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SummaryAGNC Investment Corp. offers a high 16% dividend yield but suffers from persistent book value per share decay.Despite strong income production and internal management, AGNC's history of dilution and poor performance during volatility limits its total return potential.AGNC currently trades at a 1.23x price-to-book, the high end of its historical range, raising the risk of multiple compression.I rate AGNC a Hold, expecting 6–8% annual total returns, as dividend yield is offset by ongoing book value erosion.Looking for option income ideas that focus on capital preservation? I offer this and much more at my exclusive investing ideas service, Option Income Builder. Learn More » deepblue4you/iStock via Getty Images

When it comes to building an income-producing portfolio, inevitably investors stumble across mortgage REITs: companies that buy up residential and commercial mortgages and earn interest on the spread between their borrowing costs and whatever interest rates the

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Key Takeaways AGNC's net interest spread fell y/y to 1.86% in Q3 as funding costs outpaced asset yield improvements.Net spread and dollar roll income fell to 37 cents, while net interest income rose to $402M.Attractive Agency MBS valuations offer support, but leverage and dividend coverage remain concerning.
AGNC Investment Corp. (AGNC - Free Report) witnessed a contraction in its net interest spread in the third quarter of 2026, as higher funding costs outpaced improvements in asset yields. The company's annualized net interest spread declined to 1.86% from 2% in the preceding quarter, reflecting increased financing costs and reduced benefits from interest rate swaps. The narrowing spread weighed on its net spread and dollar roll income, raising concerns about near-term earnings sustainability.

Despite these challenges, AGNC's sizable investment portfolio, declining mortgage prepayment rates and attractive Agency mortgage-backed securities (MBS) valuations offer potential support for future income generation. However, persistent interest rate volatility and elevated funding costs could continue to pressure profitability.

Higher Funding Costs Weigh on AGNC's Interest SpreadDuring the third quarter, AGNC Investment's average asset yield, including to-be-announced (TBA) securities and excluding catch-up premium amortization, increased to 4.95% from 4.89% in the prior quarter. However, the company's combined weighted average cost of funds, including interest rate swaps, rose to 3.09% from 2.89%.

The increase in financing costs more than offset the modest improvement in asset yields, resulting in a 14-basis-point sequential contraction in the net interest spread.

The average funding cost on repurchase agreements increased to 3.77% from 3.74% in the preceding quarter. Similarly, the implied financing costs of TBA securities rose to 3.64% from 3.46%. The benefit from periodic interest rate swap income declined, adding to the pressure on overall funding costs.
Consequently, AGNC's net spread and dollar roll income, excluding catch-up premium amortization, declined to 37 cents per common share from 40 cents in the previous quarter. In absolute terms, this income decreased to $444 million from $462 million.

Nevertheless, GAAP net interest income increased to $402 million from $305 million in the preceding quarter, supported by higher interest income from its investment securities. This indicates that portfolio income growth partly offset the impacts of rising financing expenses, even as the company's underlying economic interest spread weakened.

Can AGNC's Portfolio Support Future Income Growth?AGNC's substantial investment portfolio and improving mortgage prepayment dynamics could offer some support to future earnings. As of Sept. 30, 2026, its investment portfolio totaled $94.4 billion, including $91.4 billion in Agency MBS.

The company's actual portfolio constant prepayment rate declined to 8.2% in the third quarter from 13.0% in the preceding quarter. Its projected portfolio life prepayment rate also decreased to 6.7% from 8.6%. Slower mortgage prepayments could reduce premium amortization pressure and support asset yields, providing some relief to interest income.

Management also highlighted improving investment opportunities in Agency MBS, as mortgage spreads to benchmark rates approached the upper end of their multi-year trading range. More attractive valuations, lower prepayment risks and balanced supply-demand conditions could benefit portfolio returns once Treasury market volatility subsides.

AGNC Investment maintained $6.3 billion in unencumbered cash and Agency MBS as of September 2026, providing financial flexibility to navigate market volatility and pursue investment opportunities.

However, elevated leverage remains concerning. The company's tangible net book value at-risk leverage increased to 7.9 times from 7.4 times in the preceding quarter. Meanwhile, tangible net book value per share declined 16.9% sequentially to $7.13, highlighting its sensitivity to interest rate movements and mortgage market conditions.

What Lies Ahead for AGNC?AGNC Investment's near-term income prospects will likely depend on the direction of funding costs, interest rate volatility and Agency MBS spreads. While slowing mortgage prepayments and attractive portfolio valuations provide opportunities to improve asset returns, continued funding cost pressures and reduced interest rate swap income could restrict net interest spread expansion.

The company's quarterly dividend of 36 cents per share also remained close to its net spread and dollar roll income of 37 cents per share, leaving a limited cushion. Sustained pressure on recurring earnings could make dividend coverage an important metric to monitor.

Overall, AGNC Investment's portfolio scale, liquidity position and favorable longer-term outlook for Agency MBS provide some optimism. However, until financing costs stabilize and net interest spreads improve, the company's income growth potential could remain constrained.

Over the past year, AGNC shares have declined 13% compared with the industry’s fall of 24.4%.

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AGNC Investment’s Peer PerformanceOther mortgage REITs, including Annaly Capital Management (NLY - Free Report) and ARMOUR Residential REIT (ARR - Free Report) , also faced challenges from interest rate volatility and widening Agency MBS spreads in the third quarter of 2026.

Annaly Capital Management reported earnings available for distribution of 80 cents per share, up from 79 cents in the preceding quarter. However, its net interest spread, excluding premium amortization adjustments, narrowed to 1.42% from 1.50%. Its book value per common share declined to $17.86 from $20.15 in the prior quarter.

Meanwhile, ARMOUR Residential REIT reported distributable earnings of 71 cents per common share, down from 72 cents in the prior quarter. Its book value per common share declined to $14.55 from $17.53, reflecting challenging mortgage market conditions.

These results highlight broader profitability and book-value pressures across the mortgage REIT industry, emphasizing the importance of funding cost management, portfolio positioning and disciplined leverage.

October's top ten monthly-pay dividend equities offer forecasted net gains from 28.06% to 89.66% by 2027, with an average gain of 50.94%. Banco BBVA Argentina (BBAR) and Banco Macro (BMA) lead the MoPay group, with analyst targets implying the highest total returns and significant price upsides. Yield-based MoPay stock selection proved 70–80% accurate versus analyst upside forecasts, favoring financial and real estate sectors for both yield and price appreciation.

Five U.S.-listed securities all clear the 5.22% risk-free bar heading into November, but their safety profiles range from rock-solid free cash flow coverage to something far more precarious. Knowing which is which could be the difference between collecting a fat…

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Income investors are already paid well to wait. The 10-year Treasury yield stands at 5.22%, so any dividend payer held into November has to beat that risk-free bar by enough to justify its added risk. The five U.S.-listed securities below all clear it, and each has a payout either scheduled or building before the calendar turns. Their safety profiles are very different, though. Some are covered by free cash flow, and some depend entirely on access to capital markets. That is why this bundle starts with the best-covered payout and works down from there.

Plains All American Pipeline: Raised Payout With Free Cash Flow to Spare
Plains All American Pipeline (NASDAQ:PAA | PAA Price Prediction) pays a quarterly distribution of $0.4175 per unit, or $1.67 annualized. With a recent price of $24.45, that works out to a 6.8% yield, enough to count as ultra-high-yield. Units must be held before the October 30 ex-dividend date to collect the November 13 payment.

Dividend safety: Management raised full-year guidance to roughly $1.85 billion of adjusted free cash flow and $2.88B of adjusted EBITDA. With 705,566,000 units outstanding, that free cash flow covers the annualized distribution about 1.57 times. First-quarter operating cash flow of $418 million easily covered $132 million of capex. The payout has also grown every year since the reset: $0.18 per quarter in 2021, $0.2675 in 2023, $0.38 in 2025, and $0.4175 this year. That rise came after a 2020 cut from $0.36 to $0.18, a reminder that the payout has been reduced before.

Bull case: Permian pipeline volumes rose to 10,039 kbpd from 9,086 kbpd, which lifted Crude Oil segment adjusted EBITDA 4% to $582 million. The completed Cactus III acquisition adds more fee-based throughput. Units trade at about 13 times forward earnings after a 63.74% one-year gain.

Risk: Leverage was 4.1x in the first quarter, above the 3.25x to 3.75x target. Getting back into that range depends on closing the pending NGL sale to Keyera.

AGNC Investment: Steady $0.12 Monthly Checks at a 16.6% Yield
AGNC Investment (NASDAQ:AGNC) declared another $0.12 monthly dividend on October 7. It goes ex-dividend on October 30 and pays on November 10. The annualized $1.44 against an $8.67 share price gives an ultra-high 16.6% yield.

Dividend safety: Second-quarter EPS came in at $0.40, ahead of the $0.38 estimate and above the $0.36 paid out over the quarter. In the first quarter, net spread and dollar roll income reached $0.42 per share. Tangible net book value rose 2.4% to $8.58, and the net interest spread held at 2.00%. The dividend has been $0.12 every month since the 2020-04-29 ex-date. Before that, it stepped down from $0.20 to $0.18 to $0.16, so the overall record reflects relative stability.

Bull case: Management says agency MBS spreads remain elevated versus historically tight corporate bonds, which supports returns on its roughly $97.2 billion portfolio. Shares fell 16.42% over the past month, which raised the yield for new buyers. They now trade at about four times trailing earnings and 1.11 times book. AGNC is also joining the S&P MidCap 400.

Risk: Leverage of about 7.4x, funded with repo borrowing at a 13-day weighted average maturity, means a rate shock can quickly hurt book value. That happened in the first quarter, when tangible book fell 5.6%.

Strategy Stretch Preferred: 12% Paid Twice a Month
Strategy Inc. Variable Rate Series A Perpetual Stretch Preferred (NASDAQ:STRC) has a 12.00% annualized rate, paid as $0.50 semi-monthly payments. At $99.78, the yield on price is about 12.0%, which puts it in ultra-high-yield territory. The October 30 ex-date pays November 15.

Dividend safety: This payout relies on reserves: Strategy Inc. holds a $3.75 billion USD Reserve that covers roughly 2.1 years of preferred dividends and interest. It paid $400.7 million in preferred dividends last quarter. The balance sheet holds 846,000 units of Bitcoin (CRYPTO:BTC), has a market value of $49.7 billion against a $63.9 billion cost basis, along with $6.7 billion of convertible debt. STRC is a recently issued security with no long dividend record. The board raised the rate from 11.50% to keep the shares trading near par.

Bull case: That rate increase is working. Shares sit close to the $100 target par, up from a 52-week low of $68.63. A $1.0 billion repurchase program, with about $975 million left, steps in to buy below par, which gives holders a defined source of price support.

Risk: Dividend coverage depends on Strategy Inc.’s continued access to equity markets. A sharp drop in Bitcoin could shrink that access. The second quarter’s $8.22 billion GAAP net loss came almost entirely from unrealized Bitcoin losses.

Strive Series A Preferred: 13% Paid Every Business Day
Strive Variable Rate Series A Perpetual Preferred (NASDAQ:SATA) pays cash every U.S. business day at a 13.00% annualized rate, an ultra-high yield on a perpetual preferred trading at $99.46. Daily payments began June 16, so income keeps arriving through November without a single ex-dividend date to plan around.

Dividend safety: Strive is debt-free, with zero pledged Bitcoin and no margin requirements. It held $87.6 million in cash plus a $48.0 million position in STRC, against $26.2 million of SATA dividends declared in its latest quarter. That cash covers several quarters of payouts, but operating earnings cover none of it: the latest non-GAAP loss was $3.65 per share. The daily-dividend record goes back only a few months.

The bull case is straightforward: the Semler Scientific merger raised Bitcoin holdings to 15,009 BTC. With no debt on the balance sheet, no lenders hold claims that rank ahead of SATA. Shares are up 16.77% over the trailing year, and the firm manages more than $2.7 billion in client assets.

Risk: Funding the dividend over time depends on issuing more stock and monetizing Bitcoin, so shareholders face ongoing dilution, and any Bitcoin decline hits Strive directly.

ETRACS Crude Oil Shares Covered Call ETN: Biggest Checks, Least Predictable
ETRACS Crude Oil Shares Covered Call ETN (NASDAQ:USOI) paid $23.9829 over the trailing 12 months. Against a $46.23 price, that is a 51.9% trailing yield. The next distribution of $3.1386 goes ex on October 21 and pays October 26, the first check in this bundle.

Dividend safety: Payouts depend on option income: distributions come from premiums on covered calls written against a crude oil fund. Monthly amounts in the record have ranged from $0.3835 to $7.4743. The “balance sheet” that matters is the issuer’s: the note is an unsecured obligation on the UBS platform that absorbed Credit Suisse, and it matures in 2037. Payments have arrived monthly without a gap in the available history.

Bull case: Volatile crude markets produce higher option premiums. The EIA’s May outlook put third-quarter WTI at an average of $90.06. The note has gained 49.89% year to date, so recent holders have received both income and price gains.

Risk: The same EIA outlook projects WTI falling to $83.00 in the fourth quarter and averaging $74.39 next year. Calmer, lower oil prices would mean smaller premiums and gradual erosion of the note’s value.

Ranking the November Payouts by Safety
Plains All American has the best-covered payout in this group, backed by free cash flow that clears its distribution about 1.57 times. AGNC adds monthly income with earnings that currently exceed the dividend. Both Bitcoin-linked preferreds and USOI offer bigger stated yields, but each relies on outside funding sources: equity markets for Strategy Inc. and Strive, and oil volatility for USOI. A double-digit yield almost always signals that the market suspects something, and we listed the seven warning signs that a payout is about to be cut in a free dividend trap guide here. Plains and AGNC have the strongest coverage in this group, while the other three pair higher yields with greater funding risk.

Contact [email protected] for any questions or corrections.

$8.80+$0.36 (+4.26%)

NASDAQ · As of 4:00 PM ET 10/20/26

AGNC Investment (AGNC +4.26%), an agency mortgage REIT, closed at $8.80, up 4.3%. AGNC rose despite releasing quarterly results showing a book value decline. Meanwhile, investors monitored Tuesday's earnings call for details. They're also awaiting news on interest rates at the upcoming Fed meeting that concludes on Oct. 28.

Trading volume reached 36.7M shares, coming in about 29% above its three-month average of 28.5M shares. AGNC Investment priced its IPO in 2008 and has fallen 54% since going public.

How the markets moved todayS&P 500 (SNPINDEX: ^GSPC) closed at 7,713, up 0.3%, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) finished at 26,425, down 0.02%. Among mortgage REIT focused on agency residential mortgage-backed securities peers, Annaly Capital Management (NLY +3.22%) closed at $18.29, up 3.2%, and Rithm Capital (RITM +2.37%) closed at $8.64, up 2.4%, signaling firmer sector tone.

