- American Capital Agency Corporation is trading around 10%-11% below its book value. This is a very important metric in determining a good entry point.
- AGNC will be using estimated REIT taxable income (ERTI) and net dollar roll income to cover their $0.65 dividend. The dividend is stable, in my opinion.
- AGNC had an excellent Q2 2014 earnings report. AGNC yields a robust 11.1%. A modest 5% allocation in one's portfolio will increase most investors' income nicely.
- The market does not understand AGNC and has mispriced the stock.
- AGNC's investments are guaranteed by government sponsored entities.