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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.

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Investors in AGNT, Inc. (AGNT - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Sept. 18, 2026 $2.50 Put had some of the highest implied volatility of all equity options today.

What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.

What do the Analysts Think?Clearly, options traders are pricing in a big move for AGNT shares, but what is the fundamental picture for the company? Currently, AGNT is a Zacks Rank #5 (Strong Sell) in the Real Estate - Operations industry that ranks in the Bottom 28% of our Zacks Industry Rank. Over the last 60 days, no analysts have increased their earnings estimates for the current quarter, while one analyst has revised the estimate downward. The net effect has taken our Zacks Consensus Estimate for the current quarter from 9 cents per share to 2 cents in that period.

Given the way analysts feel about AGNT right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.

In the latest trading session, AGNC Investment (AGNC - Free Report) closed at $10.94, marking a +1.2% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.72%. Meanwhile, the Dow experienced a rise of 0.2%, and the technology-dominated Nasdaq saw an increase of 1.57%.

Heading into today, shares of the real estate investment trust had lost 0.83% over the past month, lagging the Finance sector's gain of 2.15% and the S&P 500's gain of 3.68%.

Analysts and investors alike will be keeping a close eye on the performance of AGNC Investment in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.39, indicating a 11.43% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $428.4 million, indicating a 189.46% upward movement from the same quarter last year.

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

It's also important for investors to be aware of any recent modifications to analyst estimates for AGNC Investment. These revisions help to show the ever-changing nature of near-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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.79% rise in the Zacks Consensus EPS estimate. AGNC Investment is currently a Zacks Rank #3 (Hold).

Looking at its valuation, AGNC Investment is holding a Forward P/E ratio of 6.78. This valuation marks a discount compared to its industry average Forward P/E of 8.35.

The REIT and Equity Trust industry is part of the Finance sector. This industry, currently bearing a Zacks Industry Rank of 236, finds itself in the bottom 5% echelons 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.

To follow AGNC in the coming trading sessions, be sure to utilize Zacks.com.

U.S. mortgage rates declined for the second consecutive week, providing some relief to prospective homebuyers and creating a relatively favorable backdrop for mortgage real estate investment trusts (mREITs). According to Freddie Mac, the average 30-year fixed mortgage rate fell to 6.65% as of Aug. 20, 2026, from 6.67% in the prior week and 6.69% from two weeks earlier. However, it remained above the year-ago level of 6.58%.

The recent moderation in mortgage rates could gradually improve housing affordability and support mortgage origination and refinancing activity. However, borrowing costs remain elevated, keeping affordability pressures intact. Mortgage Bankers Association data showed that refinancing applications rose 2% in the week ended Aug. 14, while overall mortgage applications slipped 0.4% and purchase applications declined 2%. Against this backdrop, investors may want to keep an eye on mREIT stocks such as Ellington Financial Inc. (EFC - Free Report) , Annaly Capital Management (NLY - Free Report) and AGNC Investment (AGNC - Free Report) .

For mREITs, a sustained decline in mortgage rates could improve the investment environment by supporting mortgage-market activity and asset valuations. In particular, tighter spreads in the Agency mortgage-backed securities market could lift mortgage-backed securities (MBS) prices and support book values. At the same time, lower and less volatile rates may ease funding pressures and improve portfolio economics. However, the magnitude of these benefits will depend on the pace of rate declines, funding costs and prepayment activity.

3 Stocks to Keep an Eye on: EFC, NLY & AGNCEllington Financial: The company invests in a diverse array of financial assets. These include residential and commercial mortgage loans, and mortgage-backed securities, consumer loans, and asset-backed securities. The assets are supported by consumer loans, collateralized loan obligations, non-mortgage and mortgage-related derivatives, equity investments in loan origination companies, and other investments.

EFC is well-positioned to weather volatility in the mortgage market, supported by its diversified exposure across residential and commercial mortgage loan portfolios and strong momentum in its securitization platform. The company’s loan originations, especially in commercial mortgage bridge loans, proprietary reverse mortgages and closed-end second lien loans, continue to contribute to stable growth and income.

Ellington Financial is actively leveraging dynamic hedging strategies, maintaining a broad and balanced portfolio, securing multiple sources of financing and operating with low leverage. These measures reflect a disciplined approach to risk management and a commitment to preserving book value while adapting to shifting market conditions.

The company also pays out regular dividends. EFC’s dividend yield is 11.5%, and it has raised its dividend once over the past five years.