What this means for investorsAGNC's results are very sensitive to short- and long-term interest rates. That's because the company earns a spread between the two as it borrows to purchase long-term mortgage-backed securities.

Management noted that rising Treasury yields and wider agency mortgage-backed securities spreads pressured book value, helping explain today's active stock trading. Looking at the recently reported third-quarter results, AGNC reported a 16.9% drop in tangible book value.

Still, the company said new investments point to an 18% to 20% return on equity. Investors will undoubtedly monitor the interest rate spread to see if that's sustainable.

Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

3 Dividend Stocks Under $50 That Pay You to Wait Out InflationAGNC Investment NASDAQ: AGNC reported a comprehensive loss of $1.28 per common share for the third quarter of 2026, as a sharp rise in Treasury yields and widening mortgage-backed securities spreads pressured the company’s portfolio.

The company’s economic return on tangible common equity was negative 12.7% during the quarter, consisting of $0.36 per share in declared dividends and a $1.45 decline in tangible net book value per share, Chief Financial Officer Bernie Bell said. Bell attributed the book-value decline to the underperformance of AGNC’s mortgage assets relative to its interest-rate hedges.

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3 Ultra-High Dividend Yield Stocks for the New YearAs of the Friday before the earnings call, tangible net book value per common share had risen 3% from the end of the quarter, or slightly more than 2% after accounting for the October dividend accrual, Bell said.

Rates and MBS markets face substantial pressure
President, Chief Executive Officer and Chief Investment Officer Peter Federico said fixed-income markets deteriorated significantly late in the quarter amid monetary-policy uncertainty, mixed inflation data, high corporate debt issuance, geopolitical risks, elevated energy prices and stronger-than-expected domestic economic growth.

6 Mortgage REITS: How Badly Could Rising Rates Hurt Them?Fed Chairman Warsh’s signal of a more restrictive policy stance at the August Jackson Hole Symposium, followed by a 25-basis-point federal funds rate increase in September, prompted a substantial market repricing, Federico said. Market expectations shifted from three rate cuts by year-end earlier in the year to four rate hikes by mid-2027 following the September meeting.

The 10-year Treasury yield rose 82 basis points during the quarter, including a 54-basis-point increase in September. The Bloomberg U.S. Aggregate Bond Index returned negative 3.5% in the period, while the Bloomberg Agency MBS Index posted a negative 4.25% total return. On a duration-matched basis, Agency MBS underperformed Treasuries by nearly 120 basis points, Federico said.

“Since 2010, the Agency MBS Index has underperformed Treasuries by a wider margin in only two other quarters,” Federico said.

Company cites more attractive mortgage-market outlook
Despite the quarter’s market weakness, Federico said Agency MBS valuations and cash-flow characteristics have improved. At quarter-end, new-production current-coupon Agency MBS yielded close to 6.5%, while current-coupon MBS spreads were about 135 basis points to Treasuries and 165 basis points to swaps.

He said extension risk has diminished because mortgage durations have largely reached an inflection point at current rate levels. Prepayment risk has also decreased: Less than 2% of the outstanding mortgage universe had a 50-basis-point refinancing incentive, according to Federico. Even if mortgage rates declined by 100 basis points, the refinanceable share of the market would rise to only about 10%.

Federico also pointed to reduced expected Agency MBS supply as primary mortgage rates remained near 7.5%, as well as anticipated demand from bond funds, banks, government-sponsored enterprises and other investors. Still, he cautioned that Agency MBS performance could remain sensitive to elevated interest-rate volatility and macroeconomic uncertainty in the near term.

During the question-and-answer session, Federico said AGNC’s expected return on equity for newly purchased mortgage assets was approximately 18% to 20% at prevailing mortgage valuations. He said that estimate assumed spreads around 135 basis points to Treasuries and 165 basis points to swaps, along with leverage in the mid-7x range.

Capital raise supports asset growth and liquidity
AGNC was added to the S&P MidCap 400 Index during the quarter. Bell said the related index rebalancing activity created significant trading volume in the company’s shares, enabling AGNC to issue $992 million of common stock through its at-the-market offering program at what he described as a significant premium to tangible net book value.

The proceeds helped the company maintain its leverage profile while expanding its asset portfolio by $2.5 billion on a cost basis at wider spreads. Leverage increased to 7.9 times tangible equity at quarter-end, from 7.4 times at the end of the second quarter. AGNC ended the period with $6.3 billion of unencumbered cash and Agency MBS, equal to 57% of tangible equity.

Net spread and dollar roll income was $0.37 per common share, down $0.03 from the previous quarter. Bell said the decline reflected a 14-basis-point decrease in net interest spread as higher funding costs outweighed higher asset yields, along with a modest drag from capital that had been raised but not yet deployed.

Portfolio shifts toward specified pools and longer-term hedges
AGNC’s asset portfolio had a market value of $94 billion at quarter-end. The company purchased $2 billion of primarily intermediate-coupon specified pools during the quarter and shifted the portfolio toward higher coupons, increasing its weighted average coupon to 5.13%.

Federico said 83% of portfolio assets had favorable prepayment characteristics following the purchases and repositioning. He noted that specified pools can provide both call protection when rates fall and extension protection when rates rise.

AGNC increased its hedge portfolio, excluding receiver options, by more than $12 billion from the prior quarter to $86 billion, largely through longer-term Treasury-based hedges. The company added hedges to offset mortgage-duration extension as rates rose, leaving its duration gap nearly unchanged at 0.8 years at quarter-end.

Federico said the company may opportunistically increase leverage if market stability improves, but it had prioritized risk management during the volatile quarter. He also said AGNC would likely use more swap-based hedges over time after relying heavily on Treasury hedges for delta hedging during the quarter.

About AGNC Investment (NASDAQ:AGNC)AGNC Investment Corp. is a real estate investment trust (REIT) that invests primarily in residential mortgage pass-through securities and collateralized mortgage obligations for which principal and interest payments are guaranteed by a U.S. government-sponsored enterprise or a U.S. government agency. These investments are commonly referred to as agency mortgage-backed securities.

The company seeks to generate income through the difference between the yield on its investment portfolio and its borrowing costs, while managing interest-rate, prepayment and other market risks.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Interest rates have moved sharply this year. The 10-year Treasury yield is currently over 5%, near its highest level in a quarter century, and up from its low near 4% before the war with Iran began.

Some dividend stocks are highly sensitive to changes in interest rates, while others aren't. Here's a look at how rates affect seven popular income stocks.

Image source: Getty Images.

AGNC Investment
AGNC Investment (AGNC +3.91%) currently yields nearly 17%. Shares of the mortgage REIT have tumbled over the past couple of months, driven lower by the surge in the 10-year:

AGNC data by YCharts

That's due to two factors. Mortgage REITs typically borrow short-term to fund their long-term mortgage investments. Rising rates increase their borrowing costs, narrowing the spread between the income generated by their mortgage investments and their costs. Additionally, rising rates make lower-risk investments like Treasuries more attractive to income-seeking investors. That puts downward pressure on the share price of higher-risk, income-generating investments like REITs, driving up their yields to compensate investors for their higher risk profile. In AGNC's case, its yield has risen from around 13% to 17%.

Annaly Capital Management
Annaly Capital Management (NLY +2.46%) currently yields over 16%. Like AGNC, it's a mortgage REIT highly sensitive to changes in interest rates. Its share price is currently down more than 25% from its peak, following AGNC's decline.

NLY Annaly Capital Management$18.16+$0.44 (+2.46%)

NYSE · As of 1:43 PM ET 10/20/26

Annaly is slightly less sensitive to rate changes than AGNC because it has lower leverage and greater diversification (it also invests in mortgage servicing rights). However, these two dividend stocks are among the most sensitive to rate changes due to their business models.

Coca-Cola
Coca-Cola (KO -0.51%) currently yields around 2.3%. The beverage giant is the opposite of mortgage REITs: its business is highly rate-insensitive. Its share price has risen sharply this year (by more than 30%), accelerating its rise amid the recent surge in rates.

Coca-Cola has several resilient features that insulate it from the impact of rising rates. It has a fortress balance sheet primarily consisting of long-term, fixed-rate debt. Meanwhile, its business has pricing power, allowing it to raise prices to offset higher costs (inflation and interest expenses). These more durable features make Coca-Cola an ideal stock to hold in any market environment.

Energy Transfer
Energy Transfer (ET -0.07%) currently yields around 6.7%. The master limited partnership (MLP) has mixed sensitivity to changes in interest rates. As a high-yielding investment, higher rates tend to put downward pressure on its market value to boost its yield (its unit price is currently down more than 7% from its high earlier this year). It also tends to borrow heavily to fund its expansion (organic capital projects and acquisitions). As a result, it will experience some impact from higher borrowing costs.

ET Energy Transfer$20.10-$0.02 (-0.07%)

TXSE · As of 1:43 PM ET 10/20/26

However, Energy Transfer has some rate offsets. One of the factors driving rates up these days is inflation, largely due to higher energy prices. Those prices benefit Energy Transfer as it has some commodity-sensitive cash flows (about 10% of its earnings).

Enterprise Products Partners
Enterprise Products Partners (EPD -0.08%) currently yields around 6.1%. Like Energy Transfer, it's an MLP. As a result, it, too, has some rate sensitivity. For example, its unit price is also down over 7% from its peak earlier this year, pushing up its yield.

However, it has similar offsets. It has a little bit more commodity price sensitivity than Energy Transfer at about 80% of its earnings during the first half of this year. As a result, it's currently benefiting from the surge in oil and gas prices, which should help mitigate much of the impact of higher interest expenses from rising rates.

Realty Income
Realty Income (O +1.04%) currently yields 5.9%. As a REIT, it's more sensitive to rates, though not as sensitive as mortgage REITs. Its share price has fallen more than 15% from its peak earlier this year, driving up its dividend yield to compensate investors for its higher risk profile.

O Realty Income$56.09+$0.58 (+1.04%)

NYSE · As of 1:40 PM ET 10/20/26

Higher rates increase the cost of capital of REITs (it's more expensive to borrow money and more dilutive to issue new shares), making it more challenging to fund growth investments (acquisitions and capital projects). However, Realty Income has taken notable steps to mitigate this impact by securing several private capital partnerships (joint ventures and a private capital fund management platform). As a result, higher rates will have a smaller impact on its growth than on other REITs, as it can tap new funding sources.

Vici Properties
Vici Properties (VICI +0.93%) currently yields around 7.9%. This REIT is more similar to Realty Income in some respects, as it's less sensitive to interest rate changes than mortgage REITs. However, it's still more sensitive than Realty Income because it has a weaker balance sheet (Realty Income is A-rated while Vici Properties has the lowest investment-grade ratings (BBB-/Baa3).

Additionally, Vici Properties is battling a non-rate headwind this year. One of its largest tenants (Caesars, at 38% of its rent) is facing issues at several of its regional properties, prompting concerns about a potential rent reduction. That situation has added additional pressure to Vici's stock price, which has fallen nearly 25% from its earlier peak.

Evaluate rate risk before buying a dividend stock
One of the key mistakes many income investors make is buying a stock solely for its yield. That can cause them to overlook risks, such as the impact of rate changes on the company. Some dividend stocks are relatively immune to interest rates (e.g., Coca-Cola), while others are highly rate-sensitive (e.g., mortgage REITs).

Key Takeaways AGNC's tangible book value fell 16.9% to $7.13 in Q3, while economic return on equity turned negative.AGNC's funding costs rose to 3.09%, narrowing net interest spreads to 1.86% despite higher asset yields.AGNC raised hedging coverage to 90% and leverage to 7.9 times while issuing $992M in common stock. AGNC Investment Corp. (AGNC - Free Report) faced significant mortgage market pressure in the third quarter of 2026 as rising Treasury yields and widening mortgage spreads weighed on portfolio valuations and tangible book value.

Management maintained a constructive longer-term outlook for Agency mortgage-backed securities (MBS), citing attractive valuations, improving prepayment fundamentals and resilient demand. However, elevated interest rate volatility and higher funding costs remain important challenges.

AGNC Sees Opportunity Amid Wider Mortgage SpreadsPeter Federico, president, CEO and chief investment officer, highlighted the sharp deterioration in fixed-income market conditions during September. Agency MBS underperformed other major bond sectors as Treasury market instability drove mortgage spreads wider.

Despite the difficult quarter, Federico emphasized that Agency MBS valuations have become more attractive. Mortgage spreads are approaching the upper end of their multi-year trading range, improving potential returns on new investments.

Management also identified favorable supply-demand dynamics. Mortgage originations remain constrained by elevated borrowing rates, while investor demand has demonstrated resilience.

AGNC Investment's Book Value Decline Reflects Market VolatilityThe company reported a 16.9% sequential decline in tangible net book value per common share to $7.13 from $8.58. Its economic return on tangible common equity was negative 12.7%, compared with positive 6.7% in the second quarter.

Bernice Bell, executive vice president and chief financial officer, attributed the negative economic return to the $1.45 decline in tangible book value, partially offset by $0.36 in quarterly dividends.

AGNC Investment reported third-quarter 2026 earnings of $0.37 per share, falling short of the Zacks Consensus Estimate of $0.39. Revenues of $402 million also missed the consensus estimate of $428.40 million.

AGNC's Funding Costs Pressure Interest SpreadsFunding economics weakened during the quarter as the company's combined weighted average cost of funds increased to 3.09% from 2.89% in the preceding quarter.

The annualized net interest spread narrowed to 1.86% from 2.00%, despite the average asset yield, excluding catch-up premium amortization and including TBA positions, increasing to 4.95% from 4.89%.

Lower prepayment expectations provided some support. The projected portfolio constant prepayment rate declined to 6.7% from 8.6%, reflecting reduced refinancing incentives as mortgage rates increased.

AGNC Investment Adjusts Hedging as Leverage IncreasesAGNC Investment increased its tangible net book value at-risk leverage to 7.9 times from 7.4 times sequentially. Its investment portfolio totaled $94.4 billion at September-end.

The company also expanded its interest rate hedging coverage. Interest rate swaps, Treasury positions and other hedges represented 90% of funding liabilities, compared with 73% at June-end.

These adjustments accompanied increased market volatility. AGNC finished September with $6.3 billion of unencumbered cash and Agency MBS, representing 57% of tangible equity.

AGNC's Capital Strategy Emphasizes Opportunistic IssuanceCapital deployment remained an important strategic consideration. AGNC Investment raised $992 million through at-the-market common stock offerings, issuing 97.6 million shares during the quarter.

Bell noted that the company's inclusion in the S&P MidCap 400 generated elevated trading volumes, enabling equity issuance at a substantial premium to tangible net book value.

