Is AGNC a good stock for long term?
Supported by strong fundamentals, the company is well-poised for growth. The Zacks Consensus Estimate for AGNC's 2023 earnings has been revised marginally upward over the past 60 days, indicating that analysts are optimistic regarding its earnings growth potential. AGNC currently carries a Zacks Rank #2 (Buy).
Income-minded investors won't find a much higher-paying option right now than AGNC Investment (AGNC -0.84%), with its dividend yield of almost 15%. That's a much higher yearly payout than the stock market's average annual gain.
That's a premium compared to its 10-year average. Is AGNC's 15% dividend safe in 2024? The answer is likely yes, but that doesn't make this stock an attractive buy for long-term investors.
According to our current AGNC stock forecast, the value of AGNC Investment shares will rise by 1.85% and reach $ 9.65 per share by February 27, 2024. According to our technical indicators, the current sentiment is Bearish while the Fear & Greed Index is showing 39 (Fear).
AGNC Investments has steadily cut its dividend over the years as interest-rate fluctuations weighed on its cash flow. With more interest-rate volatility ahead, the mortgage REIT could cut its payout again.
AGNC Investments is a high-risk, high-reward income stock
While the mortgage REIT offers a very high-yielding monthly dividend, it has cut its payout several times over the years because of the impact interest rates have on its business model.
AGNC Signals & Forecast
On corrections up, there will be some resistance from the lines at $9.39 and $9.71. A break-up above any of these levels will issue buy signals. A sell signal was issued from a pivot top point on Wednesday, December 27, 2023, and so far it has fallen -9.08%.
AGNC Investment Corp has a volatility of 1.48 and is 2.51 times more volatile than NYSE Composite. 12 of all equities and portfolios are less risky than AGNC Investment.
AGNC Investment has a total shareholder equity of $8.3B and total debt of $50.9B, which brings its debt-to-equity ratio to 616.1%. Its total assets and total liabilities are $71.6B and $63.3B respectively.
- Exxon Mobil XOM.
- Verizon Communications VZ.
- Philip Morris International PM.
- PepsiCo PEP.
- Altria Group MO.
- Bristol-Myers Squibb BMY.
- Medtronic MDT.
- Gilead Sciences GILD.
What is the prediction for AGNC stock in 2024?
Prediction based on Rule 16 of the current AGNC contract
Based on the Rule 16, the options market is currently suggesting that AGNC Investment Corp will have an average daily up or down price movement of about 2.65% per day over the life of the 2024-02-09 option contract. With AGNC Investment trading at USD9.
It turns out, estimates review have trended downward during the past month. Currently, AGNC Investment has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
| Stock | Implied upside from Feb. 7 close | Forward dividend yield |
|---|---|---|
| Procter & Gamble Co. (PG) | 9.4% | 2.4% |
| Home Depot Inc. (HD) | 3.4% | 2.3% |
| AbbVie Inc. (ABBV) | 12.6% | 3.5% |
| Bank of America Corp. (BAC) | 23.6% | 2.9% |
- High-Yield Monthly Dividend Stock #4: AGNC Investment Corporation (AGNC)
- High-Yield Monthly Dividend Stock #3: ARMOUR Residential REIT (ARR)
- High-Yield Monthly Dividend Stock #2: Ellington Residential Mortgage REIT (EARN)
- High-Yield Monthly Dividend Stock #1: Orchid Island Capital (ORC)
| Average Recommendation | Overweight |
|---|---|
| Average Target Price | 9.93 |
| Number Of Ratings | 13 |
| FY Report Date | 12/2024 |
| Last Quarter's Earnings | 0.60 |
Founded in 2008, AGNC Investment Corp.
Distributions to stockholders will generally be taxable as ordinary income. However, a portion of such distributions may be designated by us as long-term capital gain to the extent that such portion is attributable to our sale of capital assets held for more than one year.
- Annaly Capital Management Inc Headquarters. 161. $3.3B.
- Two Harbors Investment Corp Headquarters. $762.4M.
- FIBRA Prologis Headquarters. Mexico.
- Invesco Mortgage Capital Inc Headquarters.
How often are dividends paid by AGNC?
AGNC Investment Dividend Information
AGNC Investment has a dividend yield of 15.21% and paid $1.44 per share in the past year. The dividend is paid every month and the next ex-dividend date is Feb 28, 2024.
About AGNC
AGNC is a financial services company founded in 2008. This small company employs 51 people domestically. See AGNC's employee benefits outlined below.
| Stock | Dividend yield |
|---|---|
| Gilead Sciences Inc. (GILD) | 4.2% |
| Verizon Communications Inc. (VZ) | 6.6% |
| National Storage Affiliates Trust (NSA) | 6.2% |
| Realty Income Corp. (O) | 6% |
However, there are a lot of safe dividend stocks out there. Kinder Morgan (NYSE: KMI), Equinix (NASDAQ: EQIX), and Lockheed Martin (NYSE: LMT) are three super-safe dividend stocks because they generate contractually secured cash flow and have strong financial profiles.
We have selected five dividend growth stocks — Griffon Corporation GFF, ArcBest Corporation ARCB, Ralph Lauren Corp. RL, KB Home KBH and PACCAR Inc. PCAR — that could be solid choices for your portfolio.