The Zacks Consensus Estimate for 2026 earnings and sales indicates year-over-year rallies of 17% and 58.9%, respectively. 

It currently has a Zacks Rank of #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Annaly: The company's investment strategy is driven by the prudent selection of assets and effective capital allocation to achieve stable returns. Its investment strategy involves traditional Agency mortgage-backed securities (MBS), which provide downside protection, and investments in more non-agency and credit-focused asset classes that enhance returns.

NLY is focusing on improving its capabilities by acquiring newly originated mortgage servicing rights (MSRs) from its partner network, which will continue to provide a strong advantage in expanding its MSR business. Its diversified investment strategy will likely be a key contributor to long-term growth and stability. By diversifying its investments across the mortgage market, the company is better-positioned to capitalize on opportunities as they occur in multiple areas while limiting the risks associated with overexposure to any particular location.

The company also pays out regular dividends. NLY’s dividend yield is 12.9%, and it has raised its dividend twice over the past five years.

The Zacks Consensus Estimate for 2026 earnings and sales indicates year-over-year increases of 5.8% and 78.9%, respectively. Annaly currently has a Zacks Rank of #2. 

AGNC Investment:  The company adheres to an active portfolio-management policy, which includes re-evaluation and adjustment of its portfolio, as well as hedges amid a varying interest rate and mortgage market environment. The company is operating in a more defensive position with significant hedge protection due to market volatility. As of June 30, 2026, the company maintained a significant interest rate hedge position, which covered 82% of the outstanding balance of its Investment Securities Repo, TBA position and other debt, after excluding option-based hedges.

AGNC 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. 

The company also pays out regular dividends, with NLY currently yielding 13.2%. However, its dividend has been unchanged over the past five years.

The Zacks Consensus Estimate for 2026 earnings and sales indicates year-over-year rallies of 6.7% and 117.7%, respectively. AGNC Investment currently has a Zacks Rank of #3 (Hold).

AGNC Investment has a 12% dividend yield, but its dividend has been trending lower for over a decade.

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Retirement income investors face a familiar tension in August 2026: the 10-year Treasury yield sits at 4.63%, in the 92.7th percentile of the past year, which raises the bar for every income-paying equity. Monthly-pay REITs still clear that bar when they combine covered payouts, disciplined balance sheets, and forward AFFO growth. Three names stand out heading into the second half of the month, each solving a different problem in a retirement portfolio: scale and consistency, high current yield, and growth-driven experiential exposure.

Two structural reminders before the picks. REITs must distribute the majority of taxable income, so payout coverage is best measured against AFFO or FFO rather than GAAP EPS. And monthly cadence, while psychologically attractive, only matters if the payout is durable. Each name below is stress-tested against those criteria.

Realty Income (NYSE: O): The Scale Compounder Realty Income (NYSE:O | O Price Prediction) remains the anchor holding for retirees who want monthly cash without headline risk. Shares traded at $62.74 as of August 14, 2026, translating to a 14.69% year-to-date gain before dividends. The current $0.271 monthly payout annualizes to $3.252, and the last ex-date fell on July 31, 2026, with payment on August 14.

The Q2 story reinforces why the nickname The Monthly Dividend Company still fits. Management raised full-year AFFO per share guidance to $4.44 to $4.45, roughly 4% growth at the midpoint, and lifted 2026 investment volume guidance to $10 billion. Q2 investments closed at a 7.3% initial weighted average cash yield, with portfolio occupancy at 98.8% and rent recapture of 102.7%. CEO Sumit Roy also highlighted "Fitch’s initiation of coverage for Realty Income with a solid A long-term issuer default rating," placing it among a small cohort of A-rated U.S. REITs.

The caveat: net debt to annualized pro forma adjusted EBITDA ticked up to 5.4 times, and Q2 GAAP EPS of $0.37 missed on impairments. AFFO coverage, the metric that matters for the dividend, remains comfortable.

AGNC Investment (NASDAQ: AGNC): The High-Yield Rebound Trade AGNC Investment (NASDAQ:AGNC) is the aggressive slice of the monthly-pay universe. Shares closed at $10.96 on August 14, 2026, with a one-year total return of 30.7%. The $0.12 monthly payout has now run 75 consecutive months, annualizing to $1.44 per share. The next ex-date is August 31, 2026, with payment on September 10.

