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A $45,000 income stream is roughly what a Social Security check plus a modest pension covers for many retirees, and it is also the annual draw many investors target from a taxable brokerage or IRA. Doubling that to $90,000 without adding new capital is possible, but only if the reader understands what shifting up the yield curve actually costs.
The math is simple: income target divided by yield equals capital required. Producing $45,000 at a 3.5% yield takes roughly $1,285,714. Producing $90,000 from the same portfolio requires either doubling the capital or doubling the yield. This piece walks through what that trade looks like at three yield tiers, with the current rate backdrop of a 3.75%-range federal funds upper bound and a 10-year Treasury yield near 4.6% as the risk-free anchor.
Conservative Tier: 3% to 4% Yield At 3.5%, hitting $45,000 requires about $1,285,714. Hitting $90,000 from that same base is not possible without adding capital, so this tier is the “keep it and grow it” anchor rather than the doubling engine. The category includes regulated utilities, dividend-growth consumer names, and best-in-class regional banks.
Alliant Energy (NASDAQ:LNT | LNT Price Prediction) pays a $0.535 quarterly dividend against a share price near $74, with 2026 EPS guidance of $3.36 to $3.46 and a data-center pipeline of 3.4 GW contracted across five agreements. Casey’s General Stores (NASDAQ:CASY) just delivered its 27th consecutive annual dividend increase, raising the quarterly payout from $0.57 to $0.65. East West Bancorp pays $0.80 quarterly and posted $9.87 in trailing EPS with a 13x P/E.
Moderate Tier: 5% to 7% Yield Here is where the doubling story begins. At 7%, $90,000 requires roughly $1,285,714, the same capital that produced $45,000 at 3.5%. The trade is dividend growth and multiple expansion for current cash flow, with no new capital required. The tier holds preferred shares, covered-call equity funds, higher-yielding REITs, and dividend-heavy regional banks.
Peoples Bancorp (NASDAQ:PEBO) pays a $0.42 quarterly dividend with a 4.2% yield and a forward P/E near 10x. Home Bancorp recently raised its quarterly payout to $0.32 and reported Q2 2026 EPS of $1.48 against a $1.46 estimate. Stacked with covered-call ETFs and preferred baskets, a blended 6% to 7% yield is achievable, but dividend growth typically slows and total return leans on the coupon rather than capital appreciation.
Aggressive Tier: 8% to 14% Yield At 12%, $90,000 requires only $750,000, and $45,000 requires just $375,000. The lever is enormous. The cost is principal.
AGNC Investment (NASDAQ:AGNC) pays $0.12 monthly, or $1.44 annualized, against a share price near almost $11, a yield above 13%. The dividend has been held flat at $0.12 for more than six years after a 25% cut in March 2020 from $0.16. Tangible book value sits at roughly $8.60 per share. Business development companies, leveraged covered-call funds, and high-yield bond funds behave similarly: heavy current income, weak or negative growth in the distribution, and principal that often drifts lower.
The Compounding Trap Most Income Investors Fall Into Consider two portfolios both starting at $1,285,714. Portfolio A yields 3.5% and grows the payout 8% annually, roughly the pace at which Casey’s raised its dividend when it moved from $0.57 to $0.65 quarterly. In nine years the income doubles from $45,000 to $90,000 without a single dollar added. Portfolio B yields 7% today, pays $90,000, and never grows. A decade later, after inflation running near the Fed’s 2% target, the second portfolio’s real income has quietly shrunk while the first has caught and passed it.
That is why doubling a $45,000 stream to $90,000 “without new capital” is often better executed by time than by yield reach.
What To Do Next Map your current portfolio yield against the three tiers above and calculate what percentage of your $45,000 already comes from names growing the dividend versus names paying a static coupon. Compare a decade of total return between a 3.5% dividend-growth compounder and a 10%-plus mortgage REIT or leveraged covered-call fund; the AGNC price chart and Casey’s dividend ladder are two ends of that spectrum. If you are within five years of drawing income, model the tax hit tier by tier. Qualified dividends from names like LNT and regional banks are taxed differently than the ordinary-income distributions from AGNC-style mREITs, and that gap can be worth more than a full percentage point of yield. Contact [email protected] for any questions or corrections.
AGNC Investment (AGNC +0.76%) stands out for its mammoth monthly dividend. The real estate investment trust (REIT) currently yields 13.4%, more than 10 times higher than the S&P 500 (1.1% yield).
The mortgage REIT supports its ultra-high-yielding payout with a large portfolio of mortgage investments. Here's a look at the portfolio behind AGNC Investment's dividend.
Image source: The Motley Fool.
The portfolio supporting the dividend AGNC Investment recently reported its second-quarter financial results, which included an update on its investment portfolio. The REIT's portfolio stood at $97.1 billion at the end of the second quarter, up $2.5 billion from the prior quarter. That's the second-largest portfolio among residential mortgage REITs behind Annaly Capital, which had a $109.4 billion investment portfolio at the end of the second quarter.
The bulk of AGNC Investment's portfolio ($92 billion or 95%) consists of fixed-rated Agency mortgage-backed securities (MBS: pools of mortgages guaranteed against credit losses by government agencies such as Fannie Mae). These primarily 30-year mortgages have a weighted-average coupon of 5.04%, up from 4.95% at the end of the first quarter. They provide the REIT with stable fixed income.
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Most of the REIT's remaining investments are Agency MBS backed by multifamily properties ($3.5 billion or 4%). AGNC also has some Agency MBS backed by adjustable-rate mortgages (ARMs: $815 million, or about 1%), as well as some other credit and non-Agency securities.
Focused on one low-risk asset class Almost all of AGNC Investment's portfolio is Agency MBS, which are extremely low-risk fixed-income investments. That low-risk profile allows AGNC Investment to leverage its capital to earn a higher return. It currently leverages its capital at 7.0 to 7.5 times (7.4x at the end of the second quarter). That leverage boosts its returns.
In the current market environment, the REIT can earn a return on equity of 15% to 17% on new MBS investments if it leverages its capital at 7-7.5x. That's an attractive return compared to its current dividend level. AGNC Investment can sell stock at around a 13.5% yield and leverage that capital into new MBS investments, earning returns of 15% to 17%. That aligns with the economics of its dividend. As long as that alignment remains, AGNC can continue paying its current dividend.
AGNC's strategy is paying dividends AGNC Investment focuses exclusively on investing in Agency MBS, which are very low-risk fixed-income investments. That allows it to prudently use leverage to boost returns and provides it with the income to support its high dividend yield. While that use of leverage increases its risk, the REIT has navigated the market's challenges over the past few years, enabling it to maintain its dividend for 75 consecutive months. The REIT's investment strategy should continue to pay off for investors as long as there isn't a meaningful deterioration in the returns it can earn on levered Agency MBS investments.
California Public Employees Retirement System increased its stake in AGNC Investment Corp. (NASDAQ:AGNC – Free Report) by 3.4% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 1,535,758 shares of the real estate investment trust’s stock after purchasing an additional 50,194 shares during the quarter. California Public Employees Retirement System owned about 0.13% of AGNC Investment worth $15,404,000 at the end of the most recent quarter.
Other hedge funds and other institutional investors have also bought and sold shares of the company. Advisortrust Partners LLC boosted its stake in AGNC Investment by 9.6% during the first quarter. Advisortrust Partners LLC now owns 33,571 shares of the real estate investment trust’s stock valued at $337,000 after buying an additional 2,938 shares during the period. Independent Financial Group LLC bought a new position in AGNC Investment in the 1st quarter worth about $4,033,000. D.A. Davidson & CO. increased its stake in AGNC Investment by 17.5% in the 1st quarter. D.A. Davidson & CO. now owns 38,937 shares of the real estate investment trust’s stock worth $391,000 after acquiring an additional 5,786 shares during the last quarter. Navigation Group LLC purchased a new stake in shares of AGNC Investment in the 1st quarter valued at about $189,000. Finally, Bank of New York Mellon Corp raised its holdings in shares of AGNC Investment by 3.5% in the 1st quarter. Bank of New York Mellon Corp now owns 3,558,166 shares of the real estate investment trust’s stock valued at $35,688,000 after acquiring an additional 121,570 shares in the last quarter. Institutional investors own 38.28% of the company’s stock.
Insider Activity In other news, CEO Peter J. Federico sold 64,412 shares of the firm’s stock in a transaction on Tuesday, April 28th. The stock was sold at an average price of $11.08, for a total transaction of $713,684.96. Following the completion of the transaction, the chief executive officer directly owned 1,927,083 shares in the company, valued at $21,352,079.64. This trade represents a 3.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Donna Blank sold 22,000 shares of the firm’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $10.78, for a total transaction of $237,160.00. Following the sale, the director owned 96,471 shares of the company’s stock, valued at approximately $1,039,957.38. This represents a 18.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 150,823 shares of company stock valued at $1,661,298. 0.40% of the stock is owned by company insiders.
More AGNC Investment News Here are the key news stories impacting AGNC Investment this week:
Positive Sentiment: AGNC reported quarterly earnings that beat estimates and management said Agency MBS supply-demand trends are improving, with stronger book value and more higher-coupon investment opportunities despite rate volatility. AGNC Investment Q2 Earnings Call Highlights Agency MBS Outlook Positive Sentiment: The company marked its 75th straight monthly dividend, reinforcing AGNC’s appeal as a high-yield income stock for investors focused on steady payouts. AGNC Investment Just Notched Its 75th Straight Monthly Dividend and Currently Yields 13%+. Here’s What Q2 Earnings Revealed. Positive Sentiment: Wells Fargo kept an overweight rating on AGNC even though it cut its price target to $11, suggesting the stock may still have upside from current levels. Benzinga analyst note Neutral Sentiment: Several dividend-focused articles highlighted AGNC as a monthly payer, but these were mostly list-style mentions and did not include new company-specific developments. The Super-High-Yield Retirement Stocks That Turn a Nest Egg Into a Monthly Paycheck Neutral Sentiment: AGNC was also included in dividend-calendar and retirement-income roundups, which may support investor interest but are unlikely to move the stock on their own. With a 13% Yield but an Uncertain Interest Rate Environment, Is AGNC Stock a Buy? Negative Sentiment: Analysts at Wells Fargo and KBW both lowered their price targets to $11 from $12, reflecting more caution around the stock’s near-term valuation and the mortgage REIT environment. Benzinga analyst notes Negative Sentiment: The main headwind remains the uncertain interest-rate environment, which can pressure mortgage REIT earnings, book value, and investor sentiment. With a 13% Yield but an Uncertain Interest Rate Environment, Is AGNC Stock a Buy? AGNC Investment Price Performance NASDAQ AGNC opened at $10.56 on Friday. The stock has a market capitalization of $12.12 billion, a PE ratio of 5.56 and a beta of 1.31. AGNC Investment Corp. has a 1 year low of $9.31 and a 1 year high of $12.19. The business’s 50-day moving average is $10.60 and its 200 day moving average is $10.82.
AGNC Investment (NASDAQ:AGNC – Get Free Report) last announced its earnings results on Monday, July 20th. The real estate investment trust reported $0.40 EPS for the quarter, beating analysts’ consensus estimates of $0.38 by $0.02. AGNC Investment had a return on equity of 18.20% and a net margin of 57.94%.The company had revenue of $305.00 million during the quarter, compared to the consensus estimate of $1.06 billion. During the same quarter in the prior year, the company earned ($0.17) earnings per share. As a group, equities research analysts anticipate that AGNC Investment Corp. will post 1.58 earnings per share for the current year.
AGNC Investment Dividend Announcement The firm also recently announced a monthly dividend, which will be paid on Tuesday, August 11th. Stockholders of record on Friday, July 31st will be given a $0.12 dividend. The ex-dividend date of this dividend is Friday, July 31st. This represents a c) dividend on an annualized basis and a dividend yield of 13.6%. AGNC Investment’s dividend payout ratio is currently 75.79%.
Analyst Ratings Changes A number of research firms have commented on AGNC. Keefe, Bruyette & Woods cut their price target on shares of AGNC Investment from $12.00 to $11.00 and set a “market perform” rating for the company in a research note on Wednesday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of AGNC Investment in a report on Wednesday, June 24th. JPMorgan Chase & Co. reiterated a “neutral” rating and issued a $11.50 target price (up from $11.00) on shares of AGNC Investment in a research report on Friday, July 17th. Compass Point cut AGNC Investment from a “buy” rating to a “neutral” rating and set a $11.50 target price on the stock. in a research note on Friday, July 17th. Finally, Wall Street Zen upgraded AGNC Investment from a “sell” rating to a “hold” rating in a research report on Saturday, April 25th. Three research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $11.11.
Read Our Latest Analysis on AGNC
AGNC Investment Company Profile (Free Report)
AGNC Investment Corp. is a self-managed real estate investment trust (REIT) that primarily acquires and manages a portfolio of residential mortgage-backed securities guaranteed by U.S. government-sponsored enterprises such as Ginnie Mae, Fannie Mae and Freddie Mac. The company employs a leveraged total return strategy, borrowing against its securities to enhance income potential while using interest rate hedges to manage risk. AGNC’s investment objective is to generate attractive monthly dividends and long-term capital appreciation for its shareholders.
Founded in 2008 and headquartered in Bethesda, Maryland, AGNC focuses exclusively on U.S.
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With a yield of over 13%, AGNC Investment (AGNC -2.10%) is a stock that frequently pops up on dividend investors' radars. For those unfamiliar with AGNC, it is a mortgage real estate investment trust (mREIT) that owns a portfolio of agency mortgage-backed securities (MBS). Since these bonds are backed by government agencies, they carry essentially no default risk. However, the value of MBS can be greatly affected by movements in mortgage spreads and interest rates, and with the Fed now considering an interest rate hike rather than a cut, the environment has suddenly changed for AGNC.
Image source: The Motley Fool.
While AGNC noted the sudden shift in rate expectations with a new Fed chief, it believes the supply of new mortgages will be materially lower this year, while demand for MBS should remain high. As such, it thinks spreads can remain within 120 to 160 basis points of Treasuries and perhaps even tighten. Lower spread volatility is generally good for AGNC and can allow it to invest with more leverage.
Meanwhile, AGNC continues to generate strong net spread and dollar roll income (dollar roll is a hedging strategy used in MBS markets to avoid losses when MBS values decline), which is used to cover its dividend. For Q2, this came in at $0.40 per share, while it paid $0.36 per share in dividends. That was an increase from $0.38 a year ago. Its net interest spread was basically unchanged at 2%, as was its at-risk leverage of 7.4 times.
AGNC's tangible book value (TBV) also rose in the quarter, increasing by $0.20 per share to $8.58 at the end of Q2, up from $8.38 at the end of Q1. TBV is the value of AGNC's MBS portfolio, and it is the metric by which mREITs are normally valued. It said that as of the end of last week, its TBV was down about 1%, or a little less than 2% when accounting for its monthly dividend accrual.
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Should investors hold the stock? Mortgage REITs are always trying to balance the impact of mortgage rates, spreads over Treasuries, prepayments, and a host of other factors. AGNC management has done a solid job of this over the past couple of years, especially in generating solid income to cover its robust dividend.
Right now, the stock looks like it will continue to be a solid income generator. However, unless spreads tighten significantly, I don't see much additional upside beyond its current dividend payout, given that the stock trades well above its TBV per share.
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Monthly dividend payers are the quiet workhorses of a retirement paycheck. They align with monthly bills, compound faster when reinvested, and let retirees stop watching a calendar for quarterly deposits. Consider the flagship of the group: Realty Income (NYSE:O | O Price Prediction) has paid uninterrupted monthly dividends spanning over 25+ years, and shares have returned 769.14% on an adjusted basis over the last 20 years. That is the kind of compounding that makes retirees wish they had started two decades ago. Here are five monthly payers built for income investors, ranked by how well the dividend is actually covered.
Realty Income (O) Realty Income yields 5.11% at a recent price of $65.53, paying a monthly dividend of $0.271. This is the name that defined the category. The company has declared 670 consecutive monthly dividends and has notched its 114th consecutive quarterly increase, with 133 raises since its NYSE listing in 1994.
Safety leads here. Q1 2026 AFFO per share came in at $1.13, up 6.6% year over year, and management raised 2026 AFFO guidance to $4.41 to $4.44, comfortably covering the $3.246 annualized dividend. Portfolio occupancy sits at 98.9%, rent recapture was 103.4%, and Net Debt to Adjusted EBITDAre improved to 5.2x from 5.4x. For income investors, this is a monthly paycheck machine backed by nearly 15,000 net-lease properties and a private-capital joint venture with Apollo. The caveat: Q1 2026 included $129.3 million in impairment provisions, and per-share AFFO growth remains slow at REIT scale.
Main Street Capital (MAIN) Main Street Capital (NYSE:MAIN) yields 5.73% and is a business development company that pairs a regular monthly dividend with a supplemental quarterly dividend. The regular monthly rate is $0.26 per share for April, May, and June 2026, a 4.0% increase year over year, and management has now paid 19 consecutive quarterly supplemental dividends. Data confirms uninterrupted monthly dividend payments for 19+ years (253 total records from 2007-2026).
Coverage is what makes MAIN stand apart in the BDC space. Q1 2026 distributable net investment income was $1.00 per share, and full-year 2025 return on equity hit 17.1%. NAV per share ticked up to $33.46 from $33.33, non-accruals sit at just 1.2% of the portfolio at fair value, and the internally managed cost structure runs a lean 1.3% to 1.4% of assets. Trailing EPS of $4.75 covers the base dividend with room to spare. The risk: revenue fell 17.9% year over year in Q1 2026, and floating-rate BDC income is sensitive to Fed rate cuts.
STAG Industrial (STAG) STAG Industrial (NYSE:STAG) yields 3.78%, the lowest headline yield in this bundle but the one backed by the strongest operating fundamentals. The current monthly dividend is $0.3875, and STAG has kept uninterrupted monthly dividend payments for the entire 13+ year history since 2011.
