Audit of America's Six Largest Monthly Dividend Payers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: NASDAQ.COM
- Monthly Dividend Appeal: The alignment of monthly dividend payouts with investors' cash flow needs has led many companies to adopt this strategy; however, some have failed to maintain consistent payments, posing risks to investors.
- EPR Properties Issues: EPR Properties suspended its dividends for 14 months due to pandemic impacts, and despite its business model appealing to younger consumers, its inability to maintain stable cash flow has undermined investor confidence.
- AGNC's Poor Performance: AGNC Investment Corp offers monthly dividends, yet its total return over ten years is only 88%, with a mere 6.5% annual compound growth rate, indicating profitability is hampered by rising borrowing costs, necessitating caution from investors.
- Success of Main Street Capital: Main Street Capital has paid monthly dividends without cuts since its 2007 IPO, achieving a total return of 236% over ten years, showcasing strong management and stable cash flow, making it a standout in the monthly dividend space.
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Analyst Views on AGNC
Wall Street analysts forecast AGNC stock price to rise
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 11.120
Low
10.00
Averages
11.71
High
13.00
Current: 11.120
Low
10.00
Averages
11.71
High
13.00
About AGNC
AGNC Investment Corp. is an investor in Agency residential mortgage-backed securities (Agency MBS), which benefit from a guarantee against credit losses by Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), or Government National Mortgage Association (Ginnie Mae). The Company's business is a source of private capital for the United States residential housing market. The Company invests on a leveraged basis, financing its Agency MBS assets primarily through repurchase agreements, and utilizes dynamic risk management strategies intended to protect the value of its portfolio from interest rate and other market risks. The Company may also invest in Agency multifamily MBS that are similarly guaranteed by a United States Government-sponsored enterprise (GSE) and in other assets related to the housing, mortgage or real estate markets that are not guaranteed by a GSE or United States Government agency.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Audit of America's Six Largest Monthly Dividend Payers
- Monthly Dividend Appeal: The alignment of monthly dividend payouts with investors' cash flow needs has led many companies to adopt this strategy; however, some have failed to maintain consistent payments, posing risks to investors.
- EPR Properties Issues: EPR Properties suspended its dividends for 14 months due to pandemic impacts, and despite its business model appealing to younger consumers, its inability to maintain stable cash flow has undermined investor confidence.
- AGNC's Poor Performance: AGNC Investment Corp offers monthly dividends, yet its total return over ten years is only 88%, with a mere 6.5% annual compound growth rate, indicating profitability is hampered by rising borrowing costs, necessitating caution from investors.
- Success of Main Street Capital: Main Street Capital has paid monthly dividends without cuts since its 2007 IPO, achieving a total return of 236% over ten years, showcasing strong management and stable cash flow, making it a standout in the monthly dividend space.
See More
Analysis of AGNC Investment Corp.'s 13.1% Dividend Yield
- High Dividend Yield: AGNC Investment Corp. offers a forward dividend yield of 13.1%, which, while attractive, raises concerns about sustainability amid potential economic fluctuations that could impact its income stability.
- Portfolio Composition: With 89% of its $94.7 billion portfolio allocated to Agency MBS backed by Fannie Mae, Freddie Mac, or Ginnie Mae, AGNC employs a conservative investment strategy aimed at minimizing credit risk and ensuring steady income generation.
- Net Spread and Dividend Coverage: Although AGNC's net interest spread was 3.08% in 2023, sufficient to cover its $1.44 per share dividend, this gap has been narrowing over the past two years, indicating potential challenges for future dividend sustainability.
- Interest Rate Risk Management: The Fed's six rate cuts in 2024 and 2025 have lowered AGNC's borrowing costs, yet they have also diminished the value of its older, higher-rate mortgages, suggesting that future interest rate changes could significantly impact its ability to maintain dividend payouts.
See More
Analysis of AGNC Investment Corp's Dividend Stability
- Dividend Yield: AGNC Investment Corp currently boasts a forward dividend yield of 13.1%, which, while attractive, may indicate underlying risks, prompting investors to carefully assess the sustainability of long-term returns.
- Asset Allocation Strategy: By allocating 89% of its $94.7 billion portfolio to Agency MBS backed by Fannie Mae, Freddie Mac, and Ginnie Mae, AGNC aims to mitigate risks associated with credit crises or housing market downturns, thereby ensuring a stable income stream.