During the previous quarter's analyst discussion, Federico told BTIG that capital issuance decisions depend on investment returns and prevailing stock-market conditions. He emphasized maintaining flexibility rather than following a predetermined issuance schedule.

AGNC Investment Maintains a Constructive but Cautious PostureManagement's outlook remains centered on the relative attractiveness of Agency MBS valuations and the benefits of reduced prepayment exposure. Federico emphasized that improving fundamentals could support mortgage performance once Treasury market volatility subsides.

Meanwhile, elevated leverage, compressed interest spreads and recent book value erosion underscore the importance of portfolio positioning and liquidity management as market conditions evolve.

What AGNC's Zacks Rank and Style Scores IndicateAGNC currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings-revision outlook. Its Value Score of B reflects relatively favorable valuation characteristics, while its Growth and Momentum Scores of D point to less attractive growth prospects and price momentum. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The company's VGM Score of C indicates a moderate combined assessment across value, growth and momentum factors. This combination falls short of the strongest Zacks Rank and Style Score pairings, generally represented by a Zacks Rank #1 or 2 (Buy) alongside an A or B Style Score.

The Zacks Rank remains subject to change as analysts revise their earnings estimates following the latest quarterly results.

, /PRNewswire/ -- AGNC Investment Corp. ("AGNC" or the "Company") (Nasdaq: AGNC) today announced financial results for the quarter ended September 30, 2026.

THIRD QUARTER 2026 FINANCIAL HIGHLIGHTS

$(1.28) comprehensive loss per common share, comprised of:

$(1.17) net loss per common share
$(0.11) other comprehensive loss ("OCI") per common share on investments marked-to-market through OCI

$0.37 net spread and dollar roll income per common share1

Excludes $0.05 per common share of estimated "catch-up" premium amortization benefit due to change in projected constant prepayment rate ("CPR") estimates

$7.13 tangible net book value per common share as of September 30, 2026

Decreased $1.45 per common share, or 16.9%, from $8.58 per common share as of June 30, 2026

$0.36 dividends declared per common share for the third quarter
-12.7% economic return on tangible common equity for the quarter

Comprised of $0.36 dividends per common share and $1.45 decrease in tangible net book value per common share

OTHER THIRD QUARTER HIGHLIGHTS

$94.4 billion investment portfolio as of September 30, 2026, comprised of:

$91.4 billion Agency mortgage-backed securities ("Agency MBS")
$2.4 billion net forward purchases/(sales) of Agency MBS in the "to-be-announced" market ("TBA securities")
$0.6 billion credit risk transfer ("CRT") and non-Agency securities and other mortgage credit investments

7.9x tangible net book value "at risk" leverage as of September 30, 2026

7.6x average tangible net book value "at risk" leverage for the quarter

Unencumbered cash and Agency MBS totaled $6.3 billion as of September 30, 2026

Excludes unencumbered CRT and non-Agency securities
Represents 57% of the Company's tangible equity as of September 30, 2026

6.7% average projected portfolio life CPR as of September 30, 2026

8.2% actual portfolio CPR for the quarter

1.86% annualized net interest spread for the quarter2
Issued 97.6 million shares of common equity through At-the-Market ("ATM") Offerings for net proceeds of $992 million

___________

1.

Represents a non-GAAP measure. Please refer to the Reconciliation of GAAP Comprehensive Income (Loss) to Net Spread and Dollar Roll Income and Use of Non-GAAP Financial Information included in this release for additional information.

2.

Please refer to Net Interest Spread Components by Funding Source included in this release for additional information regarding the Company's annualized net interest spread.

MANAGEMENT REMARKS
"Fixed income markets experienced significant pressure in the third quarter, particularly in the final weeks of September, as fixed income investor sentiment turned decidedly bearish, interest rates increased sharply, and interest rate volatility spiked," said Peter Federico, the Company's President, Chief Executive Officer and Chief Investment Officer. "The instability in the Treasury market drove pronounced weakness in the Agency MBS market, and, as a result, Agency MBS was the worst performing sector of the Bloomberg U.S. Aggregate Bond Index during the quarter. Consistent with this material underperformance of our underlying asset class, AGNC's economic return on tangible common equity in the third quarter was -12.7%.

"Despite the challenging macroeconomic environment, there are a number of reasons for optimism with respect to the outlook for Agency MBS once volatility in the Treasury market subsides. First, the return profile of Agency MBS is more attractive at current valuation levels, as mortgage spreads to benchmark rates are approaching the upper end of their multi-year trading range. Second, the fundamentals for Agency MBS are more favorable today than they were at the start of the third quarter. At current rate levels, most of the duration extension for the mortgage universe has already occurred, while prepayment risk has declined as a result of the increase in rates and the resulting reduction in the share of mortgages with a meaningful incentive to refinance. Third, supply-demand technicals remain in balance as mortgage originations remain low at these elevated rate levels and demand has been resilient. Together, these factors support a constructive outlook for Agency MBS performance."

"AGNC's -12.7% economic return on tangible common equity in the third quarter consisted of $0.36 of dividends declared per common share and a $1.45 decline in tangible net book value per common share," said Bernice Bell, the Company's Executive Vice President and Chief Financial Officer. "AGNC's net spread and dollar roll income per common share was $0.37 for the third quarter, and AGNC concluded the third quarter with tangible net book value 'at risk' leverage of 7.9x and a liquidity position of $6.3 billion of unencumbered cash and Agency MBS, or 57% of our tangible equity at quarter end. Finally, AGNC was added to the S&P MidCap 400 Index during the third quarter, an important milestone for the Company and a testament to the scale that AGNC has attained over our 18-year history. This announcement and subsequent index rebalancing activity drove elevated trading volumes in AGNC's common stock, and we took advantage of this outsized liquidity to issue $992 million of common stock through our ATM offering program at a significant premium to tangible net book value per common share."

TANGIBLE NET BOOK VALUE PER COMMON SHARE
As of September 30, 2026, the Company's tangible net book value per common share was $7.13 per share, a decrease of 16.9% for the quarter compared to $8.58 per share as of June 30, 2026. The Company's tangible net book value per common share excludes $526 million, or $0.42 and $0.45 per share, of goodwill as of September 30 and June 30, 2026, respectively.

INVESTMENT PORTFOLIO
As of September 30, 2026, the Company's investment portfolio totaled $94.4 billion, comprised of:

$93.8 billion of Agency MBS and TBA securities, including:

$89.2 billion of fixed-rate securities, comprised of:

$86.6 billion 30-year MBS,
$2.1 billion 30-year TBA securities, net, and
$0.5 billion 15 and 20-year MBS and TBA securities; and

$4.5 billion of collateralized mortgage obligations ("CMOs"), adjustable-rate and other Agency securities; and

$0.6 billion of CRT and non-Agency securities and other mortgage credit investments.

As of September 30, 2026, 30-year fixed-rate Agency MBS and TBA securities represented 94% of the Company's investment portfolio, unchanged from June 30, 2026.

As of September 30, 2026, the Company's fixed-rate Agency MBS and TBA securities' weighted average coupon was 5.13%, compared to 5.04% as of June 30, 2026, comprised of the following weighted average coupons:

5.13% for 30-year fixed-rate securities;
4.85% for 15-year fixed-rate securities; and
3.74% for 20-year fixed-rate securities.

The Company accounts for TBA securities and other forward settling securities as derivative instruments and recognizes TBA dollar roll income in other gain (loss), net on the Company's financial statements. As of September 30, 2026, such positions had a fair value of $2.4 billion and a GAAP net carrying value of $(70) million reported in derivative assets/(liabilities) on the Company's balance sheet, compared to $9.7 billion and $52 million, respectively, as of June 30, 2026.

CONSTANT PREPAYMENT RATES
The Company's weighted average projected CPR for the remaining life of its Agency securities held as of September 30, 2026 decreased to 6.7% from 8.6% as of June 30, 2026. The Company's weighted average actual CPR for the third quarter was 8.2%, compared to 13.0% for the prior quarter.

The weighted average cost basis of the Company's investment portfolio was 100.3% of par value as of September 30, 2026. The Company's investment portfolio generated a net premium amortization benefit of $34 million, or $0.03 per common share, for the third quarter, which includes a "catch-up" premium amortization benefit of $66 million, or $0.05 per common share, due to changes in the Company's CPR projections for certain securities acquired prior to the third quarter. This compares to net premium amortization cost for the prior quarter of $47 million, or $0.04 per common share, including "catch-up" premium amortization cost of $5 million, or less than $0.01 per common share.

ASSET YIELDS, COST OF FUNDS AND NET INTEREST RATE SPREAD
The Company's average asset yield on its investment portfolio, excluding the TBA position, was 5.21% for the third quarter, compared to 4.87% for the prior quarter. Excluding "catch-up" premium amortization, the Company's average asset yield was 4.92% for the third quarter, compared to 4.89% for the prior quarter. Including the TBA position and excluding "catch-up" premium amortization, the Company's average asset yield for the third quarter was 4.95%, compared to 4.89% for the prior quarter.

For the third quarter, the weighted average interest rate on the Company's repurchase agreements was 3.77%, compared to 3.74% for the prior quarter. For the third quarter, the Company's TBA position had an implied financing cost of 3.64%, compared to 3.46% for the prior quarter. Inclusive of interest rate swaps, the Company's combined weighted average cost of funds for the third quarter was 3.09%, compared to 2.89% for the prior quarter.

The Company's annualized net interest spread, including the TBA position and interest rate swaps and excluding "catch-up" premium amortization, for the third quarter was 1.86%, compared to 2.00% for the prior quarter.

NET SPREAD AND DOLLAR ROLL INCOME
The Company recognized net spread and dollar roll income (a non-GAAP financial measure) for the third quarter of $0.37 per common share, compared to $0.40 per common share for the prior quarter. Net spread and dollar roll income excludes $0.05 and less than $(0.01) per common share of estimated "catch-up" premium amortization benefit / (cost) for the third quarter and prior quarter, respectively.

The Company's cost of funds, net interest rate spread and net spread and dollar roll income excludes the impact of the Company's U.S. Treasury hedges, option-based hedges, and other supplemental interest rate hedges. For additional information regarding the Company's U.S. Treasury hedges, please refer to the schedule of Key Statistics included in this release.

A reconciliation of the Company's total comprehensive income (loss) to net spread and dollar roll income and additional information regarding the Company's use of non-GAAP measures are included later in this release.

LEVERAGE
As of September 30, 2026, $85.7 billion of repurchase agreements and $2.4 billion of net TBA dollar roll positions (at cost) were used to fund the Company's investment portfolio. The remainder, or approximately $11.0 billion, of the Company's repurchase agreements was used to fund short-term purchases of U.S. Treasury securities ("U.S. Treasury Repo") and is not included in the Company's leverage measurements. Inclusive of its net TBA position and net payable/(receivable) for unsettled investment securities and unsettled equity issuances, the Company's tangible net book value "at risk" leverage ratio was 7.9x as of September 30, 2026, compared to 7.4x as of June 30, 2026. The Company's average "at risk" leverage ratio for the third quarter was 7.6x tangible net book value, compared to 7.4x as of June 30, 2026.

As of September 30, 2026, the Company's repurchase agreements used to fund its investment portfolio ("Investment Securities Repo") had a weighted average interest rate of 3.95%, compared to 3.75% as of June 30, 2026, and a weighted average remaining maturity of 10 days, compared to 13 days as of June 30, 2026. As of September 30, 2026, $45.7 billion, or 53%, of the Company's Investment Securities Repo was funded through the Company's captive broker-dealer subsidiary, Bethesda Securities, LLC.

HEDGING ACTIVITIES
As of September 30, 2026, interest rate swaps, U.S. Treasury positions, option-based hedges (swaptions), and other interest rate hedges equaled 90% of the Company's outstanding balance of Investment Securities Repo, net TBA position, and other debt (collectively, "funding liabilities"), compared to 73% as of June 30, 2026. Excluding option-based hedges, the Company's hedge portfolio covered 97% of its funding liabilities as of September 30, 2026, compared to 82% as of June 30, 2026.

As of September 30, 2026, the Company's pay fixed interest rate swap position totaled $74.6 billion in notional amount, with an average fixed pay rate of 2.96%, an average floating receive rate of 3.90% and an average maturity of 4.3 years, compared to $73.8 billion, 2.76%, 3.68% and 4.0 years, respectively, as of June 30, 2026.

As of September 30, 2026, the Company had a net short U.S. Treasury position of $11.1 billion and receiver swaptions of $6.3 billion outstanding, compared to a $2.1 billion net short U.S. Treasury position, net receiver swaptions of $7.8 billion and a two-year swap equivalent long SOFR futures position of $2.6 billion as of June 30, 2026.

OTHER GAIN (LOSS), NET
For the third quarter, the Company recorded a net loss of $(1,731) million in other gain (loss), net, or $(1.44) per common share, compared to a net gain of $379 million, or $0.33 per common share, for the prior quarter. Other gain (loss), net for the third quarter was comprised of:

$(17) million of net realized losses on sales of investment securities;
$(5,015) million of net unrealized losses on investment securities measured at fair value through net income;
$153 million of interest rate swap periodic income;
$2,052 million of net gains on interest rate swaps;
$(34) million of net losses on interest rate swaptions;
$6 million of net gains on SOFR futures;
$1,228 million of net gains on U.S. Treasury positions;
$28 million of TBA dollar roll income;
$(134) million of net mark-to-market losses on TBA securities; and
$2 million of other miscellaneous gains.

OTHER COMPREHENSIVE LOSS
During the third quarter, the Company recorded other comprehensive income (loss) of $(140) million, or $(0.11) per common share, consisting of net unrealized losses on its Agency securities recognized through OCI, compared to $(7) million, or $(0.01) per common share, in the prior quarter.

COMMON STOCK DIVIDENDS
During the third quarter, the Company declared dividends of $0.12 per share to common stockholders of record as of July 31, August 31, and September 30, 2026, totaling $0.36 per share for the quarter. Since its May 2008 initial public offering through the third quarter of 2026, the Company has declared a total of $16.8 billion in common stock dividends, or $51.16 per common share.

FINANCIAL STATEMENTS, OPERATING PERFORMANCE AND PORTFOLIO STATISTICS
The following measures of operating performance include net spread and dollar roll income; economic interest income; economic interest expense; and the related per common share measures and financial metrics derived from such information, which are non-GAAP financial measures. Please refer to "Use of Non-GAAP Financial Information" later in this release for further discussion of non-GAAP measures.

AGNC INVESTMENT CORP.

