AGNC Investment Compared to High-Yield Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy AGNC?
Source: Fool
- High Yield Appeal: AGNC Investment currently offers a monthly dividend yield of 12.8%, significantly higher than the S&P 500's 1.2%, making it a popular choice for income-seeking investors, despite its history of dividend cuts.
- Diversified Investment Strategy: Starwood Property Trust reduces risk and enhances income stability through acquisitions of high-quality properties and investments across various asset classes, maintaining a 10.9% dividend yield without cuts over its 15-year history, showcasing strong financial resilience.
- Prudent Financial Management: Main Street Capital operates with a leverage ratio below 1x, ensuring its monthly dividends remain sustainable even in adverse market conditions, while achieving a 4% increase in dividends over the past year, reflecting its conservative financial strategy.
- Attractive Income Options: Although Starwood and Main Street offer lower dividend yields than AGNC, their lower risk profiles make them appealing choices for investors seeking stable income streams, particularly during periods of market volatility.
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Analyst Views on AGNC
Wall Street analysts forecast AGNC stock price to rise
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 11.350
Low
10.00
Averages
11.71
High
13.00
Current: 11.350
Low
10.00
Averages
11.71
High
13.00
About AGNC
AGNC Investment Corp. is an internally managed real estate investment trust (REIT). The Company provides private capital to the United States housing market, enhancing liquidity in the residential real estate mortgage markets and, in turn, facilitating home ownership in the United States. The Company invests primarily in Agency residential mortgage-backed securities (Agency RMBS) on a leveraged basis. These investments consist of residential mortgage pass-through securities and collateralized mortgage obligations for which the principal and interest payments are guaranteed by a United States Government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac, and together with Fannie Mae, the GSEs), or by a United States Government agency, such as the Government National Mortgage Association (Ginnie Mae). It may also invest in other assets related to the housing, mortgage or real estate markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AGNC Investment's High-Yield Dividend Attracts Investors
- High-Yield Dividend: AGNC Investment currently offers a monthly dividend yield of 12.8%, significantly higher than the S&P 500's 1.2%, making it a popular choice for income-seeking investors and highlighting its appeal in the high-yield investment space.
- Diversification Strategy: Starwood Property Trust enhances its portfolio through acquisitions like the $2.2 billion Fundamental Income Properties, ensuring a stable 10.9% dividend while maintaining a history of never cutting dividends in its 15 years as a public company, demonstrating robust financial management.
- Risk Management Advantage: With a leverage ratio below 3x compared to AGNC's over 7x, Starwood's lower leverage strategy reduces risk, allowing it to maintain stable dividend payments during market fluctuations, thereby boosting investor confidence.
- Unique Dividend Policy: Main Street Capital not only provides monthly dividends but also includes periodic supplemental quarterly dividends, maintaining a stable payout over the past few years with an annualized yield of 7.6%, offering investors an additional income stream when market conditions are favorable.
See More
AGNC Investment Compared to High-Yield Stocks
- High Yield Appeal: AGNC Investment currently offers a monthly dividend yield of 12.8%, significantly higher than the S&P 500's 1.2%, making it a popular choice for income-seeking investors, despite its history of dividend cuts.
- Diversified Investment Strategy: Starwood Property Trust reduces risk and enhances income stability through acquisitions of high-quality properties and investments across various asset classes, maintaining a 10.9% dividend yield without cuts over its 15-year history, showcasing strong financial resilience.
- Prudent Financial Management: Main Street Capital operates with a leverage ratio below 1x, ensuring its monthly dividends remain sustainable even in adverse market conditions, while achieving a 4% increase in dividends over the past year, reflecting its conservative financial strategy.
- Attractive Income Options: Although Starwood and Main Street offer lower dividend yields than AGNC, their lower risk profiles make them appealing choices for investors seeking stable income streams, particularly during periods of market volatility.
See More
High-Yield Stocks Boost Passive Income Potential
- AGNC Investment Returns: With a dividend yield of 12.6%, investing $1,000 in AGNC generates $125.80 in annual income, showcasing its strength in low-risk fixed-income investments, and it is expected to continue paying high dividends.
- Ares Capital Growth Potential: Ares Capital offers a 10% dividend yield, providing $100.30 in annual income from a $1,000 investment, and with a $29.5 billion portfolio and stable earnings, it is likely to maintain its 16-year record of stable dividend payments.
- Western Midstream Cash Flow: With an 8.9% dividend yield, a $1,000 investment in Western Midstream yields $88.60 annually, and last year, its cash flow was sufficient to cover distributions and capital expenditures, indicating future distribution increases.
