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There's no dividend cut for American Capital Agency (AGNC), which holds its payout at...
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Friday, December 14, 2012, 4:16 PM ETThere's no dividend cut for American Capital Agency (AGNC), which holds its payout at $1.25/share. There's no special dividend either, meaning the company likely was able to buck up the regular payment by using capital gains from the sale of MBS. Shares +1.8% AH. (PR)
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This news story has 24 comments:
Dividends aren't the real concern, it's the Damn Fed who will keep pouring in the money until unemployment gets to 6.5%.
If Gary Kain makes this work into early and mid 2013, I am with him for the long haul and likely am anyway. We need to be able to deal with an uncertain environment, there is absolutely nothing new with uncertainty.
Did so many really think the dividend would be cut? How could they think that? Can it be cut in the future? Of course it can. But I also listened closely to Gary Kain, and he did not indicate any dividend cut.
The only cut AGNC ever did was clearly transparent, they warned all shareholders in advance, why would they surprise with a cut, that would be downright stupid.
So, I will continue to listen to Mr. Kain and his team. I have believe if they need to cut, they will let us know, and we can decide if the investment still meets our needs.
Now, I am really looking forward to a HUGE dividend on 1/28/13. I will reinvest in AGNC. I have been increasing my position as others were exiting.
I can only hope AGNC stays between 30-32 on 1/28/13 so I can get more shares, but I do not doubt the price may climb between now and then. I guess lots of people like to trade AGNC and try to capture the dividend, in and out, makes me dizzy. I think I will outperform the many who try to time AGNC. Some will buy back in now at 31.50-32.50 and try to get in before the ex-date of 12/24/12, still 5 trading days before the ex-date. For the people who sold at 35 and buy back at 32, they will have made a profit by getting their shares back cheaper, or they can buy more shares for the same amount of money they got when they sold, PROVIDING they did not LOSE some of the proceeds on other TRADES. So, I have learned that IF, one try's to go in and out of the market MANY, MANY things, unforeseen, unintended consequences will screw up the TRADING. I believe 100% that staying in AGNC and reinvesting the dividend will outperform anyone who sells and buys back. Sooner or later, they will make major, mistakes that will severely decrease their performance.
I will stay with AGNC and develop an income stream for years to come.
Stay long and keep listening to Gary Kain. He has an excellent track record. We need the AGNC bears, the naysayer's to keep making us money. If everyone loved AGNC it would be time to sell. I think AGNC is just getting started to becoming a dividend beast for years to come.
Many will get scared out as time passes. I will keep studying the business and listening to the conference calls. Hopefully, their earnings are good next quarter, and the book value goes up.
Good buy on the 5000 shares. I do not understand options, good luck.
I do not want to learn options, it would ruin my plan. I will keep reinvesting my dividends until I have an income stream bigger then my expenses, then I will collect the dividends to pay for everything. My goal is to reach this level within 6 years. I probably could do it now, but I want a real big cushion. Maybe, 50% more in dividends then I need, so I can keep reinvesting for many more years and then have no financial worries. I am doing real well as of today.
SirWallSt
Long 81,000