CONSOLIDATED BALANCE SHEETS

(in millions, except per share data)

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Assets:

Agency securities, at fair value (including pledged securities of $86,455, $80,761, $77,364, $74,149 and $68,821, respectively)

$                    91,394

$                    86,784

$                    84,447

$                    81,003

$                    76,198

Agency securities transferred to consolidated variable interest entities, at fair value (pledged securities)

—

—

—

85

88

Credit risk transfer securities, at fair value (including pledged securities of $468, $525, $545, $558 and $554, respectively)

515

573

593

606

609

Non-Agency securities, at fair value, and other mortgage credit investments (including pledged securities of $7, $8, $8, $13 and $15, respectively)

95

94

93

95

97

U.S. Treasury securities, at fair value (including pledged securities of $11,992, $11,295, $12,313, $13,056 and $5,431, respectively)

13,028

12,325

12,582

13,477

5,927

Cash and cash equivalents

468

457

493

450

450

Restricted cash

1,765

1,329

1,864

1,292

1,461

Derivative assets, at fair value

851

260

178

169

145

Receivable for investment securities sold (including pledged securities of $198, $201, $0, $149 and $1,340, respectively)

230

401

—

152

1,502

Receivable under reverse repurchase agreements

23,826

18,433

17,644

16,615

21,399

Goodwill

526

526

526

526

526

Other assets (including pledged securities of $0, $0, $0, $0 and $74, respectively)

734

578

477

607

567

Total assets

$                  133,432

$                  121,760

$                  118,897

$                  115,077

$                  108,969

Liabilities:

Repurchase agreements

$                    96,719

$                    89,808

$                    87,616

$                    85,286

$                    74,152

Debt of consolidated variable interest entities, at fair value

—

—

—

56

58

Payable for investment securities purchased

279

312

933

193

1,225

Derivative liabilities, at fair value

646

137

440

6

87

Dividends payable

197

184

182

182

170

Obligation to return securities borrowed under reverse repurchase agreements, at fair value

23,542

18,150

17,032

16,452

20,802

Accounts payable and other liabilities

489

626

513

509

1,031

Total liabilities

121,872

109,217

106,716

102,684

97,525

Stockholders' equity:

Preferred Stock - aggregate liquidation preference of $2,033

1,968

1,968

1,968

1,968

1,968

Common stock - $0.01 par value; 1,261.8, 1,164.2, 1,147.8, 1,107.6 and 1,072.7 shares issued and outstanding, respectively

13

12

11

11

11

Additional paid-in capital

20,827

19,830

19,656

19,261

18,892

Retained deficit

(10,770)

(8,929)

(9,123)

(8,524)

(9,038)

Accumulated other comprehensive loss

(478)

(338)

(331)

(323)

(389)

Total stockholders' equity

11,560

12,543

12,181

12,393

11,444

Total liabilities and stockholders' equity

$                  133,432

$                  121,760

$                  118,897

$                  115,077

$                  108,969

Tangible net book value per common share 1

$                        7.13

$                        8.58

$                        8.38

$                        8.88

$                        8.28

AGNC INVESTMENT CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share data)

(unaudited)

Three Months Ended

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

Interest income:

Interest income

$                      1,196

$                      1,014

$                      1,050

$                         944

$                         903

Interest expense

794

709

731

738

755

Net interest income

402

305

319

206

148

Other gain (loss), net:

Realized (loss) gain on sale of investment securities, net

(17)

(16)

74

(26)

(81)

Unrealized (loss) gain on investment securities measured at fair value through net income, net

(5,015)

(90)

(889)

475

805

Gain (loss) on derivative instruments and other investments, net

3,301

485

382

340

(36)

Total other (loss) gain, net

(1,731)

379

(433)

789

688

Expenses:

Compensation and benefits

16

19

23

30

20

Other operating expense

12

11

11

11

10

Total operating expense

28

30

34

41

30

Net income (loss)

(1,357)

654

(148)

954

806

Dividend on preferred stock

45

44

44

46

42

Net income (loss) available (attributable) to common stockholders

$                    (1,402)

$                         610

$                       (192)

$                         908

$                         764

Net income (loss)

$                    (1,357)

$                         654

$                       (148)

$                         954

$                         806

Unrealized (loss) gain on investment securities measured at fair value through other comprehensive income (loss), net

(140)

(7)

(8)

66

61

Comprehensive income (loss)

(1,497)

647

(156)

1,020

867

Dividend on preferred stock

45

44

44

46

42

Comprehensive income (loss) available (attributable) to common stockholders

$                    (1,542)

$                         603

$                       (200)

$                         974

$                         825

Weighted average number of common shares outstanding - basic

1,200.5

1,157.6

1,122.6

1,089.3

1,053.0

Weighted average number of common shares outstanding - diluted

1,200.5

1,162.0

1122.6

1094.6

1056.6

Net income (loss) per common share - basic

$                      (1.17)

$                        0.53

$                      (0.17)

$                        0.83

$                        0.73

Net income (loss) per common share - diluted

$                      (1.17)

$                        0.52

$                      (0.17)

$                        0.83

$                        0.72

Comprehensive income (loss) per common share - basic

$                      (1.28)

$                        0.52

$                      (0.18)

$                        0.89

$                        0.78

Comprehensive income (loss) per common share - diluted

$                      (1.28)

$                        0.52

$                      (0.18)

$                        0.89

$                        0.78

Dividends declared per common share

$                        0.36

$                        0.36

$                        0.36

$                        0.36

$                        0.36

AGNC INVESTMENT CORP.

RECONCILIATION OF GAAP COMPREHENSIVE INCOME (LOSS) TO NET SPREAD AND DOLLAR ROLL INCOME (NON-GAAP MEASURE) 2

(in millions, except per share data)

(unaudited)

Three Months Ended

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

Comprehensive income (loss) available (attributable) to common stockholders

$                    (1,542)

$                         603

$                       (200)

$                         974

$                         825

Adjustments to exclude realized and unrealized (gains) losses reported through net income:

Realized (gain) loss on sale of investment securities, net

17

16

(74)

26

81

Unrealized (gain) loss on investment securities measured at fair value through net income, net

5,015

90

889

(475)

(805)

(Gain) loss on derivative instruments and other securities, net

(3,301)

(485)

(382)

(340)

36

Adjustment to exclude unrealized (gain) loss reported through other comprehensive income:

Unrealized (gain) loss on available-for-sale securities measured at fair value through other comprehensive income, net

140

7

8

(66)

(61)

Other adjustments:

Estimated "catch up" premium amortization cost (benefit) due to change in CPR forecast 3

(66)

5

(5)

7

14

TBA dollar roll income 4,5

28

44

51

27

23

Interest rate swap periodic income, net 4,6

153

179

182

217

245

Other interest income (expense), net 4,7

—

3

6

9

7

Net spread and dollar roll income available to common stockholders

$                         444

$                         462

$                         475

$                         379

$                         365

Weighted average number of common shares outstanding - basic

1,200.5

1,157.6

1,122.6

1,089.3

1,053.0

Weighted average number of common shares outstanding - diluted

1,205.1

1,162.0

1,127.3

1,094.6

1,056.6

Net spread and dollar roll income per common share - basic

$                        0.37

$                        0.40

$                        0.42

$                        0.35

$                        0.35

Net spread and dollar roll income per common share - diluted

$                        0.37

$                        0.40

$                        0.42

$                        0.35

$                        0.35

AGNC INVESTMENT CORP.

NET INTEREST SPREAD COMPONENTS BY FUNDING SOURCE 2

(in millions, except per share data)

(unaudited)

Three Months Ended

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

Adjusted net interest and dollar roll income:

Economic interest income:

Investment securities - GAAP interest income 8

$                      1,196

$                      1,014

$                      1,050

$                         944

$                         903

Estimated "catch-up" premium amortization cost (benefit) due to change in CPR forecast 3

(66)

5

(5)

7

14

TBA dollar roll income - implied interest income 4,9

91

155

140

169

135

Economic interest income

1,221

1,174

1,185

1,120

1,052

Economic interest expense:

Repurchase agreements and other debt - GAAP interest expense

(794)

(709)

(731)

(738)

(755)

TBA dollar roll income - implied interest expense 4,10

(63)

(111)

(89)

(142)

(112)

Interest rate swap periodic income, net 4,6

153

179

182

217

245

Economic interest expense

(704)

(641)

(638)

(663)

(622)

Adjusted net interest and dollar roll income

$                         517

$                         533

$                         547

$                         457

$                         430

Net interest spread:

Average asset yield:

Investment securities - average asset yield

5.21 %

4.87 %

4.95 %

4.87 %

4.83 %

Estimated "catch-up" premium amortization cost (benefit) due to change in CPR forecast

(0.29) %

0.02 %

(0.02) %

0.03 %

0.08 %

Investment securities average asset yield, excluding "catch-up" premium amortization

4.92 %

4.89 %

4.93 %

4.90 %

4.91 %

TBA securities - average implied asset yield 9

5.37 %

4.87 %

5.42 %

4.91 %

5.31 %

Average asset yield 11

4.95 %

4.89 %

4.98 %

4.91 %

4.95 %

Average total cost of funds:

Repurchase agreements and other debt - average funding cost

3.77 %

3.74 %

3.79 %

4.13 %

4.43 %

TBA securities - average implied funding cost 10

3.64 %

3.46 %

3.45 %

4.03 %

4.31 %

Average cost of funds, before interest rate swap periodic income, net 11

3.76 %

3.70 %

3.75 %

4.11 %

4.42 %

Interest rate swap periodic income, net 12

(0.67) %

(0.81) %

(0.83) %

(1.01) %

(1.25) %

Average total cost of funds 13

3.09 %

2.89 %

2.92 %

3.10 %

3.17 %

Average net interest spread

1.86 %

2.00 %

2.06 %

1.81 %

1.78 %

AGNC INVESTMENT CORP.

KEY STATISTICS*

(in millions, except per share data)

(unaudited)

Three Months Ended

Key Balance Sheet Statistics:

September 30,
2026

June 30,
2026

March 31,
2026

December 31,
2025

September 30,
2025

Investment securities: 8

Fixed-rate Agency MBS, at fair value - as of period end

$                    86,874

$                    82,334

$                    80,466

$                    77,483

$                    73,283

Other Agency MBS, at fair value - as of period end

$                      4,520

$                      4,450

$                      3,981

$                      3,605

$                      3,003

Credit risk transfer securities, at fair value - as of period end

$                         515

$                         573

$                         593

$                         606

$                         609

Non-Agency MBS, at fair value - as of period end 14

$                           23

$                           24

$                           24

$                           25

$                           28

Total investment securities, at fair value - as of period end

$                    91,932

$                    87,381

$                    85,064

$                    81,719

$                    76,923

Total investment securities, at cost - as of period end

$                    98,178

$                    88,471

$                    86,058

$                    81,817

$                    77,563

Total investment securities, at par - as of period end

$                    97,917

$                    87,896

$                    84,847

$                    80,830

$                    76,625

Average investment securities, at cost

$                    91,905

$                    83,366

$                    84,814

$                    77,562

$                    74,783

Average investment securities, at par

$                    91,467

$                    82,557

$                    83,659

$                    76,647

$                    73,836

TBA securities: 15

Net TBA portfolio - as of period end, at fair value

$                      2,368

$                      9,728

$                      9,548

$                    12,988

$                    13,841

Net TBA portfolio - as of period end, at cost

$                      2,438

$                      9,676

$                      9,742

$                    12,917

$                    13,805

Net TBA portfolio - as of period end, carrying value

$                         (70)

$                           52

$                       (194)

$                           71

$                           36

Average net TBA portfolio, at cost

$                      6,809

$                    12,729

$                    10,343

$                    13,764

$                    10,163

Average repurchase agreements and other debt 16

$                    82,362

$                    75,070

$                    77,120

$                    69,943

$                    66,654

Average stockholders' equity 17

$                    12,206

$                    12,447

$                    12,405

$                    11,828

$                    10,732

Tangible net book value per common share 1

$                        7.13

$                        8.58

$                        8.38

$                        8.88

$                        8.28

Tangible net book value "at risk" leverage - average 18

7.6 :1

7.4 :1

7.4 :1

7.4 :1

7.5 :1

Tangible net book value "at risk" leverage - as of period end 19

7.9 :1

7.4 :1

7.4 :1

7.2 :1

7.6 :1

Key Performance Statistics:

Investment securities: 8

Average coupon

5.08 %

5.14 %

5.27 %

5.19 %

5.20 %

Average asset yield

5.21 %

4.87 %

4.95 %

4.87 %

4.83 %

Average asset yield, excluding "catch-up" premium amortization

4.92 %

4.89 %

4.93 %

4.90 %

4.91 %

Average coupon - as of period end

5.04 %

5.05 %

5.25 %

5.19 %

5.17 %

Average asset yield - as of period end

4.99 %

4.91 %

4.93 %

4.93 %

4.94 %

Average actual CPR for securities held during the period

8.2 %

13.0 %

13.2 %

9.7 %

8.3 %

Average forecasted CPR - as of period end

6.7 %

8.6 %

10.3 %

9.6 %

8.6 %

Total premium amortization benefit (cost) 24

$                           34

$                         (47)

$                         (52)

$                         (51)

$                         (57)

TBA securities:

Average coupon - as of period end 20

5.23 %

4.89 %

4.11 %

4.98 %

5.11 %

Average implied asset yield 9

5.37 %

4.87 %

5.42 %

4.91 %

5.31 %

Combined investment and TBA securities - average asset yield, excluding "catch-up" premium amortization 11

4.95 %

4.89 %

4.98 %

4.91 %

4.95 %

Cost of funds: 13

Repurchase agreements - average funding cost

3.77 %

3.74 %

3.79 %

4.13 %

4.43 %

TBA securities - average implied funding cost 10

3.64 %

3.46 %

3.45 %

4.03 %

4.31 %

Interest rate swaps - average periodic income 12

(0.67) %

(0.81) %

(0.83) %

(1.01) %

(1.25) %

Average total cost of funds, inclusive of TBAs and interest rate swap periodic income, net 11

3.09 %

2.89 %

2.92 %

3.10 %

3.17 %

Repurchase agreements - average funding cost as of period end

3.95 %

3.75 %

3.77 %

3.98 %

4.38 %

Interest rate swaps - average net pay/(receive) rate as of period end 21

(0.94) %

(0.92) %

(1.01) %

(1.29) %

(1.76) %

Net interest spread:

Combined investment and TBA securities average net interest spread, excluding "catch-up" premium amortization

1.86 %

2.00 %

2.06 %

1.81 %

1.78 %

Expenses % of average stockholders' equity - annualized

0.92 %

0.96 %

1.10 %

1.39 %

1.12 %

Economic return (loss) on tangible common equity - unannualized 22

(12.7) %

6.7 %

(1.6) %

11.6 %

10.6 %

Key Interest Rate Hedge Statistics

Interest rate swaps:

Average interest rate swaps, notional amount (excluding forward starting swaps), net

$                    73,619

$                    75,216

$                    71,607

$                    59,863

$                    45,656

Average pay-fixed rate

2.89 %

2.71 %

2.65 %

2.56 %

2.25 %

Average receive-floating rate

3.71 %

3.65 %

3.67 %

3.98 %

4.35 %

U.S. Treasury securities:

Average short U.S. Treasury securities, at cost

$                    19,639

$                    16,939

$                    16,772

$                    18,414

$                    21,466

Average short U.S. Treasury securities yield

4.29 %

4.23 %

4.25 %

4.18 %

4.21 %

Average long U.S. Treasury securities, at cost

$                    12,882

$                    12,370

$                    12,033

$                    12,964

$                      4,749

Average long U.S. Treasury securities yield

3.71 %

3.70 %

3.71 %

3.74 %

4.01 %

U.S. Treasury futures:

Average short U.S. Treasury futures, at cost

$                      6,142

$                      4,006

$                      3,210

$                      1,901

$                      1,834

Average short U.S. Treasury futures implied yield 23

4.91 %

4.73 %

4.64 %

4.71 %

4.60 %

Average long U.S. Treasury futures, at cost

$                      8,862

$                      9,917

$                    11,147

$                         708

$                           —

Average long U.S. Treasury futures implied yield 23

4.32 %

3.89 %

3.71 %

3.92 %

— %

Average reverse repurchase agreement rate

3.67 %

3.63 %

3.68 %

4.00 %

4.34 %

*Except as noted below, average numbers for each period are weighted based on days on the Company's books and records. All percentages are annualized, unless otherwise noted.

