AGNC Investment Corp. (NASDAQ:AGNC) Shareholders Set to Receive $0.12 Monthly Dividend

Key Points

• AGNC Investment declared a $0.12-per-share monthly dividend, payable November 10 to shareholders of record October 30. The payment equates to $1.44 annually and a 17.0% yield.
• The dividend appears covered but leaves limited room for earnings declines: the current payout ratio is 88.3%, while analysts expect a 95.4% ratio based on projected earnings of $1.51 per share.
• Analysts maintain a generally cautious view, with four Buy ratings and seven Holds, producing an average “Hold” rating and an $11.11 price target. AGNC recently reported quarterly EPS of $0.40, exceeding the $0.38 consensus estimate.

AGNC Investment Corp. (NASDAQ:AGNC - Get Free Report) declared a monthly dividend on Wednesday, October 7th. Stockholders of record on Friday, October 30th will be given a dividend of $0.12 per share by the real estate investment trust on Tuesday, November 10th. This represents a $1.44 annualized dividend and a dividend yield of 17.0%. The ex-dividend date of this dividend is Friday, October 30th.

AGNC Investment has decreased its dividend payment by an average of 0.0%per year over the last three years. AGNC Investment has a dividend payout ratio of 88.3% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. Analysts expect AGNC Investment to earn $1.51 per share next year, which means the company should continue to be able to cover its $1.44 annual dividend with an expected future payout ratio of 95.4%.

AGNC Investment Stock Performance

NASDAQ:AGNC opened at $8.46 on Thursday. The company has a market cap of $10.03 billion, a PE ratio of 4.45 and a beta of 1.36. AGNC Investment has a 52-week low of $8.42 and a 52-week high of $12.19. The stock has a 50-day simple moving average of $10.29 and a 200 day simple moving average of $10.47.

AGNC Investment (NASDAQ:AGNC - Get Free Report) last released its earnings results on Monday, July 20th. The real estate investment trust reported $0.40 EPS for the quarter, beating the consensus estimate of $0.38 by $0.02. AGNC Investment had a return on equity of 17.96% and a net margin of 57.94%.The firm had revenue of $305.00 million for the quarter, compared to analysts' expectations of $1.06 billion. During the same quarter in the previous year, the business posted ($0.17) EPS. On average, research analysts predict that AGNC Investment will post 1.6 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on AGNC. Weiss Ratings raised shares of AGNC Investment from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Monday, August 17th. Wells Fargo & Company decreased their target price on shares of AGNC Investment from $12.00 to $11.00 and set an "overweight" rating for the company in a research report on Thursday, July 23rd. Piper Sandler lifted their price target on shares of AGNC Investment from $11.50 to $12.00 and gave the company an "overweight" rating in a research note on Thursday, July 2nd. Compass Point downgraded shares of AGNC Investment from a "buy" rating to a "neutral" rating and set a $11.50 price objective for the company. in a research note on Friday, July 17th. Finally, Keefe, Bruyette & Woods reduced their price objective 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, July 22nd. Four investment analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. Based on data from MarketBeat.com, AGNC Investment has an average rating of "Hold" and an average price target of $11.11.

AGNC Investment Company Profile

AGNC Investment Corp. is an internally managed real estate investment trust that invests primarily in agency residential mortgage-backed securities. Its portfolio generally includes mortgage pass-through securities and collateralized mortgage obligations issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. Because these securities carry government or government-sponsored enterprise backing, the company's investment strategy focuses on interest-rate and prepayment risks rather than traditional residential credit risk.

AGNC finances its investments largely through repurchase agreements and uses interest-rate swaps, swaptions, and other hedging instruments to manage exposure to changing interest rates and funding costs.

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