This mortgage REIT invests primarily in agency mortgage-backed securities, including the Government National Mortgage Association, or Ginnie Mae; the Federal National Mortgage Association, or Fannie Mae (FNMA); and the Federal Home Loan Mortgage Corporation, or Freddie Mac (FMCC). The shares have a current annual dividend yield of 8.07%, paid monthly.
AGNC Investment Corp. (AGNC)
From Cabot Dividend Investor
Earnings have been spectacular. The first 25% of S&P 500 companies to report first-quarter results delivered and average of 33.8% earnings growth over last year’s quarter and have exceeded expectations by the most in history. That’s pretty good. But the market has been yawning it off.
Most companies’ stock prices are not getting a boost from great earnings. Many are even pulling back after the earnings announcement. The market seems spoiled. Great earnings are no big deal. Exceeding expectations isn’t exciting. Even blowing away expectations is to be expected and no longer a thrill.
What can possibly impress a market like this?
The stellar results vs. high expectations standoff is so far resulting in the market drifting higher. But the pace of the ascent is less than it was. And stocks are looking toppy in the near term. That said, I still believe that the smashing recovery should deliver a higher market between now and the end of the year.
The top performing sectors of the past months include cyclical sectors that have not yet gotten overextended, including financials and materials, as well as defensive sectors in real estate and health care.
Mortgage REIT (Real Estate Investment Trust) AGNC Investment Corp. has been in an uptrend for over a year that has steepened over the past couple of weeks.
AGNC will benefit from a stronger economy (as demand for mortgages increases) as well as rising interest rates and has been moving higher in anticipation. In the past few weeks, a stronger economy and likely rising rates have become more of a reality, and the stock is reacting accordingly.
I expect more of the same over the course of the year. BUY
Tom Hutchinson, Cabot Dividend Investor, cabotwealth.com, 978-745-5532, May 5, 2021