Why AGNC Investment's Net Interest Spread Matters More Than Its 14% Dividend Yield
Key takeaways
- AGNC INTC NVDA FNMFO AGNC (NASDAQ: AGNC), one of the largest mortgage real estate investment trusts (m REITs) in the U.S., pays a forward dividend yield of 14.1%.
- As an m REIT, AGNC only buys mortgages and mortgage-backed securities (MBS).
- Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need.
AGNC INTC NVDA FNMFO AGNC (NASDAQ: AGNC), one of the largest mortgage real estate investment trusts (m REITs) in the U.S., pays a forward dividend yield of 14.1%. That massive dividend often attracts a lot of attention from income-driven investors, but is it a stable long-term investment? Let s review its net interest spread and why that metric matters much more than its dividend yield.
As an m REIT, AGNC only buys mortgages and mortgage-backed securities (MBS). To mitigate its risk, AGNC allocates 89% of its $94.7 billion portfolio to Agency MBS assets, which are backed by Fannie Mae, Freddie Mac, or Ginnie Mae. That government support should shield it from another housing market meltdown.
Will AI create the world s first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »