Dividend Details
Calculate AGNC Dividend Income
Quick Facts
- Yield: 12.82%
- Frequency: Monthly
- Sector: REIT
About AGNC Investment Corp
AGNC Investment Corp is a mortgage REIT that invests primarily in agency residential mortgage-backed securities guaranteed by US government-sponsored entities like Fannie Mae and Freddie Mac. This government backing eliminates credit risk, but AGNC's returns are heavily influenced by the spread between short-term borrowing costs and long-term mortgage rates. The fund pays one of the highest monthly dividend yields in the market, though investors should be aware that mortgage REIT dividends can fluctuate with interest rate changes. AGNC uses leverage to amplify its portfolio returns, which magnifies both gains and losses.
AGNC Dividend FAQ
What is AGNC's current dividend yield and payout?
AGNC currently yields 12.82% annually, paying $1.44 per share per year based on a share price of $11.25. This translates to $0.1200 per share per month.
How often does AGNC pay dividends?
AGNC distributes dividends monthly, making it attractive for investors who rely on dividends for regular cash flow. Monthly payers are particularly popular with retirees who use dividend income to cover living expenses. Each monthly payment is approximately $0.1200 per share.
How much does $10,000 invested in AGNC pay in dividends?
A $10,000 investment in AGNC at $11.25 per share buys approximately 888 shares. At the current 12.82% yield, this generates approximately $1282 per year, or $107 per month in dividend income before taxes.
Is AGNC's dividend sustainable?
Evaluate AGNC's free cash flow coverage and balance sheet strength from its latest quarterly earnings. A healthy dividend typically has a payout ratio below 75% and growing free cash flow.
AGNC Dividend Investing Guide
AGNC Investment Corp (AGNC) represents a compelling opportunity for dividend investors seeking high-yield income in their portfolios. As a reit sector stock, AGNC offers exposure to real estate income through required dividend distributions.
As a monthly dividend payer, AGNC provides more frequent income distributions compared to traditional quarterly payers. This payment schedule is particularly attractive for retirees and income-focused investors who prefer regular cash flow to cover expenses or reinvest through DRIP programs.
To maximize returns from AGNC dividends, consider strategies like dividend reinvestment (DRIP) to compound growth over time, tax-efficient account placement for qualified dividends, and portfolio diversification across sectors and payment schedules. Use our DRIP calculator to project long-term growth or our tax calculator to estimate after-tax income from your AGNC investment.