After the bell on Tuesday, American Capital Agency Corp. (NASDAQ:AGNC) declared a third quarter dividend of $1.40 per share. The dividend has a record date of September 23, 2011, an ex-dividend date of September 21, 2001, and is payable October 27, 2011.
This is the 9th consecutive dividend of $1.40 per share, which has made AGNC a very high yielding stock with a large following and investor base. This has, in turn, allowed American Capital Agency Corp to announce some very large secondary offerings, often right around the ex-dividend and record date of the dividend.
Consider the past year's worth of dividend announcements and the dates of the next offering of shares:
|Quarter||Div Declaration Date||Ex-Div Date||Record Date||Offering Announcement|
As the table shows, in the last year the company has announced an offering of common shares in between the ex-dividend date and the record date in 3 of the 4 quarters. While another offering is not a certainty, the historic relationship between the stock offerings and the dividends is hard to ignore.
Investors looking for entry into AGNC should keep the increased possibility of a stock offering in mind, as offerings have proved an opportunity for both entry into the name and for shorter term trades over the past year.
Disclosure: I am long AGNC.