- Market Appeal: The stable dividend payment records of these three high-yield stocks make them attractive options for investors looking to turn $3,000 into hundreds of dollars in annual passive income, especially in the current market environment.
See More
High-Yield Stocks Maintain Strong Dividend Performance
- AGNC's Stable Dividends: AGNC Investment has maintained its monthly dividend of 12.6% for over five years, with a 16% return on equity in Q4 2022, ensuring sustainability and attracting income-seeking investors.
- Ares Capital's Growth Potential: As the largest business development company, Ares Capital has delivered stable or increasing dividends for over 16 years, with a weighted average yield of 9.3%, and committed $5.8 billion in new investments last quarter, showcasing strong capital growth capabilities.
- Western Midstream's Cash Flow Advantage: Western Midstream Partners generated enough cash flow last year to cover its distributions and capital expenditures, with $95 million in excess free cash flow enhancing financial flexibility, and plans to achieve a 2.2% distribution increase by 2026 to support future payouts.
- Demand for High-Yield Stocks: With the S&P 500's dividend yield at a mere 1.1%, companies like AGNC, Ares, and Western Midstream offer yields above market averages, allowing investors to generate $314.7 in annual passive income from a $3,000 investment, appealing to those seeking high returns.
See More
Robinhood and Royal Caribbean See Active Options Trading
- Robinhood Options Volume: Robinhood Markets Inc saw options trading volume of 153,085 contracts, representing approximately 15.3 million underlying shares, which is about 41.5% of its average daily trading volume of 36.9 million shares over the past month, indicating strong investor interest in the stock.
- High Volume Contracts: Notably, the $80 strike call option expiring on February 20, 2026, has seen 12,436 contracts traded today, equating to approximately 1.2 million underlying shares, suggesting a bullish outlook on Robinhood's future performance.
- Royal Caribbean Options Activity: In parallel, Royal Caribbean Group experienced options trading volume of 10,645 contracts, representing around 1.1 million underlying shares, or about 41.4% of its average daily trading volume of 2.6 million shares over the past month, reflecting active trading in the stock.
- Key Contract Insights: Particularly, the $360 strike call option expiring on March 20, 2026, has seen 4,035 contracts traded today, representing approximately 403,500 underlying shares, indicating investor confidence in Royal Caribbean's growth prospects.
See More
Comparison of Dividends: AGNC Investment vs Realty Income
- Dividend Yield Volatility: AGNC Investment has maintained a dividend yield above 10% for most of its existence; however, its unreliable nature stems from significant volatility and a long-term downward trend in dividends over the past decade, potentially leading to reduced income and capital for investors.
- Total Return Performance: While AGNC Investment has outperformed the S&P 500 in total return since its IPO in May 2008, relying on dividends for living expenses without reinvestment poses a risk of diminished income for dividend investors.
- Reliability of Realty Income: In contrast, Realty Income has consistently increased its dividend annually for three decades, with an annualized growth rate of approximately 4.2%, slightly above the long-term inflation growth rate, indicating a steady increase in the purchasing power of its dividends over time.
- Diversified Portfolio: Realty Income is recognized for its diversified portfolio and conservative financial strategies; although its 4.9% yield is lower than AGNC Investment's 12.6%, it still offers an attractive income stream compared to other options in the market.
See More
AGNC Investment's High-Yield Dividend Attracts Investors
- High-Yield Dividend: AGNC Investment currently offers a monthly dividend yield of 12.8%, significantly higher than the S&P 500's 1.2%, making it a popular choice for income-seeking investors and highlighting its appeal in the high-yield investment space.
- Diversification Strategy: Starwood Property Trust enhances its portfolio through acquisitions like the $2.2 billion Fundamental Income Properties, ensuring a stable 10.9% dividend while maintaining a history of never cutting dividends in its 15 years as a public company, demonstrating robust financial management.
- Risk Management Advantage: With a leverage ratio below 3x compared to AGNC's over 7x, Starwood's lower leverage strategy reduces risk, allowing it to maintain stable dividend payments during market fluctuations, thereby boosting investor confidence.
- Unique Dividend Policy: Main Street Capital not only provides monthly dividends but also includes periodic supplemental quarterly dividends, maintaining a stable payout over the past few years with an annualized yield of 7.6%, offering investors an additional income stream when market conditions are favorable.
See More
AGNC Investment Compared to High-Yield Stocks
- High Yield Appeal: AGNC Investment currently offers a monthly dividend yield of 12.8%, significantly higher than the S&P 500's 1.2%, making it a popular choice for income-seeking investors, despite its history of dividend cuts.