Industrial demand is doing the heavy lifting. Q4 2025 EPS came in at $0.44 versus a $0.22 estimate, revenue reached $220.9 million, up 10.8% year over year, and Core FFO per diluted share hit $0.66, up 11.4%. Cash Rent Change ran 16.3% in Q4 and 24.0% for the full year on new and renewal leases, with occupancy at 97.2%. Management has already addressed 69.2% of 2026 leasing at a 20.0% Cash Rent Change, with an acquisition pipeline of $3.6 billion across 169 buildings. Shares have compounded 170.41% on an adjusted basis over ten years. The caveat: interest expense is rising, with Term Loan G stepping from 1.70% to 3.94% in February 2026.
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EPR Properties (EPR) EPR Properties (NYSE:EPR) yields 5.91% at a monthly payout of $0.31, annualized to $3.72. That represents a 5.1% increase from the prior year and continues the steady rebuild that began after EPR reinstated its dividend in July 2021 at $0.25 per share following a 16-month suspension during the pandemic.
Coverage has improved meaningfully. Q1 2026 FFOAA per diluted share was $1.26, up 5.9% year over year, and 2026 FFOAA guidance was raised to $5.37 to $5.53, easily covering the $3.72 dividend. The portfolio is 99% leased or operated across 335 properties with a 2.0x coverage ratio, and a recent $315 million Six Flags portfolio acquisition of six US attractions extends the experiential real estate strategy. Consumer experience spending grew 7% in 2024-2025. The caveat is real: EPR’s top three tenants (Topgolf, AMC, Regal) generate 38.3% of revenue, and $629.6 million in debt matures in 2026.
AGNC Investment (AGNC) AGNC Investment (NASDAQ:AGNC) yields 12.7%, an ultra-high-yield that comes with the loudest risk disclosure in this bundle. The monthly dividend is $0.12 per share, and management has maintained that rate for 6+ years of stable $0.12 monthly dividend since April 2020.
The safety picture is nuanced. Q1 2026 net spread and dollar roll income was $0.42 per share, up from $0.35, which covers the $0.36 quarterly dividend. But AGNC also posted a net loss of $0.17 per share, and tangible net book value declined 5.6% to $8.38 per share as Middle East volatility widened Agency MBS spreads. Full-year 2025 was much stronger, with Economic ROTCE of 22.7% and a total stock return of 34.8% with dividends reinvested. Long-term investors should not forget the history: AGNC cut from $0.16 to $0.12 per share in March 2020, and dividends peaked at $1.40 per month in 2010-2011. This is the yield you take when you accept book-value volatility, not a set-and-forget anchor. With the 10-year Treasury at 4.55%, the yield premium is real but so is the spread risk.
The Bigger Picture for Monthly Income These five names span the safety spectrum retirees actually face. O and MAIN offer the cleanest coverage and the longest unbroken payment streaks, STAG delivers the strongest operating growth at a lower headline yield, EPR pays a higher yield tied to a real recovery story, and AGNC delivers double-digit income but requires a stomach for book-value swings. With core PCE inflation running at a 90.9th percentile ranking over the past year, the case for growing monthly income, not just fixed coupons, keeps getting stronger.
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AGNC Investment (AGNC -0.33%) has become a remarkably consistent dividend stock. The real estate investment trust (REIT) recently hit a milestone of 75 consecutive months of paying the same dividend rate ($0.12 per share). That's impressive, considering all the volatility in the mortgage and interest rate markets over the past few years.
Here's a look at the mortgage REIT's recent second-quarter financial results and what they reveal about the future of its more than 13%-yielding monthly dividend.
Image source: Getty Images.
A strong quarter despite challenging market conditions AGNC Investment reported $0.52 per share of comprehensive net income during the second quarter and $0.40 per share in net spread and dollar roll income. Both metrics were above the REIT's dividend payout this quarter ($0.36 per share, or $0.12 per month). Meanwhile, its book value increased by $0.20 per share, or 2.4%, to $8.38 per share. When adding dividend income to the increase in book value, AGNC Investment generated an economic return of 6.7% during the period.
That's impressive, considering the market environment. CEO Peter Federico highlighted in the earnings press release that "the investment environment in the second quarter continued to be challenging, as escalating rhetoric and hostilities between the United States and Iran largely dictated financial market performance." Elevated energy prices and supply chain constraints "caused Treasury yields to increase, the yield curve to flatten, and the market's monetary policy expectations to pivot from rate cuts to rate hikes."
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While that drove up mortgage rates, reducing the projected Agency MBS supply during the quarter, demand for these low-risk mortgage investments remained strong. That created "a positive technical backdrop that supported Agency MBS performance and drove spreads to benchmark rates tighter."
The outlook for Agency MBS investments While the second quarter was a positive environment for Agency MBS investments, market conditions can change rapidly. Mortgage spreads have already declined from their recent peaks. However, they're still at historically elevated levels. As a result, Agency MBS offer compelling value relative to other fixed-income investments, especially corporate bonds. That drives Federico's view that "favorable dynamics should be supportive of Agency MBS performance over the near to intermediate term and position AGNC to continue to deliver strong risk-adjusted returns for our stockholders."
The CEO dove deeper into the current economic backdrop for MBS investments during its second-quarter conference call. He noted that, at the current spread, AGNC Investment can earn a return on equity in the 15% to 17% range by leveraging its capital at a multiple of 7.0 to 7.5. He highlighted that it "aligns really well with the economics of our dividend." The REIT can raise capital at a roughly 13% yield based on its current stock price of $11 per share, which is at a significant premium to its current book value. It can then lever that capital and earn a mid-to-high double-digit return in the current environment. That drives its continued confidence in the monthly dividend rate.
The dividend stability should continue AGNC Investment has now maintained its current dividend rate for 75 straight months. While the economic environment remains challenging, it's generating strong returns to sustain its dividend. While an abrupt change to the return economics poses a future risk to the dividend, it appears safe for now.
Key Takeaways AGNC's lower projected supply and firm demand are improving the outlook for Agency MBS.Tangible net book value rose 2.4% to $8.58, supporting a 6.7% economic return on equity.AGNC raised its weighted average coupon to 5.04% as higher-coupon mortgages outperformed hedges. AGNC Investment Corp. (AGNC - Free Report) used its second-quarter earnings call to make a forward-looking case for Agency mortgage-backed securities, even as management described the macro backdrop as unusually volatile. The core message was that supply and demand trends in mortgages are improving despite geopolitical and rate uncertainty.
AGNC reported earnings per share (EPS) of $0.40, beating the Zacks Consensus Estimate of $0.38. However, revenues of $305 million fell short of the consensus mark of $364.40 million.
AGNC Sees Better Mortgage TechnicalsPeter Federico, president, CEO and chief investment officer, said that the quarter was shaped by rising tensions between the United States and Iran, higher energy prices and supply chain disruptions, all of which pushed Treasury yields higher and flattened the curve. Federico nevertheless argued that the setup for Agency MBS improved.
Federico said that elevated mortgage rates are reducing projected Agency MBS supply while demand remains firm. On the call, he added that bond fund inflows topped $400 billion in the first half, with banks, foreign investors and REITs also expected to remain net buyers of Agency MBS.
Federico also contrasted mortgage valuations with corporate credit and said that Agency MBS still look attractive against corporate bonds that are trading at historically tight spreads despite heavy issuance and rising credit concerns.
AGNC Posted Strong Book Value GainsBernice Bell, executive vice president and CFO, said that AGNC generated a 6.7% economic return on tangible common equity in the quarter, made up of $0.36 in dividends per share and a $0.20 rise in tangible net book value per share. Tangible net book value ended June at $8.58, up 2.4% from $8.38 as of March-end.
Comprehensive income came in at $0.52 per common share, while net spread and dollar roll income was $0.40 per share, down from $0.42 in the prior quarter. Bell tied that decline to a 6-basis-point narrowing in net interest spread as lower asset yields from portfolio repositioning partly offset somewhat lower funding costs.
The press release also showed an annualized net interest spread of 2.00% for the quarter, down from 2.06% in the first quarter, with average total cost of funds improving modestly to 2.89% from 2.92%.
AGNC Shifted Toward Higher CouponsManagement said that the portfolio was repositioned to benefit from a more benign prepayment backdrop. Projected CPR fell to 8.6% from 10.3%, while actual CPR was 13.0% compared with 13.2% in the prior quarter.
Federico said that AGNC sold some lower-coupon MBS and bought higher-coupon paper during the quarter. As a result, the weighted average coupon on the portfolio rose to 5.04%, and higher-coupon mortgages delivered the strongest outperformance against hedges.
By quarter-end, the investment portfolio stood at $97.2 billion, with 94% in 30-year fixed-rate Agency MBS and TBA securities. Management also kept the duration gap unchanged at 0.7 years.
AGNC Stayed Selective on Capital RaisingBell said that AGNC Investment issued $167 million of common equity through its at-the-market program during the quarter, and Federico described that activity as disciplined and opportunistic rather than automatic.
On the Q&A, a BTIG analyst asked about returns on incremental investments and how valuation affects issuance. Federico said that mortgage spreads near 130 to 150 basis points can support levered returns in the 15% to 17% range, aligning with the economics of the dividend.
A Piper Sandler analyst also pressed on lighter issuance. Federico said that management did not want ATM activity to interfere with trading in the stock and chose a lighter touch because market conditions and stock trading dynamics were not as well aligned as in prior periods.
AGNC Put Policy Questions in FocusThe Q&A showed that investors are still focused on market structure as much as on quarterly earnings. Multiple analysts asked about GSE purchase activity, leverage and pending regulatory changes.
Federico said that GSE purchases were only slightly positive in the first two months of the quarter even as mortgage spreads tightened, which showed the agencies were being complementary rather than crowding out private capital. He added that the GSEs still have about $120 billion of purchase capacity.
He also said that the proposed Basel capital rules should be positive for mortgages by allowing banks to hold more mortgage credit at lower capital requirements. On the Fed, Federico said that investors will be watching whether balance-sheet policy eventually preserves some mortgage holdings and supports repo market liquidity.
AGNC Leaves the Call With a Clear BiasThe clearest takeaway from management was not that volatility has faded, but that AGNC believes mortgage market technicals are getting better underneath the noise. Federico repeatedly returned to lower supply, durable demand and relative value versus corporates.
Bell’s update added a near-term reality check, saying tangible net book value was down about 1% as of late last week, or a little less than 2% net of July’s dividend accrual. Even so, leverage remained at 7.4x, and liquidity totaled $7.5 billion, leaving AGNC positioned to stay active.
Zacks Signals on AGNCAGNC carries a Zacks Rank #3 (Hold), along with a Value Score of B, a Growth Score of C, a Momentum Score of A and a VGM Score of B. Zacks says the Rank is the first step in stock selection, while Style Scores work as a complement, with better letter grades indicating stronger expected performance over the next one to three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Score hierarchy still matters, and stronger scores are more favorable than weaker ones. AGNC’s Momentum Score of A and VGM Score of B are constructive signals within that framework, though the Zacks Rank can change as earnings estimate revisions adjust after the quarter.
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This week is a payday cluster. Ten names in this coverage list all go ex-dividend between Tuesday, July 28 and Friday, July 31, 2026, which means the window to buy in and still capture the upcoming payment is short. To receive one of these dividends, you must own the shares before the ex-dividend date. Miss the ex-date and you miss the payment; the pay date that follows is just the plumbing.
Under T+1 settlement, the last day to buy is the trading day before the ex-date. We group the ten names by that deadline. Yields are quoted from vendor data and move with price; K-1 partnerships and monthly-paying mortgage REITs are flagged so income readers know the structure.
Last Day to Buy: Monday, July 27 Paychex (PAYX) Paychex (NASDAQ:PAYX | PAYX Price Prediction) goes ex-dividend Tuesday, July 28, 2026, paying $1.19 per share on August 28, 2026. The annualized run rate is $4.76, following a 10.2% quarterly increase earlier in 2026.
Coverage looks comfortable: fiscal 2026 EPS was reported against the raised payout, and management guided to mid-to-high single digit FY27 adjusted EPS growth. Trailing P/E is 23.
Fastenal (FAST) Fastenal (NASDAQ:FAST) also trades ex-dividend on Tuesday, July 28, 2026, with a payment of $0.26 per share on August 25, 2026 and an indicated annual dividend of $0.96.
The coverage read is the wrinkle. Diluted TTM EPS is $1.17, so the payout consumes a meaningful share of earnings, and the stock trades at a rich 38x trailing earnings. Balance-sheet quality remains high, with 34.3% return on equity.
Last Day to Buy: Wednesday, July 29 Constellation Brands (STZ) Constellation Brands (NYSE:STZ) goes ex-dividend Thursday, July 30, 2026, with a $1.03 payment on August 13, 2026. Yield sits at 3.04%.
Coverage is not an issue: TTM EPS of $10.20 against an annualized $4.09 dividend leaves cushion, and the shares change hands at 13x trailing earnings. The elevated yield partly reflects a weaker stock, with STZ well below its $172.67 52-week high.
Last Day to Buy: Thursday, July 30 Seven names go ex on Friday, July 31, so Thursday, July 30 is the buy-by deadline for all of them.
AGNC Investment (AGNC) AGNC Investment (NASDAQ:AGNC), a monthly-paying mortgage REIT, pays $0.12 per share on August 11, 2026, ex-date July 31, 2026. The trailing yield is 13.2%.
The right coverage lens for an mREIT is earnings available for distribution and net interest spread, not GAAP EPS. Management has pointed to a solid quarterly net interest spread, a positive economic return for the quarter, and a stable tangible book value per share. The $0.12 monthly rate has held since 2020, but this yield is high because the price is low, and book-value volatility is the real risk to income durability.
Alliant Energy (LNT) Alliant Energy (NASDAQ:LNT) trades ex-dividend July 31, 2026, paying $0.535 on August 17, 2026. Yield is 2.78%.
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Coverage is clean. FY26 ongoing EPS guidance comfortably supports the $2.14 annualized dividend, and the regulated-utility model tends to underwrite payout stability.
Casey’s General Stores (CASY) Casey’s General Stores (NASDAQ:CASY) has an ex-date of July 31, 2026, paying $0.65 on August 14, 2026. The company just raised the quarterly rate, extending its long run of consecutive annual increases.
Yield is a slim 0.26%, so this is a dividend-growth story rather than an income name. TTM EPS of $18.97 against a $2.28 annual payout leaves ample coverage.
Plains All American Pipeline (PAA) and Plains GP Holdings (PAGP) Both partnerships go ex-distribution July 31, 2026, paying $0.4175 per unit on August 14, 2026. Plains All American Pipeline (NASDAQ:PAA) trades at a 6.68% yield; Plains GP Holdings (NASDAQ:PAGP) at an annualized $1.67 pays a similar rate. PAA issues a K-1; PAGP is structured to issue a 1099.
The right coverage base is distributable cash flow. FY26 adjusted free cash flow guidance supports the payout, and the distribution was raised again this year from $0.38. Coverage looks solid for now, though midstream cash flows carry commodity-linked volume risk.
Texas Instruments (TXN) Texas Instruments (NASDAQ:TXN) pays $1.42 on August 11, 2026, ex-date July 31, 2026. Yield is 1.96%.
TTM EPS of $6.00 covers the $5.56 annual payout thinly, and TXN is in a heavy capex phase; free cash flow, not GAAP earnings, is the truer read here. Q2 guidance calls for sequential EPS improvement.
Morgan Stanley (MS) Morgan Stanley (NYSE:MS) goes ex-dividend July 31, 2026, paying $1.15 on August 14, 2026, a 15% increase from the prior quarter. Yield is 1.97%.
Coverage is strong. TTM EPS is $12.70, with a solid recent-quarter print, healthy ROTCE, and a sizeable share buyback reauthorization.
The Bottom Line Chasing a single ex-dividend date is a scheduling exercise, not a strategy. The stock trades lower by roughly the payment amount on the ex-date, so the dividend is a transfer of value, not a creation of it. What matters is whether the cash flow behind the payout is durable, and the answer here varies by name. Miss the ex-date and you miss the payment, so if any of these fit your existing income framework, the buy-by deadlines above are the ones that count this week.
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AGNC, NLY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
3 Dividend Stocks Under $50 That Pay You to Wait Out InflationAGNC Investment NASDAQ: AGNC reported a positive second quarter despite what executives described as a difficult backdrop for fixed income markets, with geopolitical tensions and shifting monetary policy expectations weighing on investor sentiment.
Peter Federico, AGNC’s President, Chief Executive Officer and Chief Investment Officer, said escalating rhetoric and hostilities between the United States and Iran “largely dictated financial market performance” during the quarter. He cited constrained ship traffic through the Strait of Hormuz, elevated energy prices and supply chain disruptions as key macroeconomic concerns that contributed to higher Treasury yields, a flatter yield curve and a market shift from expecting rate cuts to pricing in possible rate hikes by year-end.
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3 Ultra-High Dividend Yield Stocks for the New YearAgainst that backdrop, Federico said AGNC generated a 6.7% economic return for the quarter, supported by its monthly dividend and an increase in tangible book value per common share. He also highlighted that the company’s monthly common stock dividend paid at the beginning of the month marked its 75th consecutive monthly payment of $0.12 per share.
Book Value Gains Driven by Agency MBS Performance Federico said the improvement in tangible book value was driven by solid performance in agency mortgage-backed securities, which delivered a positive excess return relative to U.S. Treasuries for the fifth consecutive quarter. He called that track record “unusual and particularly noteworthy” given the similar credit quality of agency MBS and Treasuries.
6 Mortgage REITS: How Badly Could Rising Rates Hurt Them?According to Federico, the catalyst for agency MBS performance was an improving technical backdrop. He said elevated mortgage rates have reduced expected net new supply of agency MBS to about $150 billion for the year, materially below estimates from the beginning of the year. Higher mortgage rates have also slowed prepayment speeds, which is expected to reduce runoff from the Federal Reserve’s mortgage portfolio.
