#2 - AGNC Investment Corp. (NASDAQ:AGNC)
AGNC Investment Corp. (NASDAQ:AGNC) is another REIT that operates similar to the first stock on our list, Orchard Capital. AGNC is considered a REIT, but rather than own properties it buys mortgage-backed securities. Like Orchard, investors are buying AGNC stock for its reliable high-yield dividend. The company also has a $5 billion market cap which makes it one of the largest REITs.
One reason that investors can count on this kind of security is that the company invests only in securities that are issued by Fannie Mae, Freddie Mac, Ginnie Mae or the Federal Home Loan Banks. This means investors get paid principal interest even if the borrower defaults on the mortgage. AGNC stock currently has a dividend yield of 13.83% with an annualized payout of $1.44 per share.
AGNC stock will remain under pressure as the Federal Reserve raises interest rates, and begins the process of moving its own mortgage-backed securities off its books and onto the open market. Still, it’s hard for investors to ignore the dividend which looks to be highly secure at least for now.
About AGNC Investment
AGNC Investment Corp., formerly American Capital Agency Corp., is a real estate investment trust. The Company invests in agency residential mortgage-backed securities on a leveraged basis. Its investments consist of residential mortgage pass-through securities and collateralized mortgage obligations (CMOs) for which the principal and interest payments are guaranteed by a government-sponsored enterprise, such as the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), or by the United States Government agency, such as the Government National Mortgage Association (Ginnie Mae) (collectively, GSEs).
Read More - Current Price
- $9.70
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $10.33 (6.5% Upside)
