Should You Buy AGNC Investment While It's Below $10?

AGNC Investment (NASDAQ: AGNC) is a difficult dividend stock to understand. On the one hand, it offers a gigantic 16% dividend yield. On the other hand, it has a long history of dividend cuts behind it. It isn't a bad mortgage real estate investment trust (REIT), but dividend investors need to be very careful if they buy this stock, and the $10 price point is an interesting one to consider following first-quarter results.Technically, the story should be about a stock price of $10.24. That number is derived from the $509 million in capital AGNC Investment raised from the sale of 49.7 million shares of stock in the first quarter of 2025. Divide the cash raised by the number of shares sold, and you come out with $10.24 per share.In a vacuum, this number doesn't mean very much. It starts to become material when you consider the value of AGNC Investment. It is a mortgage REIT that buys bond-like securities that are created by pooling individual mortgages together. So the value of the company is basically the value of the mortgage bonds it owns, which the company reports at the end of every quarter. At the end of 2024, the company's tangible net book value was $8.41 per share. By the end of the first quarter that was down to $8.25 per share.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool