historical dividend, and earnings per share to get the latest and most comprehensive view of AGNC's dividend attractiveness.