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There's no dividend cut for American Capital Agency (AGNC), which holds its payout at...

There'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)
Comments (24)
  • amazing.
    14 Dec 2012, 04:19 PM Reply Like
  • I'm glad you're amazed, cause lately the only thing I read from you IS how bad AGNC is going to be. I'm confindent on its CEO, nevertheless also long AGNC. Glad I didn't follow your advice on this money making stock.
    15 Dec 2012, 04:04 AM Reply Like
  • The best name in the space.
    14 Dec 2012, 04:27 PM Reply Like
  • Time will tell I guess....If NLY does not cut divis, then I just want to buy my own printing press.
    14 Dec 2012, 04:29 PM Reply Like
  • I'll split one with you, printing money seems a lot easier than working haha.
    14 Dec 2012, 04:33 PM Reply Like
  • This is called Gary Kain managing his businesses well. I shied away from AGNC this time with all the QE business going on, but I am Long MTGE and they held dividend also. Another case of the stampede mentality proving incorrect, all of the REIT 4th quarter volatility proving incorrect. Fellow REIT investors, you may want to once more give a careful thought of how and when a risk-off and risk-on approach is relevant. A lot of you bailed with the QE stuff in October with a major selloff and post election when Book Value was holding above that level. These are still selling below last posted Book Value, feeling any smarter about things for those that sold out?
    14 Dec 2012, 04:33 PM Reply Like
  • Dividends aren't the real concern, it's the Damn Fed who will keep pouring in the money until unemployment gets to 6.5%.
    14 Dec 2012, 04:34 PM Reply Like
  • Can governments nationwide hire that many more pencil pushers?
    14 Dec 2012, 05:51 PM Reply Like
  • Lack of a special dividend is probably due to the reserve of capital for the promised share buy back program next year, not because they had to "buck up" the regular payments. This is the best run REIT in the business. Now NLY is starting to look like a bird of a different color.
    14 Dec 2012, 04:48 PM Reply Like
  • Well the Fed has been a factor for 90 days or so now with QE3, and I am not seeing the impact yet. This seems to be another myth going around amongest the investors, when Gary Kain expresses more than concern at his quarterly reviews, then I am listening along with monitoring BV. The scaredy cat stampede makes me smile, OK guys if the REITS are so bad for those that bailed out, what is a good place to park capital earning high yield for those that want high yield?


    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.
    14 Dec 2012, 04:49 PM Reply Like
  • kenney1037,


    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.
    14 Dec 2012, 09:17 PM Reply Like
  • Divvy#1 You and I had this right in previous thread. Gary Kain talks pretty plain and if you listened the dividend wasn't going to be cut. This time anyway. Could have something to do with all the undistributed income they have accumulated.
    15 Dec 2012, 12:38 PM Reply Like
  • Pablomike,


    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.
    15 Dec 2012, 09:20 PM Reply Like
  • I am with Kenny. This is management. Kain said that he could keep the dividend in his last presentation. HE MANAGED the portfolio. NOT "BUCK UP". Who gets to write such a bogus unprofessional statements. They said there were doing the large buyback. I bet they were buying all day today, as I was. Now they do not have to pay as much in total dividend. That is not Bucking that is managing. I bought 5,000 shares today and 50 Dec 30 call options for 50 cents. That is bucking up.
    14 Dec 2012, 07:22 PM Reply Like
  • real estate bob,


    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.
    14 Dec 2012, 09:23 PM Reply Like
  • Recommend pairing AGNC with silver. I long AGNC and have PSLV as insurance in case interest rates rise because higher interest rates could signal a big drop in the dollar which I think may be 2015 or 2016.AGNC is very well run but 2016 could see big challenges from natural disasters along the coasts of America. I will likely get out by then and buy back in after a year or 2. Silver could double in 2 years plus it insures the stock from really bad suprise events but it doesnt pay dividends. We live in chaotic times but we will do well if we obay the commands of time and stick with well run companies like AGNC. theyuha-silver.blogspo...
    14 Dec 2012, 09:58 PM Reply Like
  • What a relief...AGNC finally declares its dividend and the picture looks a lot rosier.
    15 Dec 2012, 04:18 AM Reply Like
  • Why are they paying it in Jan with higher cap gains coming????
    15 Dec 2012, 04:19 AM Reply Like
  • The dividend is taxed as ordinary income, not capital gains. REITs are not corporations, and the tax treatment is different.
    15 Dec 2012, 10:38 AM Reply Like
  • No special dividend was required for AGNC, as our dividend has ALWAYS been taxed at an ordinary income rate. Thus, the comment: "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." sounds somewhat uninformed.


    Long 81,000
    15 Dec 2012, 04:41 AM Reply Like
  • My guess is you can make the stock dividend between now and the 28th in price appreciation and beat the crowd to the exit when it goes ex-dividend.
    15 Dec 2012, 11:00 AM Reply Like
  • CYS announced 12/10/12 with only a $.05 div drop and has not had an up day yet (down $.27).
    15 Dec 2012, 02:17 PM Reply Like
  • Accuracy counts; ex-dividend day is Dec 24th.
    15 Dec 2012, 10:25 PM Reply Like
  • There is interest income and there is capital gains. Mr. Kain doesn't care. It is all money. He said that lots of times.
    17 Dec 2012, 08:48 AM Reply Like
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