Numbers in financial tables may not total due to rounding.

Tangible net book value per common share excludes preferred stock liquidation preference and goodwill.
Table includes non-GAAP financial measures and/or amounts derived from non-GAAP measures. Refer to "Use of Non-GAAP Financial Information" for additional discussion of non-GAAP financial measures.
"Catch-up" premium amortization cost/benefit is reported in interest income on the accompanying consolidated statements of operations. Amount is net of "catch-up" discount accretion benefit/cost. 
Amount reported in gain (loss) on derivatives instruments and other securities, net in the accompanying consolidated statements of operations.
Dollar roll income represents the price differential, or "price drop," between the TBA price for current month settlement versus the TBA price for forward month settlement. Amount includes dollar roll income (loss) on long and short TBA securities. Amount excludes TBA mark-to-market adjustments.
Represents periodic interest rate swap settlements. Amount excludes interest rate swap termination fees, mark-to-market adjustments and price alignment interest income (expense) on margin deposits.
Other interest income (expense), net includes interest income on cash and cash equivalents, price alignment interest income (expense) on margin deposits, and other miscellaneous interest income (expense).
Investment securities include Agency MBS, CRT and non-Agency securities. Amounts exclude TBA and forward settling securities accounted for as derivative instruments in the accompanying consolidated balance sheets and statements of operations.
The average implied asset yield and associated gross income for TBA dollar roll transactions is extrapolated by adding the average TBA implied funding cost (Note 10) to the net dollar roll yield. The net dollar roll yield is calculated by dividing dollar roll income (Note 5) by the average net TBA balance (cost basis) outstanding for the period.
The implied funding cost/benefit of TBA dollar roll transactions is determined using the "price drop" (Note 5) and market-based assumptions regarding the "cheapest-to-deliver" collateral that can be delivered to satisfy the TBA contract, such as the anticipated collateral's weighted average coupon, weighted average maturity and projected 1-month CPR. The average implied funding cost/benefit for TBA transactions represents the Company's long TBA position only, weighted based on the Company's daily average long TBA position outstanding for the period.
Amount calculated on a weighted average basis based on average balances outstanding during the period and their respective asset yield/funding cost.
Represents interest rate swap periodic cost/income measured as a percent of total mortgage funding (Investment Securities Repo, other debt and net TBA securities (at cost)).
Cost of funds excludes U.S. Treasury, option-based, and other supplemental hedges used to hedge a portion of the Company's interest rate risk and U.S. Treasury Repo.
Non-Agency MBS, at fair value, excludes $72 million, $70 million, $69 million, $70 million and $69 million of other mortgage credit investments held as of September 30, June 30 and March 31, 2026 and December 31 and September 30, 2025, respectively.
Includes TBA dollar roll position and, if applicable, forward settling securities accounted for as derivative instruments in the accompanying consolidated balance sheets and statements of operations. Amount is net of short TBA securities.
Average repurchase agreements and other debt excludes U.S. Treasury Repo.
Average stockholders' equity calculated as the average month-ended stockholders' equity during the quarter.
Average tangible net book value "at risk" leverage during the period was calculated by dividing the sum of the daily weighted average Investment Securities Repo, other debt, and TBA and forward settling securities (at cost) outstanding for the period by the sum of average stockholders' equity adjusted to exclude goodwill. Leverage excludes U.S. Treasury Repo.
Tangible net book value "at risk" leverage as of period end was calculated by dividing the sum of the amount outstanding under Investment Securities Repo, other debt, net TBA position and forward settling securities (at cost), and net receivable / payable for unsettled investment securities outstanding by the sum of total stockholders' equity and unsettled equity issuances, adjusted to exclude goodwill. Unsettled equity issuances totaled $110 million, $0 million, $0 million, $0 million and $0 million as of September 30, June 30 and March 31, 2026 and December 31 and September 30, 2025, respectively. Leverage excludes U.S. Treasury Repo. 
Average TBA coupon is for the long TBA position only.
Includes forward starting swaps not yet in effect as of reported period-end.
Economic return (loss) on tangible common equity represents the sum of the change in tangible net book value per common share and dividends declared on common stock during the period over the beginning tangible net book value per common share.
The implied yields for Treasury futures are calculated based on the "cheapest-to-deliver" security that can be delivered to satisfy the futures contract identified at the time the futures contract was initiated using data sourced from a third-party model.
Total premium amortization (cost) benefit is net of discount accretion benefit (cost).

STOCKHOLDER CALL
AGNC invites stockholders, prospective stockholders and analysts to attend the AGNC stockholder call on October 20, 2026 at 8:30 am ET. Interested persons who do not plan on asking a question and have internet access are encouraged to utilize the webcast at www.AGNC.com. Those who plan on participating in the Q&A or do not have internet available may access the call by dialing (877) 300-5922 (U.S. domestic) or (412) 902-6621 (international). Please advise the operator you are dialing in for the AGNC Investment Corp. stockholder call.

A slide presentation will accompany the call and will be available in the Investors section of the Company's website at www.AGNC.com. Select the Q3 2026 Stockholder Presentation link to download the presentation in advance of the stockholder call.

An archived audio of the stockholder call combined with the slide presentation will be available on the AGNC website after the call on October 20, 2026. In addition, there will be a phone recording available one hour after the call on October 20, 2026 through November 3, 2026. Those who are interested in hearing the recording of the presentation, can access it by dialing (855) 669-9658 (U.S. domestic) or (412) 317-0088 (international), passcode 5388054.

For further information, please contact Investor Relations at (301) 968-9300 or [email protected].

ABOUT AGNC INVESTMENT CORP.
Founded in 2008, AGNC Investment Corp. (Nasdaq: AGNC) is a leading investor in Agency residential mortgage-backed securities (Agency MBS), which benefit from a guarantee against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae. We invest on a leveraged basis, financing our Agency MBS assets primarily through repurchase agreements, and utilize dynamic risk management strategies intended to protect the value of our portfolio from interest rate and other market risks.

AGNC has a track record of providing favorable long-term returns for our stockholders through substantial monthly dividend income, with over $16 billion of common stock dividends paid since inception. Our business is a significant source of private capital for the U.S. residential housing market, and our team has extensive experience managing mortgage assets across market cycles. AGNC is a member of many broad market indices, including the S&P MidCap 400, the S&P Composite 1500, the Russell 1000, the Russell 3000, and the Nasdaq Composite.

We use our website (www.AGNC.com) and AGNC's LinkedIn and X accounts to distribute information about the Company. Investors should monitor these channels in addition to our press releases, filings with the U.S. Securities and Exchange Commission ("SEC"), public conference calls and webcasts, as information posted through them may be deemed material. Our website, alerts and social media channels are not incorporated by reference into, and are not a part of, this document or any report filed with the SEC. To learn more about The Premier Agency Residential Mortgage REIT, please visit www.AGNC.com, follow us on LinkedIn and X, and sign up for Investor Alerts.

FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results could differ materially from those projected in these forward-looking statements or from our historic performance due to a variety of important factors, including, without limitation, changes in monetary policy and other factors that affect interest rates, MBS spreads to benchmark interest rates, the forward yield curve, or prepayment rates; the availability and terms of financing; changes in the market value of the Company's assets; general economic or geopolitical conditions; liquidity and other conditions in Agency MBS and other financial markets; and legislative and regulatory changes that could adversely affect the business of the Company. Certain factors that could cause actual results to differ materially from those contained in the forward-looking statements are included in the Company's periodic reports filed with the Securities and Exchange Commission ("SEC"). Copies are available on the SEC's website, www.sec.gov. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.

USE OF NON-GAAP FINANCIAL INFORMATION
In addition to the results presented in accordance with GAAP, the Company's results of operations discussed in this release include certain non-GAAP financial information, including "net spread and dollar roll income"; "economic interest income" and "economic interest expense"; and the related per common share measures and certain financial metrics derived from such non-GAAP information, such as "cost of funds" and "net interest spread."

Net spread and dollar roll income available to common stockholders is measured as comprehensive income (loss) available (attributable) to common stockholders (GAAP measure) adjusted to: (i) exclude gains/losses on investment securities recognized through net income or other comprehensive income and gains/losses on derivative instruments and other securities (GAAP measures), (ii) exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and (iii) include interest rate swap periodic income/ cost, TBA dollar roll income and other miscellaneous interest income/expense. As defined, net spread and dollar roll income available to common stockholders represents net interest income/ expense (GAAP measure) adjusted to exclude retrospective "catch-up" adjustments to premium amortization cost due to changes in projected CPR estimates and to include TBA dollar roll income, interest rate swap periodic income/cost and other miscellaneous interest income/ expense, less total operating expense (GAAP measure) and dividends on preferred stock (GAAP measure).

By providing users of the Company's financial information with such measures in addition to the related GAAP measures, the Company believes users have greater transparency into the information used by the Company's management in its financial and operational decision-making. The Company also believes that it is important for users of its financial information to consider information related to the Company's current financial performance without the effects of certain transactions that are not necessarily indicative of its current investment portfolio performance and operations.

Specifically, the Company believes the inclusion of TBA dollar roll income in its non-GAAP measures is meaningful as TBAs are economically equivalent to holding and financing generic Agency MBS using short-term repurchase agreements but are recognized under GAAP in gain/ loss on derivative instruments in the Company's statement of operations. Similarly, the Company believes that the inclusion of periodic interest rate swap settlements in such measures, which are recognized under GAAP in gain/loss on derivative instruments, is meaningful as interest rate swaps are the primary instrument the Company uses to economically hedge against fluctuations in the Company's borrowing costs and inclusion of periodic interest rate swap settlements is more indicative of the Company's total cost of funds than interest expense alone. Finally, the Company believes the exclusion of "catch-up" adjustments to premium amortization cost is meaningful as it excludes the cumulative effect from prior reporting periods due to current changes in future prepayment expectations and, therefore, exclusion of such "catch-up" cost or benefit is more indicative of the current earnings potential of the Company's investment portfolio.

However, because such measures are incomplete measures of the Company's financial performance and involve differences from results computed in accordance with GAAP, they should be considered as supplementary to, and not as a substitute for, results computed in accordance with GAAP. In addition, because not all companies use identical calculations, the Company's presentation of such non-GAAP measures may not be comparable to other similarly-titled measures of other companies.

A reconciliation of GAAP comprehensive income (loss) to non-GAAP "net spread and dollar roll income" is included in this release.

CONTACT:
Investors - (301) 968-9300
Media - (301) 968-9303

SOURCE AGNC Investment Corp.

If you want to earn steady income from your investments, choosing the best high-yield dividend stocks can be a good strategy. Dividend stocks tend to represent companies with strong balance sheets, reliable cash flow, and well-established business models. They are often in steady, so-called "recession-proof" industries. And although every stock carries some risk of loss, stocks that pay strong dividends are often less volatile than tech stocks and growth stocks.

Let's look at a mix of five well-regarded dividend stocks and see how much $10,000 would earn in dividends: tobacco seller Altria Group (MO +1.72%), real estate investment trust AGNC Investment  (AGNC -1.13%), midstream company Energy Transfer (ET +1.91%), pharmaceutical giant Pfizer (PFE +0.48%), and commercial real estate stock Realty Income (O +0.95%).

Image source: Getty Images.

Altria Group (MO): 5.93% dividend yield Altria is a consumer staples company that owns prominent tobacco brands like Philip Morris USA's Marlboro cigarettes. Altria has also expanded its business into products like e-cigarettes and nicotine pouches. The stock is a Dividend King, with an impressive 57-year track record of paying higher dividends. As of Oct. 14, its trailing 12-month dividend yield was 5.93%.

Factor to Consider

Altria (MO)

Current yield (as of Oct. 14)

5.93%

Dollar payout per $10,000 invested

$593

Payout frequency

Quarterly

How safe is this dividend?

Safe. This Dividend King is likely to keep paying strong dividends.

One risk facing this stock

Declining sales volume due to changing consumer preferences for tobacco products.

MO Altria Group$75.11+$1.27 (+1.72%)

NYSE · As of 4:00 PM ET 10/16/26

AGNC Investment (AGNC): 16.72% dividend yield AGNC is a mortgage REIT. This company mainly invests in Agency mortgage-backed securities (MBS), which are guaranteed by government agencies like Freddie Mac. As of Oct. 14, AGNC was paying a massive dividend, with a trailing 12-month yield of 16.72%. Although AGNC has paid a steady dividend since 2020, its dividend could be at risk due to a rising interest-rate environment facing the mortgage industry.

Factor to Consider

AGNC Investment Corp. (AGNC)

Current yield (as of Oct. 14)

16.72%

Dollar payout per $10,000 invested

$1,672

Payout frequency

Monthly

How safe is this dividend?

Sustainable, but somewhat risky. As of August, AGNC was trading above its book value per share.

One risk facing this stock

AGNC could be vulnerable to rising interest rates.

AGNC AGNC Investment Corp.$8.72-$0.10 (-1.13%)

NASDAQ · As of 4:00 PM ET 10/16/26

Energy Transfer: 6.57% dividend yield Energy Transfer is a midstream energy company that operates natural gas pipelines in 44 states. The company's "units" (instead of shares) are traded on the Texas Stock Exchange. Energy Transfer has increased its dividend for 19 consecutive quarters. This company is showing strong growth in distributable cash flow (DCF), so its dividend is ideally safe for the foreseeable future.

