American Capital Agency Is Becoming More Transparent And Adding Shareholder Value
- American Capital Agency Corp. announced a change from quarterly to monthly common dividend distributions and the commencement of monthly Net Asset Value estimates.
- I was surprised and very pleased by AGNC's announcement noted above. It adds to my confidence regarding AGNC's transparency and their desire to enhance shareholder value.
- In my opinion, the added transparency of disclosing net asset value (NAV) estimates on a monthly basis is a positive sign regarding management's confidence to produce good results.
- The monthly dividend will increase the yield for investors who reinvest their dividends due to the increased compounding effect.
- Retirees who are not reinvesting the dividends will enjoy the monthly payments as opposed to the quarterly payments.