Q2 execution answered a rough Q1. AGNC delivered an economic return of 6.7% for the quarter and a 12.3% total stock return with dividends reinvested. The portfolio ended at $97 billion in market value, and CEO Peter Federico pointed to current-coupon MBS spreads around 150 basis points versus the swap curve, translating to projected ROEs of 15% to 17% on marginal investments at 7 to 7.5x leverage. New agency MBS supply is running near $150 billion in 2026, and bond fund inflows are roughly double the prior-year pace, both supportive technicals.

The risk profile is real. Book value swings sharply with rate volatility (tangible book was down about 1% late in the prior week), and the 2020 cut from $0.16 to $0.12 is a reminder that mortgage REIT distributions bend to spread conditions.

EPR Properties (NYSE: EPR): The Experiential Growth Kicker EPR Properties (NYSE:EPR) has been the strongest performer of the three, up 27.48% year to date to $61.25. The $0.31 monthly dividend annualizes to $3.72, and the August 17, 2026 payment lands squarely in this month’s income calendar.

Q2 was the strongest operating quarter in the post-COVID recovery. FFO as adjusted per share rose 12.7% to $1.42, AFFO per share climbed 15.3%, and the AFFO payout ratio ran 65%, giving the dividend meaningful headroom. Management raised 2026 FFOAA guidance to $5.41 to $5.57 and lifted investment spending guidance to $600 million to $700 million. Q2 deployment hit $440.8 million at an 8.5% initial cash yield, including the Six Flags seven-park deal and the Netflix House Philadelphia acquisition. CEO Greg Silvers described "the demand for shared, location-based experiences that cannot be replicated at home" as the durable thesis behind the portfolio.

The risk is tenant concentration: Topgolf and AMC each account for 13.1% of Q2 revenue, and near-term maturities include $179.6 million in August 2026 and $450 million in December 2026. The new $1.6 billion credit facility largely addresses refinancing risk.

What to Watch Next For August cash flow, all three names sit on active monthly schedules. Realty Income offers the tightest coverage and the strongest credit; AGNC offers the highest current yield with the most volatility; EPR offers the fastest AFFO growth and the most operational leverage to consumer spending. If the 10-year Treasury drifts back toward the 12-month average of 4.28%, spread compression should favor all three, with EPR and AGNC likely to move most on rate relief.

Contact [email protected] for any questions or corrections.

AGNC Investment (AGNC -0.09%) currently offers a monster 13.5% dividend yield. As much as I like passive income, I decided to pass on buying shares of the mortgage-focused real estate investment trust (REIT). Instead, I recently bought a different high-yielding dividend stock, fellow mortgage REIT Ladder Capital (LADR -0.60%).

I'm not going to lie, AGNC Investment's dividend is very tempting, as it offers a massive yield and a monthly payment schedule. The mortgage REIT has also put together a solid streak of 75 consecutive monthly dividend payments at its current rate. However, there are a couple of things that Ladder Capital offers that make it a better income investment for me.

Image source: Getty Images.

What's preventing me from buying AGNC Investment AGNC Investment has a singular focus. It invests solely in Agency MBS, pools of residential mortgages guaranteed against credit risk by government agencies such as Fannie Mae. They're low-risk, fixed-income investments. AGNC boosts its returns with leverage, also increasing its risk profile. The REIT ended the second quarter with a leverage ratio of 7.4 times. That's at the high-end of its 7.0-7.5x target range.

That leverage works both ways. It enhances returns in supportive market environments and weighs on them when conditions deteriorate. When its returns fall out of alignment with its costs, it puts AGNC's dividend at risk. While that's not a concern these days, the REIT has cut its payout several times, most recently in 2020.

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The safer mREIT Ladder Capital is a mortgage REIT with a very different investment focus and business model. It finances commercial real estate. The REIT primarily originates senior secured first mortgage loans on commercial real estate (about 49% of its portfolio). Additionally, Ladder invests in AAA bonds backed by senior secured first mortgage loans (CMBS and commercial real estate collateralized loan obligations, or CRE CLOs), which is about 33% of its portfolio. Finally, the REIT has a portfolio of owned real estate, primarily properties secured by long-term net leases (18% of its portfolio).

That much more diversified portfolio helps lower its risk profile. It also gives Ladder the flexibility to invest capital where it sees the best risk-adjusted return opportunities. Additionally, its equity investments provide durable, growing long-term cash flow and upside potential from appreciation.

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Ladder also has a much lower leverage ratio (2.3x, toward the lower end of its 2.0x-3.0x target range). Its leverage ratio is low for the sector and backs the company's investment-grade balance sheet (Ladder is the only REIT focused on commercial real estate financing with an investment-grade rating). That reduces risk and provides greater financial flexibility.