As of Oct. 14, Energy Transfer LP was paying a strong trailing 12-month dividend yield of 6.57%.

Factor to Consider

Energy Transfer LP (ET)

Current yield (as of Oct. 14)

6.57%

Dollar payout per $10,000 invested

$657

Payout frequency

Quarterly

How safe is this dividend?

Safe

One risk facing this stock

Be aware of tax implications; Energy Transfer is a Master Limited Partnership (MLP), so each "unitholder" in the partnership is responsible for reporting distribution payouts. Investors will need to report this income on an extra K-1 form when filing taxes.

ET Energy Transfer$20.26+$0.38 (+1.91%)

TXSE · As of 4:00 PM ET 10/16/26

Pfizer (PFE): 6.06% dividend yield Pfizer is a major pharmaceutical company well known for its COVID-19 vaccine. It could be a good buy today for investors who are bullish on the company's broad research and development pipeline of new potential treatments for cancer, cardiovascular disease, and rare diseases.

As of Oct. 14, Pfizer was paying a trailing 12-month dividend yield of 6.06%. In 2025, the company paid $9.8 billion of cash dividends to shareholders. And Pfizer is remarkably consistent with its dividend history. As of Oct. 6, Pfizer's fourth-quarter 2026 cash dividend will be the 352nd consecutive quarterly dividend paid to its investors.

Factor to Consider

Pfizer (PFE)

Current yield (as of Oct. 14)

6.06%

Dollar payout per $10,000 invested

$606

Payout frequency

Quarterly

How safe is this dividend?

Safe; Pfizer has an 88-year dividend streak to keep up

One risk facing this stock

Pfizer patent cliff: several top-selling drugs will lose patent protection in 2027

Realty Income (O): 5.88% dividend yield Realty Income is another REIT that specializes in commercial real estate. The past few years have been difficult for the commercial real estate sector, with rising interest rates and declining office occupancy. But Realty Income has a high occupancy rate (98.8% as of June 30) and gets 78% of its rent from retail properties.

If you're bullish on the long-term prospects of real estate and want a steady dividend, Realty Income could be a good buy. The company has increased its dividend payouts for 116 straight quarters (note that it pays dividends monthly). As of Oct. 14, this stock was paying a trailing 12-month dividend yield of 5.88%.

Factor to Consider

Realty Income (O)

Current yield (as of Oct. 14)

5.88%

Dollar payout per $10,000 invested

$588

Payout frequency

Monthly

How safe is this dividend?

Safe; this real estate company has almost 100% occupancy

One risk facing this stock

Rising interest rates; like other real estate stocks, this could be more rate-sensitive than the broader stock market.

Keep in mind that all stocks have risks and dividends (and specific yields) are not guaranteed. These stocks all have a track record of paying consistent dividends, but companies adjust their dividend payouts based on changes in their business and balance sheets. Dividend yields can also decline as share prices rise.

AGNC Investment (AGNC - Free Report) closed the most recent trading day at $8.82, moving +2.44% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.33%. On the other hand, the Dow registered a gain of 1.08%, and the technology-centric Nasdaq increased by 0.08%.

The real estate investment trust's stock has dropped by 12.85% in the past month, falling short of the Finance sector's loss of 3.99% and the S&P 500's gain of 1.41%.

The investment community will be paying close attention to the earnings performance of AGNC Investment in its upcoming release. The company is slated to reveal its earnings on October 19, 2026. The company's earnings per share (EPS) are projected to be $0.39, reflecting a 11.43% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $428.41 million, reflecting a 189.47% rise from the equivalent quarter last year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.6 per share and a revenue of $1.47 billion, signifying shifts of +6.67% and +117.69%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for AGNC Investment. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. AGNC Investment is holding a Zacks Rank of #3 (Hold) right now.

From a valuation perspective, AGNC Investment is currently exchanging hands at a Forward P/E ratio of 5.4. For comparison, its industry has an average Forward P/E of 6.67, which means AGNC Investment is trading at a discount to the group.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 216, putting it in the bottom 13% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Five popular income stocks are flashing warning signs that most yield-chasing investors overlook until after the dividend cut. Here is what the coverage ratios, leverage levels, and share price histories actually reveal about each one.

Two of the largest mortgage REITs now offer forward yields above 16%. That happened after their share prices fell more than 12% in a single month: 12.59% for one and 13.17% for the other. A high yield is only worth as much as the company’s ability to keep it. All five of these income names show at least one warning sign that owners should watch.

What makes a dividend unsustainable: the payout uses up most or all of the right earnings measure for that business, free cash flow falls short of it, or new debt and new shares are paying for it. We spelled out the full set of red flags in a free dividend trap guide if you want the full checklist before reading on.

AGNC Investment: A 16% Yield With Little Room to Spare GAAP earnings at a mortgage REIT jump around with bond prices, so the better test is distributable earnings against the dividend. AGNC Investment (NASDAQ:AGNC) earned $0.40 per share in Q2. Its dividends for the quarter came to $0.36, which works out to about 90% of earnings. At $8.76, the $0.12 monthly payout gives a forward yield of about 16.4%, which puts it in ultra-high-yield territory.

Much of that yield comes from the stock’s decline. The stock is down 9.57% year to date. The annual dividend equals about 16.8% of tangible book value of $8.58 per share. Liabilities total $109.22 billion against $12.54 billion of equity. AGNC also sold 16.2 million new shares through its at-the-market program, which dilutes existing holders. The company cut the monthly payout from $0.16 to $0.12 in April 2020.

To keep the payout whole, AGNC needs mortgage spreads to stay steady and rate moves to stay calm. Q2 was encouraging, with a 6.7% economic return.

Annaly Capital: A Fresh Raise Sits on Thin Coverage Annaly Capital Management (NYSE:NLY) reported earnings available for distribution (EAD) of $0.79 per share. That covers its $0.75 quarterly dividend at about 95%. EAD has exceeded the dividend for the ninth consecutive quarter, and management raised the payout from $0.70. At $18.29, the forward yield comes to about 16.4%.

A margin of 4 cents a share leaves little room for error at 7.4x GAAP leverage. The stock is down 9.19% year to date, so a lower share price is doing part of the work behind the yield. The dividend history includes cuts from $0.30 to $0.25 in 2019 and from $0.88 to $0.65 in 2023.

Book value rose to $20.15 from $19.82 during the quarter.

Kraft Heinz: A Flat Payout Backed by Shrinking Sales Using adjusted numbers, Kraft Heinz (NASDAQ:KHC | KHC Price Prediction) covers its $1.60 annual dividend. Full-year EPS guidance of $2.03 to $2.09 means the payout takes about 79% even at the bottom of the range. Management guided to free cash flow conversion of about 110%. GAAP results look much worse: trailing diluted EPS is -$2.87 after a $7.4 billion impairment. At $22.77, the forward yield is about 7.0%.

That yield is mostly the result of a falling stock. Shares are down 58.79% over ten years. Net sales fell 1.4%, and North American adjusted operating income dropped 15.8%. Organic sales are guided to decline 0.5% to 2.0% this year. Brand spending is rising to about $700 million, and the planned break-up is paused. The dividend has stayed flat at $0.40 a quarter since it was cut from $0.625 in 2019.

Management paid down $1.9 billion of debt in the quarter, and the CFO said “Our balance sheet remains very strong.” To keep the payout safe, the extra marketing spend needs to bring volume back.

AT&T: The Mildest Warning on the List AT&T (NYSE:T) expects free cash flow of $18 billion or more, and adjusted EPS guidance of $2.25 to $2.35 covers its $1.11 dividend well. Management did say that buybacks plus dividends will use “essentially 100% of our outlook for free cash flow.” The forward yield of about 4.95% makes it high-yield. It falls short of ultra-high.

Leverage of 2.68x net debt to EBITDA is above the 2.5x target and is expected to rise to the 3.2x range after the EchoStar deal. Legacy EBITDA fell about 46%, and the shares are down 12.88% in a month. AT&T cut its dividend once before, from $0.52 to $0.2775 in 2022. If cash gets tight, buybacks could be scaled back before the dividend is touched.

Yield Alone Is Never a Buy Thesis A dividend cut usually drags the share price down with it, so income investors take two losses at once. Before trusting a yield, check coverage on the right earnings base, free cash flow, and leverage. For owners of these five stocks, the next few quarterly reports will show whether coverage is holding up or getting lower.

Contact [email protected] for any questions or corrections.

The 10-year Treasury yield recently touched a 24-year high at nearly 5.3%. The surge in this benchmark rate has driven down mortgage REIT stock prices, boosting their yields. Leading residential mortgage REITs AGNC Investment (AGNC -0.11%) and Annaly Capital Management (NLY +0.16%) both currently yield more than 16%. While that's alluring to an income-seeking investor like me, I wouldn't touch them right now.

Instead, I've been buying shares of commercial mortgage REIT Ladder Capital (LADR -0.90%), which currently yields more than 10%. Here are a couple of key differences that make it stand out in an environment of rising rates.

Image source: Getty Images.

Why I wouldn't touch Annaly or AGNC InvestmentAnnaly Capital and AGNC Investment have very similar business models. The REITs primarily invest in Agency MBS (pools of residential mortgages guaranteed against credit losses by government agencies such as Freddie Mac). About 99% of AGNC's $97.2 billion investment portfolio is Agency MBS, while 87% of Annaly's $109.4 billion portfolio is Agency MBS (it also invests in residential credit assets ($10.4 billion) and mortgage servicing rights ($4.1 billion)). These mortgage and mortgage-related investments are relatively low-risk fixed-income investments.

Both REITs use leverage to boost returns (AGNC currently leverages its portfolio 7.4x, while Annaly's is 5.6x), which drives 11%-16% returns for Annaly across its portfolio in the second quarter and 15%-17% for AGNC. However, it also increases their risk profiles.

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These REITs are more like banks in that they make money on the spread between the income generated by their mortgage portfolios and their financing costs. Because they invest in fixed-rate mortgages, the spread narrows when rates rise as their borrowing costs increase (they typically borrow short-term). This causes earnings volatility, which has led both REITs to cut their dividends several times over the years.

However, they have delivered more durable dividends in recent years: AGNC has maintained its current rate since its last cut in 2020, while Annaly has raised its dividend twice over the past few years as its earnings have improved. Still, given the potential impact of rising rates on their earnings, I wouldn't touch either REIT in the current environment.

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What makes Ladder Capital a potential rising-rate winnerWhile Ladder Capital is a mortgage REIT, it has an entirely different business model, focusing on commercial real estate. It currently has a $5.8 billion investment portfolio across first mortgage loans (49%), investment-grade securities (33%), and commercial real estate equity investments (18%). These are higher-risk investments compared to Agency MBS, with higher return profiles.

Ladder Capital's loan portfolio is a differentiator in the current market environment. It primarily invests in short-term, floating-rate loans (88.9% of its loan portfolio). Meanwhile, it finances its balance sheet with fixed-rate debt. As a result, its earnings should increase as rates rise. Ladder Capital's management team noted on the second-quarter call that every 25 to 50 basis-point rate increase will boost its quarterly earnings by about $0.02 per share.

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The REIT also has a large portfolio of AAA securities that had an average yield of 5.15% at the end of the second quarter. As these investments mature, Ladder can roll them into higher-yielding loans (with an average rate of 7.2% in the second quarter), adding another growth driver in today's rising interest rate environment.

Another factor that makes Ladder different is its balance sheet. It's the only investment-grade-rated commercial mortgage REIT, with a low 2.3x leverage ratio (at the lower end of its 2.0-3.0x target range). Its strong credit rating enables it to borrow at lower rates than non-investment-grade borrowers.

Finally, Ladder has an equity real estate portfolio primarily consisting of net lease properties with investment-grade tenants. They provide it with a stable, steadily rising stream of long-duration cash flows, helping reduce the volatility of its earnings.

These factors drive Ladder Capital's expectation that it can grow its earnings, which should support future dividend increases. Even though the REIT has also cut its dividend in the past, it's currently in a strong position to continue increasing it.

While Ladder has many positives, it's not a risk-free investment. Unlike Agency MBS, commercial mortgages carry default risk (it foreclosed on an $8 million office loan in the second quarter, while another $13.4 million loan entered non-accrual status in the period). Office foreclosures stemming from the pandemic led to its last dividend cut. It currently has a low exposure to the office sector (21%) and a more diversified portfolio overall (multifamily is 58%, industrial is 8%, while other commercial real estate-backed loans comprise the remainder).

I'm passing on AGNC and Annaly's higher yields in favor of Ladder's dividend growth potentialAGNC Investment and Annaly Capital offer alluring dividend yields these days. However, they're too high risk for me in an environment where the Fed is raising rates. That's why I wouldn't touch them right now.

Instead, I'm buying Ladder Capital. While it offers a lower current yield, it's in a strong position to grow its dividend. That's a better fit for my investment strategy.

The 10-Year Treasury yield recently rose to 5.3%, its highest level since 2007. As a result, other fixed-income investments -- including bonds and CDs -- must raise their yields to remain competitive. Those low-risk yields will draw investors away from riskier dividend stocks.

However, dividend stocks that pay much higher yields than U.S. Treasuries could be better insulated from that rotation. So should you invest in AGNC (AGNC -0.12%), the mortgage real estate investment trust (mREIT) that pays a whopping forward dividend yield of 17%?

Image source: Getty Images.

How does AGNC pay such a high dividend? As an REIT, AGNC must pay out at least 90% of its taxable income as dividends to maintain a lower tax rate. But unlike equity REITs, which buy properties and rent them out, mREITs invest in mortgages and mortgage-backed securities (MBS) to collect interest payments.

That strategy might seem risky, but it allocates 89% of its $97.2 billion portfolio to Agency MBS (backed by Fannie Mae, Freddie Mac, or Ginnie Mae) instead of riskier mortgages. However, it's sensitive to interest rates because it takes out loans at lower short-term rates to fund its long-term MBS purchases. That gap, officially known as its net interest spread, has held stable at roughly 2% over the past year. But if the Federal Reserve continues to raise its benchmark rates, its NIM will likely shrink as its short-term borrowing costs rise.

For 2026, analysts still expect AGNC's EPS to rise 5% to $1.58 per share and cover its forward dividend rate of $1.44 per share. But for 2027, they expect its EPS to decline 6% to $1.49. If the Fed keeps raising rates and squeezing its net interest spread, it could eventually need to cut its dividend -- as it did several times over the past decade.

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Why is AGNC's yield not worth the risk? AGNC's dividend looks sustainable for now. Unfortunately, its stock has declined by 14% over the past 12 months, offsetting all of those dividends and resulting in a negative total return.

AGNC's stock is under pressure because investors expect elevated interest rates to compress its net interest margins. Therefore, most investors would rather collect a risk-free 5% yield on fixed-income plays that won't depreciate in the same way as AGNC's core business.

