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Stock impact report

Is AGNC Investment's 17% Yield Too Good to Be True? [Yahoo! Finance]

AGNC Investment Corp. (AGNC) 
Last agnc investment corp. earnings: 4/29 04:01 pm Check Earnings Report
US:NASDAQ Investor Relations: ir.agnc.com
Company Research Source: Yahoo! Finance
This is the problem with AGNC Investment (NASDAQ: AGNC) and its 17% dividend yield. If you need a reliable income stream to ensure you can pay your bills, this mortgage real estate investment trust (REIT) probably won't be for you. Here's why. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The first thing that is important to understand is that AGNC Investment has actually achieved its goals fairly well over time. It isn't a bad company by any stretch of the imagination. The main goal of this mortgage REIT, however, is total return , not dividends. Dividends are a component of total return, of course, but total return requires the dividends to be reinvested. The company's exact wording is "Favorable long-term stockholder returns with a substantial yield component." That sounds like it would be enticing, but it is not the same thing as providing a reliable and growing dividend. Having total Show less Read more
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