Finally, whereas AGNC strives to maintain its dividend, Ladder Capital aims to grow its earnings. That should support dividend growth and share price appreciation, positioning it to produce higher total returns.

Better risk-reward potential AGNC's big-time monthly dividend really tempts me. However, I want more than a static income stream; I'm still young enough to want some growth (in both income and share price appreciation), which Ladder Capital offers. It provides the income (Ladder yields more than 9.5%) and upside potential while having a lower-risk profile than AGNC. That's why I just added Ladder to my portfolio instead of going with the higher-yielding, higher-risk income stream offered by AGNC.

Key Takeaways AGNC offers a 13.2% yield and has a record of paying out monthly dividends to investors.AGNC had $7.5B in liquidity and 7.4X leverage as of June 30, 2026.Lower mortgage rates could ease funding pressures, widen spreads and support AGNC's dividend. One of the most closely watched aspects of AGNC Investment Corp.’s (AGNC - Free Report) financial profile is its dividend policy. This publicly traded mortgage real estate investment trust (mREIT) offers attractive long-term returns and a high dividend yield that appeals to income-focused investors.

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.  AGNC has a record of paying out monthly dividends, currently yielding a staggering 13.2%. This is impressive and attracts investors as it represents a steady income stream.

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. It plans to buy back shares only when the repurchase price is lower than the then-current estimate of tangible net book value per common share. The buyback program will enable it to respond to the volatility in its stock and boost shareholders’ wealth.

The company enjoys a decent financial position. As of June 30, 2026, AGNC Investment’s liquidity, including unencumbered cash and Agency MBS, was $7.5 billion. The company’s leverage rose modestly to 7.4X at the end of the second quarter 2026.

With relatively lower mortgage rates, operational and funding pressures may ease, expanding net interest spreads. This could boost AGNC Investment's profitability and enhance its ability to maintain, or even increase, its dividend in the near term.

How AGNC Competes With NLY & ABR in Terms of DividendsAGNC Investment’s peers, such as Annaly Capital Management, Inc. (NLY - Free Report) and Arbor Realty Trust, Inc. (ABR - Free Report) , have also been focusing on maintaining shareholder returns through consistent dividend payouts.

Annaly’s dividend yield is currently a staggering 13.1%. In the past five years, Annaly has increased its dividends twice. At June 30, 2026, it had $9.6 billion in assets available for financing, including $5.5 billion in cash and unencumbered Agency MBS. A solid liquidity position supports Annaly's capital distribution in the future.

Alternatively, Arbor Realty has a dividend yield of 12.7%. In the past five years, ABR has raised its dividend eight times. As of June 30, 2026, Arbor Realty had cash and cash equivalents of $583 million against long-term debt of $5.2 billion. Such a narrow liquidity cushion raises concerns about the sustainability of its capital distribution in the long term.

AGNC Investment’s Price Performance & Zacks RankOver the past year, AGNC shares have gained 12.8% against the industry’s decline of 2.8%.

Price Performance

Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AGNC (AGNC +2.78%), one of the world's largest mortgage real estate investment trusts (mREITs), pays a massive forward dividend yield of 13.6%. Should investors put $1,000 into this stock to generate decades of monthly passive income, or does it come with some hidden risks?

How does AGNC pay such a high dividend? AGNC purchases mortgages and mortgage-backed securities (MBS), collects interest from those investments, and pays out at least 90% of its taxable income as dividends to maintain a lower tax rate. It allocates 89% of its $97.2 billion portfolio to Agency MBS assets (backed by Fannie Mae, Freddie Mac, or Ginnie Mae) to protect itself from another housing market crash.

Image source: Getty Images.

To generate stable profits, AGNC must earn enough interest from its long-term MBS to cover its ongoing purchases of short-term MBS. To generate more cash to buy more MBS, it sells its own MBS to counterparties and agrees to buy them back at a set price plus interest at a future date in "repo transactions." It also repeatedly dilutes its investors by issuing and selling more shares.

To maintain that balancing act, the Fed's short-term rates must stay lower than its long-term rates, and the housing market must remain stable. If the Fed's yield curve inverts (its short-term rates exceed its long-term rates) in a distressed market, AGNC's earnings will decline.

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AGNC isn't a dividend growth stock For AGNC's dividend to be sustainable, its net interest spread (the gap between the average yield it earns on its MBS and the costs of funding those purchases) must stay positive. That figure has hovered around 2% over the past year.

