AGNC: Double (Or Triple) Dividend Play

Robin Hannoun, CFA
141 Followers
(14min)

Summary

  • AGNC Investment Corp., a mortgage REIT, focuses on government-backed residential mortgages, offering a high dividend yield of 13.78% with monthly payouts.
  • AGNC provides liquid options that present opportunity for increasing income through collection of premiums.
  • AGNC's dividends are stable and outperform peers, supported by dynamic portfolio rebalancing and hedging, ensuring sustainability despite interest rate fluctuations.
  • With potential Fed rate cuts and global uncertainties, AGNC presents a strong buy opportunity for income-focused investors, though reinvestment is limited by REIT payout requirements.

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AGNC Business Model

AGNC Investment Corp. (NASDAQ:AGNC) is a mortgage real estate investment trust (mREIT) that invests primarily in mortgage-backed securities, specifically government-backed residential mortgages. The company focuses on paying out a minimum of 90% of its taxable income to

This article was written by

141 Followers
Robin Hannoun, CFA is a Senior Investment Analyst at Valued Wealth Management, with a Master of Finance from HEC Paris and a Master of International Business from the University of Florida. He holds bachelor’s degrees in Finance and Economics from UF and holds the illustrious CFA charter. Robin specializes in portfolio management and tactical options strategies, helping investors everywhere achieve financial goals through data-driven insights and disciplined risk management.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AGNC 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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