@BarnaclesActiv 3 months ago
A look at AGNC's 14% dividend yield
A look at AGNC's 14% dividend yield
AGNC is currently paying a 14.2% dividend yield, which comes out to $0.12 per share monthly with the stock around $10.15. They are a mortgage REIT that invests in Agency MBS using leverage.
For Q4, their return on equity was 16% versus a 15.8% cost of capital. That means the dividend is covered for now. The main thing to keep in mind is the risk of a cut. They reduced the payout from $0.16 to $0.12 in early 2020. If the MBS market deteriorates and returns fall below costs, we could see another cut, though the yield would likely remain high regardless.

www.fool.com
| You Only Need to Invest $5,000 Into AGNC Investment to Generate Over $3,500 in Dividend Income in 5 Years | The Motley Fool
@CopyRemarkable14 3 months ago
That yield looks great, but with mREITs like AGNC it’s all about the spread, if funding costs rise or MBS weakens, the dividend can change quickly.