For 2026, analysts expect its EPS to rise 6% to $1.58, comfortably covering its forward dividend rate of $1.44 per share. However, its monthly dividend rate of $0.12 per share has remained unchanged since 2020. Before that, it cut its dividend (from $0.16) to deal with the pandemic.

Over the past 10 years, AGNC's stock has declined by 45% due to its increased share issuance and a series of macroeconomic shocks. But if we include its reinvested dividends, it generated an 88% total return. That's not too bad, but the S&P 500 (^GSPC +0.48%) delivered a total return of 320% during the same period.

If you invest $1,000 in AGNC today, you'll earn about $136 per year, divided into 12 monthly payments. That's a good stream of passive income, but the value of your principal could shrink over the next few decades and offset a large portion of those gains. Investors should clearly understand what AGNC does before assuming it can deliver a lifetime of passive income.

AGNC Investment (AGNC - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Over the past month, shares of this real estate investment trust have returned +1%, compared to the Zacks S&P 500 composite's -1.5% change. During this period, the Zacks REIT and Equity Trust industry, which AGNC Investment falls in, has lost 3.3%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

AGNC Investment is expected to post earnings of $0.39 per share for the current quarter, representing a year-over-year change of +11.4%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.1%.

For the current fiscal year, the consensus earnings estimate of $1.6 points to a change of +6.7% from the prior year. Over the last 30 days, this estimate has changed +2.1%.

For the next fiscal year, the consensus earnings estimate of $1.51 indicates a change of -5.5% from what AGNC Investment is expected to report a year ago. Over the past month, the estimate has changed +0.2%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AGNC Investment is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For AGNC Investment, the consensus sales estimate for the current quarter of $428.4 million indicates a year-over-year change of +189.5%. For the current and next fiscal years, $1.47 billion and $1.6 billion estimates indicate +117.7% and +9% changes, respectively.

Last Reported Results and Surprise HistoryAGNC Investment reported revenues of $305 million in the last reported quarter, representing a year-over-year change of +88.3%. EPS of $0.4 for the same period compares with $0.38 a year ago.

Compared to the Zacks Consensus Estimate of $364.43 million, the reported revenues represent a surprise of -16.31%. The EPS surprise was +5.26%.

Over the last four quarters, AGNC Investment surpassed consensus EPS estimates two times. The company topped consensus revenue estimates times over this period.

ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

AGNC Investment is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AGNC Investment. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

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Two thousand dollars a month in dividend income equals $24,000 a year. That is roughly the annual cost of Medicare Part B premiums, average groceries, and utilities for a retired couple, or a meaningful supplement to Social Security. The real question is how much capital it takes to get there, and what you trade off at each yield level.

With the 10-year Treasury yielding 4.6% and the national average 12-month CD paying just 1.7%, dividend equities remain the workhorse for income investors starting from zero. Here is the math at three yield tiers.

Conservative Tier: 3% to 4% Yield At a 3.5% blended yield, $24,000 divided by 0.035 equals roughly $686,000 in capital. At 4%, the requirement drops to $600,000. This is the dividend-growth lane: regulated utilities, dividend aristocrat retailers, and well-run regional banks whose payouts rise every year.

Alliant Energy (NASDAQ:LNT | LNT Price Prediction) is a textbook example. The utility currently pays $0.535 quarterly, or $2.14 annualized, and has raised the dividend every year from $0.315 in 2017 to $0.535 today. Management reaffirmed 2026 EPS guidance of $3.36 to $3.46, backed by 3.4 GW of contracted data center demand across five agreements. The yield is modest at under 3%, but the growth engine is real.

Casey’s General Stores (NASDAQ:CASY) shows the compounder profile even more starkly. The convenience-store operator just raised its dividend 14% to $0.65 quarterly, its 27th consecutive annual increase, and was added to the S&P 500 in fiscal 2026. The yield is a fraction of a percent, but shares are near $867 today, up roughly 55% year to date. Total return is what matters here.

Moderate Tier: 5% to 7% Yield At 6%, $24,000 divided by 0.06 equals $400,000. At 7%, roughly $343,000. This range is populated by midstream MLPs, REITs, preferred shares, and covered-call funds.

Plains All American Pipeline (NASDAQ:PAA) is a clean example. The MLP raised its quarterly distribution from $0.38 to $0.4175 starting Q1 2026, and management raised 2026 adjusted EBITDA guidance to $2.88 billion with adjusted free cash flow of roughly $1.85 billion. Units trade near $25 today after a 42% year-to-date run. Note the K-1 tax form: MLPs work best in taxable accounts, not IRAs.

