Annaly Capital (NYSE: NLY) and AGNC Investment (NASDAQ: AGNC) offer dividend yields of about 16.4% and 17%, respectively, but their share prices have fallen sharply as interest rates rose, since the value of the mortgage securities they hold is affected by rates. The article describes both as high-risk, complex investments with volatile dividend histories, unsuitable for investors who rely on steady income, though long-term results are much stronger when dividends are reinvested. AGNC invests entirely in mortgage securities, which the article links to its slightly higher yield and lack of diversification. Annaly also owns mortgage servicing rights, which generate a reliable but small fee income, giving it a slight edge.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: Annaly or AGNC : Which 16 %- Yielding Mortgage REIT Is the Better Buy ?
Read the original on aol.com ↗
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- With an Over 16% Yield, Is Now the Time to Buy AGNC Stock?
AGNC Investment (AGNC) offers a dividend yield above 16% and has paid a steady $0.12 per month since 2020. Its tangible book value (TBV) per share fell nearly 17%, or $1.45, to $7.13 in the third quarter from $8.58 at the end of the second quarter, as the value of its agency MBS portfolio declined with interest rate moves. Net spread and dollar roll income was $0.37 per share, above the $0.36 dividend, and the company raised $992 million through its at-the-market offering program. CEO Peter Federico said agency MBS look more attractive at current valuations, with yields near 6.5% and an expected 18% to 20% return on new investments. The article notes the market has already priced in much of the rate risk, while interest rate and mortgage spread volatility remain key risks.
- Is AGNC Investment 16.5%-Yielding Dividend Still Safe? Its Earnings Are Declining, But the CEO Just Said Another Metric Matters More.
AGNC Investment (AGNC) had a tough third quarter, with earnings and book value both declining. Tangible net book value per share fell $1.45 (16.9%) to $7.13, and the economic return on common equity was -12.7%. Net spread and dollar roll income of $0.37 per share was close to the $0.36 paid in dividends and marked a third straight quarterly decline. The share price drop pushed the dividend yield to 16.5%, but CEO Peter Federico said the dividend remains well aligned with the business, citing a total cost of capital of around 19%, a roughly 20% return on equity on the existing portfolio, and about 19% on new investments. The article concludes the payout appears safe for now but would be at risk if returns fell below costs, reflecting the high-risk profile behind the high yield.
- With an Over 16 % Yield , Is Now the Time to Buy AGNC Stock ?
AGNC Investment (AGNC), a mortgage REIT (mREIT) with a yield above 16%, has paid a $0.12 monthly dividend since 2020, while its net spread income has continued to exceed that payout. Its tangible book value per share fell $1.45, or nearly 17%, to $7.13 at the end of Q3 from $8.58 at the end of Q2, as the value of its MBS portfolio declined after the Fed began a rate-hiking cycle. The company raised $992 million through its at-the-market offering program, and its Q3 net spread and dollar roll income of $0.37 per share covered $0.36 per share in dividends. CEO Peter Federico said agency MBS are considerably more attractive at current valuation levels, with yields near 6.5%. The article argues the current period may be a favorable time to consider AGNC stock, although interest rate risk remains.
- Is AGNC Investment's 16.5%-Yielding Dividend Still Safe? Its Earnings Are Declining, But the CEO Just Said Another Metric Matters More.
AGNC Investment's third-quarter earnings and tangible book value per share both declined, with the latter falling $1.45 (16.9%) to $7.13 as surging rates hit Agency MBS, and the share price drop pushed its dividend yield to 16.5%. Net spread and dollar roll income was $0.37 per share, close to the $0.36 paid in dividends ($0.12 monthly) and the third straight quarterly decline, while the economic return on common equity was a negative 12.7%. CEO Peter Federico said the key metric is total cost to capital, roughly 19%, while the existing portfolio generates about a 20% return on equity and new investments about 19%, so the dividend remains well aligned with the business economics. The article concludes the payout appears safe for now but would be at risk if returns fall below costs, and that the high yield reflects the mortgage REIT's high-risk profile.
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- AGNC Investment : 3 Key Takeaways for Long - Term Investors
AGNC Investment's third-quarter 2026 earnings call, held October 20, 2026, reported a comprehensive loss of $1.28 per common share, as tangible net book value declined because Agency MBS underperformed interest rate hedges. The company issued $992 million of common stock through its at-the-market program at a significant premium to tangible net book value, and used the capital to expand its portfolio by $2.5 billion while keeping leverage at 7.9 times. Management estimated expected returns on equity in the 18%-20% range based on current mortgage pricing. Extension risk has peaked, with less than 2% of the mortgage universe carrying a refinancing incentive, making cash flows more predictable. The company has a $6.3 billion liquidity buffer.
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