Demand, meanwhile, has remained strong. Federico said bond fund inflows totaled more than $400 billion through the first six months of the year and were running at about twice last year’s pace. He added that banks, foreign investors and REITs are also expected to remain net purchasers of agency MBS over the remainder of the year.
Federico contrasted the valuation of agency MBS with corporate bonds, noting that corporate bonds were the best-performing fixed income sector in the second quarter. He said investment-grade and high-yield corporate spreads ended the quarter near historically tight levels, even as 2026 corporate issuance is expected to exceed $1.1 trillion, which he said would make it the largest corporate debt issuance year ever. Agency MBS spreads, by comparison, “have moved little this year and continue to be wide by historical standards,” he said.
Financial Results and Capital Activity Bernice Bell, AGNC’s Executive Vice President and Chief Financial Officer, said the company reported comprehensive income of $0.52 per common share for the second quarter. The 6.7% economic return on tangible common equity consisted of $0.36 of dividends declared per common share and a $0.20 increase in tangible net book value per share, which she attributed to mortgage outperformance relative to interest rate hedges.
Bell said AGNC’s total stock return for the quarter was 12.3% with dividends reinvested, bringing the company’s one-year total stock return to 36.1%. As of late the prior week, tangible net book value per common share was down about 1%, or a little less than 2% net of the July monthly dividend accrual.
Both ending and average leverage were unchanged at 7.4 times tangible equity, Bell said. AGNC ended the quarter with $7.5 billion of unencumbered cash and agency MBS, equal to 62% of tangible equity.
Net spread and dollar roll income totaled $0.40 per common share, down $0.02 from the first quarter. Bell said the decline primarily reflected a six-basis-point reduction in the company’s net interest spread, driven by lower asset yields from portfolio repositioning and partly offset by modestly lower funding costs.
AGNC also issued $167 million of common equity through its at-the-market offering program during the quarter. Bell said the issuance was completed at a significant premium to tangible net book value per share, while maintaining what she described as a disciplined and opportunistic approach to capital issuance.
Portfolio Repositioning and Hedge Strategy Federico said agency MBS outperformed both Treasury and swap-based hedges in the quarter, though performance varied meaningfully by coupon. Higher-coupon and production-coupon MBS saw the greatest outperformance as higher interest rates reduced both supply and prepayment concerns.
At quarter-end, AGNC’s asset portfolio had a market value of $97 billion. The company purchased $2.2 billion of primarily intermediate-coupon specified pools during the quarter. Federico said AGNC also sold some lower-coupon MBS and bought higher-coupon MBS early in the quarter to lock in gains from the first quarter’s strong lower-coupon performance and capture the yield benefit associated with higher coupons in a more benign prepayment environment.
As a result, the weighted average coupon on the portfolio increased to 5.04%, while the percentage of assets with favorable prepayment characteristics rose slightly to 79%. The notional balance of AGNC’s hedge portfolio was $66 billion at quarter-end, up slightly from the prior quarter due to the addition of intermediate- and longer-term Treasury-based hedges. The company ended the quarter with a duration gap of 0.7 years, unchanged from the prior quarter.
Management Sees Attractive Returns but Remains Cautious During the question-and-answer session, Federico said marginal investments were generating return-on-equity potential in the 15% to 17% range when leveraged at AGNC’s typical levels of 7 to 7.5 times. He said those returns align well with the economics of the company’s dividend.
On capital raising, Federico said AGNC took “a lighter touch” in the second quarter because management believed the stock was trading somewhat heavily and did not want at-the-market issuance to disrupt trading. He said AGNC would remain opportunistic and disciplined, using capital activity when it is beneficial to existing shareholders.
Federico acknowledged that the outlook remains affected by elevated geopolitical risk and uncertainty around monetary policy, including a more hawkish message from the new Federal Reserve chairman. However, he said the underlying fundamentals for the mortgage market have continued to improve, particularly due to lower supply expectations and strong demand.
Asked about housing demand, Federico said that, given mortgage rates around 6.5% or higher, AGNC does not expect an uptick in demand in the second half of the year. He said the company would instead expect demand to decline seasonally over the remainder of the year.
In closing, Federico said AGNC was “really happy with the quarter” and looked forward to speaking with investors again after the third quarter.
About AGNC Investment (NASDAQ:AGNC)AGNC Investment Corp. is a self-managed real estate investment trust (REIT) that primarily acquires and manages a portfolio of residential mortgage-backed securities guaranteed by U.S. government-sponsored enterprises such as Ginnie Mae, Fannie Mae and Freddie Mac. The company employs a leveraged total return strategy, borrowing against its securities to enhance income potential while using interest rate hedges to manage risk. AGNC's investment objective is to generate attractive monthly dividends and long-term capital appreciation for its shareholders.
Founded in 2008 and headquartered in Bethesda, Maryland, AGNC focuses exclusively on U.S.
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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The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: AGNC Investment (AGNC - Free Report) AGNC Investment Corp., previously known as American Capital Agency Corp., is a real estate investment trust (REIT) that focuses on leveraged investments in Agency residential mortgage-backed securities (RMBS). That includes residential mortgage pass-through securities and collateralized mortgage obligations.
AGNC is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Finance stock. AGNC has a Momentum Style Score of A, and shares are up 5.2% over the past four weeks.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $1.57 per share. AGNC boasts an average earnings surprise of +2.2%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, AGNC should be on investors' short list.
AGNC Investment Corp. (AGNC) Q2 2026 Earnings Call July 21, 2026 8:30 AM EDT
Company Participants
Katherine Turlington - Investor Relations Analyst
Peter Federico - President, CEO & Director and Chief Investment Officer
Bernice Bell - Executive VP & CFO
Conference Call Participants
Douglas Harter - BTIG, LLC, Research Division
Crispin Love - Piper Sandler & Co., Research Division
Ameeta Lobo Nelson - UBS Investment Bank, Research Division
Jason Weaver - JonesTrading Institutional Services, LLC, Research Division
Bose George - Keefe, Bruyette, & Woods, Inc., Research Division
Trevor Cranston - Citizens JMP Securities, LLC, Research Division
Hong Zhang - JPMorgan Chase & Co, Research Division
Harsh Hemnani - Green Street Advisors, LLC, Research Division
Presentation
Operator
Good morning and welcome to the AGNC Investment Corp. Second Quarter 2026 Shareholder Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Katie Turlington in Investor Relations. Please go ahead.
Katherine Turlington
Investor Relations Analyst
Thank you all for joining AGNC Investment Corp.'s Second Quarter 2026 Earnings Call. Before we begin, I'd like to review the safe harbor statement. This conference call and corresponding slide presentation contains statements that, to the extent they are not recitations of historical facts, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are intended to be subject to the safe harbor protection provided by the reform act. Actual outcomes and results could differ materially from those forecast due to the impact of many factors beyond the control of AGNC.
All forward-looking statements included in this presentation are made only as of the date of this presentation and are subject to change without notice. Certain factors that could cause actual results to differ materially from those contained in the forward-looking statements are included in AGNC's periodic
Key Takeaways AGNC posted Q2 net spread and dollar roll income of 40 cents, beating estimates, but shares fell 2.7%.AGNC's NII rose to $305 million, while tangible net BVPS increased 9.9% year over yearHigher funding costs and prepayment rates pressured spreads despite portfolio and book value growth. AGNC Investment Corp. (AGNC - Free Report) reported second-quarter 2026 net spread and dollar roll income per common share of 40 cents, topping the Zacks Consensus Estimate by 5.3%. The metric increased 5.3% from the year-ago quarter’s 38 cents.
Results benefited from higher net interest income (NII), an increase in tangible net book value per share (BVPS) and growth in the investment portfolio. However, a lower net interest spread, a rise in the weighted average cost of funds and elevated prepayment rates were concerning. Given the concern, AGNC shares plunged nearly 2.7% in yesterday’s trading session.
Adjusted net interest and dollar roll income available to common stockholders of $533 million rose 16.6% from the year-ago quarter.
Inside AGNC's HeadlinesNII came in at $305 million, rising from $162 million a year earlier, but missing the consensus estimate by 16.3%.
AGNC Investment's average asset yield on its portfolio was 4.89% in the second quarter of 2026, up from 4.87% in the second quarter of 2025.
The combined weighted average cost of funds, inclusive of interest rate swaps, was 2.89%, up from 2.86% in the second quarter of 2025.
The average net interest spread (excluding estimated “catch-up” premium amortization costs) was 2%, down from 2.01% in the year-ago quarter.
As of June 30, 2026, AGNC’s average tangible net book value “at risk” leverage ratio was 7.4X compared with 7.5X in the prior-year quarter.
In the second quarter, the company's investment portfolio bore an average actual constant prepayment rate of 13%, up from 8.7% in the year-ago quarter.
As of June 30, 2026, tangible net BVPS was $8.58, up 9.9% on a year-over-year basis.
The economic return on tangible common equity was 6.7% against the economic loss on tangible common equity of 1% in the year-ago quarter.
As of June 30, 2026, the company’s investment portfolio aggregated $97.2 billion. This included $86.8 billion in Agency mortgage-backed securities, $9.7 billion in net forward purchases/(sales) of Agency MBS in the “to-be-announced” market (TBA securities) and $0.7 billion of CRT and non-Agency securities and other mortgage credit investments.
AGNC Investment’s Balance Sheet PositionAs of June 30, 2026, AGNC’s cash and cash equivalents totaled $457 million, down from $493 million in the prior quarter.
AGNC's Dividend UpdateAGNC Investment declared dividends of 36 cents per share for the second quarter. Management declared $16.3 billion, or $50.80 per share in common stock dividends, since its initial public offering in May 2008 through the second quarter of 2026.
Our View on AGNC InvestmentOverall, AGNC delivered a solid second-quarter performance, with earnings surpassing expectations and net interest income increasing significantly year over year. An improvement in tangible net book value, expansion of the investment portfolio and a positive economic return were encouraging. However, the slight contraction in net interest spread, higher funding costs and elevated prepayment rates remain concerns. The company’s decent liquidity position, portfolio scale and consistent dividend payout continue to support its financial position.
Upcoming Peer ReleasesEllington Financial (EFC - Free Report) is expected to report second-quarter 2026 results on Aug. 06.
Over the past week, the Zacks Consensus Estimate for ARR’s quarterly earnings has been unchanged at 46 cents per share.
Starwood Property Trust, Inc. (STWD - Free Report) is expected to post second-quarter 2026 results on Aug. 06.
Over the past seven days, the Zacks Consensus Estimate for STWD’s quarterly earnings has been unchanged at 41 cents per share.
AGNC Investment (AGNC - Free Report) came out with quarterly earnings of $0.4 per share, beating the Zacks Consensus Estimate of $0.38 per share. This compares to earnings of $0.38 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.26%. A quarter ago, it was expected that this real estate investment trust would post earnings of $0.36 per share when it actually produced earnings of $0.42, delivering a surprise of +16.67%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
AGNC Investment, which belongs to the Zacks REIT and Equity Trust industry, posted revenues of $305 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 16.31%. This compares to year-ago revenues of $162 million. The company has not been able to beat consensus revenue estimates over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
AGNC Investment shares have added about 4.7% since the beginning of the year versus the S&P 500's gain of 8.9%.
What's Next for AGNC Investment?While AGNC Investment has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for AGNC Investment was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.39 on $385.84 million in revenues for the coming quarter and $1.57 on $1.47 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust is currently in the bottom 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Armour Residential REIT (ARR - Free Report) , has yet to report results for the quarter ended June 2026.
This real estate investment trust is expected to post quarterly earnings of $0.69 per share in its upcoming report, which represents a year-over-year change of -10.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Armour Residential REIT's revenues are expected to be $59.2 million, up 78.9% from the year-ago quarter.
, /PRNewswire/ -- AGNC Investment Corp. ("AGNC" or the "Company") (Nasdaq: AGNC) today announced financial results for the quarter ended June 30, 2026.
SECOND QUARTER 2026 FINANCIAL HIGHLIGHTS
$0.52 comprehensive income per common share, comprised of: $0.52 net income per common share $(0.01) other comprehensive loss ("OCI") per common share on investments marked-to-market through OCI $0.40 net spread and dollar roll income per common share1 Excludes less than $(0.01) per common share of estimated "catch-up" premium amortization cost due to change in projected constant prepayment rate ("CPR") estimates $8.58 tangible net book value per common share as of June 30, 2026 Increased $0.20 per common share, or 2.4%, from $8.38 per common share as of March 31, 2026 $0.36 dividends declared per common share for the second quarter 6.7% economic return on tangible common equity for the quarter Comprised of $0.36 dividends per common share and $0.20 increase in tangible net book value per common share OTHER SECOND QUARTER HIGHLIGHTS
$97.2 billion investment portfolio as of June 30, 2026, comprised of: $86.8 billion Agency mortgage-backed securities ("Agency MBS") $9.7 billion net forward purchases/(sales) of Agency MBS in the "to-be-announced" market ("TBA securities") $0.7 billion credit risk transfer ("CRT") and non-Agency securities and other mortgage credit investments 7.4x tangible net book value "at risk" leverage as of June 30, 2026 7.4x average tangible net book value "at risk" leverage for the quarter Unencumbered cash and Agency MBS totaled $7.5 billion as of June 30, 2026 Excludes unencumbered CRT and non-Agency securities Represents 62% of the Company's tangible equity as of June 30, 2026 8.6% average projected portfolio life CPR as of June 30, 2026 13.0% actual portfolio CPR for the quarter 2.00% annualized net interest spread for the quarter2 Issued 16.2 million shares of common equity through At-the-Market ("ATM") Offerings for net proceeds of $167 million ___________
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. 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
"The investment environment in the second quarter continued to be challenging, as escalating rhetoric and hostilities between the United States and Iran largely dictated financial market performance," said Peter Federico, the Company's President, Chief Executive Officer and Chief Investment Officer. "Elevated energy prices and supply chain disruptions were the dominant macroeconomic concerns, particularly in April and May when maritime traffic through the Strait of Hormuz was severely constrained. These concerns caused Treasury yields to increase, the yield curve to flatten, and the market's monetary policy expectations to pivot from rate cuts to rate hikes.
"Despite the volatile macroeconomic backdrop, AGNC delivered a strong economic return of 6.7% for the second quarter. Elevated mortgage rates caused a reduction in projected Agency MBS supply, while demand remained strong, creating a positive technical backdrop that supported Agency MBS performance and drove spreads to benchmark rates tighter. Although mortgage spreads have declined from recent peak levels, they remain elevated by historical standards. Agency MBS also offer compelling value relative to other fixed income alternatives, particularly corporate bonds, which are at or near historically tight spreads to U.S. Treasuries despite record issuance and rising credit concerns. Together, these favorable dynamics should be supportive of Agency MBS performance over the near to intermediate term and position AGNC to continue to deliver strong risk-adjusted returns for our stockholders."
"AGNC's 6.7% economic return on tangible common equity in the second quarter was comprised of $0.36 of dividends per common share and a $0.20 increase in tangible net book value per common share," said Bernice Bell, the Company's Executive Vice President and Chief Financial Officer. "Additionally, AGNC generated a 12.3% unannualized total stock return in the second quarter, with dividends reinvested, despite the significant volatility experienced by financial markets. AGNC's net spread and dollar roll income per common share was $0.40 for the second quarter, a modest decrease of $0.02 per common share from the prior quarter. Finally, AGNC concluded the second quarter with tangible 'at risk' leverage of 7.4x and a substantial liquidity position of $7.5 billion of unencumbered cash and Agency MBS, representing 62% of our tangible equity at quarter end."
TANGIBLE NET BOOK VALUE PER COMMON SHARE
As of June 30, 2026, the Company's tangible net book value per common share was $8.58 per share, an increase of 2.4% for the quarter compared to $8.38 per share as of March 31, 2026. The Company's tangible net book value per common share excludes $526 million, or $0.45 and $0.46 per share, of goodwill as of June 30 and March 31, 2026, respectively.
INVESTMENT PORTFOLIO
As of June 30, 2026, the Company's investment portfolio totaled $97.2 billion, comprised of:
$96.5 billion of Agency MBS and TBA securities, including: $92.1 billion of fixed-rate securities, comprised of: $82.1 billion 30-year MBS, $9.5 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 $0.7 billion of CRT and non-Agency securities and other mortgage credit investments. As of June 30, 2026, 30-year fixed-rate Agency MBS and TBA securities represented 94% of the Company's investment portfolio, unchanged from March 31, 2026.
As of June 30, 2026, the Company's fixed-rate Agency MBS and TBA securities' weighted average coupon was 5.04%, compared to 4.95% as of March 31, 2026, comprised of the following weighted average coupons:
5.05% for 30-year fixed-rate securities; 4.82% 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 June 30, 2026, such positions had a fair value of $9.7 billion and a GAAP net carrying value of $52 million reported in derivative assets/(liabilities) on the Company's balance sheet, compared to $9.5 billion and $(194) million, respectively, as of March 31, 2026.
CONSTANT PREPAYMENT RATES
The Company's weighted average projected CPR for the remaining life of its Agency securities held as of June 30, 2026 decreased to 8.6% from 10.3% as of March 31, 2026. The Company's weighted average actual CPR for the second quarter was 13.0%, compared to 13.2% for the prior quarter.
The weighted average cost basis of the Company's investment portfolio was 100.7% of par value as of June 30, 2026. The Company's investment portfolio generated net premium amortization cost of $(47) million, or $(0.04) per common share, for the second quarter, which includes a "catch-up" premium amortization cost of $(5) million, or less than $(0.01) per common share, due to changes in the Company's CPR projections for certain securities acquired prior to the second quarter. This compares to net premium amortization cost for the prior quarter of $(52) million, or $(0.05) per common share, including a "catch-up" premium amortization benefit 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 4.87% for the second quarter, compared to 4.95% for the prior quarter. Excluding "catch-up" premium amortization, the Company's average asset yield was 4.89% for the second quarter, compared to 4.93% for the prior quarter. Including the TBA position and excluding "catch-up" premium amortization, the Company's average asset yield for the second quarter was 4.89%, compared to 4.98% for the prior quarter.