Aggressive Tier: 8% to 14% Yield At 12%, $24,000 divided by 0.12 equals just $200,000. That is the lure. The tradeoff is principal erosion and distribution risk.

AGNC Investment (NASDAQ:AGNC) is the archetype. The mortgage REIT pays $0.12 monthly, or $1.44 annualized, with shares near $10 for a yield above 13%. AGNC has held that $0.12 monthly rate uninterrupted since January 2020. But look at the history: the monthly payout was $0.20 to $0.22 back in 2014-2016 and $0.18 in 2018-2019. High yields prioritize current income over compounding.

The Compounding Trap Most Yield Chasers Miss A 3.5% yield growing 8% annually doubles your income in roughly nine years. A 13% yield with no growth (or a cut) stays flat or shrinks. Start with $600,000 in a 4% dividend-growth basket and, if growth holds, you are collecting well over $2,000 a month in year 10 while the principal has likely appreciated. Start with $200,000 in a 12% aggressive basket and you may still be collecting exactly $2,000 a month, with a smaller principal.

Three Moves to Make This Week Calculate your actual monthly spending, not your salary. Many readers targeting $2,000 in dividend income really need $1,400 after accounting for Social Security or a pension. That changes the capital requirement dramatically. Compare the 10-year total return of a dividend-growth fund yielding around 3.5% against a mortgage REIT yielding 13%. Include reinvested dividends. The compounder usually wins on total dollars, even for income purposes. If you are within five years of retirement, model each tier in your tax bracket. Qualified dividends, MLP K-1s, and mREIT ordinary-income distributions are taxed very differently. Contact [email protected] for any questions or corrections.

AGNC Investment (AGNC +0.14%) pays an eye-popping monthly dividend. The real estate investment trust (REIT) currently yields 13.6%. That's well over 10 times the S&P 500's dividend yield (1.1%). At that rate, the dividend income adds up real fast.

Here's a look at how much passive income you could collect each month from a $10,000 investment in the mortgage REIT in 20 years.

Image source: The Motley Fool.

Reinvestment makes a massive difference At its current yield, a $10,000 investment in AGNC Investment would generate about $113.33 in dividend income each month ($1,360 annualized). The mortgage REIT has maintained its rate for 75 consecutive months. That's impressive considering all the volatility in the mortgage market over the years.

If the REIT continues to pay a static dividend, an investor would collect that same monthly income stream for the next two decades if they didn't reinvest their dividends. However, things get really interesting when reinvesting dividends because it compounds the income stream. Here's a look at the growth in monthly income from dividend reinvestment (assuming a 13.6% reinvestment yield, which is near its five-year historical average of 13.8%):

Chart by the author.

That's a lot of dividend income! The dividend income stream would grow from the current rate of $113.33 a month to $1,675.33 per month in about 20 years. That's 15 times the current income stream, even though we're not assuming any dividend growth from AGNC Investment.

However, there are some big caveats. While it doesn't factor in any dividend growth, this also assumes the REIT doesn't cut its payout. That might be a stretch. Even though AGNC has maintained its dividend for 75 consecutive quarters, it had cut its payment several times before starting that streak. This calculation also assumes monthly reinvestment at around the current yield. The REIT's dividend yield has fluctuated widely (from a low of 7.5% to a peak above 20% over the past decade).

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Those caveats aside, AGNC Investment has tremendous long-term income potential from dividend reinvestment alone. That makes it a compelling option for investors seeking to steadily build a meaningful monthly income stream.

Matt DiLallo 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.

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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.

Posted by Defense World Staff on Jul 24th, 2026

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.

Read More Five stocks we like better than AGNC Investment Premium Retail’s Stress Test Is Separating Winners From Losers D-Wave Quantum or a Quantum ETF: Which Is the Better Bet? GE Vernova Just Sent a Mixed AI Signal to Investors Alphabet Crushed Earnings, But One Number Spooked the Market Want to see what other hedge funds are holding AGNC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for AGNC Investment Corp. (NASDAQ:AGNC – Free Report).

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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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Contact [email protected] for any questions or corrections.

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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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.

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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.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

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.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

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.

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.

, /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

SOURCE AGNC Investment Corp.

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.

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.

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.

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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.

, /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.  

CONTACT:
Investor Relations - (301) 968-9300

SOURCE AGNC Investment Corp.

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.

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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.

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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.