Over the past five years, AGNC's stock price has plummeted 46%. With reinvested dividends, it delivered an anemic 8% total return. The S&P 500 (^GSPC -0.30%) generated a total return of 90% during the same period. So while AGNC might seem like a tempting way to generate some extra monthly income, its risks easily outweigh its potential rewards.

AGNC has paid the same monthly dividend for five straight years, but the leverage and rate bets holding that streak together just produced a quarter where economic return went negative. Whether the payout survives the next earnings report depends on…

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AGNC Investment (NASDAQ:AGNC) is a mortgage REIT that borrows short-term money in the repo market, buys agency mortgage-backed securities, and keeps the spread between bond yields and borrowing costs. Leverage of 7.4 times tangible equity magnifies both gains and losses.

The payout has held at $0.12 a month, or $1.44 annualized. Over the past month, shares fell 17.62% to $8.66. Is that income durable, or does it depend on leverage and rate positions that can reverse?

Spread Income Still Covers the Payout Net interest spread ran 1.78% in Q3 2025, 1.81% in Q4, 2.06% in Q1 2026 and 2.00% in Q2. In Q2, net spread and dollar roll income was 40 cents per share, against 36 cents of dividends declared. CEO Peter Federico linked returns on new investments directly to the payout on the July 21 call:

“You’re getting ROEs, when you’re leveraging them the way we leverage them at seven or seven and a half times, probably in the 15 to 17% range. So that aligns really well with the economics of our dividend.”

Book Value Decides Whether the Yield Is Real Tangible book value per share moved from $8.28 in Q3 2025 to $8.88, then $8.38, then $8.58 by Q2 2026. In Q1, book value fell 5.6%, and economic return (dividends plus book value change) was negative 1.6%. Federico explained:

“The associated increase in volatility and negative shift in investor sentiment caused Agency MBS spreads to benchmark rates to widen, and, as a result, AGNC’s economic return on tangible common equity in the first quarter was negative 1.6%.”

Q2 bounced back to 6.7% economic return, made up of 36 cents of dividends and a 20 cent gain in book value.

Peers Took the Same March Hit Dynex Capital (NYSE:DX) posted negative 2.5% economic return in Q1 as book value slipped from $13.45 to $12.60, then delivered 6.4% in Q2. Annaly Capital Management (NYSE:NLY) earned $0.79 per share available for distribution in Q2 and raised its quarterly dividend to $0.75 from $0.70. AGNC kept its payout flat.

Curve Shape Sets the Spread AGNC’s repo borrowings had a weighted average remaining term of just 13 days, so its funding costs reset quickly. On October 6, the 1-month Treasury yielded 4.06% and the 10-year yielded 5.27%. The gap between the 10-year and 2-year yields stood at 0.48%, up from 0.2% on September 21. A steeper curve widens the gap between AGNC’s funding costs and its asset yields. A flatter curve pressures it. Federico said that in Q2, market expectations shifted “from rate cuts to rate hikes.”

Dividend Record Includes Repeated Cuts The $0.12 monthly rate has held since April 2020, the 75th consecutive payment at that level. Before that, AGNC paid $0.20 a month from 2015 to mid-2017, $0.18 from 2018 to mid-2019 and $0.16 through March 2020. Each time leveraged MBS economics changed, the payout was reset lower.

Who This Suits and What Changes the View AGNC suits investors who reinvest dividends, measure results by economic return and can handle a 5.6% drop in book value in a single quarter. In 2025, that approach delivered a 22.7% economic return. It is a poor fit for retired people treating the $1.44 as a fixed bond coupon.

The upcoming Q3 report offers a fairly clear test. If net spread and dollar roll income falls below 36 cents per share and tangible book value drops below $8.38, shareholders’ own capital is paying for the dividend, and a cut becomes likely.

Contact [email protected] for any questions or corrections.

In the latest close session, AGNC Investment (AGNC - Free Report) was down 1.59% at $8.65. The stock trailed the S&P 500, which registered a daily gain of 0.66%. At the same time, the Dow added 0.18%, and the tech-heavy Nasdaq gained 1.05%.

Shares of the real estate investment trust have depreciated by 17.47% over the course of the past month, underperforming the Finance sector's loss of 4.15%, and the S&P 500's gain of 0.55%.

The investment community will be closely monitoring the performance of AGNC Investment in its forthcoming earnings report. The company is scheduled to release its earnings on October 19, 2026. The company is expected to report EPS of $0.39, up 11.43% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $428.4 million, indicating a 189.46% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.6 per share and revenue of $1.47 billion, which would represent changes of +6.67% and +117.69%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for AGNC Investment. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, AGNC Investment possesses a Zacks Rank of #3 (Hold).

In terms of valuation, AGNC Investment is presently being traded at a Forward P/E ratio of 5.51. This expresses a discount compared to the average Forward P/E of 7.39 of its industry.

The REIT and Equity Trust industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 223, finds itself in the bottom 10% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Stocks priced under $10 get dismissed as risky bets, yet some of the biggest names in the market once traded there too. These five under-$10 picks deliver monthly dividend payouts that can cover real bills while you wait to see…

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While most of Wall Street focuses on large-cap blue-chip companies because they offer safety and liquidity, many investors are limited in how many shares they can buy. Many of the most significant public companies, especially the technology giants, trade at prices of up to and over $1,000 per share, while others trade in the low to mid-hundreds. It is hard to get meaningful share-count leverage at those steep prices. Many growth and income investors, especially more aggressive investors, look to lower-priced stocks to generate good returns and increase their share count. That can help the decision-making process, especially when you are on to a winner, as you can always sell half and keep the rest.

Low-price stock skeptics should note that many of the world’s largest companies, including Apple (NASDAQ: AAPL | AAPL Price Prediction), Amazon.com (NASDAQ: AMZN), Netflix (NASDAQ:  NFLX), and Nvidia (NASDAQ: NVDA), have traded in the single digits at one time. We identified five stocks trading below $10 that offer investors substantial monthly, and in some cases ultra-high-yield, dividends. The added value is that if the stocks trade sideways, you still get a massive dividend for being patient. Four of the five have a Buy rating at top Wall Street firms.

In a world where prices seem to rise consistently, a monthly check makes sense for many people with bills and expenses due every 30 days. Items such as mortgage payments, rent, utility bills, trash collection, and even grocery bills are due each month, and a steady stream of monthly passive income can significantly help meet those obligations.

Why Do We Cover Monthly High-Yield Stocks Under $10?

While these stocks suit only some investors, those trying to build strong passive income streams can do exceptionally well by holding some in their portfolios. Pairing them with more conservative blue-chip dividend giants, investors can use a barbell approach to get passive income streams that make a significant difference.

AGNC Investment This company is among the highest-paying real estate investment trusts (REITs) for investors, with a massive 15% dividend yield, but it carries somewhat higher dividend-cut risk. AGNC Investment (NASDAQ: AGNC) is an investor in agency residential mortgage-backed securities (MBS), which benefit from a guarantee against credit losses by the Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), or the Government National Mortgage Association (Ginnie Mae).

The company’s business provides private capital to the U.S. residential housing market.

AGNC Investment invests on a leveraged basis, financing its agency MBS assets primarily through repurchase agreements, and utilizes dynamic risk management strategies intended to protect the value of its portfolio from interest rate and other market risks.

The company may also invest in agency multifamily MBS that are similarly guaranteed by a U.S. government-sponsored enterprise (GSE) and in other assets related to the housing, mortgage, or real estate markets that a GSE or U.S. government agency does not guarantee.

Royal Bank of Canada has an Outperform rating with a $12 target.

Horizon Technology Finance This ventu venture lending platform provides structured debt products to life sciences and technology companies. With a gigantic 15.59% dividend, Horizon Technology Finance (NASDAQ:HRZN) has tremendous upside potential. The business development company specializes in lending and investing in development-stage companies. It focuses on secured debt and venture lending investments in venture capital-backed companies across these industries:

Technology Life science Healthcare information and services Cleantech Sustainability Horizon Technology Finance’s experienced investment and operations team has provided debt capital to some of the most exciting companies for decades.

Compass Point has a Buy rating with a $5.50 target price.

Itaú Unibanco Formerly known as Banco Frances e Brasileiro, this Brazil-based provider of diversified banking and nonbanking services and products pays a strong 5.89% dividend. Itaú Unibanco (NYSE: ITUB) activities are divided into three business segments.

The Retail Business segment offers personal loans, credit cards, payroll-deducted loans, vehicle financing, mortgage loans, insurance, pension plans, and premium bond products. The Wholesale Business segment offers services and products to private banking clients, such as asset management, capital market solutions, and corporate and investment banking activities.

The Activities with the Market and Corporations Business segment manages interest income associated with the company’s capital surplus, subordinated debt surplus, and the net balance of tax credits and debits. Itaú Unibanco serves individuals and corporate clients.

J.P. Morgan has an Overweight rating with a $10 target.

PennantPark Floating Rate Capital PennantPark Floating Rate Capital (NYSE: PFLT) lowered its payout, currently yields 13.89%, and is being offered to investors at a massive discount to net asset value. This closed-end, externally managed, non-diversified investment company aims to generate current income and capital appreciation while preserving capital by investing primarily in floating-rate loans and other investments in U.S. middle-market companies. With a very low default rate of 0.4%, this is a solid idea for aggressive income investors.

PennantPark Floating Rate Capital primarily invests in private companies through floating-rate senior secured loans, including first-lien secured debt, second-lien secured debt, and subordinated debt. The company may also invest in equity investments. Under normal market conditions, the company generally expects that at least 80% of the value of its managed assets will be in floating-rate senior secured loans.

The company generally expects to invest up to 35% of its overall portfolio opportunistically in other investments, including second-lien secured debt, subordinated debt, and, to a lesser extent, equity investments.

Truist Financial has a Buy rating with a $9 target price.

U.S. Global Investors Based in San Antonio, Texas, this money management firm is led by well-known financial writer Frank Holmes and pays a 3.13% dividend yield. U.S. Global Investors (NASDAQ: GROW) is an investment adviser. The company offers exchange-traded funds (ETFs) in addition to mutual funds and manages two business segments:

Investment Management Services Corporate Investments Through Investment Management Services, the company offers U.S. Global Investors Funds (USGIF) and ETF clients a range of investment management products and services to meet the needs of individual and institutional investors. The company invests for its own account through Corporate Investments.

The company is particularly known for its expertise in gold mining and exploration, natural resources, and airlines. It provides investment advisory services and administrative services to mutual funds. Its wholly owned subsidiaries include:

U.S. Global Investors (Bermuda) U.S. Global Investors (Canada) U.S. Global Indices Contact [email protected] for any questions or corrections.

, /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) ("AGNC" or the "Company") announced today it will report third quarter 2026 earnings after market close on October 19, 2026. AGNC will hold a stockholder call and audio webcast on October 20, 2026 at 8:30 am ET. Callers who do not plan on asking a question and have internet access are encouraged to utilize the webcast at www.AGNC.com. Those who plan on participating in the Q&A or do not have internet available may access the call by dialing (877) 300-5922 (U.S. domestic) or (412) 902-6621 (international). Please advise the operator you are dialing in for the AGNC Investment Corp. stockholder call.

A slide presentation will accompany the call and will be available in the Investors section of the Company's website at www.AGNC.com. Select the Q3 2026 Stockholder Presentation link to download the presentation in advance of the stockholder call.

An archived audio of the stockholder call combined with the slide presentation will be available on the AGNC website after the call on October 20, 2026. In addition, there will be a phone recording available one hour after the call on October 20, 2026 through November 3, 2026. Those who are interested in hearing the recording of the presentation can access it by dialing (855) 669-9658 (U.S. domestic) or (412) 317-0088 (international), passcode 5388054.

For further information or questions, please contact Investor Relations at (301) 968-9300 or [email protected].  

ABOUT AGNC INVESTMENT CORP.
Founded in 2008, AGNC Investment Corp. (Nasdaq: AGNC) is a leading investor in Agency residential mortgage-backed securities (Agency MBS), which benefit from a guarantee against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae. We invest on a leveraged basis, financing our Agency MBS assets primarily through repurchase agreements, and utilize dynamic risk management strategies intended to protect the value of our portfolio from interest rate and other market risks.

AGNC has a track record of providing favorable long-term returns for our stockholders through substantial monthly dividend income, with over $16 billion of common stock dividends paid since inception. Our business is a significant source of private capital for the U.S. residential housing market, and our team has extensive experience managing mortgage assets across market cycles. AGNC is a member of many broad market indices, including the S&P MidCap 400, the S&P Composite 1500, the Russell 1000, the Russell 3000, and the Nasdaq Composite. To learn more about The Premier Agency Residential Mortgage REIT, please visit www.AGNC.com, follow us on LinkedIn and X, and sign up for Investor Alerts.

CONTACT: Investor Relations - (301) 968-9300

SOURCE AGNC Investment Corp.

In the latest close session, AGNC Investment (AGNC - Free Report) was down 1.72% at $9.46. The stock trailed the S&P 500, which registered a daily loss of 0.77%. On the other hand, the Dow registered a loss of 0.67%, and the technology-centric Nasdaq decreased by 0.92%.

Shares of the real estate investment trust witnessed a loss of 11.74% over the previous month, trailing the performance of the Finance sector with its loss of 3.48%, and the S&P 500's gain of 0.96%.

Investors will be eagerly watching for the performance of AGNC Investment in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.39, marking a 11.43% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $428.4 million, indicating a 189.46% growth compared to the corresponding quarter of the prior year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.6 per share and revenue of $1.47 billion, indicating changes of +6.67% and +117.69%, respectively, compared to the previous year.

Any recent changes to analyst estimates for AGNC Investment should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. AGNC Investment is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, AGNC Investment is at present trading with a Forward P/E ratio of 6.03. For comparison, its industry has an average Forward P/E of 7.22, which means AGNC Investment is trading at a discount to the group.

The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 224, which puts it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

In the latest trading session, AGNC Investment (AGNC - Free Report) closed at $9.97, marking a +1.01% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.49% for the day. On the other hand, the Dow registered a gain of 0.71%, and the technology-centric Nasdaq increased by 2.26%.

Heading into today, shares of the real estate investment trust had lost 9.37% over the past month, lagging the Finance sector's loss of 2.25% and the S&P 500's gain of 0.1%.

Investors will be eagerly watching for the performance of AGNC Investment in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.39, signifying a 11.43% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $428.4 million, indicating a 189.46% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.6 per share and a revenue of $1.47 billion, indicating changes of +6.67% and +117.69%, respectively, from the former year.

Any recent changes to analyst estimates for AGNC Investment should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AGNC Investment is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, AGNC Investment is at present trading with a Forward P/E ratio of 6.19. This signifies a discount in comparison to the average Forward P/E of 7.54 for its industry.