For the second quarter, the weighted average interest rate on the Company's repurchase agreements was 3.74%, compared to 3.79% for the prior quarter. For the second quarter, the Company's TBA position had an implied financing cost of 3.46%, compared to 3.45% for the prior quarter. Inclusive of interest rate swaps, the Company's combined weighted average cost of funds for the second quarter was 2.89%, compared to 2.92% 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 second quarter was 2.00%, compared to 2.06% 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 second quarter of $0.40 per common share, compared to $0.42 per common share for the prior quarter. Net spread and dollar roll income excludes less than $(0.01) and less than $0.01 per common share of estimated "catch-up" premium amortization (cost) / benefit for the second quarter and prior quarter, respectively.
The Company's cost of funds, net interest rate spread and net spread and dollar 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 June 30, 2026, $79.5 billion of repurchase agreements and $9.7 billion of net TBA dollar roll positions (at cost) were used to fund the Company's investment portfolio. The remainder, or approximately $10.3 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, the Company's tangible net book value "at risk" leverage ratio was 7.4x as of June 30, 2026, unchanged from the prior quarter. The Company's average "at risk" leverage ratio for the second quarter was 7.4x tangible net book value, also unchanged from the prior quarter.
As of June 30, 2026, the Company's repurchase agreements used to fund its investment portfolio ("Investment Securities Repo") had a weighted average interest rate of 3.75%, compared to 3.77% as of March 31, 2026, and a weighted average remaining maturity of 13 days, compared to 20 days as of March 31, 2026. As of June 30, 2026, $42.4 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 June 30, 2026, interest rate swaps, U.S. Treasury positions, option-based hedges (swaptions), and other interest rate hedges equaled 73% of the Company's outstanding balance of Investment Securities Repo, net TBA position, and other debt (collectively, "funding liabilities"), compared to 75% as of March 31, 2026. Excluding option-based hedges, the Company's hedge portfolio covered 82% of its funding liabilities as of June 30, 2026, compared to 83% as of March 31, 2026.
As of June 30, 2026, the Company's pay fixed interest rate swap position totaled $73.8 billion in notional amount, with an average fixed pay rate of 2.76%, an average floating receive rate of 3.68% and an average maturity of 4.0 years, compared to $76.5 billion, 2.67%, 3.68% and 4.1 years, respectively, as of March 31, 2026.
As of June 30, 2026, the Company had a net short U.S. Treasury position of $2.1 billion, receiver swaptions of $7.8 billion outstanding and a two-year swap equivalent long SOFR futures position of $2.6 billion outstanding, compared to a $5.4 billion net long U.S. Treasury position and net receiver swaptions of $7.0 billion as of March 31, 2026.
OTHER GAIN (LOSS), NET
For the second quarter, the Company recorded a net gain of $379 million in other gain (loss), net, or $0.33 per common share, compared to a net loss of $(433) million, or $(0.39) per common share, for the prior quarter. Other gain (loss), net for the second quarter was comprised of:
$(16) million of net realized losses on sales of investment securities; $(90) million of net unrealized losses on investment securities measured at fair value through net income; $179 million of interest rate swap periodic income; $461 million of net gains on interest rate swaps; $(15) million of net losses on interest rate swaptions; $(4) million of net losses on SOFR futures; $(102) million of net losses on U.S. Treasury positions; $44 million of TBA dollar roll income; $(80) million of net mark-to-market losses on TBA securities; and $3 million of other interest income (expense), net; and $(1) million of other miscellaneous losses. OTHER COMPREHENSIVE LOSS
During the second quarter, the Company recorded other comprehensive income (loss) of $(7) million, or $(0.01) per common share, consisting of net unrealized losses on its Agency securities recognized through OCI, compared to $(8) million, or $(0.01) per common share, in the prior quarter.
COMMON STOCK DIVIDENDS
During the second quarter, the Company declared dividends of $0.12 per share to common stockholders of record as of April 30, May 29, and June 30, 2026, totaling $0.36 per share for the quarter. Since its May 2008 initial public offering through the second quarter of 2026, the Company has declared a total of $16.3 billion in common stock dividends, or $50.80 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)
June 30,
2026
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
(unaudited)
(unaudited)
(unaudited)
(unaudited)
Assets:
Agency securities, at fair value (including pledged securities of $80,761, $77,364, $74,149, $68,821
and $67,375, respectively)
$ 86,784
$ 84,447
$ 81,003
$ 76,198
$ 73,232
Agency securities transferred to consolidated variable interest entities, at fair value (pledged
securities)
—
—
85
88
91
Credit risk transfer securities, at fair value (including pledged securities of $525, $545, $558, $554 and
$558, respectively)
573
593
606
609
613
Non-Agency securities, at fair value, and other mortgage credit investments (including pledged
securities of $8, $8, $13, $15 and $30, respectively)
94
93
95
97
109
U.S. Treasury securities, at fair value (including pledged securities of $11,295, $12,313, $13,056,
$5,431 and $3,554, respectively)
12,325
12,582
13,477
5,927
3,565
Cash and cash equivalents
457
493
450
450
656
Restricted cash
1,329
1,864
1,292
1,461
1,216
Derivative assets, at fair value
260
178
169
145
155
Receivable for investment securities sold (including pledged securities of $201, $0, $149, $1,340 and
$0, respectively)
401
—
152
1,502
—
Receivable under reverse repurchase agreements
18,433
17,644
16,615
21,399
21,362
Goodwill
526
526
526
526
526
Other assets (including pledged securities of $0, $0, $0, $74 and $0, respectively)
578
477
607
567
496
Total assets
$ 121,760
$ 118,897
$ 115,077
$ 108,969
$ 102,021
Liabilities:
Repurchase agreements
$ 89,808
$ 87,616
$ 85,286
$ 74,152
$ 69,153
Debt of consolidated variable interest entities, at fair value
—
—
56
58
60
Payable for investment securities purchased
312
933
193
1,225
392
Derivative liabilities, at fair value
137
440
6
87
106
Dividends payable
184
182
182
170
164
Obligation to return securities borrowed under reverse repurchase agreements, at fair value
18,150
17,032
16,452
20,802
21,305
Accounts payable and other liabilities
626
513
509
1,031
494
Total liabilities
109,217
106,716
102,684
97,525
91,674
Stockholders' equity:
Preferred Stock - aggregate liquidation preference of $2,033, $2,033, $2,033, $2,033 and $1,688,
respectively
1,968
1,968
1,968
1,968
1,634
Common stock - $0.01 par value; 1,164.2, 1,147.8, 1,107.6, 1,072.7 and 1,041.7 shares issued and
outstanding, respectively
12
11
11
11
10
Additional paid-in capital
19,830
19,656
19,261
18,892
18,575
Retained deficit
(8,929)
(9,123)
(8,524)
(9,038)
(9,422)
Accumulated other comprehensive loss
(338)
(331)
(323)
(389)
(450)
Total stockholders' equity
12,543
12,181
12,393
11,444
10,347
Total liabilities and stockholders' equity
$ 121,760
$ 118,897
$ 115,077
$ 108,969
$ 102,021
Tangible net book value per common share 1
$ 8.58
$ 8.38
$ 8.88
$ 8.28
$ 7.81
AGNC INVESTMENT CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share data)
(unaudited)
Three Months Ended
June 30,
2026
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
Interest income:
Interest income
$ 1,014
$ 1,050
$ 944
$ 903
$ 830
Interest expense
709
731
738
755
668
Net interest income
305
319
206
148
162
Other gain (loss), net:
Realized (loss) gain on sale of investment securities, net
(16)
74
(26)
(81)
(177)
Unrealized (loss) gain on investment securities measured at fair value through net income, net
(90)
(889)
475
805
270
Gain (loss) on derivative instruments and other investments, net
485
382
340
(36)
(367)
Total other gain (loss), net
379
(433)
789
688
(274)
Expenses:
Compensation and benefits
19
23
30
20
18
Other operating expense
11
11
11
10
10
Total operating expense
30
34
41
30
28
Net income (loss)
654
(148)
954
806
(140)
Dividend on preferred stock
44
44
46
42
38
Net income (loss) available (attributable) to common stockholders
$ 610
$ (192)
$ 908
$ 764
$ (178)
Net income (loss)
$ 654
$ (148)
$ 954
$ 806
$ (140)
Unrealized (loss) gain on investment securities measured at fair value through other comprehensive
income (loss), net
(7)
(8)
66
61
48
Comprehensive income (loss)
647
(156)
1,020
867
(92)
Dividend on preferred stock
44
44
46
42
38
Comprehensive income (loss) available (attributable) to common stockholders
$ 603
$ (200)
$ 974
$ 825
$ (130)
Weighted average number of common shares outstanding - basic
1,157.6
1,122.6
1,089.3
1,053.0
1,017.3
Weighted average number of common shares outstanding - diluted
1,162.0
1,122.6
1094.6
1056.6
1017.3
Net income (loss) per common share - basic
$ 0.53
$ (0.17)
$ 0.83
$ 0.73
$ (0.17)
Net income (loss) per common share - diluted
$ 0.52
$ (0.17)
$ 0.83
$ 0.72
$ (0.17)
Comprehensive income (loss) per common share - basic
$ 0.52
$ (0.18)
$ 0.89
$ 0.78
$ (0.13)
Comprehensive income (loss) per common share - diluted
$ 0.52
$ (0.18)
$ 0.89
$ 0.78
$ (0.13)
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
June 30,
2026
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
Comprehensive income (loss) available (attributable) to common stockholders
$ 603
$ (200)
$ 974
$ 825
$ (130)
Adjustments to exclude realized and unrealized (gains) losses reported through net income:
Realized (gain) loss on sale of investment securities, net
16
(74)
26
81
177
Unrealized (gain) loss on investment securities measured at fair value through net income, net
90
889
(475)
(805)
(270)
(Gain) loss on derivative instruments and other securities, net
(485)
(382)
(340)
36
367
Adjustment to exclude unrealized (gain) loss reported through other comprehensive income:
Unrealized (gain) loss on available-for-sale securities measure at fair value through other
comprehensive income, net
7
8
(66)
(61)
(48)
Other adjustments:
Estimated "catch up" premium amortization cost (benefit) due to change in CPR forecast 3
5
(5)
7
14
(11)
TBA dollar roll income 4,5
44
51
27
23
24
Interest rate swap periodic income, net 4,6
179
182
217
245
282
Other interest income (expense), net 4,7
3
6
9
7
(3)
Net spread and dollar roll income available to common stockholders
$ 462
$ 475
$ 379
$ 365
$ 388
Weighted average number of common shares outstanding - basic
1,157.6
1,122.6
1,089.3
1,053.0
1,017.3
Weighted average number of common shares outstanding - diluted
1,162.0
1,127.3
1,094.6
1,056.6
1,019.6
Net spread and dollar roll income per common share - basic
$ 0.40
$ 0.42
$ 0.35
$ 0.35
$ 0.38
Net spread and dollar roll income per common share - diluted
$ 0.40
$ 0.42
$ 0.35
$ 0.35
$ 0.38
AGNC INVESTMENT CORP.
NET INTEREST SPREAD COMPONENTS BY FUNDING SOURCE 2
(in millions, except per share data)
(unaudited)
Three Months Ended
June 30,
2026
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
Adjusted net interest and dollar roll income:
Economic interest income:
Investment securities - GAAP interest income 8
$ 1,014
$ 1,050
$ 944
$ 903
$ 830
Estimated "catch-up" premium amortization cost (benefit) due to change in CPR forecast 3
5
(5)
7
14
(11)
TBA dollar roll income - implied interest income 4,9
155
140
169
135
154
Economic interest income
1,174
1,185
1,120
1,052
973
Economic interest expense:
Repurchase agreements and other debt - GAAP interest expense
(709)
(731)
(738)
(755)
(668)
TBA dollar roll income - implied interest expense 4,10
(111)
(89)
(142)
(112)
(130)
Interest rate swap periodic income, net 4,6
179
182
217
245
282
Economic interest expense
(641)
(638)
(663)
(622)
(516)
Other interest and dividend income 3
—
—
—
—
—
Adjusted net interest and dollar roll income
$ 533
$ 547
$ 457
$ 430
$ 457
Net interest spread:
Average asset yield:
Investment securities - average asset yield
4.87 %
4.95 %
4.87 %
4.83 %
4.89 %
Estimated "catch-up" premium amortization cost (benefit) due to change in CPR forecast
0.02 %
(0.02) %
0.03 %
0.08 %
(0.06) %
Investment securities average asset yield, excluding "catch-up" premium amortization
4.89 %
4.93 %
4.90 %
4.91 %
4.83 %
TBA securities - average implied asset yield 9
4.87 %
5.42 %
4.91 %
5.31 %
5.14 %
Average asset yield 11
4.89 %
4.98 %
4.91 %
4.95 %
4.87 %
Average total cost of funds:
Repurchase agreements and other debt - average funding cost
3.74 %
3.79 %
4.13 %
4.43 %
4.44 %
TBA securities - average implied funding cost 10
3.46 %
3.45 %
4.03 %
4.31 %
4.29 %
Average cost of funds, before interest rate swap periodic income, net 11
3.70 %
3.75 %
4.11 %
4.42 %
4.42 %
Interest rate swap periodic income, net 12
(0.81) %
(0.83) %
(1.01) %
(1.25) %
(1.56) %
Average total cost of funds 13
2.89 %
2.92 %
3.10 %
3.17 %
2.86 %
Average net interest spread
2.00 %
2.06 %
1.81 %
1.78 %
2.01 %
AGNC INVESTMENT CORP.
KEY STATISTICS*
(in millions, except per share data)
(unaudited)
Three Months Ended
Key Balance Sheet Statistics:
June 30,
2026
March 31,
2026
December 31,
2025
September 30,
2025
June 30,
2025
Investment securities: 8
Fixed-rate Agency MBS, at fair value - as of period end
$ 82,334
$ 80,466
$ 77,483
$ 73,283
$ 71,104
Other Agency MBS, at fair value - as of period end
$ 4,450
$ 3,981
$ 3,605
$ 3,003
$ 2,219
Credit risk transfer securities, at fair value - as of period end
$ 573
$ 593
$ 606
$ 609
$ 613
Non-Agency MBS, at fair value - as of period end 14
$ 24
$ 24
$ 25
$ 28
$ 43
Total investment securities, at fair value - as of period end
$ 87,381
$ 85,064
$ 81,719
$ 76,923
$ 73,979
Total investment securities, at cost - as of period end
$ 88,471
$ 86,058
$ 81,817
$ 77,563
$ 75,484
Total investment securities, at par - as of period end
$ 87,896
$ 84,847
$ 80,830
$ 76,625
$ 74,572
Average investment securities, at cost
$ 83,366
$ 84,814
$ 77,562
$ 74,783
$ 67,887
Average investment securities, at par
$ 82,557
$ 83,659
$ 76,647
$ 73,836
$ 66,876
TBA securities: 15
Net TBA portfolio - as of period end, at fair value
$ 9,728
$ 9,548
$ 12,988
$ 13,841
$ 8,263
Net TBA portfolio - as of period end, at cost
$ 9,676
$ 9,742
$ 12,917
$ 13,805
$ 8,162
Net TBA portfolio - as of period end, carrying value
$ 52
$ (194)
$ 71
$ 36
$ 101
Average net TBA portfolio, at cost
$ 12,729
$ 10,343
$ 13,764
$ 10,163
$ 11,996
Average repurchase agreements and other debt 16
$ 75,070
$ 77,120
$ 69,943
$ 66,654
$ 59,469
Average stockholders' equity 17
$ 12,447
$ 12,405
$ 11,828
$ 10,732
$ 10,118
Tangible net book value per common share 1
$ 8.58
$ 8.38
$ 8.88
$ 8.28
$ 7.81
Tangible net book value "at risk" leverage - average 18
7.4 :1
7.4 :1
7.4 :1
7.5 :1
7.5 :1
Tangible net book value "at risk" leverage - as of period end 19
7.4 :1
7.4 :1
7.2 :1
7.6 :1
7.6 :1
Key Performance Statistics:
Investment securities: 8
Average coupon
5.14 %
5.27 %
5.19 %
5.20 %
5.14 %
Average asset yield
4.87 %
4.95 %
4.87 %
4.83 %
4.89 %
Average asset yield, excluding "catch-up" premium amortization
4.89 %
4.93 %
4.90 %
4.91 %
4.83 %
Average coupon - as of period end
5.05 %
5.25 %
5.19 %
5.17 %
5.14 %
Average asset yield - as of period end
4.91 %
4.93 %
4.93 %
4.94 %
4.92 %
Average actual CPR for securities held during the period
13.0 %
13.2 %
9.7 %
8.3 %
8.7 %
Average forecasted CPR - as of period end
8.6 %
10.3 %
9.6 %
8.6 %
7.8 %
Total premium amortization benefit (cost)
$ (47)
$ (52)
$ (51)
$ (57)
$ (30)
TBA securities:
Average coupon - as of period end 20
4.89 %
4.11 %
4.98 %
5.11 %
5.22 %
Average implied asset yield 9
4.87 %
5.42 %
4.91 %
5.31 %
5.14 %
Combined investment and TBA securities - average asset yield, excluding "catch-up" premium
amortization 11
4.89 %
4.98 %
4.91 %
4.95 %
4.87 %
Cost of funds: 13
Repurchase agreements - average funding cost
3.74 %
3.79 %
4.13 %
4.43 %
4.44 %
TBA securities - average implied funding cost 10
3.46 %
3.45 %
4.03 %
4.31 %
4.29 %
Interest rate swaps - average periodic income 12
(0.81) %
(0.83) %
(1.01) %
(1.25) %
(1.56) %
Average total cost of funds, inclusive of TBAs and interest rate swap periodic income, net 11
2.89 %
2.92 %
3.10 %
3.17 %
2.86 %
Repurchase agreements - average funding cost as of period end
3.75 %
3.77 %
3.98 %
4.38 %
4.49 %
Interest rate swaps - average net pay/(receive) rate as of period end 21
(0.92) %
(1.01) %
(1.29) %
(1.76) %
(2.34) %
Net interest spread:
Combined investment and TBA securities average net interest spread, excluding "catch-up" premium
amortization
2.00 %
2.06 %
1.81 %
1.78 %
2.01 %
Expenses % of average stockholders' equity - annualized
0.96 %
1.10 %
1.39 %
1.12 %
1.11 %
Economic return (loss) on tangible common equity - unannualized 22
6.7 %
(1.6) %
11.6 %
10.6 %
(1.0) %
Key Interest Rate Hedge Statistics
Interest rate swaps:
Average interest rate swaps, notional amount (excluding forward starting swaps), net
$ 75,216
$ 71,607
$ 59,863
$ 45,656
$ 45,849
Average pay-fixed rate
2.71 %
2.65 %
2.56 %
2.25 %
1.94 %
Average receive-floating rate
3.65 %
3.67 %
3.98 %
4.35 %
4.38 %
U.S. Treasury securities:
Average short U.S. Treasury securities, at cost
$ 16,939
$ 16,772
$ 18,414
$ 21,466
$ 19,754
Average short U.S. Treasury securities yield
4.23 %
4.25 %
4.18 %
4.21 %
4.16 %
Average long U.S. Treasury securities, at cost
$ 12,370
$ 12,033
$ 12,964
$ 4,749
$ 2,044
Average long U.S. Treasury securities yield
3.70 %
3.71 %
3.74 %
4.01 %
4.45 %
U.S. Treasury futures:
Average short U.S. Treasury futures, at cost
$ 4,006
$ 3,210
$ 1,901
$ 1,834
$ 1,208
Average short U.S. Treasury futures implied yield 23
4.73 %
4.64 %
4.71 %
4.60 %
4.53 %
Average long U.S. Treasury futures, at cost
$ 9,917
$ 11,147
$ 708
$ —
$ —
Average long U.S. Treasury futures implied yield 23
3.89 %
3.71 %
3.92 %
— %
— %
Average reverse repurchase agreement rate
3.63 %
3.68 %
4.00 %
4.34 %
4.33 %
*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 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 $70 million, $69 million, $70 million, $69 million and $66 million of other mortgage credit investments held as of June 30 and March 31, 2026 and December 31, September 30 and June 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 adjusted to exclude goodwill. 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. STOCKHOLDER CALL
AGNC invites stockholders, prospective stockholders and analysts to attend the AGNC stockholder call on July 21, 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 Q2 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 July 21, 2026. In addition, there will be a phone recording available one hour after the call on July 21, 2026 through August 4, 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 8844707.
