AGNC Investment: Very Risky 12.6% Yield

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14.56K Followers

Summary

  • AGNC Investment’s book value declined 16% in 1Q-22.
  • Interest rates are now rising faster than expected, which creates higher interest costs for the trust.
  • AGNC, given its history as a dividend cutter, should trade at a larger discount to book value.

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AGNC Investment Corp. (NASDAQ:AGNC) has a history of cutting dividends, and a new round of book value losses and declining income could force the mortgage trust to cut its dividend yet again.

AGNC Investment currently trades

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