The REIT and Equity Trust industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 226, placing it within the bottom 9% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

Five high-yield tickers have ex-dividend dates arriving in days, and buying even one session too late means the seller collects your payment instead. Before you place an order, check which of these names carries a fragile payout that may not…

Income investors have a narrow window to get on the books for the next round of payments from a group of high-yield names. Five tickers on our watchlist have confirmed ex-dividend dates of September 30 or October 1, 2026, meaning the last trading day to buy and still capture the upcoming distribution is one business day earlier. The share price typically drops by roughly the dividend amount on the ex-date, so the transaction largely transfers a payment already owed to shareholders.

How the mechanics work: to receive the next dividend, you must own shares before the ex-dividend date. Buy on or after the ex-date and the seller keeps the payment. Once the ex-date passes, the payment is gone for that cycle.

AGNC Investment (NASDAQ: AGNC) AGNC Investment (NASDAQ:AGNC | AGNC Price Prediction), the agency mortgage REIT, carries a 14.5% dividend yield at roughly $10.01 per share. The board declared a $0.12 monthly common dividend on September 9, 2026, with an ex-dividend date of September 30, 2026 and a payment date of October 9, 2026. Buy-by deadline: the trading day before September 30.

The right yardsticks for a mortgage REIT are economic return and net spread plus dollar roll income. Q2 2026 economic return on tangible common equity was 6.7%, tangible book value rose to $8.58 per share, and net spread plus dollar roll income covered the $0.36 quarterly payout (three $0.12 monthlies). Q1 2026 was weaker with a negative 1.6% economic return, but core spread and roll income of $0.42 still covered the payout. Risk: the stock is down 7.55% over the past month, and Agency MBS spreads remain the swing factor for book value.

Carlyle Secured Lending (NASDAQ: CGBD) Carlyle Secured Lending (NASDAQ:CGBD), a middle-market BDC, yields 13.6% at $11.39 per share. The $0.35 quarterly dividend goes ex-dividend on September 30, 2026, with payment on October 16, 2026. Buy-by deadline: the trading day before September 30.

For a BDC, the correct base is net investment income. Adjusted NII of $0.35 per share in Q2 2026 exactly covers the $0.35 base dividend, with an estimated $0.73 of spillover for cushion and non-accruals at just 0.6% of fair value. NAV slipped to $15.61 from $15.89, and the base dividend was reset earlier this year from $0.40 to $0.35, a candid signal that earnings power is tighter. Risk: 100% coverage leaves no margin if credit softens or spreads compress further.

Crescent Capital BDC (NASDAQ: CCAP) Crescent Capital BDC (NASDAQ:CCAP) is the highest-yielding name on the list at 16.3%, though the price is doing most of that work: shares sit at $9.88, down 24.57% year to date and 27.32% over the past year. The regular $0.34 quarterly dividend goes ex on September 30, 2026, payable October 15, 2026. A separate special dividend already went ex on August 31, so that one is not in play. Buy-by deadline for the regular: the trading day before September 30.

Q2 2026 adjusted NII of $0.36 per share sits just above the $0.34 regular payout, and the regular dividend was cut from $0.42 to $0.34 as base rates fell. NAV declined to $17.82 from $19.55 a year earlier, and Q2 net realized losses were $17.7 million, with 98.4% of debt investments at floating rates. Risk: coverage is thin and rate exposure is one-directional. Treat this as the fragile pick of the group, and the setup that tends to precede another trim (we cataloged the seven warning signs that a big yield is about to be cut in a free report you can grab here).

AGNC 7.00% Series C Preferred (NASDAQ: AGNCN) The AGNC Series C Fixed-to-Floating Preferred (NASDAQ:AGNCN) offers a floating-rate coupon on top of the same issuer’s balance sheet. The next quarterly distribution of $0.58557 per share was declared September 9, 2026, with an ex-dividend date of October 1, 2026 and payment on October 15, 2026. That amount is up from $0.57204 the prior quarter. Shares last traded at $25.80, near par. Buy-by deadline: the trading day before October 1.

Preferred dividends sit senior to the common. AGNC’s Q2 2026 economic return of 6.7% on tangible common equity provides ample cushion for preferred coupons, and even Q1’s negative 1.6% economic return left preferreds well covered given seniority in the capital stack. Risk: the floating coupon has room to reset lower if short rates fall further.

Wintrust 7.875% Fixed-Rate Reset Preferred (NASDAQ: WTFCN) The Wintrust Financial 7.875% Fixed-Rate Reset Non-Cumulative Perpetual Preferred (NASDAQ:WTFCN) pays $0.49219 per share quarterly, with an ex-dividend date of October 1, 2026 and payment on October 15, 2026. Shares closed at $26.10, a modest premium to par. Buy-by deadline: the trading day before October 1.

Wintrust posted its sixth consecutive record quarterly net income at $233.7 million in Q2 2026, with diluted EPS of $3.30, a 3.52% net interest margin, net charge-offs of just 10 basis points, and $74.7 billion in total assets. Preferred coupons are comfortably covered by earnings. Risk: as a non-cumulative perpetual, missed dividends are gone rather than accrued, though nothing in current results suggests that scenario.

Bottom Line The arithmetic of an ex-date price adjustment means the transfer is roughly a wash on day one. What matters more is whether the underlying payer can keep making the distribution. Three of these names (AGNC, CGBD, CCAP) go ex-dividend on September 30; the two preferreds go ex on October 1. Miss those dates and the next payment goes to the seller.

Contact [email protected] for any questions or corrections.

, /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) ("AGNC" or the "Company") announced today that it will be added to the S&P MidCap 400 Index, effective prior to the open of trading on Monday, September 21, 2026. S&P Dow Jones Indices announced AGNC's addition to the S&P MidCap 400 Index as part of its September quarterly rebalance.

"AGNC's addition to the S&P MidCap 400 Index represents an important milestone for the Company," said Peter Federico, the Company's President, Chief Executive Officer and Chief Investment Officer. "Inclusion in this widely followed index is a testament to the scale AGNC has attained over our 18-year history. Since inception, AGNC has been a significant source of private capital for the U.S. housing market, and we have remained steadfast in our focus on delivering attractive yield-driven total returns for our stockholders through a specialized approach to Agency MBS investing."

The S&P MidCap 400 Index measures the performance of the mid-cap segment of the U.S. market and is composed of 400 constituent companies. AGNC will also become a constituent of the S&P Composite 1500, the S&P 900, and the S&P 1000 indices as a result of its addition to the S&P MidCap 400 Index. For more information regarding the S&P MidCap 400 Index and S&P Dow Jones Indices, please visit www.spglobal.com.

For further information or questions, please contact Investor Relations at (301) 968-9300 or [email protected].

ABOUT AGNC INVESTMENT CORP.
Founded in 2008, AGNC Investment Corp. (Nasdaq: AGNC) is a leading investor in Agency residential mortgage-backed securities (Agency MBS), which benefit from a guarantee against credit losses by Fannie Mae, Freddie Mac, or Ginnie Mae. We invest on a leveraged basis, financing our Agency MBS assets primarily through repurchase agreements, and utilize dynamic risk management strategies intended to protect the value of our portfolio from interest rate and other market risks.

AGNC has a track record of providing favorable long-term returns for our stockholders through substantial monthly dividend income, with over $16 billion of common stock dividends paid since inception. Our business is a significant source of private capital for the U.S. residential housing market, and our team has extensive experience managing mortgage assets across market cycles. To learn more about The Premier Agency Residential Mortgage REIT, please visit www.AGNC.com, follow us on LinkedIn and X, and sign up for Investor Alerts.

FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are based on estimates, projections, beliefs and assumptions of management of the Company at the time of such statements and are not guarantees of future performance. Forward-looking statements involve risks and uncertainties in predicting future results and conditions. Actual results could differ materially from those projected in these forward-looking statements or from our historic performance due to a variety of important factors, including, without limitation, changes in monetary policy and other factors that affect interest rates, MBS spreads to benchmark interest rates, the forward yield curve, or prepayment rates; the availability and terms of financing; changes in the market value of the Company's assets; general economic or geopolitical conditions; liquidity and other conditions in Agency MBS and other financial markets; and legislative and regulatory changes that could adversely affect the business of the Company. Certain factors that could cause actual results to differ materially from those contained in the forward-looking statements are included in the Company's periodic reports filed with the Securities and Exchange Commission ("SEC"). Copies are available on the SEC's website, www.sec.gov. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.

CONTACT:
Investors - (301) 968-9300
Media - (301) 968-9303

SOURCE AGNC Investment Corp.

In the latest trading session, AGNC Investment (AGNC - Free Report) closed at $9.95, marking a -1.44% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.45%. Meanwhile, the Dow experienced a drop of 0.63%, and the technology-dominated Nasdaq saw a decrease of 0.78%.

Coming into today, shares of the real estate investment trust had lost 7.85% in the past month. In that same time, the Finance sector lost 2.1%, while the S&P 500 lost 1.99%.

Analysts and investors alike will be keeping a close eye on the performance of AGNC Investment in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.39, indicating a 11.43% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $428.4 million, indicating a 189.46% increase compared to the same quarter of the previous year.

AGNC's full-year Zacks Consensus Estimates are calling for earnings of $1.6 per share and revenue of $1.47 billion. These results would represent year-over-year changes of +6.67% and +117.69%, respectively.

Investors might also notice recent changes to analyst estimates for AGNC Investment. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, AGNC Investment is carrying a Zacks Rank of #3 (Hold).

In terms of valuation, AGNC Investment is currently trading at a Forward P/E ratio of 6.33. This signifies a discount in comparison to the average Forward P/E of 7.73 for its industry.

The REIT and Equity Trust industry is part of the Finance sector. With its current Zacks Industry Rank of 234, this industry ranks in the bottom 5% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Mortgage REITs like ORC, ARR, and AGNC throw off some of the fattest yields on the market, but where you hold them determines whether the IRS quietly pockets a quarter of every distribution before it ever reaches you.

Tax Bill Ultra High Yield mREIT Holders Are Quietly Paying A $500,000 position yielding 8% generates $40,000 in gross annual income. At the 24% federal bracket, that same position inside a taxable brokerage account nets $30,400 after tax, while inside a Roth IRA it keeps the full $40,000. The annual Roth advantage on a single ordinary-income position: $9,600, compounding permanently. Agency mortgage REIT distributions are ordinary income rather than qualified dividends, so the tax drag scales directly with the headline yield.

Dividend Safety Read Before The Tax Math Orchid Island Capital (NYSE:ORC) cut its monthly payout from $0.12 to $0.10 beginning with the 2026-04-30 ex-dividend date, dropping the annualized forward dividend to $1.20 per share. Management said the Q2 dividend was “right around” the portfolio’s earnings yield on book value near 16.8%, but flagged that “the fact that we only cover 91% of the funding with hedges implies there’s some room there for leakage in terms of compressing the dividend.” The payment record shows repeated reductions since 2013.

ARMOUR Residential REIT (NYSE:ARR) has held the monthly common dividend at $0.24 per share across every listed record from 2024-01-12 through 2026-09-15. Q2 distributable earnings of $0.72 per common share covered the quarterly dividend of $0.72, and CEO Scott Ulm said the company prioritizes “maintaining common share dividends appropriate for the intermediate term rather than focusing on short-term market fluctuations.” A recent filing referenced a 16.2% dividend yield.

AGNC Investment (NASDAQ:AGNC | AGNC Price Prediction) has paid 12 cents per share for 75 consecutive months, the most consistent record in this cohort. Q2 net spread and dollar roll income was 40 cents per common share against declared dividends of 36 cents, economic return on tangible common equity ran 6.7%, and the annualized forward dividend sits at $1.44 per share.

What Each Position Keeps: Roth vs. Taxable at 24% Per-share dividend income is fixed. What changes is what the investor keeps.

Stock Forward Annual Dividend Current Price ORC $1.20 $6.35 ARR $2.88 $15.98 AGNC $1.44 $10.30 All three payouts are non-qualified. In the 24% bracket, $0.24 of every $1.00 of dividend income leaves for the IRS inside a taxable account. In a Roth, the full dollar stays. Applied to the $500,000/8% frame above, that gap equals $9,600 per year on one position, or $96,000 across a decade with no reinvestment. At ARR’s referenced 16.2% yield, the gap widens materially per dollar invested.

Bracket Multiplier: Same Position, Different Damage Tax leakage scales with the marginal rate. On the $40,000 gross income figure, the 24% bracket surrenders $9,600 annually. A 22% bracket investor loses proportionally less. A 32% or 37% bracket investor loses meaningfully more on the same portfolio. The higher the bracket, the more urgent Roth placement becomes on any holding throwing ordinary-income distributions, which describes every mortgage REIT payout on this list.

Compounding Insight Most Readers Miss The $9,600 annual Roth advantage repeats every year the position is held. Reinvested inside a Roth at the same distribution rate, that cash buys additional shares that themselves produce ordinary income shielded from tax. Across 10 or 20 years the delta stacks: raw sum plus every tax-free distribution the reinvested income generates. Against a 4.83% 10-year Treasury benchmark, an ultra-high-yield agency mREIT position is where account location does its heaviest work.

Action Items Before Your Next Statement If ORC, ARR, or AGNC sits in a taxable brokerage account, calculate this year’s dividend income at your marginal rate before your next tax filing so the after-tax number is on paper. Run the Roth conversion math on any ordinary-income position first, since every dollar of non-qualified distribution converted permanently escapes the annual tax drag. Sequence any phased conversion by starting with the highest-yielding, non-qualified names ahead of positions paying qualified dividends already taxed at preferential rates. Highest-bracket income investors holding ultra-high-yield mREITs in taxable accounts have the most to gain from account relocation. At higher yields the tax bill scales up; at higher brackets it scales up faster. The quiet years between a last paycheck and the first RMD are when conversions cost the least, and we sized up that window in a free guide here.

Contact [email protected] for any questions or corrections.

AGNC Investment (AGNC - Free Report) closed the most recent trading day at $10.51, moving -1.59% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.48%. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.64%.

The stock of real estate investment trust has fallen by 1.93% in the past month, lagging the Finance sector's loss of 0.68% and the S&P 500's loss of 0.97%.

Investors will be eagerly watching for the performance of AGNC Investment in its upcoming earnings disclosure. In that report, analysts expect AGNC Investment to post earnings of $0.39 per share. This would mark year-over-year growth of 11.43%. In the meantime, our current consensus estimate forecasts the revenue to be $428.4 million, indicating a 189.46% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.6 per share and revenue of $1.47 billion, which would represent changes of +6.67% and +117.69%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for AGNC Investment. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. AGNC Investment presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that AGNC Investment has a Forward P/E ratio of 6.7 right now. This denotes a discount relative to the industry average Forward P/E of 8.09.

The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 235, putting it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.