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.
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
Key Takeaways AGNC is set to post Q2'26 earnings on July 20, with EPS expected at 38 cents, flat with last year.AGNC's net interest income is projected to rise 123.2% y/y to $361.5 million.AGNC faced rate volatility, while stable prepayments and higher-yield reinvestments supported asset yields. AGNC Investment Corp. (AGNC - Free Report) is slated to report second-quarter 2026 earnings on July 20, after market close.
The company’s first-quarter 2026 results benefited from rallies in average asset yield and net interest income. Also, a rise in tangible net book value per share on the portfolio was positive. However, a reduced net interest spread and a higher weighted average cost of funds were concerning.
AGNC Investment’s earnings outpaced the Zacks Consensus Estimate in one of the trailing four quarters and missed thrice, with an average negative surprise of 1.54%.
The Zacks Consensus Estimate for second-quarter 2026 earnings of 38 cents per share has been unchanged over the past week. This indicates no change from the year-ago reported level.
The Zacks Consensus Estimate for net interest income for the second quarter of 2026 is pegged at $361.5 million, indicating a rise of 123.2% from the year-ago quarter’s actual.
Factors to Impact AGNC’s Q2 PerformanceThe second quarter of 2026 remained challenging for the mortgage banking industry, as mortgage rates stayed elevated, averaging in the mid-6% range, while housing affordability continued to weigh on borrower demand. Purchase originations remained under pressure amid constrained housing inventory and elevated home prices, although refinance activity witnessed a modest pickup as rates briefly declined during parts of the quarter.
Against this backdrop, AGNC Investment's agency mortgage-backed securities (MBS) portfolio likely experienced continued pressure from interest-rate volatility and fluctuating agency MBS spreads. U.S. Treasury yields moved sharply throughout the quarter amid changing expectations around inflation and Federal Reserve policy, contributing to meaningful swings in MBS valuations. While agency spreads stabilized toward the end of the quarter after widening earlier, the volatile mortgage rate environment is expected to have limited book value appreciation for AGNC Investment, resulting in only modest book value growth during the second quarter of 2026.
On the positive side, mortgage prepayment activity likely remained well contained. Although mortgage rates temporarily eased during the quarter, they generally stayed well above the levels of most outstanding mortgages, keeping refinancing incentives relatively subdued. Consequently, AGNC's constant prepayment rate is expected to have been at manageable levels, helping moderate premium amortization expenses and providing support to net interest income.
Stable prepayments, combined with attractive reinvestment opportunities at higher yields, are also likely to have supported average asset yields during the quarter. The Zacks Consensus Estimate for interest income is pegged at $1.05 billion, suggesting a 26.8% increase from the year-ago quarter’s actual.
What Our Model Unveils for AGNC InvestmentOur proven model does not conclusively predict an earnings beat for AGNC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP: AGNC Investment has an Earnings ESP of 0.00%.
Zacks Rank: AGNC Investment currently carries a Zacks Rank #3.
REIT Stocks to ConsiderHere are a couple of REIT stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
Annaly Capital Management (NLY - Free Report) is expected to release its second-quarter 2026 earnings on July 21. The company has an Earnings ESP of +1.01% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Quarterly earnings estimates for Annaly Capital Management have been unchanged at 74 cents per share over the past week.
NETSTREIT Corp. (NTST - Free Report) is also expected to release its second-quarter 2026 earnings on July 22. The company has an Earnings ESP of +1.94% and a Zacks Rank #3 at present.
Quarterly earnings estimates for NETSTREIT have been unchanged at 34 cents per share over the past week.
In the latest trading session, AGNC Investment (AGNC - Free Report) closed at $11.18, marking a +1.73% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.38%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 0.9%.
Shares of the real estate investment trust have appreciated by 5.07% over the course of the past month, outperforming the Finance sector's gain of 2.89%, and the S&P 500's gain of 1.27%.
The upcoming earnings release of AGNC Investment will be of great interest to investors. The company's earnings report is expected on July 20, 2026. In that report, analysts expect AGNC Investment to post earnings of $0.38 per share. This would mark no growth from the year-ago period. At the same time, our most recent consensus estimate is projecting a revenue of $361.52 million, reflecting a 123.16% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.56 per share and revenue of $1.47 billion, which would represent changes of +4% and +117.14%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for AGNC Investment. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AGNC Investment currently has a Zacks Rank of #3 (Hold).
Digging into valuation, AGNC Investment currently has a Forward P/E ratio of 7.03. This valuation marks a discount compared to its industry average Forward P/E of 8.75.
The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 18% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
In the working world, paychecks show up every two weeks. Or at least, every month. Which keeps up with the pace of monthly bills, charges, and expenses.
In the stock market world, payouts (dividends!) arrive every quarter. That’s 30 days in between bills, but a full 90 days spanning divvies.
Hence the appeal of monthly dividends. These management teams know that the investors who hold their stock are here for the payment. It’d better show up every 30 days, and it’d better be the same amount. No cuts allowed.
Problem is, some of these monthly payers are writing checks their business can’t cash. So let’s “audit” the last decade of receipts from the six biggest monthly payers in America. We’re asking two questions:
Did the monthly check arrive on time and in full?And were investors able to cash their checks without taking down the price of the stock?The 6 Biggest Monthly Dividend PayersHere’s the list, along with a spoiler: half of these monthly dividend companies couldn’t keep the checks coming for a full decade.
Monthly Dividend Stocks
Contrarian Outlook
MORE FOR YOU
Why the focus on 10-year total return when we are here for the dividends? Because we’re not interested in a melting share price! When we retire on dividends we want our principal to stay intact (or, even better, to appreciate).
As you can see this is not a “close your eyes and buy” shopping list. We have some problem children. To name names, landlord EPR Properties (EPR) was a compelling buy for retirees. It collects rent checks from “experience venues” focused on activities like Topgolf and ski resorts. Younger generations spend their money on experiences versus collecting “things” so, perfect, right?
Kind of—until 2020 came along! The world shut down in March and by May, EPR had suspended its monthly payout. The “temporary freeze” ended up lasting fourteen months because it took a while for the world to reopen.
Then we have the “other Apple,” Apple Hospitality (APLE), a hotel landlord whose roughly 220 old properties fly the Marriott and Hilton flags. Business travel is a big driver of APLE’s business and that came to a halt in March 2020. And likewise, its monthly payout skidded to a stop!
When APLE resumed payments in March 2021, they were not every month. They were quarterly, and even then, only a penny per share. The monthly check didn’t return until March 2022—two full years after it vanished.
Agree Realty (ADC) delivered the second-best total return in our audit, 135% over the 10-year period. More than a double, through rents from the Walmarts and Tractor Supplys of the world.
Agree is new to the monthly game, though. It paid a quarterly dividend until January 2021, when its marketing team flipped to a monthly payout, which Agree has paid on time ever since. Five of the ten years it’s been paying the monthly—but hey, let’s note it’s a recent convert to Monthly Land.
Realty Income (O) deserves its own line. It literally trademarked “The Monthly Dividend Company,” and to its credit, it has dished checks every 30 days for decades. Problem is, a 48% total return over an entire decade is sort of terrible!
AGNC Investment Corp (AGNC) is quietly another dog, even though it always pays a generous headline yield. And monthly, too! So what’s not to like?
The not-so-great total returns, that’s what.
The company is a mortgage REIT, which means it buys mortgages. These are relatively safe mortgage-backed securities from government agencies like Fannie and Freddie, so there’s not a big problem there. The issue is that these mortgage bonds don’t pay a lot of money, so AGNC “levers up”—it borrows to buy more to increase its income. Then money is too expensive and this eats into AGNC’s profitability.
In March 2020 AGNC chopped the monthly payout from $0.16 to $0.12—and never restored it. This stock is more of a breakfast beer than a long-term holding. There’s a time and a place, but you don’t want to make a daily habit out of it. Investors who held over the past decade earned just 88%, which isn’t very good—it means AGNC compounded at only 6.5% per year. This stock dishes a monthly dividend of 12.9% and loses nearly 6% per year in price. Not ideal!
AGNC Returns
Contrarian Outlook
The monthly champion is a favorite of ours here at Contrarian Outlook, business development company (BDC) Main Street Capital (MAIN). Main was early on the monthly train, paying its divvie every single month (without a cut!) since its 2007 IPO.
And MAIN grew investors’ wealth, too. The shares themselves are up 59% over our decade, before a single dividend. Add the payout and you’re at 236%, the top of our audit table.
What makes MAIN the bluest of BDC blue chips? Two engines instead of one. Most of its competitors simply lend money and collect interest. MAIN lends and takes equity stakes alongside the debt.
Make no mistake: Management is bullish. It just declared its 19th consecutive quarterly “bonus” dividend—that’s on top of the regular monthly payout, which it raised 4% this year. That adds up to an 8.4% yield, including special payouts. And it teased another likely bonus for September! And for those of us paying strict attention to net asset value (NAV), there has been no blip whatsoever. MAIN’s NAV grew to a record high.
Here’s another great thing at MAIN. Insiders own 3.8% of the company, roughly 3.7 million shares. That’s unusual and high for a BDC. They run the place like they own it, because… they do!
Brett Owens is Chief Investment Strategist for Contrarian Outlook. For more great income ideas, get your free copy his latest special report: Your Early Retirement Portfolio: Huge Dividends—Every Month—Forever.
AGNC Investment (AGNC - Free Report) closed at $10.94 in the latest trading session, marking a -1.62% move from the prior day. This change lagged the S&P 500's 0.28% loss on the day. Elsewhere, the Dow saw a downswing of 1.09%, while the tech-heavy Nasdaq appreciated by 0.2%.
The real estate investment trust's stock has climbed by 7.86% in the past month, exceeding the Finance sector's gain of 5.35% and the S&P 500's gain of 1.64%.
Analysts and investors alike will be keeping a close eye on the performance of AGNC Investment in its upcoming earnings disclosure. The company's earnings report is set to go public on July 20, 2026. The company is forecasted to report an EPS of $0.38, showcasing no movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $361.52 million, indicating a 123.16% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.56 per share and a revenue of $1.47 billion, indicating changes of +4% and +117.14%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for AGNC Investment. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has remained unchanged. AGNC Investment is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, AGNC Investment is holding a Forward P/E ratio of 7.12. Its industry sports an average Forward P/E of 8.95, so one might conclude that AGNC Investment is trading at a discount comparatively.
The REIT and Equity Trust industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 209, placing it within the bottom 16% 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.
To follow AGNC in the coming trading sessions, be sure to utilize Zacks.com.
, /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) announced today that its Board of Directors has declared a cash dividend of $0.12 per share of common stock for July 2026. The dividend is payable on August 11, 2026 to common stockholders of record as of July 31, 2026.
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.
AGNC Investment Corp. (AGNC +1.72%), one of the largest mortgage real estate investment trusts (mREITs) in America, pays a massive forward dividend yield of 13.1%. Is that high yield a bright red flag, or is AGNC actually a safe income play for long-term investors?
Image source: Getty Images.
How does AGNC pay such a high dividend? Unlike equity REITs, which buy properties and lease them out to generate income, mREITs buy mortgages and mortgage-backed securities (MBS) to collect interest. To insulate itself from another credit crunch or housing market crash, AGNC allocates 89% of its $94.7 billion portfolio to Agency MBS assets backed by Fannie Mae, Freddie Mac, or Ginnie Mae. REITs and mREITs also must pay out at least 90% of their taxable income as dividends to maintain a lower tax rate.
To generate stable profits, mREITs must earn sufficient interest on their long-term MBS to cover the debt financing of their short-term MBS purchases. This strategy works as long as the housing market remains stable and the Fed's short-term rates remain lower than its long-term rates.
Today's Change
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1.72
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0.18
Current Price
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10.97
To see how sustainable AGNC's dividend is, we should check its net interest spread, or the gap between the average yield it earns on its MBS and the average costs of funding its ongoing purchases, and the ability of its net spread and dollar roll income (the profit it books from its ongoing sales and purchases of MBS) per share to cover its dividends.
Metric
2021
2022
2023
2024
2025
Year-end net interest spread
2.15%
2.74%
3.08%
1.91%
1.81%
Net spread & dollar roll income per share
$3.02
$3.11
$2.61
$1.88
$1.50
Dividends per share
$1.44
$1.44
$1.44
$1.44
$1.44
Data source: AGNC.
AGNC hasn't raised its dividend since it reduced its payout in 2020. Its net interest spread remains positive -- and its net spread and dollar roll income per share can still cover its dividends -- but that gap has been shrinking over the past two years.
The Fed's six rate cuts in 2024 and 2025 reduced its borrowing costs for funding new MBS purchases, but they also reduced the value of its older, higher-rate mortgages. Homeowners refinanced at lower rates, but AGNC's own interest rate swaps were locked in at higher rates. The Fed could raise its rates in the second half of 2026 if inflation doesn't cool off. That would simultaneously raise AGNC's short-term borrowing costs while cooling the housing market.
While AGNC's dividend is sustainable for now, there's no guarantee it can cover its future dividends with its net spread and dollar roll income. If you don't fully understand that delicate balancing act, it's smarter to stick with other lower-yielding dividend stocks instead.
Leo Sun 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.
In the latest close session, AGNC Investment (AGNC - Free Report) was down 1.01% at $10.79. The stock's change was less than the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.66%.
Coming into today, shares of the real estate investment trust had gained 6.86% in the past month. In that same time, the Finance sector gained 2.72%, while the S&P 500 lost 1.21%.
The upcoming earnings release of AGNC Investment will be of great interest to investors. The company's earnings report is expected on July 20, 2026. The company is predicted to post an EPS of $0.38, indicating constancy compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $361.52 million, reflecting a 123.16% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.56 per share and revenue of $1.47 billion. These totals would mark changes of +4% and +117.14%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AGNC Investment. Such recent modifications usually signify the changing landscape of near-term business trends. 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. 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, 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.
With respect to valuation, AGNC Investment is currently being traded at a Forward P/E ratio of 6.98. This represents a discount compared to its industry average Forward P/E of 8.93.
The REIT and Equity Trust industry is part of the Finance sector. With its current Zacks Industry Rank of 206, this industry ranks in the bottom 17% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AGNC in the coming trading sessions, be sure to utilize Zacks.com.
, /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) ("AGNC" or the "Company") announced today it will report second quarter 2026 earnings after market close on July 20, 2026. AGNC will hold a stockholder call and audio webcast on July 21, 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 Q2 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 July 21, 2026. In addition, there will be a phone recording available one hour after the call on July 21, 2026 through August 4, 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 8844707.
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.
AGNC Investment (AGNC +2.59%) pays a very lucrative monthly dividend. The real estate investment trust (REIT) yields over 13.5%. That's more than 10 times higher than the S&P 500's 1.1% yield.
