Dane Bowler
Value, hedge fund analyst, REITs, long/short equity

American Capital Agency: Negative Catalysts Portend A Dividend Cut

The sell thesis

Despite a stellar track record, numerous negative fundamental catalysts indicate that American Capital Agency (NASDAQ:AGNC) will be unable to sustain its current dividend level. In addition to the reduced expected income of the lower distributions, such cuts tend to entail a significant drop in market price. Get out before this happens. This article will detail the reasoning behind this conclusion as well as provide an extensive review of AGNC.

Before investing in mortgage REITs (henceforth called mREITs) such as AGNC, there are certain aspects of operations that one should research. Below is the outline of the most pertinent aspects of AGNC, which will be analyzed in this article. While extensive, I would suggest researching even...

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