AGNC: Why I Bought The 11% Yielding Preferreds

Pacifica Yield
12.61K Followers

Summary

  • I'm buying AGNC's Series C floating rate preferreds, which currently offer an 11% yield on cost and are trading just 5 cents above their liquidation price.
  • The mREIT has five outstanding floating rate preferreds that offer an alternative and safer way to gain exposure to its portfolio of residential mortgage-backed securities.
  • I've stayed away from the commons which are trading at a nearly 20% premium to net book value albeit with a substantial 15% annualized dividend yield paid monthly.

Suburban house on a sunny day

Jennifer_Sharp/iStock via Getty Images

AGNC Investment (NASDAQ:AGNC) has five outstanding floating rate preference shares that offer an alternative and critically less risky way to gain exposure to its portfolio of residential mortgage-backed securities. I've been buying the 7.00% Series C

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12.61K Followers
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of AGNCN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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