The mortgage REIT has maintained its monthly dividend since resetting the level in 2020. However, that could be harder to do after the Federal Reserve recently hinted that it might start raising rates instead of lowering them. Here is how this potential headwind could impact its dividend.
Image source: Getty Images.
A potential policy shift The Federal Reserve has been slowly reducing the Federal Funds Rate since September 2024. It had lowered that key borrowing rate by 175 basis points by the end of last year to a range of 3.5% to 3.75%. Most Fed watchers anticipated that it would continue lowering rates this year, likely moving the rate closer to 3% by year's end.
However, the Fed has stood pat so far this year amid the war in Iran, which has put upward pressure on inflation. Core inflation, the Fed's preferred measurement, reached 3.4% last month, its highest reading since October 2023. As a result, the Fed has removed key language from its policy statement that indicated a bias toward future rate cuts, while hinting at the possibility of hikes.
This sentiment shift has impacted the Agency MBS market (AGNC Investment's sole focus). CEO Peter Federico stated on the first-quarter conference call that, heading into the year, the market assumption was that there would be about $250 billion of Agency MBS supply, with mortgage rates just below 6%. However, with mortgage rates now in the 6.5% range, MBS supply could be $50 billion to $70 billion lower this year. The higher yields on new MBS put downward pressure on the value of legacy MBS with lower yields. If the Fed does raise rates, mortgage rates would likely rise more, further pressuring MBS values.
Today's Change
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2.59
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0.28
Current Price
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10.89
Still commanding a premium This year started positively for the MBS market as the Trump administration focused on reducing interest rate volatility and improving housing affordability. However, the war with Iran turned sentiment negative in March amid increased volatility. This impacted the value of AGNC's MBS portfolio, as its tangible book value declined by 5.6% to $8.38 per share.
However, while its book value declined, the REIT's stock price continued to trade at a premium to book, which it capitalized on by issuing $400 million in new shares during the period. It was able to deploy that capital at a levered return of around 16%, making these new investments accretive compared to its 13.5% dividend yield at the time. With its share price currently above $10.50 apiece, the REIT can continue to sell stock at a premium to its book value to make accretive new investments.
A higher risk, high-yielding dividend stock Changes in interest rates impact the value of AGNC Investment's MBS portfolio. The REIT, like most Fed watchers, expected that rates would fall this year, increasing the supply of lower-rate MBS. However, the Fed recently hinted that it might resume rate hikes amid the war-driven inflationary uptick. While that would put more downward pressure on the value of its portfolio, the REIT can still issue stock at a premium to buy higher-yielding MBS, which could enable it to continue maintaining its dividend. Even still, it's a higher risk, high-yielding income stream that income investors might not always be able to bank on in the future.
Kevin Warsh was recently installed as the head of the Federal Reserve. Although he was a loud proponent of cutting rates not too long ago, economic conditions have changed. The first Federal Reserve meeting of his tenure ended with no change to rates, with the target range remaining at 3.5% to 3.75%.
That alone is an important piece of information for mortgage real estate investment trusts (REITs) like Annaly Capital (NLY +1.62%) and AGNC Investment (AGNC +2.59%). But it isn't the only takeaway from the meeting you need to know about if you own these high-yield stocks, or are considering buying them.
Image source: Getty Images.
Starting with rates, the direction has changed Warsh had long been a proponent of lower rates, a view that paired up with the president who nominated him to the position he now holds. That rates were held steady and not cut is an important statement about the Fed's independence. However, it also indicated that the economic situation in the United States had changed, with inflation worries rising materially. At this point, it looks more likely that rates will rise than fall.
That's not great news for Annaly and AGNC. These two mortgage REITs own bond-like securities created by pooling mortgages. As with most bonds, rising interest rates cause the value of existing bonds to decline. That has to happen to keep the yield of the existing bonds competitive with the rates being offered by newly issued bonds. In the near term, a rising rate environment will likely lead to a reduction in tangible net book value per share for both Annaly and AGNC.
Today's Change
(
2.59
%) $
0.28
Current Price
$
10.89
There's a silver lining on the rate cloud While a declining tangible net book value per share in the face of rising yields is bad news, the new mortgage security investments that AGNC and Annaly make will have higher yields. That's a positive that could benefit further from other changes that Warsh has been discussing. Most notably, the Fed chief would like to see the Fed shrink its balance sheet, which he believes would increase the Fed's independence as it would no longer be backstopping the government. That would lead it to sell mortgage securities, among other assets.
Without the Fed in the mortgage securities market, effectively soaking up supply, spreads would likely widen. This, too, would likely put pressure on tangible net book value per share in the near term. However, it would mean that future purchases would be more profitable. So, like the rate change, a near-term negative, but a potential long-term positive.
Today's Change
(
1.62
%) $
0.36
Current Price
$
22.93
That said, Warsh hasn't made any changes here either. The new Fed chair has created a series of committees to examine the way the Fed currently operates. The Fed is committed to providing the banking system with ample liquidity, but the role it has been playing since the Great Recession appears likely to change. AGNC and Annaly will be watching the changes very closely, as should shareholders in these high-yield REITs.
Well-respected, but risky high-yield stocks AGNC and Annaly have dividend yields above 13%. That's 13x the yield currently available from the S&P 500 index (^GSPC 0.05%). While the yields are attractive on an absolute basis, both mREITs have volatile dividend histories, with periods when dividends were cut. Given the near-term headwinds that could be on the horizon, yield seekers should probably tread with caution.
However, AGNC and Annaly are both designed to pay large dividends and are well-respected mREITs. If you can stomach a volatile income stream, the Fed under Warsh could actually lead to higher dividends over the longer term, as new investments these mREITs make have higher yields and wider spreads. But there will be significant uncertainty in the near term before an improved investment environment is likely to emerge.
In the latest close session, AGNC Investment (AGNC - Free Report) was up +1.24% at $10.62. This move outpaced the S&P 500's daily loss of 0.01%. Elsewhere, the Dow saw an upswing of 0.14%, while the tech-heavy Nasdaq depreciated by 0.46%.
Heading into today, shares of the real estate investment trust had lost 0.19% over the past month, lagging the Finance sector's gain of 2.29% and outpacing the S&P 500's loss of 1.4%.
Investors will be eagerly watching for the performance of AGNC Investment in its upcoming earnings disclosure. On that day, AGNC Investment is projected to report earnings of $0.38 per share, which would represent no growth from the year-ago period. At the same time, our most recent consensus estimate is projecting a revenue of $361.52 million, reflecting a 123.16% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.56 per share and a revenue of $1.47 billion, indicating changes of +4% and +117.14%, respectively, from the former year.
Any recent changes to analyst estimates for AGNC Investment should also be noted by investors. 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 shows that these estimate changes are directly correlated with near-term stock prices. 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 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, the Zacks Consensus EPS estimate remained stagnant. As of now, AGNC Investment holds a Zacks Rank of #3 (Hold).
In the context of valuation, AGNC Investment is at present trading with a Forward P/E ratio of 6.71. Its industry sports an average Forward P/E of 8.65, so one might conclude that AGNC Investment is trading at a discount comparatively.
The REIT and Equity Trust industry is part of the Finance sector. This group has a Zacks Industry Rank of 199, putting it in the bottom 19% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
The VanEck Mortgage REIT Income ETF (NYSEARCA:MORT) exists for one reason: to deliver a fat, double-digit distribution sourced from the dividends of mortgage REITs like AGNC Investment (NASDAQ:AGNC | AGNC Price Prediction) and Annaly Capital (NYSE:NLY). With MORT shares trading around $10 and recent quarterly payouts in the $0.26 to $0.38 range, the trailing yield clears 12%. The question every MORT holder needs to answer is whether that payout reflects durable cash flow from the underlying mREITs, or a yield that exists only because the curve has been kind. Right now, the picture is mixed.
How MORT actually earns its check MORT is a pass-through. It owns a basket of mortgage REITs, collects their quarterly dividends, and distributes the net amount to shareholders. Those underlying mREITs make money on a spread: they borrow short at rates anchored to the 3.75% federal funds upper bound and invest in agency or commercial mortgage securities yielding closer to the 4.50% 10-year Treasury. Then they lever that spread five to eight times. Translation: a small move in either rate, or in the relationship between them, swings book value and dividend capacity hard.
The spread that pays the dividend is shrinking This is the most important number in the article. The 10Y-2Y Treasury spread sits at 0.30%, down from a February peak of 0.74%. The curve has flattened materially in four months. For levered mREITs, a compressing curve is a direct hit to net interest margin, because new investments roll on at narrower spreads than the legacy book. The current spread sits in the 1st percentile of its 12-month range. That is not a backdrop that supports dividend growth at the holdings level.
The two names that drive the payout AGNC and Annaly typically anchor MORT’s portfolio, and their tape tells the bullish side of the story. AGNC is up 30% over the past year, and Annaly has gained 32%. Total returns including their high single-digit dividends are stronger still. That rally reflects the Fed’s 75 basis points of cuts since last fall, which lowered borrowing costs faster than mortgage yields fell. Both AGNC and Annaly have held their dividends flat through this cycle rather than raising them, which suggests management teams view the spread environment as adequate, not abundant.
Why the quarterly check swings MORT’s payout is not fixed. Recent quarterly distributions have ranged from $0.26 in July 2025 to $0.38 in April 2025, with the latest at $0.36 in April 2026. Step back further and the trend is clearly down: 2013 produced a single Q4 payment of $1.45, and quarterly checks routinely cleared $0.45 through 2017. The structural reset to lower payouts reflects what mortgage REITs have actually been able to earn since spreads normalized, and holders should expect that volatility to continue.
Total return reality check The income has shown up, but the price action has gone the other way. MORT is down 11% over five years on price alone, and basically flat year to date. Holders earned their yield, but principal eroded. The roughly 10% one-year price gain is a rate-cut reflex, not a fundamental re-rating.
The verdict MORT’s distribution is sustainable in the sense that no cut is imminent: AGNC and Annaly are covering their dividends, and lower funding costs have eased pressure. It is not safe in the way a dividend-growth ETF is safe. Expect the quarterly payment to flex with the curve, and expect another step-down if the 10Y-2Y spread keeps compressing toward zero. Investors who need stable income should pair MORT with a lower-yield, equity-REIT or dividend-growth vehicle. Those who can tolerate variability and watch the curve get paid handsomely to do so.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AGNC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Disclaimer: I am not an investment advisor or professional. This article is my own personal opinion and is not meant to be a recommendation of the purchase or sale of stock. The investments and strategies discussed within this article are solely my personal opinions and commentary on the subject. This article has been written for research and educational purposes only. Anything written in this article does not take into account the reader’s particular investment objectives, financial situation, needs, or personal circumstances and is not intended to be specific to you. Investors should conduct their own research before investing to see if the companies discussed in this article fit into their portfolio parameters. Just because something may be an enticing investment for myself or someone else, it may not be the correct investment for you.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Layoff announcements have rolled through tech, finance, and media all spring, and the cost-of-living squeeze has not loosened. A paycheck works only as long as you keep showing up. Dividend income keeps arriving whether your employer needs you next quarter or not, and that gap is why income-focused investors keep building positions in high-yield monthly payers.
Monthly dividend stocks have a structural advantage over rental real estate and most quarterly payers. You can liquidate at the bid in seconds, you do not screen tenants, and the cash hits your brokerage every 30 days, which lines up with how mortgages, utilities, and groceries actually get paid. I’ve been studying mortgage REITs and monthly dividend payers for more than a decade, and we screened our 24/7 Wall St. dividend equity research database looking for a high-yield monthly payer that can generate well over $1,872 a year in passive income on a $25,000 investment at the time of this writing.
AGNC Investment Corp. Stock: AGNC Investment (NASDAQ:AGNC | AGNC Price Prediction) Yield: ~13.8% Shares for $25,000: ~2,380 at $10.50 Annual Passive Income: ~$3,427 (~$285/month) AGNC is the largest pure-play Agency MBS mortgage REIT, holding a $94.70 billion portfolio of residential mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. The business model is conceptually simple: borrow short in the repo market, buy government-guaranteed MBS, and pocket the spread. In Q1 2026 that net interest spread widened to 2.06%, up 25 basis points, as the weighted average repo rate fell to 3.79%. Management runs the book at 7.4x leverage, which is what amplifies that 2% spread into a double-digit return on equity.
The dividend is structurally high for two reasons. As a REIT, AGNC must distribute at least 90% of taxable income to shareholders to preserve its tax status. Layer leverage on top of Agency MBS, and the cash yield on equity expands accordingly. The monthly payout has held at $0.12 per share since April 2020, an annualized $1.44. The most recent check was paid June 9, 2026, and the next ex-dividend date is June 30, 2026. Coverage looks healthy on a core basis: net spread and dollar roll income hit $0.42 per share in Q1 2026, roughly 3.5x the monthly payout, even though headline EPS dipped into a mark-to-market loss.
The stock has also delivered meaningful total return on top of the yield. AGNC posted a 35% total stock return in 2025 with dividends reinvested, nearly double the S&P 500, on a 23% economic return on tangible common equity. Institutional ownership sits at 41%, with the usual passive giants (BlackRock, Vanguard, State Street) anchoring the holder list. The company has been actively raising capital into the spread opportunity, issuing 38.0 million shares via its ATM program for $401 million net proceeds in Q1 2026 on top of $2.0 billion of ATM issuance across full-year 2025. CEO Peter Federico framed the setup this way on the most recent call: “mortgage spreads to benchmark rates widened significantly in March and provide investors with compelling value on both an absolute and relative basis at these levels.” The Fed funds rate sitting at 3.75% and the 10-year Treasury at 4.47% keep the curve in a shape that funds AGNC’s carry trade.
A $25,000 position in AGNC produces roughly $3,427 in annual passive income, or about $285 every 30 days at the current $10.50 share price and $1.44 annualized dividend, a blended yield near 13.7%. That clears the $156-per-month headline target by a wide margin and gives you cushion if management eventually trims the payout to defend book value. One practical note: AGNC’s distributions are largely ordinary income, so the math works hardest inside an IRA or Roth where the monthly checks compound without a tax drag. Reinvesting those dividends at anything close to today’s yield turns the position into a self-funding machine, the kind of compounding that quietly pulls ahead of price-chasing strategies over a full cycle.
The iShares Mortgage Real Estate ETF (NYSEARCA:REM) is the go-to vehicle for investors who want concentrated exposure to mortgage REITs and the double-digit distribution yield that comes with them. REM holds $531.5 million in net assets across 37 positions, and almost every dollar of its distribution flows up from the dividends those underlying mREITs pay. That makes REM’s payout only as safe as the cash flows at Annaly, AGNC, and a handful of other rate-sensitive names. With the yield curve flattening and Treasury yields elevated, that question deserves a careful look.
How REM Actually Pays You REM is a pass-through. It tracks an index of mortgage REITs, collects their dividends, deducts the 0.5% expense ratio, and distributes what is left. Mortgage REITs in turn earn their income by borrowing short, buying agency or commercial mortgage securities long, and pocketing the spread. The size of that spread is dictated by the yield curve, and the leverage applied to it magnifies both the income and the risk.
Concentration is the first thing to internalize. Annaly and AGNC together account for 36% of net assets, and the top 10 holdings make up 73%. If those two names cut, REM’s distribution falls regardless of what the other 33 positions do.
The Two Names That Decide Everything Annaly Capital (NYSE:NLY | NLY Price Prediction), 23% weight. Annaly has paid $0.70 per quarter for five consecutive quarters, after raising the payout from $0.65 in early 2025. That increase signals management’s confidence in book value and net interest margin coverage. The cautionary footnote: Annaly slashed its quarterly dividend from $0.88 to $0.22 in 2022 when rates ripped higher. Today’s $0.70 looks durable in a stable-rate world, but it is not bulletproof against another rapid back-up in yields.
AGNC Investment (NASDAQ:AGNC), 14.79% weight. AGNC has paid $0.12 per month, or $1.44 annually, for roughly 24 consecutive months. The last cut, a 25% reduction from $0.16 in March 2020, was pandemic-driven. The current rate has survived the entire 2022 to 2026 rate cycle, which is the most meaningful endorsement of its coverage you can get from real life.
Starwood Property Trust (NYSE:STWD), 7.48% weight. Starwood is the commercial-credit anchor in REM. Its income comes from senior commercial mortgage loans rather than agency MBS, so the risk is credit and office-loan exposure rather than rate spreads.
The Rate Picture That Actually Matters Mortgage REIT profitability lives and dies on the spread between short-term funding and long-term mortgage yields. The 10Y-2Y spread sits at 0.5%, in the 2nd percentile of the past year, with the 10-year Treasury at 4.5% and the Fed Funds rate at 3.8% after three cuts late last year. A flat curve compresses net interest margins, which is the single biggest threat to REM distributions. The Fed pause since December 10, 2025 removes near-term funding cost surprises, which helps.
Total Return, Not Just Yield Yield without price is a trap with mREIT funds. REM trades at $22, up 14% over the past year and roughly flat year to date, but still down about 8% over five years. Investors who reinvested distributions came out ahead; investors who spent them watched principal erode.
The Verdict REM’s distribution looks safe at current levels. Annaly just raised, AGNC has held the line through a brutal rate cycle, and the Fed is on hold. The risk is asymmetric: a renewed flattening or inversion of the curve, or a sharp rise in the 10-year past the recent 4.7% peak, would pressure book values and force payout reviews at the two names that drive 36% of the fund. REM suits income investors who understand they are buying a leveraged bet on the yield curve. Anyone who needs principal stability should look at a broader equity-REIT fund or shorter-duration credit instead.
Generating a six-figure income from a $500,000 portfolio through yield alone is largely unrealistic. Doing so would require a payout approaching 20%, a level that few investments can sustain for long. The more practical approach is to combine a reasonable starting yield with businesses that consistently increase their dividends. Over time, dividend growth and compounding can accomplish what chasing yield cannot: turning a modest income stream into a much larger one without requiring dramatically more capital.