- Net Interest Spread Trends: Although AGNC's net interest spread was 3.08% in 2023, sufficient to cover its $1.44 per share dividend, this gap has been narrowing over the past two years, indicating potential profitability pressures ahead.
- Interest Rate Risks: The Fed's six rate cuts in 2024 and 2025 have reduced AGNC's borrowing costs, yet they have also diminished the value of its older, higher-rate mortgages, with future rate hikes posing a risk to its dividend payment capacity.
See More
AGNC Investment Corp. to Report Q2 2026 Earnings on July 20
- Earnings Report Schedule: AGNC Investment Corp. will release its second quarter 2026 earnings after market close on July 20, providing investors with insights into the company's financial performance and market dynamics, which will aid shareholders in assessing operational health.
- Shareholder Conference Call: The company has scheduled a shareholder conference call for July 21, 2026, at 8:30 AM ET, which will include a Q&A session, enhancing interaction with investors and increasing transparency and trust.
- Webcast Accessibility: AGNC encourages shareholders who do not plan to ask questions to participate via the webcast on the company’s website, which not only improves convenience for participation but also broadens the dissemination of information, ensuring more investors receive critical updates in a timely manner.
- Investor Relations Support: The company provides multiple contact options for shareholder inquiries, demonstrating AGNC's commitment to investor relations, aiming to strengthen shareholder confidence and maintain robust investor relationships through effective communication.
See More
AGNC Investment Corp. to Report Q2 2026 Earnings on July 20
- Earnings Announcement: AGNC Investment Corp. has announced it will report its second quarter 2026 earnings after market close on July 20, providing investors with insights into its financial performance and market conditions.
- Shareholder Call: The company will hold a shareholder call on July 21, 2026, at 8:30 AM ET, where it will discuss the earnings report and answer shareholder questions, enhancing transparency and communication.
- Webcast Accessibility: To facilitate shareholders who do not plan to ask questions, AGNC encourages the use of the webcast for the call, improving the convenience and efficiency of information access.
- Recording Availability: Following the call, AGNC will provide an archived audio recording and slide presentation, ensuring that shareholders who could not attend can access key information, further enhancing interaction between the company and its shareholders.
See More
Analysis of Risks in High-Yield Stock Investments
- Volatility of High-Yield Stocks: AGNC and Annaly, both mortgage REITs with yields exceeding 10%, present inherent volatility in dividends, necessitating caution from investors, particularly in a rising interest rate environment that could lead to capital losses.
- Ares Capital's Loan Risks: Ares Capital, a business development company, has an average loan interest rate of 10.3%, which supports its over 10% yield; however, the repayment ability of small businesses during recessions poses risks, with non-accrual loans increasing from 1.8% to 2.1%.
- Conagra's Dividend Risks: Conagra, a consumer staples company, currently offers a high dividend yield of 10%, but faces market pressures and regulatory uncertainties, with a tight dividend coverage ratio as adjusted earnings are $0.39 per share against a $0.35 dividend, indicating potential for dividend cuts.
- Caution for Investors: Investing in high-yield stocks requires broad diversification, especially given the uncertainties that new CEOs may bring, urging investors to remain vigilant to avoid losses from potential dividend cuts.
See More
Audit of America's Six Largest Monthly Dividend Payers
- Monthly Dividend Appeal: The alignment of monthly dividend payouts with investors' cash flow needs has led many companies to adopt this strategy; however, some have failed to maintain consistent payments, posing risks to investors.
- EPR Properties Issues: EPR Properties suspended its dividends for 14 months due to pandemic impacts, and despite its business model appealing to younger consumers, its inability to maintain stable cash flow has undermined investor confidence.
- AGNC's Poor Performance: AGNC Investment Corp offers monthly dividends, yet its total return over ten years is only 88%, with a mere 6.5% annual compound growth rate, indicating profitability is hampered by rising borrowing costs, necessitating caution from investors.
- Success of Main Street Capital: Main Street Capital has paid monthly dividends without cuts since its 2007 IPO, achieving a total return of 236% over ten years, showcasing strong management and stable cash flow, making it a standout in the monthly dividend space.
See More
Analysis of AGNC Investment Corp.'s 13.1% Dividend Yield
- High Dividend Yield: AGNC Investment Corp. offers a forward dividend yield of 13.1%, which, while attractive, raises concerns about sustainability amid potential economic fluctuations that could impact its income stability.
