AGNC Stock Recent News

AGNC Investment (AGNC 0.45%) always seems to pop up on screens for high-yield stocks. In fact, the mortgage real estate investment trust (REIT) has had a dividend yield above 10% for the vast majority of its existence.

Not all REITs are worth buying. I highlight three popular REITs to avoid. I then present a few better alternatives to buy.

AGNC Investment Corp. yields nearly 16% after Q1 earnings due to a combination of price pullback and its latest payout declaration. However, I see a few signs of a dividend trap that I've learned from past experiences. Key AGNC red flags include declining EPS, an unsustainably high payout ratio, and shrinking tangible book value per share.

It never hurts to hold dividend stocks – especially when markets get uncontrollably volatile.

Real estate investment trusts (REITs) can be great dividend stocks. Many of these companies offer big-time dividend yields.

AGNC Investment offers a compelling 16% yield, with stabilized book value and two consecutive quarters of positive net interest income. Moderating inflation and consensus forecasts for 2-3 rate cuts in 2025 should benefit AGNC and support earnings growth. AGNC trades at a modest 1.02x price-to-book ratio, making it attractively valued compared to peers, especially as rate cuts approach.

Dividends are great, particularly if you need investment income to cover life's ordinary expenses. Let's face it, though: The typical quarterly cadence of most dividend stocks' payments isn't exactly ideal.

Barron's interviewed eleven financial industry Roundtable-pros who tapped 65 predictions. Six non-ADR foreign-stocks and four mutual funds were dropped by YCharts screens of active US listings, leaving 55. AT&T stands out as the only 'safer' ideal dividend dog, with its price well below annual dividends from a $1,000 investment. Top ten yield picks project average 28.12% total return by May 2026, with risk/volatility 12% below the market average.

There are many ways to make some passive income. Investing in real estate and high-yielding dividend stocks are two tried-and-true methods.

AGNC's attractive dividend yield and discounted valuation look encouraging. Read on to know whether it is worth adding to your portfolio.