Here is the baseline math at three yield levels for a $100,000 income target. At 3.5%, you need about $2.86 million. At 7%, about $1.43 million. At 12%, about $833,000. A $500,000 starting balance does not clear any of those bars on day one. The question is which tier gets you closest to $100,000 of inflation-adjusted income by year 20 or 30.
Tier One: Conservative Dividend Growers (2.5% to 4%) At a 3.5% blended yield, $500,000 produces $17,500 in first-year income. That sounds modest until you model the growth rate. Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) just declared its 64th consecutive annual increase, lifting the quarterly payout to $1.34. Procter & Gamble (NYSE:PG) raised its dividend for the 70th consecutive year and has paid shareholders without interruption since 1890.
JNJ’s quarterly dividend grew from $0.25 in 1999 to $1.34 in 2026, roughly a 5.4x increase. At a sustained 7% growth rate, a $17,500 starting income doubles by year 10, reaches roughly $70,000 by year 20, and crosses $130,000 by year 30, all without adding a dollar of fresh capital. Reinvesting dividends during accumulation accelerates the curve further.
Tier Two: The Balanced 4% to 6% Portfolio At a 5% blended yield, $500,000 generates $25,000 in year one. Realty Income (NYSE:O) pays monthly and just delivered its 114th consecutive quarterly increase at a yield near 5.3%. The tradeoff in this tier: dividend growth here typically runs 2% to 4% annually, not 7% to 8%. Income at 3% growth roughly doubles in 24 years. You get more cash today and less compounding tomorrow. For investors within five years of needing the money, that is often the correct trade.
Tier Three: Aggressive Income (8% to 14%) At a 10% blended yield, $500,000 throws off $50,000 in year one, halfway to the goal immediately. AGNC Investment (NASDAQ:AGNC) pays a roughly 14% distribution.
The catch is durability. AGNC’s tangible book value fell 5.6% to $8.38 per share in a single quarter, and the company posted a $0.17 net loss per share. Over five years, AGNC’s total return has been about 9%. High-yield tobacco names face declining cigarette volumes and a roughly 1 point drop in Marlboro share to about 40%. High current income often pairs with flat or eroding principal.
Why Current Yield Misleads So Many Investors The temptation is to focus on the largest income check available today. The problem is that retirement lasts for decades, not one year. Once dividend growth enters the equation, the rankings often change dramatically. A company that starts with a 3% to 4% yield but increases its payout every year can eventually generate more income than a static high-yield investment that never grows.
Income is only part of the story. Dividend-growth companies have historically offered a second source of return through capital appreciation. Investors benefit not only from rising payouts but also from the possibility that the underlying shares become more valuable over time. Many higher-yield investments distribute substantial cash but generate little long-term price growth, forcing investors to rely almost entirely on the income stream itself.
Inflation further widens the gap. Every year that income remains unchanged, its purchasing power declines. Over a retirement that may span 20 to 30 years, a growing income stream can provide a level of financial flexibility that a fixed payout struggles to match. The portfolio with the highest yield on day one is not always the portfolio that delivers the most spending power over the life of the retirement.
Your Best Moves Now Calculate actual spending, not salary. Most retirees need to replace 70% to 80% of pre-retirement income, not 100%. Your real target may be closer to $75,000 than $100,000. Compare 10-year total returns side by side. Pull the full return history of a dividend growth name like JNJ or PG against a high-yield vehicle like AGNC. Total return, with dividends reinvested, is the only fair scoreboard. Model the tax drag by account type. REIT distributions from names like Realty Income and AGNC are taxed as ordinary income. Qualified dividends from JNJ and PG are taxed at 0%, 15%, or 20%. Hold the tax-inefficient names inside an IRA whenever possible. The path from $500,000 to a six-figure income stream rewards patience above all else; current yield is the smaller variable.
Key Takeaways Refinancing demand is improving as lower mortgage rates lift borrower interest and mortgage activity.RKT could benefit from higher refinance volumes and integration synergies from Redfin and Mr. Cooper.AGNC and NLY may gain from a stronger Agency MBS market, though prepayment trends remain important. Mortgage rates are showing signs of easing, putting refinancing activity back on investors’ radar. While the recovery remains gradual, even a modest decline in borrowing costs can be meaningful for mortgage-related stocks such as Rocket Companies, Inc. (RKT - Free Report) , AGNC Investment Corp. (AGNC - Free Report) and Annaly Capital Management, Inc. (NLY - Free Report) . After an extended period of elevated mortgage rates, affordability pressures and sluggish housing-market activity, the refinancing market is beginning to regain traction.
According to Freddie Mac’s latest Primary Mortgage Market Survey, the average rate on a 30-year fixed mortgage was 6.47% as of June 18, down from 6.52% in the prior week and 6.81% a year ago. Although rates remain well above the ultra-low levels seen earlier in the decade, the recent downward trend is encouraging for borrowers and mortgage-market companies.
Signs of improving refinancing demand are already emerging. The Mortgage Bankers Association reported that mortgage applications fell 3.8% for the week ended June 12, but refinance applications grew 17% year over year. Notably, refinancing accounted for 40.3% of the total mortgage applications, indicating that refinance activity is once again becoming a meaningful component of overall mortgage-market demand.
This trend matters because mortgage-related companies are highly sensitive to changes in interest rates, refinancing volumes, mortgage-backed securities (MBS) pricing and prepayment expectations. As borrowing costs decline, homeowners may become more inclined to refinance existing loans, creating opportunities for mortgage lenders and potentially improving conditions across the broader mortgage ecosystem.
The benefits, however, vary by business model. For mortgage originators, higher refinancing activity can boost loan application volumes, origination revenues and servicing recapture rates. For mortgage REITs, lower rates can support MBS valuations and book values, particularly when rate declines are orderly and volatility remains contained. However, if refinancing accelerates too quickly, faster prepayment speeds can affect the expected cash flows of mortgage securities and mortgage servicing rights, creating a more nuanced operating environment.
As a result, stock selection becomes particularly important. Rocket Companies is a more direct play on refinancing volumes and mortgage origination activity. Meanwhile, AGNC Investment and Annaly Capital Management are income-focused mortgage REITs whose performance depends not only on refinancing trends but also on factors such as MBS spreads, funding costs, leverage, hedging strategies and book-value preservation.
Let us take a closer look at RKT, AGNC and NLY and examine how each could benefit from a gradual recovery in refinancing activity.
Rocket Companies: A Direct Play on Refinance VolumesRocket Companies is the clearest refinancing beneficiary among the three. The company operates Rocket Mortgage and has a large direct-to-consumer mortgage platform, giving it direct exposure to changes in mortgage application and refinancing activity.
RKT's end-to-end platform is positioned to convert any cyclical lift into outsized share gains amid industry-wide turnaround expected in 2026, driven by lower mortgage rates. The combination of Redfin and Mr. Cooper has strengthened Rocket’s capabilities by adding scale and reinforcing stability, growth capacity and cost efficiency. The Redfin and Mr. Cooper integrations provide visible, near-term synergies with meaningful operating leverage upside. On the Mr. Cooper side, management has line-of-sight to $400 million in expense synergies, plus an incremental $100 million in revenues tied to higher blended recapture rates.
With an estimated 70% structural drop-through of incremental revenues to EBITDA after fixed costs and AI-driven capacity improvement, the platform is expected to scale volume without proportional headcount/cost escalations.
Management expects second-quarter 2026 adjusted revenues between $2.7 billion and $2.9 billion. As synergy capture ramps up, it will likely support the top line going forward.
The company’s 2026 earnings estimates have been unchanged at 76 cents per share over the past week, indicating a year-over-year upsurge of 171.4%. RKT has a Zacks Rank of #3 (Hold) at present.
Earnings Estimates
Image Source: Zacks Investment Research
AGNC Investment: A Mortgage REIT Leveraged to Agency MBSAGNC primarily invests in agency mortgage-backed securities. These securities are backed by Fannie Mae, Freddie Mac or Ginnie Mae, reducing credit risks but leaving the company highly exposed to interest rates, MBS spreads, funding costs and prepayment trends.
Higher refinancing activity and a decline in mortgage rates could support AGNC Investment’s performance. Lower mortgage rates, if accompanied by reduced rate volatility, can improve agency MBS valuations, support book value and enhance the relative appeal of AGNC’s mortgage assets. AGNC’s first-quarter 2026 results showed net spread and dollar roll income of 42 cents per share and tangible net book value of $8.38 per common share.
AGNC’s active portfolio-management approach further strengthens its ability to navigate this environment. The company regularly adjusts its portfolio and hedge positions in response to changing interest-rate and mortgage-market conditions. Its focus on higher-coupon holdings, reduced exposure to non-agency assets and significant interest-rate hedge position could help stabilize cash flows while allowing it to benefit from improving agency MBS fundamentals.
That said, higher refinancing activity is not always bullish for AGNC. A sharp rise in refinancing can cause the underlying mortgages in MBS pools to prepay faster, reducing the duration of cash flows and pressuring premium mortgage securities. Therefore, while lower rates and improving refinancing trends can support AGNC, the pace and magnitude of refinancing activity remain key factors to watch.
The company’s 2026 earnings estimates have been unchanged at $1.56 per share over the past week, indicating year-over-year growth of 4%. AGNC has a Zacks Rank of #3 at present.
Earnings Estimates
Image Source: Zacks Investment Research
Annaly Capital: Diversified Mortgage ExposureNLY’s strength lies in its diversified investment strategy, spanning residential credit, mortgage servicing rights (MSRs) and Agency MBS. This approach helps reduce volatility and interest rate sensitivity while targeting attractive risk-adjusted returns.
As of March 31, 2026, NLY managed a $106.7-billion portfolio, with $92.2 billion in liquid Agency assets. The company is also expanding its MSR business, which serves as a hedge against rising rates by gaining value when prepayments slow. By balancing Agency MBS with MSRs, it enhances yield, mitigates risks and positions itself for more stable long-term performance across rate cycles.
With easing mortgage rates and rising refinancing, Annaly is positioned for book value gains as tighter Agency spreads lift asset prices. A wider net interest spread should also enhance portfolio yields, supporting stronger financial performance ahead.
The company’s 2026 earnings estimates have been unchanged at $2.98 per share over the past week, indicating year-over-year growth of 2.1%. NLY has a Zacks Rank of #3 at present.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SummaryAGNC Investment Corp. is rated Buy, driven by improved Agency MBS spreads, better funding costs, and constructive capital issuance above book value.Despite a ~14% yield, AGNC's dividend is not risk-free; book value volatility and spread sensitivity remain central to the investment thesis.Q1 saw net spread and dollar-roll income rise to $0.42/share, comfortably covering the dividend, but book value declined, highlighting ongoing risk.AGNC’s premium to book enables accretive equity issuance, but the Buy case depends on stable or tightening Agency MBS spreads and disciplined portfolio management. Klaus Vedfelt/DigitalVision via Getty Images
AGNC Investment Corp. (AGNC) has a forward yield of ~14%, which makes it look like a monthly dividend producer. But AGNC is primarily a leveraged Agency MBS portfolio. The dividend tags along, but cannot be understood outside of
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AGNC Investment (AGNC - Free Report) closed at $10.46 in the latest trading session, marking a +1.45% move from the prior day. This change lagged the S&P 500's 1.65% gain on the day. At the same time, the Dow added 0.92%, and the tech-heavy Nasdaq gained 3.07%.
Shares of the real estate investment trust witnessed a loss of 0.29% over the previous month, trailing the performance of the Finance sector with its gain of 2.86%, and the S&P 500's gain of 0.48%.
The upcoming earnings release of AGNC Investment will be of great interest to investors. In that report, analysts expect AGNC Investment to post earnings of $0.38 per share. This would mark no growth from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $361.52 million, up 123.16% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.56 per share and revenue of $1.47 billion. These totals would mark changes of +4% and +117.14%, respectively, from last year.
Any recent changes to analyst estimates for AGNC Investment should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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, the Zacks Consensus EPS estimate remained stagnant. At present, AGNC Investment boasts a Zacks Rank of #2 (Buy).
In the context of valuation, AGNC Investment is at present trading with a Forward P/E ratio of 6.6. This indicates a discount in contrast to its industry's Forward P/E of 8.87.
The REIT and Equity Trust industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 211, positioning it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
AGNC Investment (AGNC +0.10%) is a mortgage real estate investment trust (REIT). This is a complex niche of the broader REIT sector that requires a bit more research to fully understand. All REITs pay out a material portion of their earnings as dividends to avoid corporate-level taxation, which basically forces them to sell shares to fund their growth. But the mREIT model changes the dynamic of stock sales in an important way.
What does AGNC Investment do? AGNC Investment owns a portfolio of mortgage securities. It manages that portfolio, generating an income stream that it uses to pay its dividend. The dividend yield is a lofty 13.7% today, which is likely what most investors are focused on when they buy the stock.
Image source: Getty Images.
In some ways, AGNC is similar to a mutual fund. One important similarity is that, like a mutual fund, AGNC Investment reports the value of its business. For a mutual fund, that number is called the net asset value (NAV), and it is reported daily. AGNC Investment reports its tangible net book value per share, which is roughly similar to an NAV, on a quarterly basis.
AGNC's tangible net book value is the per-share value of its mortgage securities portfolio. At the end of the first quarter of 2026, that number stood at $8.38. Investors paying more than that figure for the stock are paying a premium. The share price is more than $10, so that is exactly what is happening right now. This can actually be a good thing for shareholders if AGNC Investment is issuing new stock.
REITs pay out at least 90% of taxable earnings to avoid corporate taxation. To fund growth, REITs sell stock. But AGNC isn't buying buildings; it is buying mortgage securities. If it can sell stock for more than its tangible net book value per share, it is like finding free money. The mREIT can buy more new mortgage securities than it would otherwise be able to if stock buyers only paid what the existing portfolio was actually worth on a per-share basis. We know this because tangible net book value per share is based on the actual value of the mortgage securities AGNC owns, which trade daily. Buildings, by comparison, trade far less frequently, and their value is more subjective.
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AGNC is creating value, not diluting shareholders When a company sells new shares, it dilutes shareholders' ownership because the business's value is now spread across more shares. The hope is that the cash raised will be invested to increase the company's value, which may or may not happen. This is how investors should view most REIT stock sales. AGNC and other mortgage REITs are a little different.
If AGNC Investment sells shares for more than tangible net book value, the move is inherently beneficial to existing shareholders because of the unique dynamics of the mREIT niche. Of course, issuing shares below tangible net book value per share would have the opposite effect. Still, the mREIT's steadily rising share count isn't a concerning sign, as long as it continues to sell that stock at a price above its tangible net book value.
Pareto upgrades - swapping into strictly superior securities within the same issuer - can materially improve portfolio yield without increasing risk. Repeated Pareto upgrades raised yield on invested capital from 8.53% to 11.33% in under two years, demonstrating powerful compounding effects. Current actionable opportunity: ABR-D preferred offers an 18 basis point yield advantage over ABR-E with identical upside to par and risk profile.
Modern financial systems rely on third-party liquidity providers, creating a recession-resistant stream of dividends. Capitalize on the recent minor dip in Agency MBS prices to lock in a massive double-digit payout. When tech bubbles burst, value-centric bank funds historically act as dominant market safe havens.
In the latest trading session, AGNC Investment (AGNC - Free Report) closed at $10.23, marking a -1.73% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.42%.
Shares of the real estate investment trust witnessed a loss of 4.84% over the previous month, trailing the performance of the Finance sector with its gain of 2.26%, and the S&P 500's gain of 6.32%.
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 $0.38, marking stability compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $361.52 million, up 123.16% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.56 per share and a revenue of $1.47 billion, representing changes of +4% and +117.14%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for AGNC Investment. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. AGNC Investment presently features a Zacks Rank of #2 (Buy).
In terms of valuation, AGNC Investment is presently being traded at a Forward P/E ratio of 6.66. For comparison, its industry has an average Forward P/E of 8.76, 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 213, which puts it in the bottom 13% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Key Takeaways AGNC offers a 13.9% dividend yield, monthly payouts and a $1B share repurchase authorization.AGNC may benefit as lower mortgage rates support loan demand, refinancing and net interest spread.AGNC Investment increased higher-coupon Agency MBS exposure and saw upward earnings revisions. One of the most closely watched aspects of AGNC Investment Corp.’s (AGNC - Free Report) financial profile is its dividend policy. AGNC has a record of paying monthly dividends, currently yielding a staggering 13.9% compared with the industry’s average of 13.2%.
Dividend Yield
Image Source: Zacks Investment Research
Dividends aside, AGNC has a share repurchase plan in place. In October 2024, the company’s board of directors terminated the existing stock repurchase plan and replaced it with a new plan authorizing it to repurchase up to $1 billion of common stock through Dec. 31, 2026. As of March 31, 2026, the full authorization was available for repurchase.
AGNC Investment's peers, Annaly Capital Management (NLY - Free Report) and Starwood Property Trust (STWD - Free Report) , are also providing investors with solid dividend options. Annaly Capital Management has an annual dividend yield of 13.2%, whereas Starwood Property Trust has a dividend yield of 11.3%.
Coming back to AGNC, this publicly traded mortgage real estate investment trust (mREIT) offers favorable long-term stockholder returns and a gigantic dividend yield. Income-seeking investors have a large appetite for REIT stocks, as U.S. law requires REITs to distribute 90% of their annual taxable income as dividends. Hence, this may entice many investors to buy the stock.
Along with a lucrative dividend yield, shares of AGNC Investment have appreciated 12.9% in the past year compared with the industry's rise of 0.6%. Meanwhile, Annaly Capital Management has risen 11.6%, while Starwood Property Trust has fallen 15.4%.
Price Performance
Image Source: Zacks Investment Research
Given the strength, many investors must be tempted to buy the AGNC stock. But is now the right time to invest? To answer this, it is essential to delve into the details and evaluate various factors at play.
