American Capital Agency Yields 11.75%; It Is An Excellent Income Investing Strategy
- American Capital Agency Corporation is trading at a 13%-14% discount to its book value, in my estimation. This is a very important metric in determining a good entry point.
- AGNC's investments, principal and interest payments are guaranteed by government sponsored entities.
- The recent sell-off is unjustified and in my opinion investors who buy at current prices will be rewarded over the next 12-18 months with an excellent income stream.
- Buying AGNC is a good way to increase one's income. Even a 5% allocation in one's portfolio will help to increase the overall income.
- American Capital Agency declared a third quarter dividend of $0.65 per share. This is a good sign of a stable dividend as it marks four consecutive quarters of $0.65.