History Says AGNC Can Keep Paying Through a Rate Shock: Its Dividend Held as Book Value Fell 38% in 2022
AGNC (NASDAQ: AGNC) , the world's second-largest mortgage real estate investment trust ( mREIT ), pays a forward dividend yield of 16.2%. That massive dividend might seem like a bright red flag, especially as rising interest rates and Treasury yields rattle the market. Still, it's actually paid continuous dividends ever since its IPO in May 2008. During those 16 years, the U.S. economy experienced three major "rate shocks" in 2013, 2018, and 2022. Let's see how AGNC kept paying dividends through those downturns that significantly reduced its book value, and whether that resilience makes it a worthwhile investment. Image source: Getty Images. Continue reading