Every AGNC Investment Investor Should Keep an Eye on This Number
AGNC Investment (NASDAQ: AGNC) pays a monster monthly dividend. The real estate investment trust (REIT) currently yields around 14%. That's 10 times higher than the S&P 500's (SNPINDEX: ^GSPC) dividend yield. The mortgage REIT has maintained its massive monthly dividend for the last 60 consecutive months. However, given the size of its payout, dividend sustainability remains a concern. Here's the number investors should keep an eye on to make sure AGNC Investment can maintain its monster dividend. For most dividend stocks, the dividend payout ratio is a key metric to monitor for dividend stability. The problem is that AGNC Investment isn't like the average dividend stock. The mortgage REIT uses leverage (debt and debt-like instruments) to buy more mortgage-backed securities (MBS) to boost its returns. It also uses dynamic risk management strategies to protect its portfolio from risks. Continue reading
AGNC Investment (NASDAQ: AGNC) pays a monster monthly dividend. The real estate investment trust (REIT) currently yields around 14%. That's 10 times higher than the S&P 500's (SNPINDEX: ^GSPC) dividend yield.
The mortgage REIT has maintained its massive monthly dividend for the last 60 consecutive months. However, given the size of its payout, dividend sustainability remains a concern. Here's the number investors should keep an eye on to make sure AGNC Investment can maintain its monster dividend.
For most dividend stocks, the dividend payout ratio is a key metric to monitor for dividend stability. The problem is that AGNC Investment isn't like the average dividend stock. The mortgage REIT uses leverage (debt and debt-like instruments) to buy more mortgage-backed securities (MBS) to boost its returns. It also uses dynamic risk management strategies to protect its portfolio from risks.