- Diversified Investment Strategy: Starwood Property Trust reduces risk and enhances income stability through acquisitions of high-quality properties and investments across various asset classes, maintaining a 10.9% dividend yield without cuts over its 15-year history, showcasing strong financial resilience.
- Prudent Financial Management: Main Street Capital operates with a leverage ratio below 1x, ensuring its monthly dividends remain sustainable even in adverse market conditions, while achieving a 4% increase in dividends over the past year, reflecting its conservative financial strategy.
- Attractive Income Options: Although Starwood and Main Street offer lower dividend yields than AGNC, their lower risk profiles make them appealing choices for investors seeking stable income streams, particularly during periods of market volatility.
See More
High-Yield Stocks Boost Passive Income Potential
- AGNC Investment Returns: With a dividend yield of 12.6%, investing $1,000 in AGNC generates $125.80 in annual income, showcasing its strength in low-risk fixed-income investments, and it is expected to continue paying high dividends.
- Ares Capital Growth Potential: Ares Capital offers a 10% dividend yield, providing $100.30 in annual income from a $1,000 investment, and with a $29.5 billion portfolio and stable earnings, it is likely to maintain its 16-year record of stable dividend payments.
- Western Midstream Cash Flow: With an 8.9% dividend yield, a $1,000 investment in Western Midstream yields $88.60 annually, and last year, its cash flow was sufficient to cover distributions and capital expenditures, indicating future distribution increases.
- Market Appeal: The stable dividend payment records of these three high-yield stocks make them attractive options for investors looking to turn $3,000 into hundreds of dollars in annual passive income, especially in the current market environment.
See More
High-Yield Stocks Maintain Strong Dividend Performance
- AGNC's Stable Dividends: AGNC Investment has maintained its monthly dividend of 12.6% for over five years, with a 16% return on equity in Q4 2022, ensuring sustainability and attracting income-seeking investors.
- Ares Capital's Growth Potential: As the largest business development company, Ares Capital has delivered stable or increasing dividends for over 16 years, with a weighted average yield of 9.3%, and committed $5.8 billion in new investments last quarter, showcasing strong capital growth capabilities.
- Western Midstream's Cash Flow Advantage: Western Midstream Partners generated enough cash flow last year to cover its distributions and capital expenditures, with $95 million in excess free cash flow enhancing financial flexibility, and plans to achieve a 2.2% distribution increase by 2026 to support future payouts.
- Demand for High-Yield Stocks: With the S&P 500's dividend yield at a mere 1.1%, companies like AGNC, Ares, and Western Midstream offer yields above market averages, allowing investors to generate $314.7 in annual passive income from a $3,000 investment, appealing to those seeking high returns.
See More
Robinhood and Royal Caribbean See Active Options Trading
- Robinhood Options Volume: Robinhood Markets Inc saw options trading volume of 153,085 contracts, representing approximately 15.3 million underlying shares, which is about 41.5% of its average daily trading volume of 36.9 million shares over the past month, indicating strong investor interest in the stock.
- High Volume Contracts: Notably, the $80 strike call option expiring on February 20, 2026, has seen 12,436 contracts traded today, equating to approximately 1.2 million underlying shares, suggesting a bullish outlook on Robinhood's future performance.
- Royal Caribbean Options Activity: In parallel, Royal Caribbean Group experienced options trading volume of 10,645 contracts, representing around 1.1 million underlying shares, or about 41.4% of its average daily trading volume of 2.6 million shares over the past month, reflecting active trading in the stock.
- Key Contract Insights: Particularly, the $360 strike call option expiring on March 20, 2026, has seen 4,035 contracts traded today, representing approximately 403,500 underlying shares, indicating investor confidence in Royal Caribbean's growth prospects.
See More
Comparison of Dividends: AGNC Investment vs Realty Income
- Dividend Yield Volatility: AGNC Investment has maintained a dividend yield above 10% for most of its existence; however, its unreliable nature stems from significant volatility and a long-term downward trend in dividends over the past decade, potentially leading to reduced income and capital for investors.
- Total Return Performance: While AGNC Investment has outperformed the S&P 500 in total return since its IPO in May 2008, relying on dividends for living expenses without reinvestment poses a risk of diminished income for dividend investors.
- Reliability of Realty Income: In contrast, Realty Income has consistently increased its dividend annually for three decades, with an annualized growth rate of approximately 4.2%, slightly above the long-term inflation growth rate, indicating a steady increase in the purchasing power of its dividends over time.
- Diversified Portfolio: Realty Income is recognized for its diversified portfolio and conservative financial strategies; although its 4.9% yield is lower than AGNC Investment's 12.6%, it still offers an attractive income stream compared to other options in the market.
See More