- Portfolio Composition: With 89% of its $94.7 billion portfolio allocated to Agency MBS backed by Fannie Mae, Freddie Mac, or Ginnie Mae, AGNC employs a conservative investment strategy aimed at minimizing credit risk and ensuring steady income generation.
- Net Spread and Dividend Coverage: Although AGNC's net interest spread was 3.08% in 2023, sufficient to cover its $1.44 per share dividend, this gap has been narrowing over the past two years, indicating potential challenges for future dividend sustainability.
- Interest Rate Risk Management: The Fed's six rate cuts in 2024 and 2025 have lowered AGNC's borrowing costs, yet they have also diminished the value of its older, higher-rate mortgages, suggesting that future interest rate changes could significantly impact its ability to maintain dividend payouts.
See More
Analysis of AGNC Investment Corp's Dividend Stability
- Dividend Yield: AGNC Investment Corp currently boasts a forward dividend yield of 13.1%, which, while attractive, may indicate underlying risks, prompting investors to carefully assess the sustainability of long-term returns.
- Asset Allocation Strategy: By allocating 89% of its $94.7 billion portfolio to Agency MBS backed by Fannie Mae, Freddie Mac, and Ginnie Mae, AGNC aims to mitigate risks associated with credit crises or housing market downturns, thereby ensuring a stable income stream.
- Net Interest Spread Trends: Although AGNC's net interest spread was 3.08% in 2023, sufficient to cover its $1.44 per share dividend, this gap has been narrowing over the past two years, indicating potential profitability pressures ahead.
- Interest Rate Risks: The Fed's six rate cuts in 2024 and 2025 have reduced AGNC's borrowing costs, yet they have also diminished the value of its older, higher-rate mortgages, with future rate hikes posing a risk to its dividend payment capacity.
See More
AGNC Investment Corp. to Report Q2 2026 Earnings on July 20
- Earnings Report Schedule: AGNC Investment Corp. will release its second quarter 2026 earnings after market close on July 20, providing investors with insights into the company's financial performance and market dynamics, which will aid shareholders in assessing operational health.
- Shareholder Conference Call: The company has scheduled a shareholder conference call for July 21, 2026, at 8:30 AM ET, which will include a Q&A session, enhancing interaction with investors and increasing transparency and trust.
- Webcast Accessibility: AGNC encourages shareholders who do not plan to ask questions to participate via the webcast on the company’s website, which not only improves convenience for participation but also broadens the dissemination of information, ensuring more investors receive critical updates in a timely manner.
- Investor Relations Support: The company provides multiple contact options for shareholder inquiries, demonstrating AGNC's commitment to investor relations, aiming to strengthen shareholder confidence and maintain robust investor relationships through effective communication.
See More
AGNC Investment Corp. to Report Q2 2026 Earnings on July 20
- Earnings Announcement: AGNC Investment Corp. has announced it will report its second quarter 2026 earnings after market close on July 20, providing investors with insights into its financial performance and market conditions.
- Shareholder Call: The company will hold a shareholder call on July 21, 2026, at 8:30 AM ET, where it will discuss the earnings report and answer shareholder questions, enhancing transparency and communication.
- Webcast Accessibility: To facilitate shareholders who do not plan to ask questions, AGNC encourages the use of the webcast for the call, improving the convenience and efficiency of information access.
- Recording Availability: Following the call, AGNC will provide an archived audio recording and slide presentation, ensuring that shareholders who could not attend can access key information, further enhancing interaction between the company and its shareholders.
See More
Analysis of Risks in High-Yield Stock Investments
- Volatility of High-Yield Stocks: AGNC and Annaly, both mortgage REITs with yields exceeding 10%, present inherent volatility in dividends, necessitating caution from investors, particularly in a rising interest rate environment that could lead to capital losses.
- Ares Capital's Loan Risks: Ares Capital, a business development company, has an average loan interest rate of 10.3%, which supports its over 10% yield; however, the repayment ability of small businesses during recessions poses risks, with non-accrual loans increasing from 1.8% to 2.1%.
- Conagra's Dividend Risks: Conagra, a consumer staples company, currently offers a high dividend yield of 10%, but faces market pressures and regulatory uncertainties, with a tight dividend coverage ratio as adjusted earnings are $0.39 per share against a $0.35 dividend, indicating potential for dividend cuts.
- Caution for Investors: Investing in high-yield stocks requires broad diversification, especially given the uncertainties that new CEOs may bring, urging investors to remain vigilant to avoid losses from potential dividend cuts.
See More