AGNC Investment & Mortgage RatesAGNC’s performance and prospects are significantly influenced by the mortgage rate environment. The Federal Reserve has lowered the interest rates by 175 basis points since 2024. Given this, mortgage rates are easing. Per a Freddie Mac report, the average rate on a 30-year fixed-rate mortgage was 6.48% as of June 4, 2026, down from 6.53% in the previous week and 6.85% in the same week a year ago.
The decline in mortgage rates is a positive development for AGNC. Housing affordability challenges are declining with lower mortgage rates. With rates trending lower and balanced supply/affordability playing out in the mortgage market, loan demand is witnessing an increase. With this turnaround, mortgage originations and refinancing a activity are seeing a positive trend. This will likely help boost AGNC's net interest spread and the book value of its portfolio.
Agency MBS: A Targeted Approach by AGNCAGNC Investment has maintained its focus on agency mortgage-backed securities (RMBS), a strategy that has positioned it as a strong player in this specialized market segment.
AGNC primarily focuses on leveraged investments in Agency RMBS, including residential mortgage pass-through securities and collateralized mortgage obligations. A U.S. Government agency or a U.S. Government-sponsored enterprise guarantees the principal and interest payments for such investments.
Agency MBS performance in first-quarter 2026 reflected a supportive start to the quarter as policy focus on lower rate volatility, steadier mortgage spreads and housing affordability lifted the broader fixed income complex. Conditions reversed in March as the war in Iran and broader conflict risk raised volatility and weakened sentiment, widening Agency MBS spreads and driving AGNC’s economic return on tangible common equity to negative 1.6%.
Nonetheless, the longer-term outlook for Agency MBS remains constructive despite near-term challenges associated with heightened geopolitical and macroeconomic risks. Other positive developments, such as recent Agency MBS purchases by Fannie Mae and Freddie Mac and other market initiatives contemplated by the Administration and the Federal Reserve, could be a catalyst for mortgage spread tightening. These dynamics, coupled with a balanced supply-demand outlook, are supportive of the optimistic perspective on Agency MBS.
As such, the company's focus on agency MBS puts it in a position to possibly profit from favorable trends. However, execution will be crucial to achieving these advantages. Hence, with $94 billion of Agency MBS in its investment portfolio (as of March 31, 2026), AGNC Investment is expected to enjoy attractive risk-adjusted returns within the fixed-income markets.
AGNC Investment & Portfolio Management StrategyAGNC has been maintaining an active and defensive portfolio-management strategy, which may support long-term growth despite elevated volatility in the mortgage market. By actively repositioning its portfolio and adjusting hedging strategies, the company is attempting to reduce interest-rate and prepayment risks while preserving attractive return opportunities.
The company continues to retain a significant hedge position. As of March 31, 2026, AGNC had interest-rate hedges covering 75% of its Investment Securities Repo, TBA position and other debt. At the same time, the company reduced certain credit-focused and non-agency holdings while increasing exposure to higher-coupon Agency mortgage-backed securities (“MBS”). These repositioning efforts are expected to improve cash flow stability and provide better protection against prepayment uncertainty.
This strategy has already helped AGNC navigate uncertain conditions. The first-quarter 2026 results benefited from higher average asset yields and increased net interest income (NII). AGNC’s focus on Agency mortgage-backed securities remains a key growth driver. These securities are supported by government agencies or government-sponsored enterprises, making them relatively safer within fixed-income markets. The company held a $94.7-billion investment portfolio at the end of the first quarter, including $84.4 billion in Agency MBS and $9.5 billion in net TBA securities. Such prudent asset-selection efforts might offer greater stability of cash flows and bode well for long-term growth.
AGNC Earnings Estimate Revision Trend & ValuationAGNC Investment’s earnings estimates for 2026 and 2027 have been revised upward over the past 60 days, reflecting bullish analyst sentiment.
Estimate Revision Trend
Image Source: Zacks Investment Research
From a valuation standpoint, AGNC appears expensive relative to the industry. The company is currently trading at a premium with a forward 12-month price-to-tangible book (P/TB) multiple of 1.19X, above the industry average of 0.97X. AGNC Investment peers Annaly Capital Management and Starwood Property Trust have forward 12-month P/TB of 1.06X and 0.99X, respectively.
P/TB TTM
Image Source: Zacks Investment Research
Conclusion: AGNC Stock Is a Buy for Income-Focused InvestorsGiven AGNC’s outsized dividend yield, improving mortgage-rate backdrop and disciplined focus on Agency MBS, the stock appears well-positioned for income-oriented investors at this juncture. The company’s active portfolio-management approach, sizeable hedge position and increased exposure to higher-coupon Agency securities should help it navigate near-term volatility while supporting net interest income and book value stability. Upward earnings estimate revisions signal improving analyst confidence in AGNC’s earnings prospects.
Although AGNC trades at a premium to the industry, its attractive monthly dividend payout, favorable long-term return profile and constructive Agency MBS outlook justify the valuation. For investors seeking high current income and willing to tolerate interest-rate and spread-related volatility, AGNC Investment looks worth buying now.
AGNC currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fifty thousand dollars a year is what a careful retiree might want to cover housing, groceries, and Medicare premiums on top of Social Security. Two mortgage REITs, Annaly Capital Management (NYSE:NLY | NLY Price Prediction) and AGNC Investment (NASDAQ:AGNC), currently throw off enough yield to fund that number on a $400,000 sleeve. The math works. The risk is what most 64-year-olds shopping for income do not price in.
NLY pays $0.70 quarterly, or $2.80 annualized, on a share price near $22. AGNC pays $0.12 monthly, or $1.44 annualized, on a share price near $10. Trailing yields land at 13% and 13.7%. A 50/50 split on $400,000 produces roughly $53,000 in cash distributions over a year. Headline rounded to $50,000 gives a small cushion.
The Same Income, Three Different Capital Requirements The amount of capital needed to generate $50,000 in annual income depends largely on the yield an investor is willing to accept. The math is straightforward: income target divided by yield equals capital required.
Conservative tier (3% to 4% yield). Dividend-growth ETFs and high-quality blue chips occupy this range. At a 3.5% yield, generating $50,000 annually requires approximately $1.43 million. The tradeoff is that dividends often grow over time, helping income keep pace with inflation while supporting long-term capital appreciation. The drawback is the substantial capital requirement.
Moderate tier (5% to 7% yield). Preferred-share funds, midstream energy partnerships, business development companies, and diversified high-dividend strategies generally fall into this category. At a 6% yield, an investor needs about $833,000 to generate $50,000 annually. Income starts higher, but payout growth is typically slower and returns can be more sensitive to credit conditions and economic cycles.
Aggressive tier (10% to 14% yield). Mortgage REITs, leveraged covered-call funds, and CLO equity strategies often operate in this range. At a 12.5% yield, producing $50,000 of annual income requires just $400,000. The income hurdle drops dramatically, but so does the margin for error. Higher yields generally come with greater volatility, higher distribution risk, and less room for mistakes.
Where the 14% Number Actually Comes From Annaly Capital Management (NLY) manages approximately $138.5 billion in assets across Agency mortgage-backed securities, residential credit, and mortgage servicing rights. AGNC Investment Corp. (AGNC) operates a roughly $94.7 billion Agency-focused portfolio with leverage of about 7.4x. Both mortgage REITs rely heavily on the spread between the yields earned on mortgage assets and their short-term funding costs.
With the 10-year Treasury yielding about 4.45% and the 10Y-2Y spread narrowing to 0.42% from 0.74% in February, the interest-rate environment has become less favorable for that business model. As financing spreads tighten, earnings pressure can build and dividend coverage may weaken.
The impact can be significant. Annaly reduced its quarterly dividend from $0.88 to $0.22 in 2022, while AGNC lowered its monthly payout from $0.18 to $0.12 in early 2020 and has maintained that level since. During challenging rate environments, income investors have often faced a double hit: lower distributions and declining share prices. In 2022, NLY fell 23% and AGNC fell 24%, illustrating how quickly a high-yield strategy can become less forgiving when market conditions deteriorate.
The Diversification Patch The iShares Mortgage Real Estate ETF (NYSEARCA:REM) holds 35 positions with NLY at 21.7% and AGNC at 14.2% of the fund, plus Starwood Property Trust, Rithm Capital, Blackstone Mortgage Trust, and 30 other names. The 0.48% expense ratio is the toll. The benefit is that one issuer cutting its payout does not knock out a single-digit share of your income.
What to Actually Do Cap mortgage REIT exposure at 10% to 15% of total income assets. A $400,000 sleeve makes sense inside a $3 million portfolio, not as the whole plan. Compare ten-year total returns, not current yields. NLY is up 71% over ten years and AGNC is up 83%, both before dividends. A 3.5% yielder growing the payout 8% annually doubles the income stream in nine years. A 14% yielder that holds flat does not. Reinvest 20% to 30% of distributions back into the position. That offsets the next dividend cut and slows the principal erosion that defines this asset class. The $400,000 number is real. So is the $50,000. Whether either survives the next rate cycle intact is the question the yield alone cannot answer.
In the latest close session, AGNC Investment (AGNC - Free Report) was up +1.88% at $10.30. The stock's performance was ahead of the S&P 500's daily loss of 0.26%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, lost 0.97%.
Coming into today, shares of the real estate investment trust had lost 6.39% in the past month. In that same time, the Finance sector gained 0.29%, while the S&P 500 gained 0.23%.
Analysts and investors alike will be keeping a close eye on the performance of AGNC Investment in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.38, showcasing no movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $361.52 million, indicating a 123.16% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.56 per share and revenue of $1.47 billion. These totals would mark changes of +4% and +117.14%, respectively, from last year.
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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, AGNC Investment possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that AGNC Investment has a Forward P/E ratio of 6.47 right now. Its industry sports an average Forward P/E of 8.49, so one might conclude that AGNC Investment is trading at a discount comparatively.
The REIT and Equity Trust industry is part of the Finance sector. This industry currently has a Zacks Industry Rank of 214, which puts it in the bottom 13% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
, /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) ("AGNC" or the "Company") announced today that its Board of Directors has declared cash dividends on the outstanding depositary shares1 of the following series of preferred stock for the second quarter 2026:
Series of Preferred Stock
Ticker
Per Annum
Dividend Rate
Dividend Per
Depositary Share1
7.00% Series C Fixed-to-Floating Rate
AGNCN
9.05213%2
$0.57204
6.875% Series D Fixed-to-Floating Rate
AGNCM
8.27313%3
$0.52282
6.50% Series E Fixed-to-Floating Rate
AGNCO
8.93413%4
$0.56459
6.125% Series F Fixed-to-Floating Rate
AGNCP
8.63813%5
$0.54880
7.750% Series G Fixed-Rate Reset
AGNCL
7.750%6
$0.48438
8.750% Series H Fixed-Rate
AGNCZ
8.750 %
$0.54688
1.
Each depositary share represents a 1/1,000th interest in a share of preferred stock.
2.
The Series C Depositary Shares accrue dividends at a floating rate equal to Three-Month CME Term SOFR plus 0.26161% plus 5.111% per annum. The dividend rate for the dividend period ending July 14, 2026 is 9.05213% per annum.
3.
The Series D Depositary Shares accrue dividends at a floating rate equal to Three-Month CME Term SOFR plus 0.26161% plus 4.332% per annum. The dividend rate for the dividend period ending July 14, 2026 is 8.27313% per annum.
4.
The Series E Depositary Shares accrue dividends at a floating rate equal to Three-Month CME Term SOFR plus 0.26161% plus 4.993% per annum. The dividend rate for the dividend period ending July 14, 2026 is 8.93413% per annum.
5.
The Series F Depositary Shares accrue dividends at a floating rate equal to Three-Month CME Term SOFR plus 0.26161% plus 4.697% per annum. The dividend rate for the dividend period ending July 14, 2026 is 8.63813% per annum.
6.
The Series G Depositary Shares will accrue dividends from and including the original issue date to (but excluding) October 15, 2027 at a fixed rate of 7.75% per annum. From and including October 15, 2027, the dividend rate will reset during each reset period at a fixed rate equal to the five year U.S. Treasury Rate plus a spread of 4.39% per annum.
The dividend for each series of outstanding preferred stock is payable on July 15, 2026 to holders of record as of July 1, 2026.
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 $15 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.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- AGNC Investment Corp. (Nasdaq: AGNC) announced today that its Board of Directors has declared a cash dividend of $0.12 per share of common stock for June 2026. The dividend is payable on July 10, 2026 to common stockholders of record as of June 30, 2026.
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 $15 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.
You can read all the published reports on inflation, jobs and guess what the Fed will do next. Or you could collect a rich income stream, no matter where interest rates are headed. We choose the latter, and are cash collectors across market conditions.
Summer is here; temperatures are rising. But unfortunately, for investors, inflation is getting hotter as well.
It’s not the 9% level of just a few years ago, but it’s enough to get investors hot and bothered. It also means that the Federal Reserve is less likely to cut rates anytime soon. The market is running hot as it is.
One strategy that some investors are employing is to rotate into dividend stocks. The idea is to buy stocks with dividend yields above the rate of inflation, with payout ratios that are safe and disciplined to ensure the company maintains them throughout this cycle of higher-for-longer inflation and interest rates.
With dividend stocks, investors get paid to wait for growth, which can be an ideal strategy in the summer months, when trading volume tends to be lower. That means investors can build a substantial position for a relatively nominal amount of money.
Get EPD alerts:
Enterprise Products Partners: Pipeline Income With AI Power Demand Tailwinds Enterprise Products Partners Dividend PaymentsDividend Yield5.93%
Annual Dividend$2.20
Dividend Increase Track Record28 Years
Annualized 5-Year Dividend Growth3.95%
Dividend Payout Ratio81.48%
Recent Dividend PaymentMay. 14
EPD Dividend History
Enterprise Products Partners NYSE: EPD is one of North America’s largest midstream energy companies, structured as a master limited partnership.
MLPs are not the same as REITs, but they often serve a similar role for income investors because their partnership structure is designed to pass cash flow through to unitholders. Unlike REITs, MLPs are not legally required to distribute most of their income; instead, they must meet qualifying-income rules to preserve partnership tax treatment.
That’s a key reason why they appeal to income-focused investors. In this case, Enterprise Products Partners has a dividend that yields nearly 6% and has been increasing for 28 years.
With the data center buildout expected to take place over years, and a company like Enterprise Products Partners contractually bound to receive that income, there’s a long runway for the company to continue increasing its dividend, and for shareholders to get some capital appreciation along the way.
The company owns and operates pipelines, storage facilities, processing plants, and export terminals that handle natural gas, natural gas liquids, crude oil, refined products, and petrochemicals. That gives Enterprise Products Partners indirect exposure to rising power demand from AI-driven data centers, especially as natural gas remains a critical fuel source for electricity generation.
That data-center angle adds another layer to an already steady income story. EPD is up more than 16% over the past year, and is currently trading about 6% below its consensus price target of $39.67. But stock price growth is the cherry on top for investors who own this stock.
AGNC Investment: The Mortgage REIT That Pays You Monthly AGNC Investment Dividend PaymentsDividend Yield13.92%
Annual Dividend$1.44
Annualized 5-Year Dividend Growth-1.59%
Dividend Payout Ratio119.01%
Next Dividend PaymentJul. 10
AGNC Dividend History
AGNC Investment Corp. NASDAQ: AGNC is a mortgage real estate investment trust, or mREIT, built to pass much of its income back to investors through dividends.
To maintain its REIT status, AGNC must generally distribute at least 90% of its taxable income—a major reason REIT yields often sit well above those of typical dividend stocks.
Where EPD channels midstream energy cash flow to unitholders, AGNC channels interest income from a leveraged portfolio of agency residential mortgage-backed securities backed by government-sponsored entities such as Fannie Mae and Freddie Mac.
That backing reduces credit risk. The real risk here is interest rate sensitivity.
AGNC uses leverage to invest in agency mortgage-backed securities, a model that depends heavily on funding costs, mortgage spreads, prepayment trends and book value stability. Because the company effectively borrows short and invests long, a higher-for-longer rate environment can pressure margins and weigh on returns.
This is a legitimate concern that investors shouldn't ignore. It's also one reason that AGNC is down about 4% in 2026.
The payoff for accepting that risk is a yield of around 14%, paid monthly. At around $10 per share, it's one of the more accessible high-yield names on the market. Investors who can tolerate rate volatility may be early to a compelling setup if and when the Fed eventually pivots.
General Mills: A 7% Yield With Turnaround Risk General Mills Dividend PaymentsDividend Yield7.12%
Annual Dividend$2.44
Dividend Increase Track Record5 Years
Annualized 5-Year Dividend Growth4.13%
Dividend Payout Ratio59.66%
Recent Dividend PaymentMay. 1
GIS Dividend History
General Mills NYSE: GIS has an ugly chart, and its Q3 2026 earnings report wasn’t that pretty either.
Like many consumer staples stocks, General Mills is facing a volume problem.
Many companies have taken to raising prices to make up for input cost inflation, including tariffs on some goods and commodities that flow through their supply chains.
But that doesn’t matter if consumers are not buying, buying as much, or trading down to cheaper alternatives.
That's one problem that General Mills has. Another is that it’s starting to show weakness in the Pet category that was a shining star in recent quarters.
That would make the stock’s 7.2% dividend yield scream value trap. But the dividend is well supported by the company’s cash flow, which makes it worth a look as a stock to hold for better days.
Why? At nearly 10x forward earnings, GIS is undervalued compared to its own history, the sector average, and the S&P 500. That means the stock is not just “cheap” because it’s under $50. It’s truly offering investors good value at its current price.
Consumer psychology is real. If consumers have decided that house brands are just as good as the branded products they can get from General Mills, that will be a problem. But investors won’t get the answer to that for several quarters. Until then, GIS is a good option for investors looking for a stock to ride through the lazy summer months.
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