Wednesday, July 19, 2023

Can AGNC Finally Sustain Its Double-Digit Yield?

Shield

AN OXFORD CLUB PUBLICATION

Wealthy Retirement

View in browser

SPONSORED

The Gold Story No One's Telling

If you're thinking of buying gold, don't just buy gold mining stocks or bullion outright. Man who predicted 2020 Crash is sharing a powerful new way to see which gold stocks could realistically double your money, BEFORE you ever invest a penny. Click here for the full details.

Can AGNC Finally Sustain Its Double-Digit Yield?

Marc Lichtenfeld, Chief Income Strategist, The Oxford Club

Marc Lichtenfeld

AGNC Investment Corp. (Nasdaq: AGNC) is one of the most requested stocks in the Safety Net column because of its high yield. Today, the mortgage broker yields 14%, so you can understand why it's so popular.

But does it deserve its adulation from the income investing crowd?

More importantly, can those investors rely on that juicy 14% yield?

When I last looked at AGNC's dividend safety in January, the company had not yet reported fourth quarter 2022 results. At that time, net interest income (NII) was forecast to be $1.5 billion for 2022, falling to $1.3 billion in 2023.

AGNC didn't come close to hitting last year's projection.

NII totaled $965 million, down from $1.29 billion the year before. The good news is that NII is now expected to rise to $1.37 billion this year.

SPONSORED

A Weird Income Tactic So Simple and So Lucrative...

It Has Billionaires JOKING About It!

Taking candy from a baby HL
 

There's an unusual income tactic Warren Buffett has relied on time and time again for BILLIONS in dividend payouts.

Carl Icahn once joked it was "like taking candy from a baby."

Click Here to Discover Why One "Market Maven" Says He's Going "All-In" on This Income Method... RIGHT NOW.

There's more good news. AGNC paid shareholders $869 million in dividends, or 90% of NII.

For a mortgage real estate investment trust, anything below 100% is solid. This year's estimated $894 million in dividends will be just 65% of the projected $1.37 billion in NII - an even better margin.

So the dividend looks fine if AGNC comes anywhere close to the estimates.

However, AGNC has a horrid track record when it comes to its dividend.

Chart: AGNC Annual Dividend per Share
 

All things considered, here's what I have to say about the most requested stock in the Safety Net column...

CONTINUE READING
Investment U Conference 2024 at the Ojai Valley Inn & Spa in Ojai, California. Don't miss out!

For Free? Click Here to Get the Names and Ticker Symbols of the Top Dividend Stocks in the Market!

The Real Reason Stocks Are Tanking Under Biden

SPONSORED

Biggest $$$-Making Event in History?

This might be the single most important event of your life.

Oxford Club Chief Investment Strategist Alexander Green joins Bill O'Reilly to reveal perhaps the greatest moneymaking strategy this country has ever seen.

Take advantage of this powerful, wealth-building technique the "political elites" don't want you to see!

Join now.

No comments:

Post a Comment

Buy Alert: Top 5 AI Stocks to Buy Now

EMAIL VERSION #1 / AT Leadgen / Elon Musk's Secret AI Plan Unsubscribe ...